FAIRFAX, Va., 7 July 2006. Argon ST Inc., has announced that it completed the acquisition of San Diego Research Center Incorporated (SDRC) for approximately $41 million in cash. SDRC expects to realize approximately $20 million in revenue for the fiscal year ending September 30, 2006, and is expected to increase Argon's fourth quarter revenue by approximately $5 million.

Founded in 2001, San Diego Research Center Inc. invents, implements, and integrates complete defense wireless communications systems suitable for the most challenging military environments.

Headwaters MB LLC acted as financial advisor to SDRC in this transaction.

Argon ST designs, develops, and produces systems and sensors for the Command and Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) markets, including SIGINT (signals intelligence), ESM (Electronic Support Measures), EW (Electronic Warfare), imaging, and acoustic systems serving domestic and worldwide markets.