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UNMANNED SYSTEMS UPDATE 04 Apr 05

04 Apr 05. Northrop Grumman Corporation’s RQ-4 Global Hawk reached 4,000 combat hours on March 23 during an operational mission in support of the war on terrorism. Performing nearly continuous combat service with the U.S. Air Force since 2001, the high-altitude, long-endurance unmanned reconnaissance system achieved the milestone largely through the exceptional performance of one air vehicle operating in theater. Overall, the system has achieved more than 6,500 total flight hours accumulated by multiple aircraft. “Reaching 4,000 combat hours is continued proof of the system’s reliability and its value to our men and women in combat,” said George Guerra, director of Northrop Grumman’s Air Force Global Hawk program. “Early on, the Air Force placed a great deal of confidence in Global Hawk by pressing it into service supporting combat operations well ahead of schedule. Since its debut in theater, the system has provided unprecedented support to our fighting forces on the ground, at sea and in the air.”

07 Apr 05. Aurora Flight Sciences delivered the first aft fuselage for the new RQ-4B model of the Global Hawk unmanned aerial vehicle to prime contractor Northrop Grumman. Under the previously announced Engineering and Manufacturing Development Phase II (EMD) contract, Aurora designed and fabricated tooling for the new aircraft’s aft fuselage, vertical tails and engine nacelle components. Delivery of the first aft fuselage is a major milestone for the RQ-4B program and validates Aurora’s tool development process.

05 Apr 05. Northrop Grumman Corp, San Diego, Calif., is being awarded an
$11,748,783 modification to a previously awarded cost-plus-incentive-award-fee
contract (N00019-00-C-0277) for the procurement of Fire Scout UAV hardware for the U.S. Army in support of the Future Combat System. Hardware
to be procured includes 8 each airframes, identify friend or foe transponders, and radar altimeters and 16 each global positioning systems/inertial navigation
systems, antennas; pressure transducers; and precision differents. Work will be
performed in Elmira, N.Y. (85 percent) and San Diego, Calif. (15 percent), and is expected to be completed in November 2006. Contract funds will not expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

04 Apr 05. Cyber Defense Systems, Inc. Receives Additional $4.0m Financing. Cyber Defense Systems, Inc. announces that it has received $4,000,000.00 in short-term convertible debt financing. Cyber Defense Systems is an operating subsidiary of Proxity, Inc. The financing is a result of ongoing negotiations with institutional investors who will provide Cyber Defense the $4.0 million financing in connection with the sale of 8% Senior Secured Convertible Redeemable Notes. Cyber Defense has received $1.5 million of gross proceeds from such financing and will receive the balance in two parts, upon filing the Registration Statement relating to such shares and upon the effectiveness of such Registration Statement. The funding sources will also receive four million warrants priced at $4.25 a share. For additional information please refer to our 8K filing to be filed today. This $4.0m financing will provide Cyber Defense with the working capital necessary to meet most of the Company’s short-term goals pay off certain debt instruments, as well as to fund the ongoing development of its products. Recent sales to government and military advisors could open multiple opportunities for this line of UAV’s. The current Vertical Landing and Take Off Vehicle (VTOL) called the CyberScout(TM) has recently completed stable takeoff and hover mode. Based on the successful ongoing development of the CyberScout(TM), the Company recently announced the next generation CyberScout(TM) version to be a Jet Powered CyberScout(TM). Cyber Defense also has the global government and military marketing rights to Techsphere Systems International LLC’

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