Ionatron, Inc.

The parties have reached a settlement of $5.3 million in cash and $1.2 million worth of the common stock of Applied Energetics, Inc. The settlement is on behalf of a Class of purchasers of the common stock of Ionatron, Inc. (“Ionatron”) during the period from May 4, 2005 through May 10, 2006.

On July 31, 2009, the parties filed a stipulation of settlement with the Court. On September 28, 2009, the court issued an order granting final approval of the settlement. On April 8, 2010, the Plaintiffs filed a motion for distribution of the settlement fund. The Settlement Fund is currently being distributed to class members.