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Irvine Sensors Plans to Jointly Pursue UAS Business Opportunities

Irvine Sensors Corporation today announced that it has entered into a Memorandum of Agreement ("MOA") memorializing a teaming arrangement with Applied Research Associates, Inc., a diversified product and technical services company.

Pursuant to the MOA, Irvine Sensors and Applied Research plan to jointly pursue business opportunities involving the integration of thermal and visible cameras on very small, unmanned air systems ("UASs"). Applied Research is the manufacturer of the Nighthawk(TM) micro UAS, initial quantities of which are currently deployed in combat operations.

The Nighthawk is a UAS the size of a model airplane that utilizes advanced composite materials to achieve very light weight while still carrying a useful payload. It is presently configured to be man-launched. Irvine Sensors and Applied Research plan to upgrade the Nighthawk's capability through integration of Irvine Sensors' proprietary thermal and visible cameras and addition of such features as launching from vehicles and secure wireless transmission.

Applied Research and Irvine Sensors have recently successfully demonstrated the ability of the Nighthawk to be launched from a tube, such as would be required for mounting on combat vehicles. Under the teaming arrangement, Irvine Sensors will act as prime contractor for contracts involving Nighthawk-based applications for use on U.S. Army and U.S. Marine Corps mounted combat vehicles, with Applied Research serving as subcontractor.

For other Nighthawk-based applications, the roles will be reversed, with Applied Research serving as prime contractor and Irvine Sensors as subcontractor. If other application opportunities emerge from the teaming arrangement, the contractual relationships will be determined on a case-by-case basis.

John Carson, Irvine Sensors CEO, said, "Our proprietary camera technology offers a unique combination of light size and weight, low power and good resolution. We also have pioneered the packaging of advanced electronics in highly compact forms. Applied Research's proprietary UAS technology offers a unique combination of light weight, carrying capacity and structural flexibility.

The synergy between us is compelling." Jim Shinn, Senior V.P. of ARA added, "We are very pleased to team with ISC. We expect the combination of ARA's Nighthawk and ISC's thermal imaging to provide users a powerful combination of UAS and high quality images. In fact, we jointly believe that the integration of all this can offer a capability unmatched by other small UASs and position our team to be strong competitors in this growing and important market."

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