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U.S. Army Selects Argon ST to Provide Advanced ISR Capability

$11 Million Contract Will Provide U.S Warfighters with Enhanced Intelligence in Modern Threat Environments

FAIRFAX, Va., December 3, 2008 — Argon ST, Inc. (NASDAQ: STST), a leading developer of command, control, communications, computers, combat systems, intelligence, surveillance, and reconnaissance (C5ISR) systems, today announced that it has been awarded a new contract to deliver advanced Intelligence Surveillance Reconnaissance (ISR) capabilities and systems to the U.S. Army CECOM.

The contract, valued at $11 million, calls for Argon to provide the U.S. Army with advanced ISR capabilities based on its Prism product. Argon's Prism product is designed to enable users to maintain a tactical advantage through rapid insertion of software enhancements. "We are pleased to be recognized by the U.S. Army as a leader in providing cutting-edge ISR capabilities to our troops. Argon received this award in large part as a result of our flight proven technology," said Dr. Terry Collins, Chairman and CEO, Argon ST. "Our Prism product represents an extension of our Lighthouse product line into a new and important field. Our warfighter's ISR capabilities need to adapt faster than threat technologies and we are committed to helping them do exactly that."

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, 2007). Some of these specific risks, although not all, are: the availability of governmental funding for the Company's products and services; changes in the U.S. federal government procurement laws, regulations, policies and budgets; the number, length and type of contracts and task orders awarded to the Company by its customers; 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; 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; 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.
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