FATS Announces $14 Million Contract

ATLANTA - April 29, 2004 - FATS, Inc. announces a subcontract of $14 million for weapon simulators to the U.S. Army. The order is for 2,700 weapons engineered by FATS, and will support an ongoing training program.

FATS simulated weapons replicate form, fit and function of live weapons, including recoil. The weapons also allow accurate, real-time diagnostics including point-of-aim, weapon status, trigger pressure and cant.

FATS, Inc. CEO Ron Mohling said, “We are proud of our ability to meet the training needs of soldiers, especially at a time when readiness is paramount.”

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.