Applied Energetics

"Innovative Ultrafast Lasers and Particle Beam Systems"

Applied Energetics Reports Filing of Form 8 K Regarding Compensation of Certain Officers

TUCSON, Ariz. — July 11, 2011-- Applied Energetics, Inc., (NASDAQ: AERG), today announced that in connection with the cost reduction measures described below, on July 5, 2011, the Company’s Board reduced the annual base salaries of each of the executive officers of the Company, Joseph Hayden, its President, Eric Lau, its Chief Operating Officer, and Humberto Astorga, its Chief Financial Officer, by approximately 15% to $195,500, $150,000 and $150,000, respectively. In addition, the Board of Directors of the Company reduced its compensation by 15%.

The Company previously announced that it had completed field work on the original contract with the US Marine Corps for its counter-IED technology and that testing of a new version of this technology was completed in May 2011. The Company has not yet been informed of the official results of this testing. In addition, the uncertainty caused by current government fiscal policy could further delay and otherwise adversely affect funding for other company research and development projects and technologies. As a result, the Company is pursuing cost reduction measures, including reductions in its non-critical work force to enable it to preserve resources and better weather the current government fiscal policy and uncertainty in defense spending.

The Company also reiterated that it is continuing to explore strategic options in an effort to expand its product offerings to commercial and government customers and diversify its existing product lines in light of the current federal budget environment.

About Applied Energetics, Inc.

Applied Energetics develops and manufactures applied energy systems for military and commercial applications. Through our efforts in developing our core technology, Laser Guided Energy ("LGE"), we have gained expertise and proprietary knowledge in high performance lasers, high-voltage electronics, advanced dynamic optics and atmospheric and plasma interactions. We apply these technologies to deliver innovative solutions to urgent military requirements, including neutralizing improvised explosive devices ("IEDs") and other high priority missions of U.S. and allied military forces. We have developed an effective and robust counter-IED ("CIED") technology as a result of our research and development. Additionally, we develop and manufacture high voltage and ultra-short pulse ("USP") laser products for government and commercial customers for a range of applications. For more information about Applied Energetics, please visit

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

Certain statements contained in this News Release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Such factors include, but are not limited to: the dependence on sales of a limited number of products and the uncertainty of the timing and magnitude of government funding and orders, dependence on sales to government customers; the uncertainty of patent protection; the uncertainty of strategic alliances; the uncertainty of management tenure; the impact of third-party suppliers' manufacturing constraints or difficulties; management's ability to achieve business performance objectives, market acceptance of, and demand for, the Company's products, and resulting revenues; development and testing of technology and products; manufacturing capabilities; impact of competitive products and pricing; litigation and other risks detailed in the Company's filings with the Securities and Exchange Commission. The words "looking forward," "believe," “may,” “plan,” “seek,’ “strategy,” "demonstrate," "intend," "expect," “continue,” "contemplate," "estimate," "anticipate," “will,” "likely" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. Applied Energetics undertakes no obligation to update any forward-looking statements contained in this news release.