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U.S. Navy Transfers its Technology to

Added: (Mon Dec 29 2003)

News Release
For Immediate Release:
December 29, 2003

U.S. Navy Transfers its Technology to
Markland Technologies at Navy Surface Warfare Center
Dahlgren Division Signing Ceremony
DAHLGREN, Va. Dec. 29, 2003 - The U.S. Navy signed a non-exclusive license agreement with Science and Technology Research (STR) Inc., a wholly owned subsidiary of Markland Technologies (OTCBB: MRKL), at a ceremony held in Dahlgren, Va., that will transfer the chemical detection technology currently used on Navy warships to the workplace of many Americans. The technology transfer is expected to bolster homeland security across the nation.
"Navy technology transfer programs encourage the private sector and government to creatively and effectively work together to increase the safety of our forward-deployed warfighters and protect Americans on the home front," said Capt. Lyal Davidson, Naval Surface Warfare Center Dahlgren Division (NSWCDD) Commanding Officer. "Today's technology transfer agreement with a local manufacturer of a portable chemical detection system created and developed at NSWCDD also demonstrates the capability of the Warfare Centers to partner with the commercial sector to fully leverage taxpayers' money."
With the non-exclusive license, the Fredericksburg, Va.-based STR can now manufacture and sell a basic version of the patented Shipboard Automatic Chemical Agent Detector and Alarm (Ship ACADA) to non-federal government and commercial entities.
"This business model demonstrates how NSWC Dahlgren, Department of Homeland Security (DHS), and other Warfare Centers can assist small companies to create solutions for homeland security almost cost-free, since the Navy will realize return on investment in the new and emerging technologies being introduced into the marketplace," said STR President and Chief Financial Officer Ken Ducey, Jr. "Markland Technologies will provide STR the infrastructure they need to bring ACADA to government, military and commercial customers nationwide."
Invented by NSWCDD engineers Mike Pompeii and Kevin Machlinski, the technology used in the Ship ACADA -- a portable chemical warfare (CW) agent detector used on U.S. Navy ships to immediately, accurately, and reliably detect nerve and blister CW agents -- prevents false detections and contains an easily reprogrammable computer chip to allow the detection of possible future threat agents.

"This technology can be used in many ways, including detection of chemical warfare agents, toxic industrial chemicals, and other chemical agents that may be used by terrorists," said Pompeii, head of the NSWCDD Chemical-Biological (CB) Defense Division. "This is just another example of technology being transferred to industry and other government agencies to ultimately help and protect the American people. I'm very pleased that the technology we developed here at Dahlgren is not only helping our sailors in harm's way, but will also help and protect people in a variety of homeland security efforts."
Moreover, the ongoing efforts to provide protection against CW will potentially encompass the commercial shipping and travel industries in the United States and overseas.
"The Ship ACADA system has been proven to work very well in the shipboard environment," pointed out STR Executive Vice President and General Manager Edward Kessler. "We have the capability to expand its use to ferry boats, cruise ships and make the system available to other navies in the world."
This example of the U.S. industry's capability to expand NSWCDD-developed technology reflects the Warfare Center's technology transfer objective to actively share its dual use technology, facilities, and expertise with the U.S. public and private sector; and incorporate into the Navy commercially available technology that supports mission-related needs.
"As the civilian world becomes more susceptible to a warfare-type threat, the ability to transfer technology developed for the surface Navy that we develop at Dahlgren Lab will become more practical than it has in the past," said Lorraine Flanders, NSWCDD Office of Research and Technology Assessment Manager. "The scientists and engineers at NSWCDD are encouraged to think 'out of the box' with regard to the application of their inventions and to actively seek civilian applications for their technology."
In addition to enhancing the safety of Americans, the business of transferring technology originally developed by the Navy to commercial enterprises is believed to strengthen the local economy and the U.S. industrial base. What's more, the per-unit cost to the Navy in any subsequent procurement of a Navy patented technological product, such as the shipboard ACADA unit, is expected to drop significantly.
About Markland Technologies
Markland Technologies, Inc is committed to helping secure America by providing innovative emerging technologies and expert services to meet the country's needs to protect our people, our borders and our infrastructure assets. The Company is a Board member of the Homeland Security Industries Association (http://www.hsianet.org).
``Forward-Looking Statements''
Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of Markland Technologies officials during presentations about Markland Technologies, are ``forward-looking'' statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the ``Act''). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as ``expects'', ``anticipates'', ``intends'', ``plans'', ``believes'', ``estimates'', or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by management, are also forward-looking statements as defined by the Act. Some of the factors that could significantly impact the forward-looking statements in this press release include, but are not limited to: insufficient cash flow to continue to fund the development and marketing of the Company's products and technology; a rejection of the Company's products and technologies by the marketplace, and; disputes as to the Company's intellectual property rights. Forward-looking statements are based upon current expectations and projections about future events and are subject to risks, uncertainties, and assumptions about Markland Technologies, its products, economic and market factors and the industries in which Markland Technologies does business, among other things. These statements are not guarantees of future performance and Markland Technologies has no specific intention to update these statements. More detailed information about those factors is contained in Markland Technologies filings with the Securities and Exchange Commission.
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