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PERCEPTRONICS WITH CACE(R) IS $1 MILLION PART OF HUGHES TEAM ON NEW ARPA FLEXIBLE MANUFACTURING PROGRAM

 WOODLANDS HILLS, Calif., Nov. 22 /PRNewswire/ -- Perceptronics Inc. (OTC: PERC) today announced that the Hughes Santa Barbara Research Center team, of which it is a member, has been awarded a major new development program from ARPA (Advanced Research Projects Agency) involving the development and demonstration of integrated technology for Flexible Manufacturing of Infrared Focal Plane Arrays (IRFPA/FM).
 Perceptronics' portion of the IRFPA/FM Program consists of a set of baseline tasks equaling approximately $1 million over a two-year period. An additional set of options, if exercised, could increase the total subcontract above this amount over a five-year period, but it is too early to estimate their total value. The company has begun work on the first baseline tasks under interim funding while the subcontract as a whole is being finalized.
 In its part of the program, Perceptronics will use its CACE(R) software technology in conjunction with other tools to develop new approaches to modeling, simulation and simulation-based analysis of the IRFPA flexible manufacturing factory.
 "Perceptronics is extremely pleased to be part of the Hughes IRFPA/FM Program team," said Dr. Gershon Weltman, chairman and chief executive officer of Perceptronics. "Hughes SBRC is a world leader in IRFPA design and manufacturing, and our companies have formed an excellent working relationship during the past two years on a smaller program to improve IRFPA manufacturing.
 "In addition to the welcome boost to our revenues and backlog," said Weltman, "the importance of this new program is that it will allow us to extend further our CACE(R) modeling and simulation technology into the manufacturing arena. We believe the manufacturing sector is large and rapidly expanding, and accordingly the new technology we provide to the IRFPA/FM Program will open a substantial market for us to service in the future."
 A key objective of IRFPA/FM is to reduce product design cycle time and decrease costs at low volume. To this end, Perceptronics' CACE/PM(R) and CACE/DMS(R) software technology can be used to integrate and manage the various design processes during product definition. New designs could be potentially analyzed and tested prior to any manufacturing using an Integrated Product Process Simulator (IPPS). The IPPS, which will contain a full-scale model of the entire factory, will be used to simulate the overall product development and fabrication process, including work in process, work cell loading, yields, personnel, etc. This will enable performance/cost/schedule analysis of new designs with respect to the anticipated manufacturing.
 The thrust of the Hughes team effort is to leverage the technology of Hughes SBRC, Perceptronics and others in the arena of factory management and IRFPA fabrication in order to create a complete, highly automated enterprise. This will provide the Department of Defense with a capability for flexible manufacturing of the critical IRFPA elements, which are used in many imaging systems, and will help establish a world standard for manufacturing in the 21st century.
 Weltman concluded, "The CACE(R) technology and business development team of Dr. Azad Madni, executive vice president for R&D and chief technical officer, and Dr. Amos Freedy, president and chief operating officer, has done an excellent job in positioning us for a program of international significance. Our strategy is to be a world leader in modeling and simulation technology for the design automation industry. Our work with Hughes SBRC and ARPA under the IRFPA/FM Program will help move us along that path."
 Perceptronics is engaged in research and development and in the manufacture and marketing of computer-based simulation software and systems for commercial and military decision support and training applications.
 -0- 11/22/93
 /CONTACT: Dr. Gershon Weltman of Perceptronics, 818-884-7470/
 (PERC)


CO: Perceptronics Inc. ST: California IN: CPR SU:

JB-LM -- LA009 -- 6776 11/22/93 11:00 EST
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Date:Nov 22, 1993
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