NORTHVALE, N.J., May 16 - INRAD, Inc. (OTC Bulletin Board: INRD) announced today that it has been awarded a letter of intent and production contract to provide a key ultra violet (UV) waveband optical filter element for the next generation airborne AN/AAR-47 Missile and Laser Warning System. The contract was awarded to INRAD by ATK’s Tactical System Company, LLC, Clearwater Operation based in Clearwater, FL. ATK is prime contractor for development and production of the system, and has been authorized to enter Low Rate Initial Production by the U.S. DOD. When fully funded through all production phase options, in excess of 10,000 components are likely to be required over the first four to six years of production, according to the INRAD.

Ultra-violet filters are specialty optical elements made from high purity and high uniformity single-crystals of synthetic materials which absorb all wavelengths except those in the UV region of the electro-magnetic spectrum. These filter elements are a key optical component of airborne electro-optical missile warning system sensors.

Dan Lehrfeld, President and CEO of INRAD, commented, "We are pleased that we have been selected by ATK to be their supply chain partner for the production phase of this important program. We have reached agreement on requirements, pricing, and terms, and are now under contract. In the defense electronics sector, aircraft protection systems have a high funding priority in the DOD and in Congress for production and deployment. There are over sixteen thousand of the previous generation system's sensors deployed at present and targeted for eventual replacement with the new system.

Mr. Lehrfeld added, "INRAD has been on the AN/AAR-47 program for many years, initially supplying a filter component for the original production system's sensors. During the last several years, we have supplied ATK with components for the engineering, pre-production, and qualification phases of development of this new, superior, system. We expanded our proprietary UV filter crystal product line, developing an advanced UV filter material (patent pending) and related production capacity so that INRAD would remain positioned as the supplier of choice for this strategic component."

INRAD, Inc. develops, manufactures, and supplies products for key Photonics Industry sectors via its four related product areas: Crystals and Crystal Components, Systems and Instruments, Custom Optics, and Thin Film Services. Its customers include leading corporations in the Laser Systems, Semiconductor and Telecom Metrology, Telecommunications and Defense industries, as well as the U.S. Government. Its products are also used by researchers at National Laboratories and Universities world-wide.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this press release that are not purely historical are forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. These statements may be identified by their use of forward-looking terminology such as "believes", "expects", "will", "plan", or similar words. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. Risks and uncertainties that could cause actual results to differ materially from such forward looking statements are, but are not limited to, uncertainties in market demand for the company's products or the products of its customers, future actions by competitors, inability to implement its growth strategy, inability to raise capital, and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission. The forward looking statements made in this news release are made as of the date hereof and INRAD does not assume any obligation to update publicly any forward looking statement.

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