NUCLEAR SAFEGUARDS AND SECURITY SYSTEMS ACQUISITION CORPORATION (NUCSAFE) ANNOUNCES CONSTRUCTION OF FACILITY IN CORBIN

FRANKFORT, KY – Governor Paul E. Patton and the Cabinet for Economic Development announced today that NucSafe will locate its main manufacturing facility in Corbin, Knox County, Kentucky. The manufacturing expansion plan requires 10,000 square feet initially and 25,000 square feet within the next two years. It is expected that 34 jobs will be created within the first 2 years, with a $1.7 M investment. The company will lease a building during the first 12 months, planned for sometime from April to July 2003. Construction of the permanent facility is expected to commence by March 2004 with completion date no later than March 2005.

"NucSafe's reputation for quality products and cutting edge technology is a great boost for the Commonwealth of Kentucky," commented Governor Patton. "These are environmentally friendly, high-tech jobs and we look forward to having these additional professional positions in Kentucky."

Dr. Rick Seymour, President and founder of NucSafe, describes his decision to locate in Corbin as mutually beneficial to his company and the community. "Establishing a manufacturing facility for our products in the Corbin area provides access to a diverse workforce and enhances our capabilities to respond to rapidly growing market," Seymour says. "It will benefit Corbin, Knox County, the state of Kentucky and NucSafe. The products we manufacture will help defend our country and its allies against terrorism and the proliferation of nuclear threats.

NucSafe LLC manufactures radiation measurement systems for the nuclear safeguards industry and for law enforcement and federal agencies tasked with providing nuclear safety and protecting public security. The company, founded in 1999, is located in Oak Ridge, Tennessee.

NucSafe's products are based on an innovative and patented neutron-sensitive scintillating glass fiber, trademarked PUMA, developed at Pacific Northwest National Laboratory and commercially marketed by Nucsafe. PUMA products are designed for the detection of small quantities of Plutonium and other neutron emitting radionuclides. The PUMA technology is specifically designed to detect and monitor special nuclear materials in a variety of applications.

Other products from NucSafe include portable battery operated briefcase and backpack systems, container monitors, spent fuel monitors, high multiplicity counters, neutron position sensitive detectors and industrial systems. The solid-state nature of these sensors provides high sensitivity, greater safety; less sensitivity to vibration and a large dynamic counting range.

The Kentucky Cabinet for Economic Development is the primary state agency in Kentucky responsible for creating new jobs and new investment in the state. New business investment in Kentucky in 2002 totaled more than $3.2 billion with the creation of nearly 13,000 new jobs. Information on available development sites, workforce training, incentive programs, community profiles, small business development and other resources is available at www.thinkkentucky.com.