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To: ksuave who wrote (1301)2/19/1999 10:34:00 AM
From: Madeleine Harrison  Read Replies (1) of 1530
 
February 19, 1999 10:25

Perceptronics Receives $0.5 Million Contract for Continued R&D in
Networked Simulation


WOODLAND HILLS, Calif., Feb. 19 /PRNewswire/ -- Perceptronics, Inc. (OTC Bulletin Board: PCTR)
today announced that it had received a contract for approximately $0.5 million from the U.S. Army's
Simulation, Training and Instrumentation Command (STRICOM) to perform research and development in
the area of networked simulation.

Under this contract, funded by the Defense Modeling and Simulation Office (DMSO), the Company will
work on advances in the High Level Architecture (HLA) being developed by the Department of Defense to
enhance the connection of large numbers of military and other simulators. The HLA is the next- generation
replacement for the Distributed Interactive Simulation (DIS) protocols, presently used by industry and
government to permit diverse simulators, created by separate groups, to work effectively together on the
same virtual battlefield.

The present award extends work by Perceptronics on Data Distribution Management, a service of the
HLA's Run Time Infrastructure (RTI). Data Distribution Management transmits only relevant simulation
exercise data and only to selected participants. It reduces the amount of information being transmitted,
and therefore speeds up performance of the simulation by using the available bandwidth more effectively.
Perceptronics will perform work on "use cases" which reflect characteristics of actual simulation
scenarios, and will conduct experiments to determine RTI performance under those scenarios.

Perceptronics will also apply its IC3D(TM) Technology for Internet Collaborative 3D to various virtual
environments for military simulation and training. IC3D combines the HLA protocols with open Web
standards to permit multiple users to share and interact in virtual 3D environments. IC3D development and
commercialization is being done with funding from a Small Business Innovation Research (SBIR) contract
from STRICOM, a grant from the California Technology Innovation Partnership (CalTIP) and outside
investment. The IC3D Technology will be applied to military simulations developed under HLA standards.
Making such simulations available over the Internet would allow training exercises to be readily conducted
with widely dispersed participants.

Perceptronics performs research and development and manufactures and markets computer-based
simulation systems for military and commercial training and decision support. Information about
Perceptronics and its products is found on the Internet at perceptronics.com. A description
and demonstration of the IC3D(TM) Technology is found at ic3d.perceptronics.com.

Statements regarding Perceptronics' expectations about growth and marketing strategies, new and
existing products, future financial performance and other Forward Looking Statements are subject to
various risks and uncertainties, including, without limitation, technological factors, competitive factors,
financing and cash flow factors, and uncertainties relating to foreign and defense-related sales. These and
other risks and uncertainties are discussed in greater detail from time to time in the Company's SEC
filings and reports.

SOURCE Perceptronics, Inc.

/CONTACT: Dr. Gershon Weltman of Perceptronics, Inc., 818-884-7470, or
fax, 818-340-6067/

/Web site: ic3d.perceptronics.com

/Web site: perceptronics.com

(PCTR)
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