U.S. Marine Corps Upgrades Security Guard Order with FATS, Inc.; Contract Value Increases to $11 Million.

ATLANTA -- The U.S. Marine Corps (USMC) exercised the first option of the Marine Corps Security Guard contract originally awarded September 28, 2005 to FATS, Inc. The award increases the overall contract value from $5.4 million to approximately $11 million. A potential value of $9 million in options remains.

FATS will manufacture and deliver virtual training solutions to over 140 U.S. embassies around the world. Deliveries include systems, customized courseware and simulated weapons. The FATS system fielded for this program is a fully integrated synthetic training environment platform, engineered with portability as a feature. The prototype was built in 45 days and is now in pre-production.

"The exercise of this option by the U.S. Marine Corps will allow us to realize production efficiencies early in the life of this program," said FATS chairman and chief executive officer Ron Mohling. "We will be able to accelerate deliveries to Marines around the globe who will be able to capitalize on the finest training capability available."

FATS, Inc., a subsidiary of Firearms Training Systems, 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 weapon simulators. The company serves U.S. and international customers from headquarters in Suwanee, Georgia, with branch offices in Australia, Canada, 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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