Optimal Energy Systems Receives Contract From SAIC for Flywheel Technology

    TORRANCE, Calif.--Feb. 11, 2002--Optimal Energy Systems Inc. has been awarded a contract by Science Applications International Corporation (SAIC) to provide flywheel technology for the Combat Hybrid Power System.
    Under the contract, Optimal will provide a prototype Flywheel Power Module for a military vehicle system. Delivery is scheduled for July 2002.
    "This military vehicle contract is an important milestone in our progress towards establishing our Flywheel Power Module in the government markets," said Dr. Dwight Swett, Optimal president. "The prototype contract is significant to our business strategy since it has the potential to leverage into multiple Combat Hybrid Power System applications."
    The Combat Hybrid Power System program will develop enabling technologies and conduct demonstrations of an integrated hybrid electric power system to provide power and energy management for all of the electric subsystems throughout future combat vehicles. Hybrid electric power is an essential enabling technology for future combat vehicles given the number of electrically powered subsystems planned for implementation. The program transitioned to the U.S. Army in 2001, and the technologies developed will play a key role in the Future Combat Systems program.
    The value of the SAIC contract was not disclosed.
    Optimal Energy Systems is a new-technology enterprise with a patented energy management and power conversion technology that can be applied to military pulse energy systems, electrical back-up power supplies (Uninterruptible Power Systems), aviation and industrial high-speed power conversion systems, and space satellite energy storage and attitude control systems. Company offices and laboratory facilities are located in Torrance, Calif.
    SAIC, headquartered in San Diego, is a Fortune 500 company and the nation's largest employee-owned research and engineering firm. SAIC provides information technology, systems integration and eBusiness products and services to commercial and government customers.

    Certain matters discussed in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and as such may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Optimal Energy Systems to be different from any future results, performance or achievements expressed or implied by such forward-looking statements. Although Optimal Energy Systems believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance its expectations will be attained.