FORMATION, INC.’S TOUGHDISK® 3500 RUGGED HARD DRIVE TO PROVIDE
RUGGED DATA STORAGE FOR U.S. AIR FORCE APPLICATION

TD3500 to Provide Rugged Data Storage in Deep Development Corporation's Viperfish
ASX Video Surveillance Equipment for U.S. Gunships Deployed Worldwide

MOORESTOWN, NEW JERSEY, USA, (August 8, 2006)…Formation, Inc. announced today that its ToughDisk® 3500 Rugged Hard Disks have been integrated by Deep Development Corporation (DDC), a division of Gatekeeper Systems Inc., into Viperfish ASX high resolution digital video recorders for use in U.S. Air Force AC-130H/U gunships. The recorders enable the Air Force to record planes in action as they escort convoys, protect air bases and facilities, and carry out air strikes. They also help Air Force officials review their operations.

“ToughDisk was selected for its ability to perform reliably in extreme environments,” said Doug Dyment, CEO and President of Gatekeeper. “Recording sensitive information, in both airborne and undersea environments, is what our recorders are designed to accomplish. Formation’s ToughDisk is a key component in our airborne recording systems providing for reliable storage of the data.”

ToughDisk rugged hard disks are high-performance, removable data storage units built specifically to withstand extreme temperature, shock, vibration, humidity and dust conditions. The TD3500 is a rugged drop-in replacement for standard 3.5” low profile disk drives with 73 or 100 GByte capacity and SCSI or ATA interfaces.

“This is another demonstration of a major defense application that incorporates ToughDisk,” said R. Nim Evatt, Formation CEO and president. “Formation’s ToughDisk has been selected for submarine, shipboard and airborne defense applications because of its performance characteristics and its significant cost and capacity advantages over solid state storage.”

The Viperfish ASX recorders, designed and manufactured by Gatekeeper's Deep Development Corp., were selected after U.S. officials tested the surveillance equipment for more than a year. Gatekeeper has completed delivery of its first order of recorders and has received a second order for recorders.

About Gatekeeper Systems

Gatekeeper Systems designs and develops video surveillance equipment through its Deep Development Corporation. Applications range from transportation, to underwater cameras for scientific research to defense applications. For information visit www.deepdevelopmentcorp.com. Or call 1.604.864.9671

About Formation, Inc.

Formation, Inc. of Moorestown, NJ, USA designs and manufactures hardware and software products and provides related engineering services for the defense, aviation, data communications and transportation industries. Products include ToughDisk Rugged Hard Disks, Advanced Integrated Recorders, avionics-class servers, rugged wired and wireless networks and the Mobile Vehicle Tracker. For information visit www.formation.com or call +1 856.234.5020.

###

Company Contact: Gene Lovely +1 (856) 380-2926 genel@formation.com