TUCSON, Ariz.— July 9, 2008—Applied Energetics, Inc., (Nasdaq:AERG) announced that based on its belief that its common stock is undervalued, the Company has elected to pay the August 1, 2008 quarterly dividend on its Series A Preferred Stock in cash.
The Preferred Stock dividends are payable in cash, shares of the Company’s common stock or a combination thereof at the rate of 6.5% of the liquidation preference per share per annum.
Dana Marshall, Chairman, CEO and President of Applied Energetics, commented, “We believe that the Company’s common stock is undervalued and that it is in the best interest of our stockholders to pay the preferred stock dividend in cash rather than in shares of our common stock. We believe in the past year the Company has opened exceptional opportunities in both our counter-IED and Laser Guided Energy development programs, and we are seeing growing customer acceptance of our technologies through events like our recent Marine Corps contract award. We believe our successes over the past year have significantly strengthened our business. Unfortunately, government classification and security constraints continue to prevent us from fully communicating the business significance of these events to the investing public.”
Mr. Marshall continued, “We have worked diligently for the past two years to carefully manage our cashflow and with our recent contract awards we believe it is appropriate to pay the quarterly dividend in cash. We believe this cash payment will not have a significant impact on our liquidity and it will not result in any dilution to our shareholders.”
About Applied Energetics, Inc.
Applied Energetics, Inc., based in Tucson, Arizona, specializes in development and manufacture of advanced high performance lasers, high voltage electronics, advanced optical systems, and integrated guided energy systems for defense, aerospace, industrial, and scientific customers worldwide. Applied Energetics pioneered the development of Laser Guided Energy™ (LGE™) technology, and related solutions for defense and security applications. For more information about Applied Energetics, please visit www.appliedenergetics.com.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:
Certain statements contained in this News Release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forwardlooking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the dependence on sales of a limited number of products and the uncertainty of the timing and magnitude of government funding and orders, dependence on sales to government customers; the uncertainty of patent protection; the uncertainty of strategic alliances; the uncertainty of management tenure; the impact of third-party suppliers’ manufacturing constraints or difficulties; management’s ability to achieve business performance objectives, market acceptance of, and demand for, the Company’s products, and resulting revenues; development and testing of technology and products; manufacturing capabilities; impact of competitive products and pricing; litigation and other risks detailed in the Company’s filings with the Securities and Exchange Commission. The words “looking forward,” “believe,” “demonstrate,” “intend,” “expect,” “contemplate,” “estimate,” “anticipate,” “likely” and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. Applied Energetics undertakes no obligation to update any forward-looking statements contained in this news release.
Contact:
Investor Relations:
Kevin McGrath
Cameron Associates
212.245.4577
Kevin@cameronassoc.com
