Wasserman Morris & Co. Reiterates Coverage for Cyber Defense Systems with a One-Year Share Price Target of a $1.60.

NEW YORK & ST. PETERSBURG, Fla. -- Cyber Defense Systems, Inc. (OTC BB:CYDF) today announced that New York-based Wasserman Morris & Company, an independent investment research firm, reiterates its coverage of the Company. E[acute accent]Wasserman Morris issued a speculative buy rating with a one-year target price of a $1.60 per share. Their report, which is available for viewing at http://www.wassermanmorris.com and on Cyber Defense Systems' website http://www.cduav.com, cites "It seems that the acceptance of UAVs may come even sooner than expected. As discussed in the initiation report, the current analysis of the industry is considering a 25-year span, with the year 2005 being just the beginning for the emerging UAV classes and categories. We are witnessing the childhood stage of an emerging industry. While a number of producers did make and deliver UAVs, we believe that the future market is significantly larger and broader than envisioned today. There are signs of increasing awareness of the industry, at least in the governmental sector". E[acute accent]Billy Robinson, Cyber Defense Systems' CEO, said, "Our continued success of the CyberBug(TM) and the growing interest in the M.A.R.S.(TM) airships shows us that targeted product development is beginning to paying off."

E[acute accent]ABOUT CYBER DEFENSE SYSTEMS, INC.

E[acute accent]Cyber Defense Systems, Inc. is designing and building a new generation of UAVs. Cyber Defense is currently marketing the airships and their CyberBug(TM) UAVs to various branches of the U.S. government and U.S. allies as multi-use platform vehicles capable of deployment in surveillance and communication operations. Cyber Defense Systems, Inc. http://www.cduav.com (OTCBB: CYDF)

E[acute accent]ABOUT TECHSPHERE SYSTEMS INTERNATIONAL, INC.

E[acute accent]Techsphere Systems International, Inc., a wholly owned subsidiary of Cyber Defense is located in Atlanta and Columbus, GA, is the manufacturer of low, mid and high altitude airships. Together with their teaming companies, Techsphere will design and build unique airship platforms for use in many areas including surveillance, the military and wireless communications. The current spherical airship design holds the world altitude record at over 20,000 feet. http://www.techsphere.us.

E[acute accent]ABOUT PROXITY, INC.

E[acute accent]Proxity, Inc. (PINK SHEETS:PRXT) is a developmental holding company specializing in the deployment and marketing of security protection technology and government contract fulfillment. The Company seeks to acquire and develop security technology as well as continue to develop the PECS product line. Proxity plans to enter into teaming and exclusive and nonexclusive marketing and distribution agreements with products developed for commercial, military and homeland defense. http://www.proxity.com

E[acute accent]ABOUT WASSERMAN MORRIS

E[acute accent]Wasserman Morris & Co. is an equity research firm providing un-biased research for significantly under-followed small cap companies. Wasserman Morris & Co. distributes its research to a broad audience of institutional and individual investors seeking information on under-followed small cap stocks. CYDF has paid Wasserman Morris upfront for 12 months of coverage as detailed in the report. http://www.wassermanmorris.com

E[acute accent]This release contains statements that constitute forward-looking statements. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control and those actual results may differ materially from those projected in the forward-looking statements as a result of various factors.