www.argonst.com

Argon ST, Inc.

CORPORATEPRESENTATION

April 2008

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Safe Harbor Statement

With the exception of historical information, the statements set forth in this presentation include forward-looking statements that involve risk and uncertainties. The company wishes to caution that a number of important factors could cause actual results to differ materially from those forward-looking statements. These and other factors which could cause actual results to differ materially from those in the forward-looking statement are discussed in the company’s filing with the Securities and Exchange Commission, including its filings on forms S-4, 10-K, and 10-Q.

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Agenda

• About Argon ST• Argon and the C5ISR Market• Business Model and Financial Overview• Key Opportunities• Program Highlights

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$282 million2007 Revenue

Fairfax, VACorporate Headquarters

Approximately 40%Insider Ownership

Argon-Sensytech merger 2004Argon Engineering Assoc., Inc. 1997Sensytech (and predecessors) 1968

Founded / History

$325-345 million2008 Revenue Guidance

970 as of September 30, 2007 81% possess security clearances30% of technical staff have Masters or PhD75% of technical staff are software engineers

SSEE, SSTD, OT-TES, EPX, Guardrail

Employees

Key Program/Opportunities

22.3 million1Fully Diluted Shares Outstanding1

Public: NASDAQ (STST)Ownership

Notes:1: As of December 30, 2007

Investor Snapshot

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Argon ST

• We provide systems and services to the command, control, communications, computers, combat systems, intelligence, surveillance and reconnaissance (C5ISR) market

– $80 billion+ market place– New threat environments continue to create need for intelligence– Prime on 83 percent of contracts (2007 revenue)

• We strategically focus on the following markets:– Maritime– Airborne– Tactical Communications and Networking– Ground– Global Security / International / Other

• We differentiate ourselves by– Designing, developing and delivering technically advanced systems and capabilities– Installing and supporting our systems on platforms in operational environments

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Investment Highlights

• Well positioned in SIGINT• Argon’s objective is to be a national asset

– We participate in programs of national importance– Our technical capabilities are recognized as world-class– We are a premier C5ISR company

• Speed to market– COTS-levered business model– Highly productive, technically skilled, and cleared workforce

• Significant backlog– Backlog weighted toward desirable classified work

• Strong opportunity pipeline– Areas of concentration in the defense sector are strong and growing

• Double digit top line growth targets– Organic growth and disciplined acquisitions– Increased market share and growth of C5ISR market

• Proven and incented management team with significant industry experience

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Argon and the C5ISR Market

• We target the entire C5ISR market with a range of capabilities and solutions

• In a sophisticated and complex market Argon approaches each opportunity with a life cycle approach leveraging technology advances and incumbency

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Sensors and Systems• Our sensors perform on land, at sea, and in the sky

– Surface ships– Submarines– Aircraft/UAV– Airborne-remote– Land-based platforms (mobile and fixed)

• They also span the entire signals intelligence and sensor arena, including:

– Communications Intelligence (COMINT) – Electronic Signals Intelligence (ELINT) – Acoustic – Imaging (IMINT)

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Core Capabilities

Collecting information and producing intelligence from the detection, interception and evaluation of signals, including communication

signals (“COMINT”) and electromagnetic signals, such as radar (“ELINT”).

Signals Intelligence

Employment of non-lethal measures to exploit, influence and manipulate an enemy’s C5ISR

processes, including radio and network communications, to protect own force and friendly

information and sensors.

Information Operations

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Core Capabilities (cont.)

Employment of acoustic sensors and signals to detect, identify and counter

undersea threats including, but not limited to, enemy torpedoes.

Acoustic Sensing and Countermeasures

Detecting, identifying and countering adversary forces, weapons and sensors through collection of adversary signals. Measures include launching deceptive signals and electronic counter-measures and using electronic

support measures (“ESM”) to identify and locate emitters on both platforms and weapons.

Electronic Warfare

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Core Capabilities (cont.)

Production and analysis of information from light spectrum sources, including

multispectral, hyperspectral, infra-red, electro-optical and visible light.

Imaging

The use of computer and virtual based replication of signals and sensors for

training and analysis of adversary capabilities.

