Mikros Systems Corporation Announces Second Quarter Financial Results; Revenues Increase 26%, Income From Operations Increases 9

PRINCETON, N.J. , Aug. 14 /PRNewswire-FirstCall/ -- Mikros Systems Corporation (OTC Bulletin Board: MKRS), announced its financial results for the three and six months ended June 30, 2008 . Revenues for the second quarter increased $217,897 or 26...

At least 84 Aegis ships have been identified that could benefit from ADEPT equipment. At 2 to 3 units per ship, Mikros anticipates additional orders for more than 200 systems over the next 3 years. The Company is engaged in discussions with other Navy program managers to begin development of ADEPT for use on other electronic systems, and extending its applicability to other Navy ships, to include carriers, submarines, amphibious assault craft, and the new Littoral Combat Ship (LCS). Mikros is also investigating the potential of a large international market for ADEPT, as many allied countries have, or are purchasing, Aegis and other Navy ships for use in their own Navies.

Wireless Programs

Mikros continues to execute two ongoing SBIR programs in wireless R&D. With its partner and subcontractor Intell-Check -- Mobilisa, Inc. Mikros is advancing development of the AIRchitect-EMC "interference-aware" wireless network design software. The Company is also working with Naval Air Warfare Center (NAWC) at China Lake to develop a new generation of simulation software that will be used to evaluate jamming effects on missiles and other weapons.

During the second quarter, Mikros was awarded two small study programs to use the AIRchitect-EMC design tool to help develop wireless networks for amphibious ships (LHD class) and aircraft carriers (CVN class). The Company believes these new contracts represent the first of multiple opportunities to use AIRchitect-EMC software to design wireless network installations aboard Navy ships. The Company is exploring an opportunity to establish a long term Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract with the Navy to support future shipboard wireless installations and other wireless networking efforts.

The Company is also exploring several strategies for further expanding the wireless business, including a strategic partnership with a major cell phone manufacturer to develop defense and homeland security applications with the US Army National Guard. To date, two proposals have been submitted to potential customers.

Autonomous Power Buoys

Mikros has also teamed with Ocean Power Technologies, Inc to develop and market autonomous PowerBuoys(R) to the US Navy, Coast Guard, and Department of Homeland Security. PowerBuoys(R) convert wave, wind and solar energy to continuous electric power for use by maritime sensors and communication devices. After successfully completing a Phase I SBIR study on this technology, both companies invested their own funds to develop and test a prototype buoy to use as a marketing tool. PowerBuoys(R) have the advantage of longer life in the water as compared to buoys powered by batteries or diesel generators, as they require less maintenance and do not need to be refueled periodically. The Company is currently seeking Phase II or III funding under the SBIR program to accelerate the development of this technology.

Mikros and Ocean Power Technologies, Inc. are exhibiting this buoy product at the Office of Naval Research Annual Science and Technology Forum from August 12-14, 2008 in Washington, DC . The response at the show by senior Navy leadership has been very positive.

About Mikros

Mikros Systems Corporation is an advanced technology company specializing in the research and development of electronic systems technology primarily for military applications. Classified by the U.S. Department of Defense as a small business, its capabilities include technology management, electronic systems engineering and integration, radar systems engineering, combat/command, control, communications, computers and intelligence systems engineering, and communications engineering. Mikros' primary business is to pursue and obtain contracts from the Department of Homeland Security, U.S. Navy, and other governmental authorities. For more information on Mikros visit: http://www.mikros.us.