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Major US-Multinational Defense Contractor Awards Contract to Laser Energetics

Laser Energetics, Inc. announced today that the Company has received a contract from a major US-multinational defense contractor regarding its new, all solid- state Alexandrite BrightStar(TM) Laser. This contract is in support of the U.S. Army's initiative to develop an all solid-state laser for the next generation of chemical warfare agent sensor technology currently being developed.

The contract is valued at over $480,000.

This first contract follows the Army's selection of Laser Energetics' BrightStar(TM) as the laser technology of choice for remote sensing of chemical warfare agents. The technology was selected by a government panel, following the panel's evaluation of 20 different competing laser technologies from 18 laser companies.

Laser Energetics recently announced Patent filings (PCT/US10/983,275) with the US Patent office encompassing this new all solid-state type of Alexandrite laser, which the Company has named the BrightStar(TM) Alexandrite laser. Laser Energetics believes its BrightStar(TM) Alexandrite laser technology, in its various forms, has many applications on the battlefield as well as for homeland security, including detection of chemical and biological warfare agents and detection of high explosives. The potential for future sales, given the demand and size of the market, may well be in the hundreds of millions of dollars.

Robert Battis, CEO of Laser Energetics, stated, "Laser Energetics is on the fast track with the development of the BrightStar(TM) Alexandrite laser. This contract, which we believe is the first of many, validates our technology, and provides us with a major entrée into the defense marketplace, where orders can often run into the hundreds of millions of dollars. We expect the military to utilize our technology for a variety of applications, which will mean multiple contracts over many years. We expect to be in a position to provide more details regarding the new contract, including the name of the contractor, when we receive their corporate approval to do so, which should be within the next 90 days."

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