August 5, 2004 – Wireless Facilities, Inc. (NASDAQ-NM: WFII) announced that it has acquired Defense Systems, Incorporated (DSI) (Manassas, VA).

Minuteman Ventures LLC provided due diligence services to Wireless Facilities in support of this acquisition.

DSI provides a full range of information technology and logistics automation services to federal government and commercial clients, with a strategic focus on providing end-to-end total RFID solutions. Founded in 1997, DSI's services include system architecture design, system software development, software and data integration/synchronization, database development, and systems integration. Key areas of expertise include functional logistics management, asset tracking, supply chain management, data mining and data warehousing. An emerging player in the growing RFID market, DSI leverages its functional understanding of the logistics process with its core competency in data integration/synchronization to assist customers with RFID compliance and with ensuring in-transit and total asset visibility.

Eric M. DeMarco, President and CEO of Wireless Facilities, stated, "We are excited to be part of a technology-rich, customer-savvy company such as Wireless Facilities. We believe that the combination of our RFID, Logistics and technology consulting expertise with Wireless Facilities' leadership in wireless engineering and systems integration will provide a comprehensive and extremely attractive solution offering.²

Wireless Facilities says that logistics automation and RFID technology are being adopted rapidly, fueled largely by government agencies such as the Department of Defense, and large commercial enterprises such as WalMart, who require that vendors move to an RFID-based system in the future. By their very design, RFID solutions pose unique RF engineering and implementation challenges: tags made of various materials are encoded with digital information that must be read in a variety of adverse physical and environmental conditions. Wireless Facilities' longstanding experience in RF engineering and systems integration for wireless telecommunications carriers and enterprise customers provides an ideal solution to the variety of challenges inherent in deploying RFID systems. The RFID market is currently estimated to be valued at $1.5–2 billion in 2005.