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(COMTEX) B: Mikros Systems Corporation Reports Year-End December 31, 2004
esults ( PRNewswire-FirstCall )
B: Mikros Systems Corporation Reports Year-End December 31, 2004 Results ( PRNew
wire-FirstCall )

PRINCETON, N.J., April 5, 2005 /PRNewswire-FirstCall via COMTEX/ -- Mikros
Systems Corporation (OTC Bulletin Board: MKRS) is pleased to report the results
for the year ended December 31, 2004. The Company's revenues were approximately
$1,044,000 with net income of approximately $92,000 compared to $231,000 in
revenues in 2003 with a net loss of approximately $114,000. The Company's
current backlog is approximately $2,000,000.

In June 2004, the Company was awarded a Small Business Innovation Research
(SBIR) Phase I contract from the Office of Naval Research. Valued at
approximately $100,000, the contract is for researching and evaluating
techniques to minimize interference between U.S. Navy radars and commercial
wireless communication systems. A final report and proposal for a Phase II
program was submitted in January 2005. The Company is anticipating a Navy
invitation for a Phase II proposal.

In September 2004, the Company was awarded an SBIR Phase III contract from the
Naval Weapons Center Dahlgren Division, Dahlgren, VA, valued at approximately
$2,400,000. The contract is to complete the development and to begin initial
production of an intelligent test tool for naval radars. The Multi-Function
Distributed Analysis Tool (MFDAT) has been designed by the Company under a
$1,000,000 SBIR Phase II contract, which began in August 2003. This Phase II
contract will be complete in 2005 with all of the follow-on development and
production being contained on the Phase III contract. Under the SBIR
regulations, Mikros will retain exclusive intellectual property rights to the
new design for five years after the completion of the Phase III contract.

We believe this product has wide applications to other Naval and Department of
Defense radars as well as commercial radars (FAA) and other complex electronic
equipment such as radio and TV stations, cell phone stations, and airline
maintenance equipment.

Under this MFDAT Phase III program, the Company has subcontracted the
manufacturing to DRS Laurel Technologies in Johnstown, PA. A contract for
$876,000 has been awarded by Mikros to DRS Laurel Technologies. This new
equipment is to be marketed under the ADEPT(TM) (Adaptive Diagnostic Electronic
Portable Testset) product name, and is planned for installation in the U.S.
Navy's Aegis Cruisers.

Mikros has also teamed with In-Phase Technologies, Inc. in Clarksburg, NJ, for
software support under the program.

Mikros signed a lease for 4,000 sq. ft. of R&D Research Center in Conshohocken,
PA. The Company's technical team currently consists of four engineers. The
Company intends to increase technical staffing over the next several months in
order to execute the new backlog.

The Company is currently in the process of improving its website
(http://www.Mikros.us) in order to provide more timely information for
shareholders, as well as customers and potential investors.

Mikros Systems Corporation is a high technology company focused upon the
development and application of new technologies in the defense industry and
commercial markets.

Certain matters discussed in this press release are "forward-looking statements"
intended to qualify for the safe harbors from liability established by the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements include, without limitation, statements regarding technology under
development, strategies and objectives. The forward-looking statements include
risks and uncertainties, including, but not limited to, the anticipated size of
and growth in the markets for the Company's products, the trends favoring the
use of the Company's proposed commercial products, the anticipated demand for
the Company's new products, the timing of development and implementation of the
Company's new product offerings, the utilization of such products by the
Company's clients and trends in future operating performance, and other factors
not within the Company's control. The factors discussed herein and expressed
from time to time in the Company's filings with the Securities and Exchange
Commission could cause actual results and developments to be materially
different from those expressed in or implied by such statements. The
forward-looking statements made herein are only made as of the date of this
press release and the Company undertakes no obligation to publicly update such
forward-looking statements to reflect subsequent events or circumstances.

SOURCE Mikros Systems Corporation


CONTACT: Thomas J. Meaney, Mikros Systems Corporation, [phone]

URL: http://www.prnewswire.com
http://www.Mikros.us
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