Kontek Begins New Partnership with Southeast Missouri State University to Continue Research and Testing in 2007

$1.3 Million Grant is Made Final by President Bush's Signature of Defense Appropriations

New Madrid, Mo., October 4, 2006 ­ Kontek Industries announced today that it has received a $1.3 million federal grant to continue its homeland security and force protection research in 2007. The grant was made final when President Bush signed the FY07 Department of Defense Appropriations bill.

Kontek will share the grant with its new research partner, Southeast Missouri University (Southeast).

The federal funds will allow the company to continue to establish functionality and architectural standards for blast mitigation, access control, and perimeter security barrier systems.

Company officials said the grant was made possible by the diligent efforts of U.S. Senator Jim Talent, a member of the Senate Armed Services committee, with support from U.S. Senator Kit Bond and U.S. Representative Jo Ann Emerson.

“We are extremely happy to begin a new partnership with Southeast,” said Charlie Merrill, chairman of Kontek. “This research will help us continue making state-of-the-art force protection products that help make our country, and those who serve and protect it, as safe as possible, while creating jobs right here in Southeast Missouri. We certainly could not have done this without the help of Senators Talent and Bond, and Representative Emerson.”

Kontek initiated this research project three years ago as a result of the demand from federal agencies for blast and ballistic resistant perimeter vehicle barriers and walls. The demand has increased over the last year with several government agencies contacting Kontek with requests for assistance.

“Partnering with a company like Kontek that is right here in our backyard makes perfect sense,” said Dennis Roedemeier, chief executive officer of the University's Missouri Research Corporation and executive director of its Innovation Center. “We are excited about the testing that will begin here and the products it will yield. We believe that our experienced faculty, in combination with Kontek's innovative spirit, will help develop products that will continue a reputation of defending those that defend us.”

University President Kenneth W. Dobbins said the grant demonstrates the potential for future collaboration between Southeast and area businesses brokered by the University's economic development affiliate, the Missouri Research Corporation. That affiliate is presently working with the Southeast Missouri University Foundation to develop a 400-acre site on Interstate 55 between Cape Girardeau and Jackson as a center for technology and applied research.

These collaborative research efforts have already paid off for Kontek and its customers. Kontek recently completed an order from Jefferson Parish, La. to provide ten pumping station and water treatment facility safe houses to protect essential personnel in the event of another hurricane like Katrina, or worse.

Recent research has also yielded sniper towers which will be placed overseas to help train Marines for combat and products such as mortar-shielded troop housing, a guardhouse that is blast tested and defeats .50 caliber armor-piercing rounds, rocket propelled grenade (RPG) shields, and various pending projects related to high security survivability.

“Kontek is truly a small business success story and I'm pleased we were able to secure this funding,” said Senator Jim Talent. “The company is involved in mission critical work to protect our servicemen and women, secure our nation's critical assets, and provide our coastal region with the resources they need to be better prepared for a natural disaster. The research and development that Kontek has achieved is helping make America safer and our economy stronger by creating jobs in Southeast Missouri.”

About Kontek Industries

Kontek Industries, headquartered in New Madrid, Mo., is an engineering and design construction company specializing in homeland security and force protection solutions that help solve the most critical homeland security and defense-related challenges in the private and public sectors. The company manufactures the world's most technologically advanced anti-crash vehicle barriers, blast resistant barriers, L-8 and NIJ-4, .50 caliber armor-proof, blast-tested guardhouses, mobile mortar-proof troop housing, erectable mortar shield canopies, and modular buildings, which are earthquake, tornado, hurricane, and fire-proof, in its 150,000 sq. ft. facility. Kontek has provided modular blast barriers to the U.S. Air Force Force Protection Command and Control Program Office. It has also provided anti-crash vehicle barriers and other perimeter security and force protection products to 12 nuclear facilities throughout the United States and to two national security facilities: Lawrence Livermore National Laboratory and Sandia National Laboratories. To learn more about Kontek Industries and its products, please go to: www.kontekindustries.com.