REX SYSTEMS INC. IS AWARDED $6.8 MILLION

Research and Development Defense Contract Appropriated with Help from Representative Obey and Senator Kohl

Chippewa Falls, WI, October 3, 2005 -- Rex Systems Inc. (RSI), today announced the award of two(2) research and development defense contracts valued at over $6.8M dollars, resulting from FY05 Defense Appropriations. G. Rex Rathbun, Chairman and CEO of Rex Systems commented, "RSI is applying our engineering expertise on projects critical to the US Army’s Research, Development and Engineering Command (CERDEC), that will protect our soldiers in harms way and Homeland Security personnel throughout the United States."

The first contract award is valued at $5,200,000:
RSI will research and develop the First Responder Communicator Tracking System (CTS) that will unite technologies for communication, mobile networking, and ground positioning location identification (GPS). The CTS will integrate a wearable computer capable of delivering situational awareness information and intra-unit communication and collaboration back to the Responder Operations Center (ROC) being developed by the Army. This pioneering technology will provide firefighters, police officers, EMT personnel, and the military with a robust communication network, capable of operations in buildings and other urban-based environments. The CTS will have the ability to track and locate a unit of firefighters for example, in disaster situations like the World Trade Center, through position detection technology. It will also provide commanders with live video and the vital signs of their personnel while monitoring chemical, gas, and biological agents.

The second contract award is valued at $1,600,000:
RSI will develop a subsystem contamination marker set that will improve the Army’s M93 and M93 A1 Fox Nuclear, Biological, and Chemical Reconnaissance System (NBCRS), which employs a standard marking staff and base with an appropriate marking flag to warn soldiers following enemy employment of weapons of mass destruction for nuclear, biological, and chemical contamination. Given the emergency of a technologically capable fight force, these markers need a significant upgrade to capitalize on the Night Vision Goggles worn by today’s soldiers. The new marker system will work by visually alerting soldiers moving toward the flag sets through the use of visible and infrared lighting systems. Further, RSI is working to create a "Smart Marker" that will electronically integrate with the Army’s communication network. The improved marker systems will save lives and reduce casualties in war environments like Iraq, where soldiers need accurate reconnaissance.

Assistance from Congressman David Obey and Senator Kohl:
As ranking member of the powerful House Appropriations Committee, Congressman Obey was instrumental in including RSI defense requests in the Defense Appropriations Bill and keeping them there through the long defense appropriation process. Obey noted that "reliable communications can be the difference between life and death, as we've seen in Iraq and on the Gulf Coast. I'm glad that Rex Systems is doing cutting edge work with communications systems that should make a real difference for our nation's troops and first responders."

US Senator Herb Kohl also worked hard to keep these defense appropriations as a member of the Senate Appropriations Committee. "Keeping our troops and first responders safe means ensuring that they have cutting edge technology available to them. Rex Systems is a national leader in research and development that translates directly to life-saving gear used in the field, and I’m proud that their work originates in our home state," Senator Kohl said.

About RSI
RSI is one of North America’s leading manufacturers of high reliability, technology driven electronic systems used in support of military and civilian needs. Founded in 1973 by G. Rex Rathbun and headquartered in Chippewa Falls WI, RSI engineers, manufactures, and tests defense and civilian electronic components and networked computer systems and has successfully performed as prime contractor on over 3,500 Government Contracts. For more information, visit us at www.rexsystems.com

EDITORIAL CONTACTS:

Ellis Brachman
Press Secretary
U.S. Representative David Obey (WI-7th)
Phone:  (202) 225-3365
E-mail:  ellis.brachman@mail.house.gov

Lynn Becker
Press Secretary
US Senator Herb Kohl
Phone:  (202) 224-5653
Email:  lynn_becker@kohl.senate.gov