The prototype has been developed and built by Ionatron in anticipation of this contract in an effort to assist in the fast tracking of a solution to the roadside bomb problem in Iraq.

"Our very good working relationship with the Deputy Secretary of Defense's Office gave us the confidence to spend our own funds to develop the concept, conduct initial testing and live fire range verification while the contract-was being negotiated, with the belief that we would likely recoup those funds once under contract," stated Thomas Dearmin, CEO of Ionatron.

Mr. Dearmin further commented, "The close proximity of Ionatron to the Davis Monthan AFB and their munitions testing range has allowed for faster test evaluation and turnaround design changes.

"Additionally, for Ionatron, it has facilitated immediate follow-up testing and then additional verification. The superb support the Air Force Explosive Ordinance Division has provided to Ionatron, on this and other U.S. Government projects, is second to none and has allowed for rapid product design and transition to a field ready product."

The urgency surrounding the fielding of a counter IED technology to U.S. forces in Iraq has been deemed so important by the Pentagon that Ionatron has dedicated a team for the implementation of this project.

Continued field testing of more advanced units at Davis Monthan AFB is scheduled for early April and, if successful, the Company anticipates commencing negotiations with the joint IED Task Force and Army Rapid Equipping Force for a production contract.

In anticipation of being awarded a contract, Ionatron has been making the necessary preparations to commence manufacture of production quantities.

The Department of Defense has stated publicly that upwards of 300 military convoys per day traveling roads within Iraq are subject to an average of 45 to 60 IED threats per day.

In addition, during a hearing on fiscal 2006 defense spending, it was reported that 800 of the 1,500 U.S. troops killed in Iraq were victims of IEDs.

Production would take place at the Company's Mississippi manufacturing facility at the NASA Stennis Space Center, which has been prepared for Ionatron with Army funding, and is expected to be ready for occupancy later this month.

The speed at which a production line at Stennis can be operating depends on continued testing, the further advanced development to be conducted, as well as future contract negotiations, the number of engineering changes required to the prototype, speed of hiring and subcontracting arrangements.

The Ionatron deployment team is now in the process of planning and preparing for all of these contingencies.

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