June 10, 2008 16:15 ET

Raytheon Company Awards Contract to Cyclone Power Technologies

POMPANO BEACH, FL--(Marketwire - June 10, 2008) - The Raytheon Company has awarded a research and development contract to Cyclone Power Technologies, Inc. (PINKSHEETS: CYPW) in connection with its revolutionary, external combustion engine.

Raytheon's contract is to conduct a series of developmental tests on the Cyclone Engine, an award winning, eco-friendly engine that can run on a multitude of fuels and is scalable to almost any size. Engine development and thermodynamic performance testing will occur at Cyclone's research facility in Florida over the following months. Raytheon is providing funding, equipment and personnel to the project.

"We see great potential in the Cyclone Engine for many of our customers' applications," stated Kevin P. Bowen, Engineering Fellow, Advanced Technology Vehicle and Sensor Systems at Raytheon. "We are intrigued by the engine and look forward to working with Cyclone."

Cyclone CEO Harry Schoell noted: "This relationship provides us with an enormous opportunity to utilize our multi-fuel engine technology in exciting and important new areas. We are very pleased to be working with Raytheon on this development project."

ABOUT RAYTHEON

Raytheon, headquartered in Waltham, MA, is a technology leader specializing in defense, homeland security, and other government markets throughout the world. With a history of innovation spanning more than 80 years, Raytheon provides state-of-the-art electronics, mission systems integration, and other capabilities in the areas of sensing, effects, command, control, communications and intelligence systems, as well as a broad range of mission support services. Raytheon has approximately 72,000 employees worldwide, with sales of approximately $21.3 billion in 2007.

CORPORATE PROFILE

Cyclone holds the U.S. patent, international patent applications, and exclusive commercial rights to the Cyclone Engine, an environmentally friendly and highly efficient external combustion, heat-regenerative engine. Developed by the company's President and CEO, Harry Schoell, the Cyclone Engine regenerates (or recycles) its heat, which allows it to run cleaner, cooler and more efficiently than traditional internal combustion engines. The Cyclone Engine is capable of running on any liquid or gaseous fuel, including ethanol, bio-diesel and propane, and is lubricated with de-ionized water instead of motor oil. By eliminating many subsystems like oil pumps, radiators, catalytic converters and fuel injectors, Cyclone Engines are expected to cost less to manufacture, operate and maintain; however Cyclone Engines are highly scalable and sufficiently powerful for applications ranging from lawn equipment and small home generators to cars, trucks, buses ships and locomotives. The Broward County Environmental Protection Department recently named Cyclone Power Technologies as the "Environmental Business of the Year," and Popular Science magazine recently named the Cyclone Engine "2008 Invention of the Year."

Safe Harbor Statement

This release contains certain "forward-looking" statements, as well as historical information, involving risks and uncertainties, which are covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that the expectations reflected in these forward-looking statements will prove to be correct. Forward-looking statements include those that use forward-looking terminology, such as the words "anticipate," "believe," "estimate," "expect," "intend," "may," "project," "plan," "will," "shall," "should," and similar expressions, including when used in the negative. Although we believe that the expectations reflected in these forward-looking statements are reasonable and achievable, these statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. Additionally, the company's actual or future results may differ materially from those anticipated depending on a variety of factors, including continued acquisition and maintenance of favorable license arrangements, success of market research identifying new product opportunities, successful introduction of new products and continued product innovation, sales and earnings growth, and general economic conditions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements attributable to us are expressly qualified in their entirety by these and other factors. Cyclone Power Technologies does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results, reflect events or circumstances or to changes in its expectations, except as may be required by law.