U.S. Navy Awards Argon ST $6.2 Million to Upgrade Its Surface Ship Torpedo Defense Program

FAIRFAX, Va.--(Business Wire)--
Argon ST, Inc. (NASDAQ:STST), a leading systems engineering, development and
services company providing full-service C5ISR (command, control, communications,
computers, combat systems, intelligence, surveillance and reconnaissance)
systems and services to a wide range of defense and intelligence customers,
today announced that it has received a $6.2 million award for engineering
development in support of the U.S. Navy`s Surface Ship Torpedo Defense (SSTD)
program.

The award, a modification to an existing contract, was received from the U.S.
Naval Sea Systems Command to complete the engineering development model design,
through critical design review, for the SSTD program`s AN/SLQ-25D system. The
SSTD program is a defensive system development to counter specific undersea
weapon threats to high value surface ships. The system consists of detection,
control, and counter weapon subsystems.

Since 2006, Argon has served as the lead contractor in designing, developing and
fielding the Torpedo Countermeasures Transmitting Set AN/SLQ-25 -- commonly
referred to as Nixie. Initially contracted to design and field the AN/SQL-25C, a
passive, electro-acoustic decoy system used to provide deceptive countermeasures
against acoustic homing torpedoes, Argon will now focus on creating the upgrade
to this important system.

"The AN/SLQ-25D is the next generation of the AN/SLQ-25C," commented Joe Carlin,
Senior Vice President, Argon ST. "The basis of the specification for the
AN/SLQ-25D is an open architecture. This new requirement is very strategic to
the Navy`s ability to ensure interoperability with all of its ships subsystems.
Additionally, the new AN/SLQ-25D will be able to serve as a host to other
systems thereby supporting other information gathering and threat detection."

Commenting on the strategic nature of the award to Argon, Kerry Rowe, President
and Chief Operating Officer, Argon ST said, "We are proud that the Navy
continues to rely on Argon for one of its most critical programs. This new open
architecture requirement will directly align Argon with the Navy`s future
procurement strategy. Argon will not only have the opportunity to field the
newly upgraded AN/SLQ-25Ds but will also be in a strategic position to use our
work to develop new projects. Once widely deployed on the Navy surface ships,
these systems will provide us a path to expand our footprint into other ship
subsystems."

Work under the contract will primarily be accomplished at Argon ST`s Lemont
Furnace, Pennsylvania facility with support from the corporate headquarters in
Fairfax, Virginia and the Smithfield, Pennsylvania production facility. The
effort is expected to be completed by September 2012.

About Argon ST, Inc.

Argon ST, Inc. designs, develops, and produces systems and sensors for the
Command, Control, Communications, Computers, Combat Systems, Intelligence,
Surveillance, and Reconnaissance (C5ISR) markets including SIGINT (Signals
Intelligence), ESM (Electronic Support Measures), EW (Electronic Warfare), IO
(Information Operations), imaging, and acoustic systems serving domestic and
international markets.

Forward-Looking Statements

Statements in this press release which are not historical facts are
forward-looking statements under the provision of the Private Securities
Litigation Reform Act of 1995. These statements may contain words such as
"expects", "could", "believes", "estimates", "intends", "may", "envisions",
"targets" or other similar words. Forward-looking statements are not guarantees
of future performance and are based upon numerous assumptions about future
conditions that could prove not to be accurate. Forward-looking statements are
subject to numerous risks and uncertainties, including without limitation the
risks and uncertainties identified in the reports filed by the Company with the
Securities and Exchange Commission (including the Company`s Form 10-K for the
fiscal year ended September 30, 2008). Some of these specific risks, although
not all, are: the availability of both commercial and governmental funding for
the Company`s products and services; changes in the U.S. federal government
procurement laws, regulations, and policies; the number, length and type of
contracts and task orders awarded to the Company by its commercial and
governmental customers; the availability of supply channels and materials;
difficulties in developing and producing operationally advanced technology
systems; the timing and customer acceptance of contract deliverables; the
Company`s ability to attract and retain qualified personnel, including personnel
with appropriate security clearances; charges from any future impairment
reviews; the future impact of any acquisitions or divestitures the Company may
make; the competitive environment for information technology products and
services; general economic, business and political conditions nationally and
internationally, including federal budgetary priorities; and other factors
affecting the Company`s business that are beyond its control. All of the
forward-looking statements should be considered in light of these factors.
Investors should not put undue reliance on any forward-looking statements. We
undertake no obligation to update these forward-looking statements to reflect
new information, future events or otherwise.

Argon ST, Inc.
Investor Contact:
Aaron Daniels, 703-995-5610
ir@argonst.com
or
Media Contact:
Lori Hughes, 703-995-5610
media@argonst.com

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