> our title:

Accident Delays Argus One UAV Flight Tests

> original title:

World Surveillance Group Provides Update on Argus One UAV Testing at Yuma, AZ

(Source: World Surveillance Group Inc.; issued August 29, 2011)

KENNEDY SPACE CENTER, FL --- World Surveillance Group Inc., a developer of lighter-than-air unmanned aerial vehicles ("UAVs") and related technologies, announced today that the Argus One airship successfully passed the physical inspection and analysis conducted by the flight safety board at the Yuma proving ground facility.

The safety board initially approved the Argus One airship and accompanying onboard systems for tethered flights and, after successful demonstration of tethered flights, the Argus One was approved for free flight tests.

Unfortunately following such approvals, the Company was unable to conduct flight testing of its Argus One UAV at the Yuma proving ground facilities due to an unforeseen incident that occurred while maneuvering the UAV into its hangar.

The events, which resulted in minor damage to the envelope of the UAV, were caused by unexpected strong wind gusts that hit the Argus One UAV broadside while the airship was being moved into its hangar due to the weather. The resulting tear to the airship envelope was unrelated to flight capabilities of the airship itself or the accompanying onboard systems.

The Company is working with its technical partner, Eastcor Engineering, to repair and enhance the airship's envelope and expects to complete such repairs by September 9th. WSGI is currently discussing new flight test dates with the flight operators at the Yuma proving ground facility, anticipates finalizing these dates shortly and expects to return to Yuma in September or October. Meanwhile, the Company plans to continue flight testing the Argus One in Easton, MD in preparation for the upcoming Yuma flight exercise.

The Company will provide additional information on flight testing in Easton, MD as well as the definitive dates to conduct additional testing at Yuma.

WSGI's President and Chief Executive Officer, Glenn D. Estrella, stated, "While we are very disappointed at the unfortunate incident that resulted in our inability to execute the flight tests we had planned for Yuma, we remain optimistic about the unique capabilities of our Argus One airship design based on the results from our numerous Easton flight tests. We are actively in discussions with the directors at Yuma to reschedule new testing dates to get back to Yuma as soon as possible and will continue our testing in Easton in the interim."

World Surveillance Group Inc. designs, develops, markets and sells autonomous, lighter-than-air UAVs capable of carrying payloads that provide persistent security and/or wireless communications solutions at low, mid, and high altitudes. WSGI's airships are designed for use by government-related and commercial entities that require real-time intelligence, surveillance and reconnaissance or communications support.