FOR IMMEDIATE RELEASE

January 10, 2006

BLACKWATER USA UNVEILS NEW SUBSIDIARY

Blackwater Airships, LLC Is The Newest Addition To The Firm's Security Portfolio

Moyock, NC - The national security of the United States depends upon innovative and flexible solutions in the global war on terror. Blackwater USA, the world's premier security, peace and stability operations firm recently unveiled its plans to create a new subsidiary; Blackwater Airships.

Blackwater Airship's initial focus will be the development and deployment of small remotely piloted airship vehicles (RPAVs) that can operate from 5,000 - 15,000 feet, move and hover, and stay aloft for up to four days. The airships will be equipped with state-of-the-art surveillance and detection equipment that can detect, record, and communicate in real time to friendly forces the movement and activities of terrorists.

Gary Jackson, president of Blackwater USA said, "This project is in keeping with Blackwater's support of peace and security throughout the world."

Follow-on phases of the project will include larger airships that will carry tons of payload in support of remote humanitarian and peacekeeping missions. Blackwater, who is already involved in stability operations throughout the world, continues to innovate in support of peace and security, and freedom and democracy everywhere.

The first Blackwater Airship will be available in December 2006.

Blackwater is committed to supporting national and international security policies that protect those who are defenseless and provide a free voice for all. Other Blackwater subsidiaries include: Blackwater Training Center, Blackwater Target Systems, Blackwater Security Consulting, Blackwater Canine, and Raven Development Group. For more information, please visit www.blackwaterusa.com.

All inquiries should be directed to Chris Taylor, Vice President for Strategic Initiatives at (252) 435-2488.

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