2006-11-01

ICx Technologies Awarded DHS Contract To Develop Next-Generation Handheld Radiological Detectors to Protect the U.S. From Nuclear Threats

Contract Valued up to $123 Million in Acquisition and Research and Development Funds

ICx Technologies has been selected by the Department of Homeland Security (DHS) to develop and potentially produce the next generation handheld detectors to counter radiological and nuclear threats. Under the DHS contract, ICx will receive $1.3 million for the rapid enhancements of current ICx radiological detection devices, and up to $4.5 million in additional funds for research and development of portable radiation detectors.

In support of the U.S. Department of Homeland Security's mission to protect the homeland from terrorist threats, the Human Portable Radiation Detection Systems (HPRDS) program will deploy handheld and backpack sized radiological detectors at U.S. ports and borders.

"The portable technology will be used primarily by U.S. Customs and Border Protection officers for secondary screening of cargo to identify and localize radiological material after a primary alarm has been triggered," according to DHS officials. "It is also anticipated that the devices could be used by U.S. Coast Guard officers aboard vessels prior to an arrival at port."

"Perhaps the gravest threat of our time is the prospect of terrorist-controlled nuclear material being smuggled across the border or through our ports," said Hans Kobler, CEO of ICx Technologies. "Our contract with the U.S. Department of Homeland Security is a testament to ICx Technologiesâ?? commitment to rapidly deploy our existing innovative detection products and to develop next-generation nuclear detectors to counter this threat and protect the homeland."

The IDIQ contract was awarded on October 25, 2006 by the Domestic Nuclear Detection Office and will extend to 2010 if all options are exercised. The full value of the contract with all options exercised is up to $117 million for the production of units and an additional $4.5 million in research & development funds.

Under the contract ICx Radiation (formerly Target Instruments of Oak Ridge, TN) will develop next-generation handheld and backpack-sized detectors to sense and locate nuclear threats such as dirty bombs or unauthorized radiological material. The detectors will be based on an ICx handheld instrument called identiFINDERâ?¢. ICx already has over 300 instruments deployed with the U.S. Coast Guard. The identiFINDER is the market leading spectrometer, dose rate meter and nuclide finder for detecting nuclear and radiological materials.

Contract Extends ICx Leadership in Detection of Chemical, Biological, Radiological, Nuclear and Explosive (CBRNE) Threats

ICx Technologies offers advanced capabilities to detect threats in all of the critical CBRNE segments - chemical, biological, radiological, nuclear and explosive. ICx CBRNE products are compact, portable and simple to use compared to laboratory instruments that perform similar functions and our products are made to be much more rugged and affordable. Their sensitivity, accuracy and low false alarm rates compare favorably to other units designed for use in the field.

"We are pleased that our unique capabilities will be utilized to support DHS and this critical assignment to help better secure America," said Kobler. "This effort is right in line with our mission to combine deep technical expertise with unique understanding of evolving threats to create effective security solutions."

About FLIR Systems

FLIR Systems, Inc. is a world leader in the design, manufacture, and marketing of sensor systems that enhance perception and awareness. The Company’s advanced thermal imaging and threat detection systems are used for a wide variety of imaging, thermography, and security applications, including airborne and ground-based surveillance, condition monitoring, research and development, manufacturing process control, search and rescue, drug interdiction, navigation, transportation safety, border and maritime patrol, environmental monitoring, and chemical, biological, radiological, nuclear, and explosives (CBRNE) detection. Visit the Company's web site at www.FLIR.com.

The statements in this release by Earl R. Lewis, and the other statements in this release about the award described above, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including the following: the ability to manufacture and deliver the systems referenced in this release, changes in demand for the Company's products, product mix, the timing of deliveries under the award discussed above, the impact of competitive products and pricing, constraints on supplies of critical components, excess or shortage of production capacity, the ability of the Company to manufacture and ship products in the time period required, actual purchases under agreements, the Company's continuing compliance with U.S. export control laws and regulations, the timely receipt of export licenses for international shipments, the continuing eligibility of the Company to act as a federal contractor, and other risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release, or for changes made to this document by wire services or Internet service providers.

All trademarks, registered trademarks and service marks are the property of their respective owners.

Media Contacts

Angel Bennett
FLIR, Systems, Inc.
2800 Crystal Drive, Suite 330
Arlington, VA 22202
angel.bennett@flir.com