Threat Simulation

Deployment of mobile, terrestrial, and satellite radio receivers and transmitters, to include point to point links and extensive networks, supporting tactical

operations, intelligence production and dissemination, movement of data and information, and management

of the radio frequency spectrum.

Tactical Communications and Networking

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Our Business Model

We approach each program with a lifecycle process which ensures optimal opportunity for long-term relationships with high margin production content

Cost(~6-9+% margins)

Cost & Fixed

Fixed(~12-15% margins)

Fixed & Cost

Program Lifecycle~3-5 year duration

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20% 30% 40% 50% 60% 70% 80%

2005

2006

2007

Q1 2008

Future

Fixed/T&M

Contract Mix (By Contract Type)

60 - 75% Fixed/T&MForecast

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C4ISR Market (2008 – 2014 CAGR)

• C4ISR is a growth market expected to outpace other DoD budget growth• RDT&E is declining by 3.6% (CAGR) over this same period• Global C4ISR market is ~$800 billion over the next decade

1.1%

4.87%

0.0%

2.0%

4.0%

6.0%

Source: F&STotal DoD Spending

C4ISRSpending

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Navy61%Army

11%

Other US22%

Int'l6%

Diversified Revenue Base

Customers(FY2007)

Not expected to be less than 50% in future

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Revenue Growth Back on Track

$61.8$79.3

$129.2

$271.8$258.8

$282.2

$335.0

0

50

100

150

200

250

300

350

2002 2003 2004 2005 2006 2007 2008

Note:1. 2002 – 2007 As reported, 2008 guidance midpoint

(in $millions)

1

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Backlog Provides Visibility for Future Growth

0

50

100

150

200

250

300

2002 2003 2004 2005 2006 2007

Funded UnfundedNote:1. 2005 Excludes ACS

$211$225

$305

$229

$157

$97

(in $millions)

1

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$5.5$6.4

$17.3

$38.9 $38.2 $38.5

$43.5

0

5

10

15

20

25

30

35

40

45

2002 2003 2004 2005 2006 2007 2008

Solid Operating Income and Adjusted EBITDA

$5.5$8.3

$16.0

$34.4

$30.6$28.3

$31.5

0

5

10

15

20

25

30

35

2002 2003 2004 2005 2006 2007 2008

Operating Income

21

4

Notes:

1. FAS 123R adopted 2006

2. Non-GAAP excluding impairment & other one-time charges

3. 2008 Guidance Midpoint

4. Adjusted EBITDA is a non-GAAP measure defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, acquisition related retention, and excludes impairment of intangible assets and other one-time charges

Adjusted EBITDA

3

3

(in $millions)

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FY 2008 Off to a Good StartFirst Quarter Results

Q1 2008 Q1 2007

Revenue $ 74.3 $ 60.4

Operating Income 6.8 (9.1%) 7.7 (12.8%)

Adjusted EBITDA (1) 9.6 (13.0%) 10.1 (16.7%)

Net Income 4.3 5.2

Fully Diluted Shares 22.3 22.7

Earnings per share, fully diluted $ 0.19 $ 0.23

Backlog 284.3 238.6

Note:1. Adjusted EBITDA is a non-GAAP measure defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation, acquisition related retention, and excludes impairment of intangible assets and other one-time charges

(in $millions, except share and per share amounts)

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Strong and Stable Balance Sheet

$ 329.6$ 331.4TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

274.8277.1Equity

4.8 5.1Other liabilities

0.72.9Other current

12.614.1Deferred revenue

$ 36.7 $ 32.2Accounts payable and accrued expenses

LIABILITIES AND STOCKHOLDERS' EQUITY

$ 329.6$ 331.4TOTAL ASSETS

8.7 8.1Intangibles & Other assets

170.2 172.4Goodwill

22.824.6Property, equipment and software, net

9.3 8.1 Other current

95.6111.0Accounts receivable

$ 23.0$ 7.3Cash and cash equivalents

30 Sep 200730 Dec 2007

ASSETS

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Business Focus

• Build new capabilities in the C5ISR area– Alignment with military modernization and transformation – Advanced technology offerings; recognized as world class

• Target opportunities as a prime contractor (83% of 2007 revenue)• Grow the company at double digit rates over consecutive years

– Organic growth via diversification of customer base and expansion of current programs– Synergies with acquisitions creating cross-market opportunities– Opportunistic and disciplined acquisitions

