Modern MFG Services, Inc., Wholly Owned Subsidiary, Has Received the Second Draw Down Funding On the SPARTAN Scout USV Project.

Business Editors

SILVERDALE, Wash.--(BUSINESS WIRE)--Dec. 4, 2002

Modern MFG Services, Inc.'s (OTCBB:MMFS) wholly owned subsidiary: Integrated Maritime Platforms International, Inc. (IMPII) has received a second increment of funding of over $260,000 under their SPARTAN Scout Advanced Concept Technical Demonstration (ACTD) for Unmanned Surface Vehicles.

In the SPARTAN Program, IMPII is an equal partner with two major defense contractors and a US Navy Lab. The funding will support IMPII's program management and trade study tasking.

Roger Janssen, Modern's President and CEO said, "This program is only one component of our comprehensive corporate strategy for the domestic and international market. With the recent passing of the Homeland Security Bill, and the resultant increase in the defense budget, involvement in this program positions the company to capitalize on a tremendous opportunity."

A recent article was published in the October 18-21 issue of Defense News quoting the Chief of Naval Operations: Adm. Vern Clark and Spartan Program Manager: Vic Ricci.

Below is excerpted from the Defense News published article written by Jason Sherman:

Ricci's team has been exploring ways to accelerate the program since Clark paid a Sept. 18 visit to their offices at the Naval Undersea Warfare Center at Newport, R.I. Speeding Spartan to the fleet will require more than the $53 million approved for the six-year effort in 2002. Ricci said the price will change depending on the desired capability and delivery date, neither of which have been set.

The objective of the Spartan project is larger than the three boats that will be handed over to U.S. Pacific Command's 3rd Fleet.

The aim is to "demonstrate the military utility of (unmanned surface vehicles) for assured access and force protection" in shallow waters, according to a program briefing. Spartan also aims to "fill a void in capability that the fleet is in critical need of today."

Equipped to conduct mine warfare, force protection, surveillance and reconnaissance, and to launch attacks, these remotely controlled boats could clear the way for amphibious and sealift operations, said Ricci.............SEE ENTIRE ARTICLE IN THE PRESS RELEASE: DEC. 03, 2002 ON OUR WEBSITE.

Under Janssen's leadership, Modern is finishing designs for craft in several hull lengths that satisfy the core boat requirements of this program. The company plans to conduct a final design review later this month, with a construction start date of early January. "Essentially," says Janssen, "this is a new product line for us that complements our existing series of manned craft."

MMFS OTHER PRODUCTS:

Modern MFG Services, Inc. (MMFS) is also the exclusive provider of the GB-Challenger Class Craft, a high-speed, long-range multi-mission coastal patrol craft; unique in its ability to accept interchangeable mission modules. The GB-Challenger Class Craft range in size from 7 to 16+ meters... FOR MORE INFORMATION ON THE GB-CHALLENGER CLASS CRAFT -- VISIT OUR WEB SITE:

For further information, please contact: Modern MFG Services, Inc. 1-425-315-1772 or visit our website at www.modernmfg.com

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