United Kingdom Ministry of Defence Signs $1.5 Million Contract with FATS, Inc.

ATLANTA -- The Defence Procurement Agency (DPA) of the United Kingdom Ministry of Defence (MOD) has awarded FATS a contract valued at approximately $1.5 million. This contract includes more than 90 weapon simulators that FATS will begin delivering in April 2006. E[acute accent]FATS will convert live-fire General Purpose Machine Guns into simulated firearms that will interface with Dismounted Close Combat Trainers (DCCT) already deployed throughout the United Kingdom. The new contract also includes FATS marksmanship courseware. E[acute accent]FATS DCCT trains multiple soldiers at the same time using computer generated imaging and digital video technology. DCCT supports basic to advance marksmanship, use of force judgment, shoot/don't shoot decision-making and small unit tactical training. E[acute accent]"FATS' long-standing relationship with the UK MOD illustrates our ability to meet the demands of our military customers," said Ron Mohling, FATS chief executive officer. "Since 1992, we have manufactured and delivered more than 300 virtual training systems to the UK MOD." E[acute accent]This order follows a recent award by the UK MOD earlier this month for 20 new DCCT systems. To date, FATS has deployed more than 5,200 virtual training systems to more than 50 countries worldwide. E[acute accent]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. E[acute accent]Except for financial information contained in this press release, the matters discussed may consist of forward-looking statements under the Private Securities Litigation Reform Act of 1995. The accuracy of the forward-looking statements, including statements regarding future events or the future financial performance of the company, is necessarily subject to a number of risks and other factors which could cause the actual results to differ materially from those contained in the forward-looking statements. Among such factors including those discussed above are: general business and economic conditions; the company's success in competing for new contract awards; customer acceptance of and demand for the company's new products; receipt and delivery of a sufficient level of orders from new and existing customers as well as satisfactory completion of delivery of a sufficient portion of backlog; the company's overall ability to design, test, and introduce new products on a timely basis; the cyclical nature of the markets addressed by the company's products; and the risk factors listed from time to time in documents on file with the SEC. When used in this release, the words "believes," "estimates," "plans," "expects," "should," "will," "may," "might," "anticipates" or similar expressions as they relate to the company, or its management, are intended to identify forward-looking statements. The company, from time to time, becomes aware of rumors concerning the company or its business. As a matter of policy, the company does not comment on rumors. Investors are cautioned that in this age of instant communication and Internet access, it may be important to avoid relying on rumors and unsubstantiated information regarding the company. The company complies with Federal and State law applicable to disclosure of information concerning the company. Investors may be at significant risk in relying on unsubstantiated information from other sources.