• Broad diversification of customers and programs– Strong customer satisfaction

• Increase profitability and shareholder value– Record backlog with significant long-term visibility– Improve program performance/execution– Create operational efficiencies

• Strengthen management team• Meet expectations, 2008 Guidance:

– Revenues from current operations: $325 - $345 million– Operating income: $29 - $34 million– Adjusted EBITDA: $41 - $46 million

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Key Opportunities

• Maritime– Ships Signal Exploitation Equipment (SSEE)

• Increment E continued production• Increment F development and production

– Surface Ship Torpedo Defense programs• 25-A, 25-C and 25-D • Mark 54 torpedo acoustic homing sensor

– Foreign– U.S. Coast Guard

• Airborne– Guardrail modernization (Northrop Grumman)– EPX Pursuit (Boeing)– Banshee subsystem for the EP-3E– Bombardier Aerospace CL215T and CL415 Water Bomber fleet– UAV collection missions

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Key Opportunities (cont)

• Tactical Communications & Networking– Operational Test-Tactical Engagement System (OT-TES)– Common Range Integrated Instrumentation System –Rapid Prototype Initiative

(CRIIS-RPI)– Ground Mobile Gateway

• USAF Objective Gateway programs

• Ground– Two major ground transportable systems – USMC Combat Operations Center (COC)

• Security– Base security for key international customer– Department of Homeland Security border protection

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Tactical Communications Highlights

• Ground Mobile Gateway – AF/ANG ground mobile system that provides relay among multiple platforms with different radios

– Key capability for Objective Gateway program– Teamed with GD on near term GMG competition– Several other competitions as follow-on

• Combat Operations Center (COC) USMC system for rapidly deployable operations center

– Provides key C2 among deployed operations– Expect solid funding in 2008 for continued development

• Operational Test – Tactical Engagement System (OT-TES) a mobile, high-fidelity, secure tactical engagement simulation and field instrumentation networking system

– Awarded low rate initial production in 2007 and additional R&D in 2008

– Awarded Common Range Integrated Instrumentation System Rapid Prototype (CRIIS-RPI) win reinforces technology

– Working to make our technology standard for all test ranges

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• Lighthouse based ground systems going into operation in ‘08– Soothsayer - UK Army/Marines (sub-contractor to Lockheed)– Enhanced Trackwolf – US Army mobile systems– Barranjoey – Australian Army

• New generation of technology– Very advanced capability compared to other land mobile

systems– Significant performance improvements over fielded equipment– Provides SIGINT into Distributed Ground Control System - Army

• Provides entry to diversify our customer base to Army, Marine, and SOCOM forces

Ground Highlights

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Airborne Highlights

• Awarded contract for spiral upgrade on the EP-3 surveillance aircraft using Lighthouse architecture

• Partnered with Boeing on EPX competition

• Demonstrated DF and signal processing techniques (in flight)

• Selected for High Band COMINT spiral upgrade of Guardrail program

• Developed and tested pointing gimbal for UAVs

• Delivered Gen-5 system to Rivet Joint

• Received contract from Bombardier for manufacture of cable and electronic assemblies

• Demonstrated multi-int capability on UAV

• Demonstrated pod based information operations and special operations on F/A-18

• Developed modification of C-130 to support C4ISR pod

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Maritime Highlights

• Ships Signal Exploitation Equipment– Continued production of Increment E– Continued development of Increment F

• Service Oriented Architecture• Significant top-side improvements

– Demonstrated frequency extension to support radar electronic support measures (RESM)

– Approved for Coast Guard use– Delivered first Royal Australian Navy system

• Radar ESM expansion efforts– Development of system for international customer– Development system for LCS and pursuit of new US Navy

platforms

• Surface Ships Torpedo Defense– Completed development and testing for SLQ-25C approval– Continued R&D for SLQ-25D generation– Planned target to be WSC-11 supplier– Won one of three MK-54 torpedo seeker phase 1 awards

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Emerging Areas

• Base and infrastructure security systems

• Satellite communications– US programs– Commercial applications

• International opportunities for SIGINT applications– Core capabilities to US allies– Direct sales and FMS

• C4ISR training and logistic support

• Counter-sniper systems