Army National Guard Reloads with FATS

ATLANTA - May 13, 2004 - The U.S. Army National Guard (ARNG) has awarded FATS, Inc. a contract worth more than $3.1 million to upgrade their virtual training systems. Eighty simulators will be updated to current software and hardware configurations.

The new FATS systems will be deployed to ARNG training sites nationwide and installed by FATS personnel.The upgraded systems will add enhanced software capabilities and training realism using new Windows® XP-based software.Enhancements include FATS latest Indirect Fire Trainer capabilities, Close Air Support features and upgraded Army Courses of Fire.

FATS, Inc. CEO Ron Mohling said, “FATS has been proud to provide the Army National Guard with the best virtual training systems since 1995.These most recent upgrades will assure the Guard is prepared for any combat situation.”

FATS, Inc. (OTC: FATS) designs and sells virtual training systems that improve the skills of the world’s military, law enforcement and security forces. FATS training provides judgmental, tactical and combined arms experiences, utilizing quality engineered weapons and simulators. The company serves U.S. and international customers from headquarters in Suwanee, Georgia, with branch offices in Australia, Canada, Singapore, Netherlands and United Kingdom.FATS, an ISO 9001:2000 certified company, celebrates its 20th anniversary in 2004.The company Web site iswww.fatsinc.com.