SYS Technologies Wins One-Year Extension of UNREP Contract; Option Year Potentially Worth $5 Million

Business Wire, Oct 14, 2004

SAN DIEGO -- SYS Technologies ("SYS") (OTCBB:SYYS), a provider of engineering, management and information technology consulting services and solutions, today announced that the Company has been awarded the second option year of its Advanced Underway Replenishment (UNREP) engineering contract with the Naval Surface Warfare Center at Port Hueneme, Calif. The potential value for this option year is approximately $5 million over the next 12 months.

SYS work under this contract includes a continuation of the design and testing of the Heavy UNREP System, a new, leading-edge system being developed at the Naval Surface Warfare Center under the direction of its UNREP group. The new system will enable the Navy to transfer heavy loads with higher transfer rates using reduced manpower and will provide a far greater UNREP capability than currently deployed systems. The Heavy UNREP System is in support of the Navy's next generation of aircraft carriers -- the CVN 78 Class -- due for construction beginning in 2007.

Bill Wilund, SYS Technologies Senior Vice President, said, "This award enables SYS to continue its service to the UNREP program. Our support for UNREP has been ongoing since 1983, and we are proud to be able to continue our support to the vital mission of sustaining Naval forces throughout the world. The Heavy UNREP program will contribute directly to the Navy's Seapower 21 Seabasing initiative and will enable the fleet to replenish its next generation of carriers in a more efficient and cost-effective manner."

Cliff Cooke, president and CEO of SYS Technologies, said, "This contract extension serves as further proof of the Navy's faith in our abilities. The Heavy UNREP System is just one of the areas in which SYS Technologies is working, and will continue to work, to support the Department of Defense."

About SYS Technologies

SYS Technologies has provided engineering, technical, financial and management services to commercial and U.S. government customers since 1966. It currently has several multiple-year management and engineering service contracts with the U.S. Navy and General Services Administration. The Company is publicly traded (OTCBB:SYYS). SYS Technologies is headquartered in San Diego at 5050 Murphy Canyon Road, San Diego, California 92123 and has offices in Oxnard, California and Arlington and Chesapeake, Virginia. For additional information, visit the SYS Technologies web site at http://www.systechnologies.com.

Notice Regarding Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact included in this press release regarding the Company's strategies, plans, objectives, expectations, and future operating results are forward-looking statements. Although SYS believes that the expectations reflected in such forward-looking statements are reasonable at this time, it can give no assurance that such expectations will prove to have been correct. Actual results could differ materially based upon a number of factors including, but not limited to, the state of economy, competition, unanticipated business opportunities, availability of financing, market acceptance, government regulation, dependence on key personnel, limited public market and liquidity, shares eligible for future sale, continuation and renewal of contracts and other risks that may apply to the Company including risks that are disclosed in the Company's Securities and Exchange Commission filings.