Spectral Systems Inc. Completes Preliminary Design of ATK’s
Advanced Anti-Radiation Guided Missile Digital Signal Processor

(August 6, 2004 – Dayton Ohio) – Spectral Systems Inc. (SSI) recently completed the
preliminary design of an advanced digital signal processor (DSP) module for ATK’s (NYSE: ATK)
Advanced Anti-Radiation Guided Missile (AARGM) System Development and Demonstration
(SD&D) program. The AARGM SD&D program is an Acquisition Category (ACAT) 1 Navy
program and SSI is a subcontractor to ATK.

SSI received a contract for the requirements analysis and design of the DSP in January of 2004.
The design phase will be completed this fall and the SD&D build phase for SSI will start in early
November. During the build phase, SSI will provide 34 SD&D units to ATK Missile Systems
Company (AMSC) and will support integration and testing of the AARGM seeker assembly
through developmental test flights. The SD&D program runs through the end of government fiscal
year 2008 and is followed by low-rate initial production and then full-rate production.

Dave Sharpin, SSI Chief Engineer said, “We are proud and excited to be part of the ATK team
building this advanced weapon system for the United States Navy. The Digital Signal Processor
effort leverages directly from our advanced digital receiver product lines and provides a new
application of our modular and scalable signal processing technology. The AARGM DSP will
provide a multi-channel, re-programmable capability that has never been available before in such
a small form factor.”

About SSI
Spectral Systems, Inc. (SSI) is a leading-edge aerospace engineering and product development company located in southwestern Ohio, the birthplace of manned flight. SSI was founded in 1995 and has grown very rapidly from an engineering service provider to a developer and integrator of advanced Intelligence, Surveillance and Reconnaissance (ISR) and Electronic Warfare (EW) systems, sensors and embedded processors. SSI is a wholly owned subsidiary of Sierra Nevada Corporation (SNC), headquartered in Sparks, Nevada.

Sierra Nevada Corporation (SNC) headquartered in Sparks, Nevada, is a fast growing innovative and agile technology solutions corporation focusing on system integration electronics engineering; manufacturing; and aircraft modification. Our current focus is to specialize in the integration; design; development; installation; and servicing of complex airborne, ground, and ship-based systems for the U.S. Government, its prime contractors, and international customers.

SNC is a privately-held, woman owned business with a strong, stable and debt-free financial foundation that provides flexible low-risk and strong financial performance for our customers. We have invested heavily over the years in experienced people, modern facilities, and the state-of-the-art equipment needed to enhance our capabilities, development efforts to our customer’s technical advantage. SNC has over 1000 employees with 24 locations in 15 states across the United States.

SNC Enterprise Business Areas:
ISR - Intelligence, Surveillance and Reconnaissance
CNS/ATM - Communication, Navigation, Surveillance & Air Traffic Mgmt
C4N - Command, Control, Communications, Computers and Networks
EW/RI - Electronic Warfare / Range Instrumentation
SST - System Sensors and Technology
IMS - Integrated Mission Systems