DefenseWeb Reports Q1 '05 Revenue up 300% over Same Period Last Year; Revenue Increase and New Market Development Drive Success

Business Wire, April 21, 2005

SAN DIEGO -- DefenseWeb Technologies, a premier custom software developer and systems integrator serving Defense Department (DoD) organizations, today announced a revenue increase of nearly 300% for the first quarter 2005 over the same period last year.

Additionally, the company expanded into several new markets with new customers and partners, and is positioned to achieve sales and operational goals for the remainder of the year.

"The first quarter has been very successful from both revenue and strategic positioning standpoints," said DefenseWeb CEO Douglas W. Burke. "Our signed and recognized revenue was up significantly over the same time last year and we positioned the company for strong growth through expansion within our core markets and into new markets that have great upside potential."

The Company signed 13 new contracts in the first quarter, including development, deployment and support contracts with the US Air Force, the US Army, US Army Reserve, the US Navy, and a new partner, Serco. Also during the quarter, the Company diversified its business service offerings to include contracts in staffing, marketing and product launch, and subject matter expertise consulting.

"DefenseWeb's focus and experience in developing complex, customized applications for DoD health and family organizations was reflected in our increased market penetration in areas that are very important to the DoD as it continues to prosecute the war on terror," said Burke. "Some of these areas include dealing with the problems of sexual assault, post traumatic stress disorder, and family readiness for extended deployment and redeployment."

DefenseWeb increased its staff from 38 to 42 during the quarter, including the addition of an Army Business Development Director and Corporate HR Director.

About DefenseWeb(R) Technologies, Inc.

DefenseWeb Technologies, Inc. (www.defenseweb.com) provides customized enterprise software development services for Department of Defense (DoD) organizations. Founded in 1998, DefenseWeb delivers Enterprise Information Portals, Case Management Systems, Clinical Information Systems, Business Process Automation Systems, Training Systems and Decision Support Systems for DoD health care, quality of life and family support organizations. The company's core competencies enable it to provide and maintain complex, mission-critical solutions on time, within budget and beyond expectations. Profitable since inception, DefenseWeb is a privately held company located in San Diego, Calif.

(C) 2005 DefenseWeb Technologies. All rights reserved. DefenseWeb(R) and Xtendable(R) Server are trademarks of DefenseWeb Technologies Inc. All other trademarks are the property of their respective owners.