Irvine Sensors to Develop Anti-Piracy System for Government

Company receives $1M in government funds to develop encrypted electronic security system


COSTA MESA, Calif., Aug. 8 -- Irvine Sensors Corporation (Nasdaq: IRSN; Boston Stock Exchange: IRSN) today announced receipt of an approximate $1 million government contract to develop a system to protect high value and sensitive electronics and software from piracy and reverse engineering. The new contract is a follow on to prior work done by Irvine Sensors to design an ultra high speed, stacked processing module that can enable state-of-the-art encryption and decryption technologies. In addition to potential government applications, Irvine Sensors believes that the enhanced security expected to be provided by its proprietary system will also be highly desired by commercial users with significant investments in electronics systems and software. If developmental milestones are met on schedule, the Company hopes to be able to introduce initial commercial products based on its technology in the summer of 2008.

Irvine Sensors Corporation ( www.irvine-sensors.com), headquartered in Costa Mesa, California, is a vision systems company engaged in the development and sale of miniaturized infrared and electro-optical cameras, image processors and stacked chip assemblies, the manufacture and sale of optical systems and equipment for military applications through its Optex subsidiary and research and development related to high density electronics, miniaturized sensors, optical interconnection technology, high speed network security, image processing and low-power analog and mixed-signal integrated circuits for diverse systems applications.