VirTra Systems Completes Acquisition Agreement

ARLINGTON, Texas, Jan. 11 /PRNewswire-FirstCall/ -- VirTra Systems, Inc. (BULLETIN BOARD: VTSI) today announced it has signed a definitive agreement with Virtra Merger Corporation to acquire three private electronics manufacturing firms: Altatron International, Inc., Chrysalis Manufacturing Corporation d/b/a Altatron EMS, and Dynalyst Manufacturing Corporation.

An 8-K regarding the agreement was filed earlier today with the Securities and Exchange Commission. Under the terms of the definitive agreement, VirTra Systems will acquire the three companies in a stock-for-stock merger transaction. The acquisition is anticipated to increase the company's revenue ten-fold.

Altatron, http://www.altatronems.com/ , is an ISO 9001:2000 original equipment manufacturer in the telecommunications, networking, computer, consumer electronics, and medical devices industry. Dynalyst, http://www.dynalyst.com/ , is a boutique company focusing on extremely high-end PCB design engineering and fabrication for the semiconductor industry.

VirTra Systems will use the technological and manufacturing capabilities from the acquisition to advance its patent-pending immersive firearms training simulators. The acquisition also diversifies and expands the scope of the company's business plan into the electronics manufacturing services industry.

The transaction is subject to regulatory and shareholder approval, with proxy distribution expected in late February.

"The terms of the agreement are quite favorable to the company and, most importantly, to our shareholders," commented L. Kelly Jones, VirTra Systems' chief executive officer. "Once the merger is complete, the result will be a significantly larger, financially stronger, and more diverse company, with 2006 revenue projected in excess of $30 million."

A shareholder conference call will be conducted shortly after the proxy statement is mailed to the company's shareholders.

About VirTra Systems

Utilizing patented technology, VirTra Systems sells situational awareness firearms training systems to military agencies such as the U.S. Air Force, Army, and Department of Defense, and to national and international law enforcement agencies. The company also produces multisensory promotional virtual reality systems and 3-D theaters for clients such as General Motors, Pennzoil, Red Baron(TM) Pizza, and the U.S. Army. For more information, visit http://www.virtra.com/ .

One of our most important responsibilities is to communicate with shareholders in an open and direct manner. Comments are based on current management expectations, and are considered "forward-looking statements," generally preceded by words such as "plans," "expects," "believes," "anticipates," or "intends." We cannot promise future returns. Our statements reflect our best judgment at the time they are issued, and we disclaim any obligation to update or alter forward-looking statements as the result of new information or future events. VirTra Systems urges investors to review the risks and uncertainties contained within its filings with the Securities and Exchange Commission.

Media Relations: VirTra Systems, Inc. Steve Haag, vice-president of investor relations Arlington, Texas [phone]