Newsletter

May 17, 2004

Volume V, Issue 49

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VirTra Systems (OTC BB: VTSI) Finally "Getting Traction"

"Getting Traction" is the phrase analysts like to use when describing a company who's new products are starting to sell. VirTra Systems' proprietary 3D, High Definition, 360 degree virtual reality "judgemental-use-of-force" training simulators are finally "Getting Sales Traction" about four months after I thought it would happen.

The initial orders which materialized last October led me to believe sales momentum would continue in early 2004. Instead, the company needed to get the product in front of the military and police community to start getting orders. The TREXPO trade show in March provided that opportunity, and sales are now starting to materialize. VirTra is finally "Getting Traction".

Today, just after the market closed, VirTra Systems announced another sale to a branch of the US Military. The announcement of a sale to the Air Force on April 26th yielded a move from $.26 to $.43 in two days. Since that surge, the stock has softened along with the rest of the market.

Today's announcement reveals VirTra landed its most complex order to date to an undisclosed (for security reasons) branch of the US Military. The system will include a large complement of extremely sophisticated military training weapons and specialized scenarios.

My belief in the future of this company is unwavering. I still believe the stock will eventually trade to the $1 level, and I believe it will require numerous multi unit orders to achieve those levels, which will eventually come.

This contract is particularly timely, as the unfortunate news out of Iraq and the Middle East continues reminding us VirTra, and companies like it, have extraordinary growth prospects in the immediate future.

Here is the complete text of today's news release for your review:

Press Release Source: VirTra Systems, Inc.

VirTra Systems Announces Another U.S. Military Simulator Sale - Largest and Most Complex to Date -

Monday May 17, 4:25 pm ET

ARLINGTON, Texas, May 17 /PRNewswire-FirstCall/ -- VirTra Systems, Inc. (OTC Bulletin Board: VTSI - News) today announced another sale of its new 360-degree IVR(TM) HD firearms training simulator to the United States military.
The U.S. military branch, currently classified, ordered VirTra Systems' new IVR-300(TM) HD high-resolution firearms training simulator for deployment to a classified training location. The system will include a large complement of extremely sophisticated military training weapons and specialized scenarios. Delivery is scheduled within 4-6 weeks.

"While limited in what we can presently disclose, this military sale marks our largest dollar value and sophistication magnitude of any simulator sale to date," commented Michael Kitchen, VirTra Systems' vice-president of training and simulation.

"Once again, our technologically-advanced, patent-pending 360-degree simulator was chosen by the U.S. military for its serious training needs. Our technology is establishing its reputation as the most realistic, challenging, and potentially life-saving simulation technology currently available. We expect our first domestic law-enforcement simulator sale in the very near future," concluded Kitchen.

"We believe this contract, promptly following our initial sale to the U.S. Air Force, coupled with our recent multi-unit Immersa-Dome(TM) promotional virtual reality system sale, clearly demonstrates increasing acceptance of our new projection-based technology," commented L. Kelly Jones, VirTra Systems' chief executive officer.

About VirTra Systems

VirTra Systems utilizes patented technology to manufacture the world's most advanced immersive virtual reality(TM) systems and 3-D experiences. VirTra Systems markets combat, marksmanship, and situational awareness/judgmental firearms training systems to military agencies such as the U.S. Air Force, and to national and international law enforcement agencies. Using the sensations of motion, touch, sound, and smell, the company also produces custom advertising and promotional virtual reality systems for clients such as Buick, Chevrolet, Pennzoil, Red Baron(TM) Pizza, and the U.S. Army. For more information, visit the corporate website at www.virtrasystems.com , or the training/simulation website at www.virtratraining.com .

This press release contains certain forward-looking statements. Forward- looking statements are generally preceded by the words such as "plans," "expects," "believes," "anticipates," or "intends." Investors are cautioned that all forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from current expectations. VirTra Systems urges investors to review in detail the risks and uncertainties contained within its filings with the Securities and Exchange Commission.

     Media Relations:
     MPH
     Jed Wallace, publicist
     Los Angeles, California
     310 234-3200
     jwallace@mphpr.com

--------------------------------------------------------------------------------
Source: VirTra Systems, Inc.

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