SOURCE: Cyber Defense Systems, Inc.

August 17, 2007 10:00 ET

Cyber Defense Sub Techsphere Systems International to Locate Facilities in the Lake Martin Area

ST. PETERSBURG, FL and LAKE MARTIN, AL--(Marketwire - August 17, 2007) - Cyber Defense Systems, Inc. (OTCBB: CYDF), a designer, developer, and manufacturer of next generation unmanned aerial systems (UAS), and its wholly owned subsidiary Techsphere Systems International, Inc. (TSI), a designer, developer and manufacturer of manned and unmanned airships, announced today that TSI is planning to locate its airship and material research facility in the Lake Martin Area. The City of Alexander City, The Lake Martin Area Economic Development Alliance and the Coosa county Commission are excited to announce a new company locating to the Lake Martin Regional Industrial Park. The name of the company is Techsphere Systems International, Inc. ("Techsphere"). Techsphere is a wholly owned subsidiary of Cyber Defense Systems (CYDF). Techsphere is a manufacturer of low and mid altitude airships. Together with their teaming companies, Techsphere designs and builds unique airship platforms for use in many areas including surveillance, the military and wireless communications. The airships are multiple altitude technology platforms that have many applications, limited only by the imagination. The areas Techsphere is currently targeting include those in Homeland security, military, wireless communications, and others.

Techsphere was introduced by Fortitude Marketing Group (FMG), based in Union Springs, Alabama, who worked as a consulting firm to assist TSI in locating a Manufacturing Division in Alabama and accessing the available incentives and grants. FMG's team collaborated with the Lake Martin Area Economic Development Alliance to narrow the search for the location to the Lake Martin region.

Mike Lawson, CEO of Techsphere, stated, "Our high altitude technology platform is being designed with significant payload capacity suitable for stationary, long endurance, unmanned operations at an altitude between 60,000 and 70,000." Further, Mike stated, "We are impressed with the Lake Martin Area and how we have been received by the leaders of the community."

Mayor Barbara Young said, "Speaking for everyone in Alexander City including our City Council, we are pleased that Techsphere has chosen our area to locate. These are the high tech jobs and down to earth people we are looking for."

Techsphere will be locating to an existing speculative building at the Industrial Park in Coosa County, Alabama that was financed by Central Alabama Electric Cooperative and Alabama Electric Cooperative along with a generous donation for the speculative building given by Ben Russell. Work will begin immediately to finish the building and begin operations at the facility as soon as possible. The company could employ as many as 50 to 75 people after full operations at this facility begin. There should be opportunities for future growth with the possibility of other companies following Techsphere to the Lake Martin Area.

ABOUT CYBER DEFENSE SYSTEMS

Cyber Defense Systems, Inc. (OTCBB: CYDF) (http://www.cduav.com) is primarily focused on the new generation of UASs. Cyber Defense Systems is located in St. Petersburg, FL is currently marketing the CyberBUG™ UAS to various Departments and Agencies of the U.S. Government and allies as multi-use platform capable of deployment in a broad spectrum missions and applications.

Techsphere Systems International, Inc. ("TSI") is a wholly owned subsidiary of Cyber Defense Systems. TSI, located in Columbus, GA, is a manufacturer of low and mid altitude airships. Together with their teaming companies, Techsphere designs and builds unique airship platforms for use in many areas including surveillance, the military and wireless communications. The current SA 60 spherical airship design holds the world altitude record at over 20,000 feet.

Airship Leasing Co., LLC is an Oklahoma LLC formed in 2005 for the sole purpose to lease airships in both the commercial and telecommunication market. Airship Leasing will purchase airships from Techsphere System International. Inc. as sponsorship agreements are put in place.

This release contains statements that constitute forward-looking statements. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control and those actual results may differ materially from those projected in the forward-looking statements as a result of various factors.

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