Entorian Technologies, Inc. : Entorian Technologies Updates Customer Contract

Entorian Technologies Inc. (OTC MARKETS: ENTN), a leader in rugged, mission-critical mobile computing solutions for use in harsh, demanding environments, today announced that its exclusivity arrangements with Dell will lapse effective February 8, 2012. Entorian believes that it is in its best interests to allow the exclusivity to lapse in order to distribute its products more broadly.

"We look forward to continuing our relationship with Dell and leveraging our extensive rugged engineering expertise to expand our market presence. Working with Entorian, OEMs can expand into new markets without developing entirely new product lines, resulting in significant R&D savings and shortened time to market," stated Stephan Godevais, Entorian's president and CEO.

Cautionary Language

This press release contains forward-looking statements. These statements are generally accompanied by words such as "expect," "believe," and similar expressions. We do not have sufficient backlog to rely upon when forecasting results, so our future performance is very difficult to predict. Our forward-looking statements are based on our current expectations, estimates and assumptions and are subject to many risks, uncertainties and unknown future events that could cause actual results to differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. Risks and uncertainties that may cause future results to differ include, but are not limited to, a change in the efforts by our OEM customer to sell our rugged computing products; the timing and volume of sales of our products by our OEM customer; a shortage of critical parts, which could negatively impact our ability to fulfill orders; fluctuating demand for, and life cycles of, our products; risks related to product liability and warranty claims in the event our products do not function according to specification or include defective parts; inconsistency in forecasts provided to us by our largest customer, resulting in increased inventory exposure as we build to our customer's current forecast; inventory risks from loss recognized on inventory which is no longer used due to the transition to the next generation of our products; operational risks from our reliance on suppliers, subcontractors and third-party manufacturers for the assembly and production of ruggedized products; the risk that broker-dealers may not make a market in our securities; a failure by us to develop new products that are successfully qualified and utilized by customers; our ability to manufacture and ship products within a particular reporting period; the risk that foreign or domestic manufacturers develop products that compete successfully with our own on cost or other functionality; our ability to enforce our intellectual property rights or to defend claims that we infringe the intellectual property rights of others, and the significant costs to us of related litigation; the risk that our average selling prices decline during the period more than we expect because of competitive pressures, substituted products or overall reduced demand for our products; risks associated with budget constraints of federal, state and local governments that could negatively impact sales of our ruggedized products; risks associated with the failure of our ruggedized products to meet military specifications MIL-STD-810; and the risks associated with our dependence on a few key personnel to manage our business effectively.

For a discussion of these and other factors that could impact our financial results and cause actual results to differ materially from those in the forward-looking statements, please refer to our recent filings with the OTC Markets Group Inc. The foregoing information concerning our business outlook represents our outlook as of the date of this news release, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.

Company Contact:
Entorian Technologies Inc.
Kirk Patterson, 512-334-0111
Senior Vice President and CFO
[e-mail]
or
Investor Contact:
Shelton Investor Relations
For Entorian Technologies Inc.
Beverly Twing, 972-239-5119 x 126
[e-mail]