EFJ, Inc.'s 3e Technologies International Subsidiary Receives $7.7 million Award From U.S. DoD

IRVING, Texas, Oct. 4 /PRNewswire-FirstCall/ -- EFJ, Inc. (Nasdaq: EFJI) announced today that its 3e Technologies International (3eTI) subsidiary has been funded by a U.S. Department of Defense (DoD) customer to provide the U.S. Navy with a secure wireless video and mobility solution. The funding is part of a time and materials-based contract vehicle with a ceiling of $7.7 million. The order is currently incrementally funded in the amount of $2.2 million.

A key objective of the effort is to develop and field a shipboard video solution that provides a distributed video and video analytics capability. The effort will expand current shipboard surveillance and force protection related video capabilities by providing expanded coverage via wireless video streaming and increased monitoring efficiency through the use of video analytics.

"We are especially pleased to be providing another important solution to the Navy which imparts additional safety and security to our sailors as they support the Global War on Terrorism," said Michael E. Jalbert, chairman and chief executive officer of EFJ, Inc. "We expect that the solution will greatly enhance a ship's force protection stature and significantly reduce the ship's reaction time to potential threats by providing a cost effective means of distributing smart video analytics data in real time directly to the ship's decision makers -- regardless of where they may be within the ship."

About 3e Technologies International

As part of EFJ, Inc.'s Secured Communications Division, 3eTI is a leading provider of FIPS 140-2 Validated WLAN products, including security and management server, mesh networking, supplicant and WLAN client devices. It offers wireless-enabled solutions for RFID, video surveillance, remote sensors, and location-based, context-aware telematics. 3eTI serves government, industrial and commercial users worldwide. For more information, visit http://www.3eti.com.

About EFJ, Inc.

EFJ, Inc. is the Irving, Texas-based technology parent company to 3e Technologies International, EFJohnson Company, and Transcrypt International, providing industry-leading secure wireless and private wireless solutions for homeland security, first responders, business and industrial customers around the world. EFJ, Inc. is a leading provider of FIPS validated wireless data infrastructure and software with interoperable security; one of the first developers of Project 25 mobile communications products and solutions; and is a leader in secure solutions to protect sensitive voice communications. For more information, visit http://www.efji.com.

Safe Harbor

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward-looking statements due to a number of risk factors including, but not limited to, the ability of encryption technology to safeguard data, reliance upon successful performance on the part of the Prime Contractor, the adoption by government users of FIPS 140-2 Validated cryptographic software, reliance on contract manufacturers, the timely procurement of necessary manufacturing components, dependence on continued funding of governmental agency programs, general economic and business conditions, and other risks detailed in EFJ's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the period ended December 31, 2006 and in the company's subsequent filings with the SEC. These forward-looking statements are made as of the date of this press release and EFJ undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.