SOURCE: Cyber Defense Systems, Inc.

September 12, 2007 14:01 ET

Cyber Defense Systems Updates Investment Community on Company's Operating Strategy for Global Growth and Planned Resignation of CEO William C. Robinson

ST. PETERSBURG, FL and ATLANTA-COLUMBUS, GA--(Marketwire - September 12, 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 the Company's management has completed a review of its overall operating strategy and infrastructure. William Robinson plans to resign after the search for and appointment of a new CEO/President. The review has concluded that the Company can best build shareholder value by focusing on securing corporate financing and implementing adjusted priorities and initiatives.

The Company has also declared a dividend to be paid in all of the shares of its wholly owned subsidiary, Techsphere Systems International, Inc., a designer, developer and manufacturer of manned and unmanned airships. The record date for the dividend is September 17, 2007. The record date functionally applies only to Cyber Defense stock registered in individual shareholders' names with the Company's transfer agent. NASDAQ will set the ex-dividend date for stock trading in the market at the time the Company notifies it that the Company is prepared to make the distribution of the Techsphere shares. Stock in street name which is purchased in the open market will be eligible to receive the dividend up to the ex-dividend. The Company expects to distribute one share of Techsphere for each four Company shares outstanding on the record date, with the result that Techsphere will have approximately 25 million shares outstanding. The distribution will be made pursuant to a registration statement to be filed with the U.S. Securities and Exchange Commission.

"Techsphere is being positioned to fit a global need as a new public company, with the manufacturing of multiple aerial platform product lines for military, communications, telemedicine and other target market opportunities," stated Mike Lawson, CEO of Techsphere.

As part of this restructuring, Airship Leasing Co., LLC was re-activated to provide leasing service through corporate sponsorships for commercial and telecom broadcasting opportunities. Airship Leasing is expected to help secure additional, future funding resulting from the sale of a 25% interest to new investors. Airship Leasing's ownership will be distributed between a new pool of investors being sold 25% of the Airship Leasing Co., LLC and 75% retained by Techsphere after the spin-off.

Techsphere plans to set up additional LLC structures patterned after Airship Leasing for a total of twelve leasing and sales divisions to globally support the anticipated demand of its airship technology. The recent announcement of Techsphere's future Alabama plant was featured in news and print article across the country. Techsphere has also been recently featured in the September issue of Air and Space, available on the web at http://www.airspacemag.com/issues/2007/september/spy_blimps.php?page=1

Techsphere is exploring new research opportunities in both Georgia and Alabama. There are potential grant dollars and multiple assistance programs that are available in both states. Techsphere currently has three airships in production. Two of the SA 60 MA commercial airships are nearing completion with future funding provided by the Airship Leasing program. CEO Mike Lawson is also assembling a seasoned team with new management targeted to come on board upon funding, along with having both airships producing revenue by the first quarter.

Cyber Defense Systems has engaged JADA Consulting ('JADA') to represent its CyberBUGTM UAS in the global marketplace. JADA is a veteran-owned, small business with extensive expertise with UASs for the Department of Defense and several key allied partners. JADA will work with the existing distributors and continue to develop new relationships. Coupling JADA's operational experience and their global network with the product line has enabled new sales opportunities and future distributorships in Europe, North America, South America, Asia and Africa.

Billy Robinson, the Company's Chief Executive Officer, stated that, "We are committing to an enterprise-wide management philosophy that we believe is essential to succeeding in the highly competitive, unmanned systems market that has evolved. Our recent accomplishments, such as Frost & Sullivan's 'UAS Best Bang for the Buck' award and the FAA's airworthy certificate for the CyberBUG UASs, are a testament to the quality and capability of our UAS product line. These achievements have been instrumental in the Company's recapitalization plan by demonstrating the potential of our company."

Key notes from recent Company events:

--  The Company's announced dividend spin-off of Techsphere.
--  The re-activation of Airship Leasing and the formation of multiple
    additional LLCs to meet the needs of global expansion.
--  The addition of JADA Consulting to the Company's team enables the
    overall management of the Company to focus its energies on the UAS market
    and take on a leadership role in the small UAS arena.
--  The recent delivery and successful flight of the new CyberBug Grande
    to WinTec, Inc.
--  Techsphere recently negotiated an addendum with Microsoft which
    extends the terms of their agreement.
--  The JADA and the Techsphere management additions will allow Mr.
    Robinson to step down as CEO/President and concentrate his energies on
    strengthening the balance sheet, raising capital and generating new
    revenues for the Company.  A new CEO and President are expected to be named
    in the next 60 days.  In addition, there will be changes in the current
    Board of Directors with plans to seek independent and experts to advise and
    carry the Company forward.
--  Techsphere plans to expand operations to new facility planned in
    Alabama. Techsphere plans to take advantage of state and local tax breaks
    supporting new, small businesses. In addition, Techsphere is bringing on
    additional new management.
    

ABOUT CYBER DEFENSE SYSTEMS

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

Techsphere Systems International, Inc., is a wholly owned subsidiary of Cyber Defense Systems. Techsphere, located in Columbus, GA, is a manufacturer of low and mid altitude airships. Together with its 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 and reactivated in 2007 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 sponsorships agreements are initiated. Airship Leasing Co., LLC will be owned and operated by Techsphere.

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.

Contact Information

  • Contact:

    Cyber Defense Systems, Inc.
    Billy Robinson
    727-577-0878
    billy@cduav.com

    Techsphere Systems International, Inc.
    Deborah Cheek
    706-536-3720