ELECTRO OPTIC SYSTEMS HOLDINGS LIMITED — Capital/Financing Update 2012

Feb 27, 2012

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Electro Optic Systems Holdings Limited

A.C.N. 092 708 364 Suite 2, Level 12, 75 Elizabeth Street, Sydney NSW 2000 Tel +61 2 9233 3915 Fax +61 2 9232 3411 http://www.eos-aus.com

EOS AWARDED DEFENCE CONTRACT

Canberra, 28 February 2012

Electro Optic Systems (ASX:EOS) has announced a new contract valued at $25 million for the manufacture and delivery of remote weapon systems over the next 30 months for an existing customer

Announcing the contract, the Chief Executive of EOS’ Defence Systems business, Mr Mark Bornholt, said:

“This order is for our most advanced model of remote weapon system and brings to over 300 units the total number of orders for this model. It will be filled in EOS’ production facilities in Australia and the USA.

“This product has been in reliable production in the exact configuration now ordered for more than12 months and no changes to our supply chain or production processes will be required. This order will see production of that configuration continue with regular monthly shipments to late in 2014.

“We expect a significant proportion of this order will be produced in Huntsville, Alabama, under the consolidation of remote weapons system capabilities announced by EOS in December 2011.”

EOS CEO, Dr Ben Greene, said that the contract award was particularly satisfying as it is from an existing customer.

“EOS is proud of its products and customer-focused culture, but the most important indicator of how well we embody these qualities is customer feedback and follow-on contracts.

“The order raises EOS’ backlog of confirmed, unfilled orders for all products and services to around $45 million deliverable over the next 2.5 years. This backlog is around 1.5 years of revenue at current performance levels, and is strong in terms of past sales performance.”

Information: Ben Greene Mark Bornholt Chief Executive Officer EOS Chief Executive - Defence Systems Ph: +61 414 365 658 Ph +61 40 404 2528 www.eos-aus.com

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ABOUT ELECTRO OPTIC SYSTEMS (ASX: EOS; OTC: EOPSY)

EOS develops, manufactures and sells sophisticated aerospace technology with a wide range of applications through two business divisions – military and space.

EOS’ remote weapon systems enable a weapon to be fired rapidly and accurately by a gunner safely relocated away from the weapon. Typically the technology is applied for mounting weapons on the top of an armoured vehicle, and the gunner inside the vehicle. EOS remote weapon systems have been produced in significant numbers for US Army, NATO forces, Australia, and other countries around the world.

EOS’ space division is as a manufacturer of telescopes and technology to support space surveillance and space debris management, including removal. In space surveillance, EOS’s laser tracking systems and computer technology can track small orbiting debris objects with great precision – while its space ablation technology and systems could potentially allow future de-orbiting of space debris objects.

EOS has around 110 employees, based in Canberra (Australia), Tucson (Arizona), Singapore and Deggendorf (Germany). The company also has manufacturing centres in Queanbeyan and Huntsville, Alabama..

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