ADSI's American Physical Security Group Awarded $6.2 Million Contract for Large U.S. Military Installation

HICKSVILLE, NY, Jan 28 (MARKET WIRE) --
American Defense Systems, Inc. ("ADSI") (AMEX: EAG), a leading provider
of advanced transparent and opaque armor, architectural hardening and
security products for Defense and Homeland Security, reported its
physical security unit, American Physical Security Group, LLC ("APSG")
has been awarded a contract to provide physical hardening solutions to a
large U.S. Military installation.

The contract, valued at approximately $6.2 million, was awarded by the
primary contractor for the new installation. The project is to begin in
the third quarter of 2009 and be completed by end of the year. The
installation will include APSG's sliding blast magazine door systems to
protect supplies of weapons and munitions. These products are part of the
company's Hi-Threat(TM) line of forced entry, bullet and blast resistant
doors, windows, louvers and security stations.

"This represents the largest single order for our new APSG unit," said
American Defense Systems Chief Executive Officer Anthony J. Piscitelli,
"and it will be designed to provide a high level of protection and
security for the U.S. military at certain ammunition supply points. This
order also reflects what we see as a growing awareness and need to
protect our citizens, diplomats, and military personnel in government,
commercial and military facilities around the world with advanced
security and protection technologies like those provided by APSG. This
customer has a number of options, so we attribute this award to our
reputation for delivering and maintaining installations at the highest
level of effectiveness, while also remaining cost-competitive."

About American Physical Security Group

American Physical Security Group, LLC ("APSG") products are designed to
protect citizens, diplomats and military personnel in government,
commercial and military facilities around the world. Tested and certified
by the U.S. Department of State Diplomatic Security Bureau, APSG's
products have been designed and engineered to be among the highest
commercially available levels of security and precision with cutting-edge
laser technology, automated milling and the strictest of quality
controls. From the Hi-Threat(TM) line of forced entry, bullet and blast
resistant doors, windows, louvers and security stations, to the American
Anti Ram(TM) crash-tested vehicle barricades, APSG provides
state-of-the-art solutions for all force protection needs.

APSG is a wholly-owned subsidiary of American Defense Systems, Inc.
(ADSI), a world leader in the design, manufacture and installation of
transparent and opaque armor, security door, window and curtain wall
systems. For more information about American Physical Security Group, go
to www.americanpsg.com.

About American Defense Systems

American Defense Systems, Inc. (ADSI) 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. From the New York Stock Exchange to the battlefields of
Iraq and Afghanistan, ADSI proudly protects and serves those who defend,
serve and protect us with an uncompromising commitment to safety and
excellence. For more information about American Defense Systems, go to
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,"
"forecasts," "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.

Company Contacts:
Roger Ward
V.P. of Marketing & Investor Relations
American Defense Systems, Inc.
Tel 516-390-5300, x326
Email: Email Contact

Investor Relations:
Ron Both
Managing Director
Liolios Group, Inc.
Tel 949-574-3860
Email: Email Contact

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