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8419 Terminal Road, P.O. Box 1430, Newington, VA 22122-1430
703.550.7000 Fax 703.550.0883
www.sensytech.com

NEWINGTON, VA, December 18, 2003 / Business Wire / — Sensytech, Inc. (NASDAQ: STST), today announced revenues and earnings for its fourth quarter and fiscal year ended September 30, 2003.

Driven by increased order activity in all three business segments, revenues for the fourth quarter ended September 30, 2003 increased $3,726,000 or 32% to $15,507,000 compared to $11,781,000 for the prior year quarter. Revenue for the fiscal year ended September 30, 2003 increased $20,893,000 or 65% to $53,183,000, compared to $32,290,000 for the prior fiscal year.

Net income for the fourth quarter ended September 30, 2003 was $1,103,000, or $0.17 per dilutive share, an increase of 86% compared to $592,000 or $0.14 per share for the fourth quarter of the prior year. For the fiscal year ended September 30, 2003 net income increased to $4,052,000, or $0.65 per share, an increase of 85% compared to the prior year of $2,189,000, or $.52 per share on a dilutive basis. When comparing the quarter and fiscal year results, it should be noted that the shares outstanding increased by 2,300,000 shares in November of 2002 as a result of our successful follow-on offering.

“We have accomplished much this year in developing new opportunities in existing markets while re-focusing our attention on the emerging Homeland Security/Defense sectors. Our revenue growth of 65% was consistent with our plan and slightly in excess of analysts’ expectations. This growth was achieved with record volume increases in order activity for both the Communications Group and Imaging Group. We are reporting substantial growth in EPS for the year even after the dilutive effect of our follow-on offering. We expect further internal growth in excess of 20% in our 04 fiscal year in line with analysts’ expectations. Our FY 04 planning must now take into account the timely expensing of nonrecurrent costs, currently estimated at $900,000, of our plant closure in New Jersey and the concurrent plant opening in Pennsylvania. These one time costs are expected to be expensed in the first and second quarter of FY 04, which will impact these quarters slightly but should be recoverable in the latter two quarters as productivity and volume increases at our new facility.” noted S. Kent Rockwell, CEO of Sensytech.

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Revenue for the fourth quarter increased 32% over the prior year quarter to $15,507,000

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Revenue for the fiscal year increased 65% over the prior year to $53,183,000

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Net Income for the fourth quarter of $1,103,000, or $0.17 per dilutive share, up $0.03 per share, from the prior year quarter

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Net Income for the year of $4,052,000, or $0.65 per dilutive share, up $0.13 per share, from the prior year

Sensytech, Inc. designs, develops and manufactures electronic support measures (ESM), electronic intelligence (ELINT), and threat warning systems, active electronic warfare (EW) systems, airborne imaging systems, communications reconnaissance systems and other special purpose communications equipment serving worldwide markets. Sensytech, through its predecessor companies, has been providing cutting edge technology applications and cost-effective systems solutions for three decades.

Statements in this press release which are not historical facts are forward-looking statements under the provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve risks and uncertainties. The Company wishes to caution readers that certain factors can cause the Company’s actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company. The Company undertakes no obligation and does not intend to update, revise or otherwise publicly release the results of any revisions to these forward-looking statements that may be made to reflect future events or circumstances.


	September 30,

ASSETS	2003			2002
CURRENT ASSETS
Cash and cash equivalents	$	13,445,000		$	700,000
Accounts receivable net	$	15,916,000		$	8,880,000
Unbilled contract costs, net		8,486,000			8,820,000
Inventories		1,690,000			3,168,000
Deferred income taxes		793,000			411,000
Other current assets		328,000			272,000


TOTAL CURRENT ASSETS		40,658,000			22,251,000


PROPERTY AND EQUIPMENT		3,350,000			2,608,000

OTHER ASSETS
Deferred income taxes		224,000			260,000
Intangibles, net		133,000			400,000
Other assets		73,000			333,000


TOTAL ASSETS	$	44,438,000		$	25,852,000


LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Line of credit	$	—		$	2,900,000
Accounts payable		3,780,000			2,916,000
Accrued salaries, benefits, and related expenses		2,628,000			2,093,000
Other accrued expenses		862,000			438,000
Billings in excess of costs		1,172,000			2,342,000
Income taxes payable		63,000			497,000


TOTAL CURRENT LIABILITIES		8,505,000			11,186,000
Commitments and contingencies		—			—

STOCKHOLDERS’ EQUITY
Common Stock		66,000			42,000
Additional paid-in capital		25,172,000			7,972,000
Treasury stock at cost		(534,000	)		(525,000	)
Retained earnings		11,229,000			7,177,000


TOTAL STOCKHOLDERS’ EQUITY		35,933,000			14,666,000


TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	44,438,000		$	25,852,000


	For the Quarter Ended						For the Year Ended
	September 30,						September 30,
	2003			2002			2003			2002
REVENUES
Contract revenues	$	15,507,000		$	11,781,000		$	53,183,000		$	32,290,000


COSTS AND EXPENSES
Cost of revenues		12,171,000			9,521,000			40,614,000			24,855,000
General and administrative expenses		1,609,000			1,224,000			5,876,000			3,782,000


Total cost and expenses		13,780,000			10,745,000			46,490,000			28,637,000

INCOME FROM OPERATIONS		1,727,000			1,036,000			6,693,000			3,653,000

OTHER INCOME (EXPENSES)
Interest income		43,000			3,000			122,000			36,000
Interest expense		(1,000	)		(31,000	)		(50,000	)		(40,000	)
Other income		20,000			(4,000	)		32,000			73,000
Other expenses		—			(2,000	)		(10,000	)		(13,000	)


INCOME BEFORE INCOME TAXES		1,789,000			1,002,000			6,787,000			3,709,000
INCOME TAX PROVISION		(686,000	)		(410,000	)		(2,735,000	)		(1,520,000	)


NET INCOME	$	1,103,000		$	592,000		$	4,052,000		$	2,189,000


PER SHARE AMOUNT
Basic earnings per share	$	0.17		$	0.14		$	0.66		$	0.54
Diluted earnings per share	$	0.17		$	0.14		$	0.65		$	0.52

WEIGHTED AVERAGE
SHARES OUTSTANDING
Basic average shares outstanding		6,487,000			4,097,000			6,104,000			4,054,000
Diluted average shares outstanding		6,682,000			4,202,000			6,262,000			4,180,000

FOR MORE INFORMATION, CONTACT:
Donald F. Fultz, Chief Financial Officer
don.fultz@sensytech.com
URL: www.sensytech.com