Flexpoint Sensor Systems Announces Exclusive Agreement with First Technology; Funding For Exclusive on Certain Automobile Applications

    SALT LAKE CITY--Aug. 27, 2002--Flexpoint Sensor Systems, Inc. (Pink Sheets: FLXP), owner of the patented Bend Sensor(R) Technology, announced that the Company has received funding from First Technology (London: FRS) a UK-based automobile parts manufacturer. The technology has been undergoing intensive testing at First Technology's Grand Blanc, US and Farnborough, UK locations during the last 6 months validating recent improvements that assure the patented bend sensing technology will withstand automotive requirements.
    "Based on positive results, First Technology will begin marketing a number of applications for automotive use featuring the Flexpoint bend sensor technology," said Scott Sheidy, director of Sales and Marketing for First Technology. "Particularly well suited to this technology are position sensing and switching functions. Seat position sensing and advanced horn switches will be two of the first products marketed."
    John Sindt, President and CEO of Flexpoint, said, "I am very pleased to have secured this agreement with First Technology. First Technology brings a lot of strength back to our company. Our two companies have been working closely on validating the technology and may work together on future applications of the patented bend sensing technology."
    The Bend Sensor is a technological breakthrough that reduces the dimensions of typical sensor devices by as much as 90 percent. Management believes this ultra-thin flexible plastic film is the lightest, most robust and cost-effective variable resistor available. Flexpoint is able to offer a superior solution for applications that require accurate measurement and sensing of deflection, acceleration, and range of motion. Flexpoint has produced over 10,000,000 sensors for the toy and consumer industries to date. Global market opportunities include medical, industrial controls, health and fitness, security, computer peripherals, aerospace, transportation and consumer products.

    This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The Company may experience significant fluctuations in future operating results due to a number of economic, competitive and other factors, including, among other things, the size and timing of customer contracts, new or increased competition, changes in market demand and seasonality of purchases of the Company's products and services. These factors and others could cause operation results to vary significantly from those in prior periods, and those projected in forward-looking statements. Additional information with respect to these and other factors, which could materially affect the Company and its operations, are included on certain forms the Company files with the Securities and Exchange Commission.