PRINCETON, N.J., Feb. 27 /PRNewswire-FirstCall/ -- Mikros Systems
Corporation (OTC Bulletin Board: MKRS - News) announced today that it has
entered into discussions with the U.S. Navy for a sole source contract to
complete the development and begin production of the Multi-Function
Distributed Analysis Tool (MFDAT).

The MFDAT is an intelligent,
automated test tool designed to
aid in the maintenance and
alignment of complex electronic
equipment such as DoD radars,
FAA radars, and military and
commercial communication
systems. Mikros plans to develop
and build several prototype
MFDAT systems targeted for use
with the AN/SPY-1A radar
system on Aegis Guided Missile
Cruisers.

The MFDAT development
program began in May 2002 as a
result of Mikros winning a
competitively bid Small Business
Innovation Research (SBIR)
contract for Phase I. On August 8, 2003 the Company was awarded Phase II
valued at approximately $600,000 with a $150,000 option. The Phase II
contract will continue through fiscal year 2004.

It is anticipated that funding for the Phase III proposed contract with the
Navy will come from an approximately $3M appropriation for the
AN/SPY-1A readiness improvement authorized in the FY04 Congressional Bill.
The Company is also in discussions regarding a $250,000 contract extension
to the existing Phase II SBIR contract.

Mikros has also executed a memorandum of understanding with DRS Laurel
Technologies of Johnstown, Pennsylvania for the proposed manufacture of the
equipment for Phase III.