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US Global Nanospace and Cyclone Aviation Products Announce Manufacturing Agreement and Initial Order for Twenty S.A.G. Humvee Turrets

Carson City, NV. Jan. 5, 2004

US Global Nanospace, Inc. (OTC BB: USGA) and Cyclone Aviation Products, Ltd., a subsidiary of Elbit Systems Ltd, (NASDAQ:ESLT) today announced a manufacturing agreement for production of the US Global S.A.G. Humvee turret at Cyclone's 200,000 square foot manufacturing facility near Karmiel, Israel, as well as an initial order for twenty turrets.

Cyclone is an ISO 9001-certified designer and producer of composite and metal structural parts for civil and military aircraft. Cyclone's customers include the IMOD, the U.S. Air Force, Boeing, Lockheed Martin, Vought Aircraft Industries Inc., Bell Helicopters Textron Inc., Sikorsky Aircraft Company, Israel Aircraft Industries Ltd. as well as other aircraft manufacturers and end users around the world. Boeing has awarded Cyclone its Preferred Supplier Gold Rating. Cyclone's web site is here.

"Cyclone is a top-tier manufacturer of complex composite assemblies and they have the experience, technology and facilities required for volume production of the S.A.G. Turret," stated John Robinson, chairman and ceo of US Global Nanospace, Inc. "Protecting our soldiers is US Global's top priority and we will ramp up volume production to expedite turret field mobilization. Cyclone's geographic proximity to the initial field users of the S.A.G. Turret as well as their established competency in manufacturing products to extremely high tolerances made them a natural choice as a manufacturing partner."

The US Global S.A.G.(tm) Turret has been designed as a lightweight shielded turret for the Humvee that weighs less than 200 pounds, offers rapid rotational capability, is designed to interface precisely with military HMMWV rotating turret rings and can be installed by two people in less than one hour using common hand tools. The S.A.G.(tm) Turret is made primarily of USGN's proprietary G-Lam(tm) nano-fiber material and is impervious to petroleum distillates and maintain performance at temperatures in excess of 400 degrees Fahrenheit. Turrets will be manufactured for protection against specific ballistic threats up to .50 caliber and are available immediately for controlled export to allied countries with U.S. government approval.

US Global Nanospace, Inc. (OTC BB: USGA) is an applied nanotechnology company focused on developing products for commercial and defense applications to enhance and save lives. US Global's materials and products include G-Lam, G-Lam-C, NanoFilters, NanoFilterCX, All-Clear Chem/Bio Decon Foam, S.A.G. Turrets, BlastX, G-Armor and RadomeX. More information is available here here.

Safe Harbor Statement: These statements are based on assumptions that the management of US Global Nanospace, Inc. believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of US Global Nanospace, Inc. and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, and are subject to a wide range of business risks, external factors and uncertainties, the lack of acceptance of the company's products by its customers and prospects, the inability to secure necessary product sales and the inability to obtain necessary substantial capital to manufacture and market its product and otherwise implement its business plan. In each case, actual results may differ materially from such forward-looking statements. US Global Nanospace, Inc. does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results (expressed or modified) will not be realized.

For further information, please contact:

For US Global Nanospace:
Rich Schineller
rich @

Reprinted with premission.
Copyright USGN.

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