FATS, Inc. Teams With Lockheed Martin to Build Reconfigurable Vehicle Simulator for U.S. Army.

ATLANTA -- FATS, Inc. announced today that it has partnered with Lockheed Martin to build a Close Combat Tactical Trainer (CCTT) Reconfigurable Vehicle Simulator (RVS) for the U.S. Army. FATS is a leader of high quality simulation systems and training solutions for military organizations around the world.

The U.S. Army Program Executive Office for Simulation, Training and Instrumentation awarded the contract, valued at $3.7 million. The first system will be delivered to the U.S. Army in six months. There will also be an opportunity for two additional one-year production options.

The CCTT RVS will provide training with vehicles used in combat and tactical missions in a virtual combat environment with simulated firearms. The simulator will have the ability to train five crew members simultaneously. To allow multiple viewpoints during training, the CCTT RVS will be comprised of two 360 degree field-of-view, reconfigurable vehicle simulators built into an expandable, mobile trailer or at a stand-alone location.

FATS will provide weapon simulators, ballistics, simulated bullet detection and night vision for the CCTT RVS, including relevant hardware and software components. FATS firearm simulators realistically resemble the fit and function of live weapons. FATS virtual training provides accurate, real-time diagnostics including point-of-aim, weapon status, trigger pressure and cant.

"Strategic relationships are vital in defense contracts," said Ron Mohling, chief executive officer of FATS. "This project exemplifies the value of bringing together the best available technologies to serve military objectives. FATS and Lockheed are providing realistic training that will help save lives."

FATS and Lockheed Martin first joined forces in June 2004 to create the Virtual Combat Convoy Trainer. Lockheed Martin Simulation, Training & Support in Orlando, Fla., will design and produce the simulator.

About Lockheed Martin

Headquartered in Bethesda, Md., Lockheed Martin (NYSE: LMT) employs about 130,000 people worldwide and is principally engaged in the research, design, development, manufacture and integration of advanced technology systems, products and services. The company Web site is www.lockheedmartin.com.

About FATS, Inc.

FATS, Inc. (OTC: FATS) designs and sells virtual training systems that improve the skills of the world's military, law enforcement and security forces. FATS' training provides judgmental, tactical and combined arms experiences, utilizing quality engineered weapons and simulators. The company serves U.S. and international customers from headquarters in Suwanee, Georgia, with branch offices in Australia, Canada, Singapore, Netherlands and United Kingdom. FATS, an ISO 9001:2000 certified company, celebrated its 20th anniversary in 2004. The company Web site is www.fatsinc.com.

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