Essex Gets New Funding

Company receives funding of $500,000 in the form of a senior debt; Revenue for 2002 will significantly exceed that of 2001

December 18, 2002

1 Min Read

COLUMBIA, Md. -- Essex Corporation (OTC Bulletin Board: ESEX) announced today that revenue for 2002 will significantly exceed that of 2001 and that it has received additional funding of $500,000 from a member of its Investor Group, Hannon Family LLC. The funding was received in the form of a senior debt instrument, convertible to common equity shares through December 2004. As recently announced, Essex has seen significant growth in revenues based on expansion in its government programs. "Revenue for 2002 of approximately $4.5 million will nearly double the revenue of 2001, and based on our internal analysis we expect a similar increase for 2003", stated Len Moodispaw, Essex President and CEO. He further stated, "Our continued focus on pursuing a business model that includes growth of sustaining smart revenue as well as innovative new products is the right formula for a successful technology company in today's market. With the dual upside of operations supported by revenue and leading edge optical network technology, Essex is positioned for an exciting and successful 2003." The additional funding is part of a near-term operations and funding strategy that emphasizes core business expansion and prudent investment in new technology and products. "Today's financial markets are rewarding healthy companies with attractive choices of debt funding as an alternative to equity funding," said Caroline Pisano, Essex Vice President of Finance. As part of this near-term operations and funding strategy, Essex and the Global Environment Fund (GEF) have mutually agreed to defer the potential investment of an additional $2,000,000 by GEF. Essex Corp.

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