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DataPath Wins $181 Million Prime Contract From U.S. Army for Joint Network Node Program

Posted on: Wednesday, 4 October 2006, 09:00 CDT

DULUTH, Ga., Oct. 4 /PRNewswire/ -- DataPath, Inc., a provider of satellite and wireless communications networks around the world, has been awarded a $181 million firm-fixed-price prime contract by the U.S. Army Communications-Electronics Command in Fort Monmouth, N.J. to provide specialized satellite communications networks for the Joint Network Node (JNN) program. The contract, which is the largest in DataPath's 10-year history, includes satellite communications earth terminals, software and additional satellite broadband and baseband systems and services to support numerous U.S. military units.

The Company also announced that it expects annual revenue for the year ended Dec. 31, 2006 to be in the range of $280 to $295 million.

DataPath expects to begin production for the JNN contract in the fourth quarter of 2006 and complete production in 2007, with much of the work taking place in 2007. The services supplied under this contract will begin in the fourth quarter of 2006 and continue into 2008.

Under the contract, DataPath will deliver more than 300 Satellite Transportable Terminals (STTs), four Unit Hub Satellite Communications trucks, and several hundred spares kits. DataPath's Integrated Logistics Support team will also continue to expand its field operations and maintenance and training personnel deployed with U.S. units using STTs and other DataPath systems that support the JNN network.

STTs are versions of satellite earth terminals marketed by the company as DataPath ET 3000 Portables(TM). The DataPath 3000 is a compact, portable satellite earth terminal that enables secure and robust voice, video and data communications, regardless of how remote or extreme the environment. Unit Hub Satellite Communications trucks, marketed by DataPath as the DataPath DKET 4530Ku Mobile(TM), serve as the hub of the JNN program and allow battlefield commanders to establish communications outposts in remote locations.

"With more than 500 STTs produced for the JNN since its inception in 2004, the magnitude of DataPath's battlefield satellite communications implementations in support of the U.S. Army is unprecedented," said Darren Corbiere, research analyst with Frost & Sullivan's Aerospace and Defense Group. "As one of the most successful demonstrations of rapid acquisition using commercial off-the-shelf technologies, the JNN is the largest Internet protocol-based, tactical satellite communications network ever deployed in support of combat operations."

"It's our great honor to serve the U.S. Army's Commercial Satcom Terminal Program (CSTP) as they transform tactical military communications," said Andy Mullins, CEO and president of DataPath. "Through this prime contract, DataPath continues to enable the U.S. Army's network-centric vision with high-quality, real-time voice, video and data communications for forward-deployed warfighters."

DataPath provides the entire satellite transmission portion of the JNN network, bringing reliable communications on-the-quick-halt to deployed U.S. Joint Forces. The Company's battlefield communications networks and service personnel have been called on to support the U.S. Army's 1st Cavalry, 3rd Infantry, 4th Infantry, 10th Mountain, 25th Infantry, 82nd Airborne and 101st Airborne Divisions, and many other brigade combat teams and units.

About DataPath, Inc.

Founded in 1996, DataPath designs and delivers satellite and wireless communications networks around the world. The company is known for rapidly delivering reliable, mobile communications that operate in even the most extreme conditions to support customers that include the U.S. Army, the U.S. Marine Corps and emergency first responders. Headquartered in Duluth, Ga., DataPath maintains offices in Fort Monmouth, N.J., Nashua, N.H., San Diego, Ca., and Tampa, Fla. For more information, visit http://www.datapath.com/ or call 866-855-3800.

Safe Harbor Disclosure

This press release, other than historical information, contains forward- looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that are based on management's beliefs and assumptions, current expectations, estimates and projections. Forward-looking statements may include projections and estimates concerning the timing and success of specific projects and the Company's future revenues, income and capital spending.

A variety of factors beyond the control of the Company may affect the Company's performance, including, but not limited to the Company's ability to sustain its historical growth rate; the Company's dependence on sales to the U.S. government for a high percentage of its revenues; increased competition using commercial-off-the-shelf, COTS-based solutions; changes in U.S. government funding programs and priorities; termination or modification clauses contained in U.S. government contracts; continued supply of critical components and services, including COTS-based hardware; maintenance of exclusive procurement or marketing rights with key suppliers; restrictions contained in federal and international procurement laws and regulations; operation in international markets, including the application of international and foreign domestic laws and regulations; and risks and costs associated with becoming a public company.

Any of the above factors and numerous others not listed nor foreseen may adversely affect the Company's financial performance. Forward-looking statements speak only as of the date on which they were made, and the Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

DataPath, Inc.

CONTACT: Media, Peter K. Herbert, Director, Communications Programs,+1-678-597-0638, or pherbert@datapath.com, or Investors, James Modak, ChiefFinancial Officer, +1-678-252-4500, or investorrelations@datapath.com, both ofDataPath, Inc.

Web site: http://www.datapath.com/

Source: PRNewswire

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