Applied Energetics Receives Light Filament Sensor Contract Option from Army Research Organization

Business Wire, August 18, 2008

TUCSON, Ariz. -- Applied Energetics, Inc., (Nasdaq:AERG) today announced that it has received a follow-on contract option for continued development of Light Filament Sensor Technology from the U.S. Army.

The Light Filament Sensor program is aimed at developing a system for detecting and identifying trace concentrations of various chemicals from stand-off distances. The technology is based on the unique ability of ultrashort pulse lasers to generate persistent optical filaments of ionized air, and to elicit unique spectral signatures in the targeted chemicals. Success in this program may lead to development of dual-use (military and commercial) sensor / detection systems with applications in bomb detection and identification, airport screening, and other defense and security applications, as well as identification of toxins or toxic residue in industrial or post-military settings.

The $351,286 award was issued by the U.S. Army Research Organization (ARO - Research Triangle Park, NC) as a twelve month follow-on option to the Light Filament Sensor Phase II STTR contract awarded in September 2007, and brings the total value of the STTR program to $740,788 for the two year effort. The DoD's STTR program is similar in structure to the Small Business Innovative Research (SBIR) program, but funds cooperative R&D project involving both a small business and a research institution (i.e. university, federal R&D center, non-profit research institute, etc). The purpose of the STTR Program is to create an effective vehicle for moving technologies from national research institutions to the market.

Applied Energetics is teamed with the Denton Group of the University of Arizona for this effort, with Applied Energetics providing the laser transmitter and laser test facilities, and Denton Group being responsible for providing the sensors and cataloging chemical signatures.

About Applied Energetics, Inc.

Applied Energetics, Inc., based in Tucson, Arizona, specializes in development and manufacture of advanced high performance lasers, high voltage electronics, advanced optical systems, and integrated guided energy systems for defense, aerospace, industrial, and scientific customers worldwide. Applied Energetics pioneered the development of Laser Guided Energy[TM] (LGE[TM]) technology, and related solutions for defense and security applications. For more information about Applied Energetics, please visit www.appliedenergetics.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

Certain statements contained in this News Release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Such factors include, but are not limited to: the dependence on sales of a limited number of products and the uncertainty of the timing and magnitude of government funding and orders, dependence on sales to government customers; the uncertainty of patent protection; the uncertainty of strategic alliances; the uncertainty of management tenure; the impact of third-party suppliers' manufacturing constraints or difficulties; management's ability to achieve business performance objectives, market acceptance of, and demand for, the Company's products, and resulting revenues; development and testing of technology and products; manufacturing capabilities; impact of competitive products and pricing; litigation and other risks detailed in the Company's filings with the Securities and Exchange Commission. The words "looking forward," "believe," "demonstrate," "intend," "expect," "contemplate," "estimate," "anticipate," "likely" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. Advanced Energetics undertakes no obligation to update any forward-looking statements contained in this news release.