Spain buys explosive detector from HiEnergy

IRVINE, Calif., 27 January 2005. HiEnergy Technologies, Inc. announced today the receipt of a purchase order for its SIEGMA E3E from Spain.

IRVINE, Calif., 27 January 2005. HiEnergy Technologies, Inc. announced today the receipt of a purchase order for its SIEGMA E3E from Spain.

The SIEGMA E3E is an intelligent and mobile suitcase-borne explosive detector and identifier, incorporating HiEnergy's proprietary "stoichiometric" technology, or Stoitech, which provides for the remote and automatic decoding of the quantitative empirical chemical formulas of targeted substances through steel and other barriers. Stoichiometry is the ability to decipher the quantitative empirical chemical formulas of unknown substances.

Together with the advantages offered by its mobility and stand-off design, the SIEGMA E3E is particularly well-suited for the detection of terrorist-made bombs, or Improvised Explosive Devices (IEDs). Unlike military ordnance, IEDs are unconventional in their delivery, often inaccessible by vehicle-borne systems, and contain non-standard mixtures that require chemical formula identification not obtained by common "anomaly" detectors currently in the marketplace.

Over 100 IEDs worldwide explode every month as roadside bombs or car bombs. Moreover, thousands of alarms are caused by suspicious packages at airports and hotels. Because the SIEGMA E3E, when placed beside a suspicious object by hand or by robot, can identify whether or not an object contains explosive in a time ranging from 15 seconds to 5 minutes (depending on the quantity of explosive and the distance from target), it eliminates or reduces false alarms that otherwise paralyze airports and buildings for hours and effect financial losses.

The prototype of the SIEGMA E3E was successfully demonstrated at the NATO Symposium on Improvised Explosive Detection, held in Madrid, Spain, on October 18-19, 2004 in front of approximately 300 military and civilian law and security enforcement officers from 23 NATO members and candidate states, including 52 representatives of U.S. governmental organizations involved in counter-terrorism.

The Spanish order in the amount of $297,550 for the system as configured by the purchaser, along with a down payment and guarantee of the balance upon delivery, was received from Compania de Aprovisionamiento Especifico S.L., located in Tenerife, Canary Islands, Spain. The order has been confirmed separately in writing by the Asociacion Industrial de Canarias (ASINCA), a leading industry trade association in the Canary Islands, Spain.

"This purchase order, which I hope is the first of many to come, represents an important market entry for HiEnergy into Spain and the European Union," stated Dr. Bogdan C. Maglich, HiEnergy's chairman and CEO. "Additionally, we are very pleased to have the support of industrial leaders of the Canary Islands, the strategic importance of which stems from the unique geographical location of the archipelago and its vigorous commerce with three continents, Europe, Africa and South America."

The delivery of the products identified in this purchase order, and other similar orders, is contingent upon the payment of all taxes and import duties by the purchaser, as well as conformance with any applicable restrictions on the exportation or importation of the SIEGMA E3E system. The Canary Islands is an integral part of Spain and is subject to European Laws and regulations, including those governing appropriate licenses and end-user permits.

HiEnergy Technologies, Inc. is a nuclear technologies-based company focused on the development and commercialization of proprietary neutron-based "stoichiometric" sensor devices. The company's technologies developed in the course of the past six years are unique in that they have the ability to determine automatically, non-invasively and through steel, whether an object or container carries dangerous or illicit selected substances, such as explosives, biological agents, or illicit drugs.

HiEnergy's primary focus is currently on the production and sale of two products: (1) the CarBomb Finder, a vehicle-borne system, for the detection and identification of car bombs, and (2) the SIEGMA, a suitcase-borne system for the detection and identification of home-made bombs, also known as Improvised Explosive Devices or IED's. In addition, HiEnergy continues to research and develop prototype devices for other related uses of its core technology, such as the Anti-Tank Landmine Detector and Stoxor, its next generation checked baggage screening program, as well as non-military industrial applications for the petrochemical industry. For more information, see www.hienergyinc.com.

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