U.S. Army TACOM Issues American Defense Systems Inc. Sole Source Requirements Contract

HICKSVILLE, N.Y.--(Business Wire)--
American Defense Systems, Inc. "ADSI" (AMEX: EAG), offering
advanced solutions in the design, fabrication and installation of
transparent and opaque armor, security doors, windows and curtain wall
systems, announced today that the United States Army Tank-Automotive
and Armaments Command (TACOM) issued the Company a one year Sole
Source requirements contract, building on the Company's existing bull
dozer and multi-vehicle armoring contracts with TACOM. The latest
contract focuses on spare and replacement parts for ADSI's Crew
Protection Kits for construction equipment used by the U.S. Army.
Based on estimated quantity requirements, the contract is valued at
approximately $2 million, to be realized by the Company during 2008
and 2009. The total value of the contract could be less or potentially
rise as extensions are required, dependent upon demand for replacement
parts.

Fergal I. Foley, Chief Operations Officer of American Defense
Systems, Inc., remarked, "Our long standing relationship with TACOM is
further enhanced by the issuance of this Sole Source requirements
contract. As one of TACOM's top ten small business partners, ADSI will
continue to support TACOM's efforts by delivering the highest quality
product in an expeditious manner."

A requirements contract allows the flexibility for individual U.S.
Army units to place orders by use of the contract vehicle, thus
streamlining the supply chain process.

About American Defense Systems, Inc.

American Defense Systems, Inc. "ADSI" (AMEX: EAG) offers advanced
solutions in the design, fabrication, and installation of transparent
and opaque armor, security doors, windows and curtain wall systems for
use by military, law enforcement, homeland defense and corporate
customers. ADSI engineers also specialize in developing innovative,
functional and aesthetically pleasing security applications for the
mobile and fixed infrastructure physical security industry.

For more information about American Defense Systems, Inc. please
visit the corporate Web site at http://www.adsiarmor.com

Some of the statements made by American Defense Systems, Inc.
("ADSI") in this press release, including, without limitation,
statements regarding ADSI's anticipated future growth, are
forward-looking in nature. ADSI intends that any forward-looking
statements shall be covered by the safe harbor provisions for such
statements contained in the Private Securities Litigation Reform Act
of 1995. Statements that are predictive in nature, that depend upon or
refer to future events or conditions, or that include words such as
"may," "will," "should," "expects," "anticipates," "intends," "plans,"
"believes," "estimates," "predicts," "potential," "continues" and
similar expressions are forward-looking statements. ADSI cautions you
that forward-looking statements are not guarantees of performance.
ADSI undertakes no obligation and disclaims any obligation to update
or revise any forward-looking statements, whether as a result of new
information, future events, or otherwise. Forward-looking statements
involve known and unknown risks and uncertainties that may cause
ADSI's actual future results to differ materially from those projected
or contemplated in the forward-looking statements. ADSI believes that
these risks include, but are not limited to: ADSI's reliance on the
U.S. government for a substantial amount of its sales and growth;
decreases in U.S. government defense spending; ADSI's ability to
contract further with the U.S. Department of Defense; ADSI's ability
to comply with complex procurement laws and regulations; competition
and other risks associated with the U.S. government bidding process;
changes in the U.S. government's procurement practices; ADSI's ability
to obtain and maintain required security clearances; ADSI's ability to
realize the full amount of revenues reflected in its backlog; ADSI's
reliance on certain suppliers; and intense competition and other risks
associated with the defense industry in general and the
security-related defense sector in particular. Additional information
concerning these and other important risk factors can be found under
the heading "Risk Factors" in ADSI's filings with the Securities and
Exchange Commission, including, without limitation, its most recent
registration statement on Form 10. Statements in this press release
should be evaluated in light of these important factors.

American Defense Systems, Inc.
Mr. Roger Ward, +1-516-390-5300, x326
Vice President of Marketing & Investor Relations
rward@adsiarmor.com

Copyright Business Wire 2008