Applied Energetics (AERG) Enters Into Teaming Agreement With L-3 Interstate Electronics Corporation

TUCSON, Ariz. — Applied Energetics, Inc. (Nasdaq: AERG) today announced that it has entered into a strategic teaming agreement with L-3 Interstate Electronics Corporation (IEC) to pursue DoD contracts involving counter-IED systems. L-3 Communications is the 6th largest defense contractor in the United States, and IEC is an operating division of L-3 Communications. Under the terms of this agreement, Applied Energetics will serve as prime contractor with L-3 IEC positioned as subcontractor. The two companies intend to collaborate on proposal development, marketing of systems and services and activities mutually agreed in the pursuit of new business.

The agreement will provide Applied Energetics a leading engineering, technical and manufacturing group capability. Applied Energetics intends to focus its efforts in technical areas requiring high voltage electronics, systems integration, systems testing and development for support of advanced counter-IED technologies. L-3 IEC is expected to contribute expertise in power electronics, systems engineering, configuration control and production management.

Joseph Hayden, President and Chief Operating Officer of Applied Energetics, commented, “We are very pleased to be able to work closely with L-3 Interstate Electronics Corporation and formalize the relationship that has been growing between our companies. L-3 IEC has been providing field support for our counter-IED systems and their responsiveness, professionalism and quality of personnel have been superb. This agreement is expected to allow us to leverage their experience and capabilities to establish a solid reputation for delivering quality electronics to the DoD and commercial customers. Our companies will continue to examine ways in which we can work together to provide outstanding service, products and value to our customers.”

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™ (LGE™) 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. Applied Energetics undertakes no obligation to update any forward-looking statements contained in this news release.