Dr. James Young reports

TMS ANNOUNCES SETTLEMENT OF VIRGINIA LITIGATION

Targeted Microwave Solutions Inc. has entered into a comprehensive release agreement with Broz & Robinson LLC (BRC) relating to a dispute arising from the company's previous consulting agreement with BRC. Additionally, the company announced today that it has entered into a comprehensive settlement and release agreement with David S. Robinson Jr. and Mike Broz relating to several disputes arising from the company's previous land lease in King William, Va.

Under the terms of the consulting release agreement, BRC and the company released each other from any and all obligations and liabilities relating to Targeted Microwave's previous consulting agreement with BRC, including past claims by BRC against Targeted Microwave for fees and expense reimbursements.

Under the terms of the Virginia lease settlement agreement, the company agreed to transfer title of its King William research plant and equipment to the Virginia landlords in exchange for a comprehensive release of any claims, demands and liabilities arising from the company's previous activities on the leased lands, including, but not limited to, claims relating to alleged environmental contamination.