Cyclone Power Technologies Successfully Completes R&D Project for Raytheon Company

POMPANO BEACH, Fla.--February 16, 2011: Cyclone Power Technologies Inc. has successfully completed a third phase of performance tests of its heat-regenerative external combustion engine for Raytheon Integrated Defense Systems.

"Given these results, we are on track to provide Raytheon's customers the energy and power sources for the enduring UUV's and persistent undersea operations required to meet emerging threats in the defense of our country."

The tests verified by Raytheon demonstrated that Cyclone's prototype, water-cooled engine achieved thermal efficiencies over 30%. Applied to a large diameter unmanned undersea vehicle, such efficiency yields double current payload capacities and triple the current mission times.

"This is the third round of rigorous engine testing that we have successfully completed for our customer," stated Harry Schoell, CEO of Cyclone. "Once again, the Raytheon IDS team has carefully reviewed and validated our results. We look forward to working on more projects in the future with Raytheon."

The demonstration of Cyclone's engine technology was in fulfillment of an Independent Research and Development (IR&D) contract from Raytheon IDS signed last year. In conjunction with this project, Raytheon and James R Moden Inc. are developing an undersea power and propulsion system prototype.

"Given these results, we are on track to provide Raytheon's customers the energy and power sources for the enduring UUV's and persistent undersea operations required to meet emerging threats in the defense of our country," stated Jim Moden, developer of the monopropellant utilized for this application. "When completed, this system will provide mission enhancing virtues such as improved safety, lower environmental impact, lower cost of ownership, and higher energy and power density when compared to present advanced state-of-the-art battery systems."