**EXHIBIT      99.1**

**PRESS      RELEASE ISSUED BY APPLIED ENERGETICS, INC. ON AUGUST 11,      2008**

**APPLIED      ENERGETICS REPORTS SECOND QUARTER 2008 FINANCIAL RESULTS**

**TUCSON,      Ariz. — August 11, 2008--**

|   | · | Awarded                a Cost-Plus-Fixed-Fee (CPFF) contract issued by the U.S. Army (Aberdeen                Proving Ground, MD) with a ceiling value of approximately $9.3 million                for                a U.S. Marine Corps program. Due to the sensitivity of the effort                the                customer has asked that program details not be publicly                disclosed.  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Received                a $4.5 million Sole Source Contract from the U.S. Army's Research,                Development and Engineering Command (ARDEC - Picatinny, NJ) for the                development and advancement of the company's Laser Guided EnergyTM                technology. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Development                of the Company’s proprietary Laser Guided EnergyTM technology continued                largely according to plan under contracts from both the U.S. Navy                and the                U.S. Army. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Brigadier                General, U.S. Marine Corp. (USMC) (Ret.) James M. Feigley was elected                to                the Company’s board of directors. James                M. Feigley has served as President of Rock River Consulting, Inc.                a                defense consulting firm he founded in early May 2003 after retiring                from                the USMC. General Feigley served as Commander of the Marine Corps                Systems                Command from 1998 through 2002, where he was the executive authority                on                research, development, procurement, fielding and life cycle support                for                all Marine Corps ground combat, combat support and combat service                support                equipment, ordinance and systems. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Second      Quarter 2008 and Year-to-Date 2008 Financial Results **

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**Conference      Call**

**About      Applied Energetics Inc.**

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|                                                                                                                                                                                                                                                                         |   |   | **June                  30, 2008** |   |   | **December                  31, 2007** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------|--------|--------|----------------------------------------|--------|
|                                                                                                                                                                                                                                                                         |   |   | **(Unaudited)**                    |   |   |                                   |   |
| ASSETS                                                                                                                                                                                                                                                                       |   |   |                               |   |   |                                   |   |
| Current                  assets                                                                                                                                                                                                                                              |   |   |                               |   |   |                                   |   |
| Cash                  and cash equivalents                                                                                                                                                                                                                                   |   | $      | 8,021,845                          |   | $      | 14,981,192                             |   |
| Accounts                  receivable                                                                                                                                                                                                                                         |   |   | 5,330,634                          |   |   | 3,264,968                              |   |
| Inventory                                                                                                                                                                                                                                                                    |   |   | 1,991,403                          |   |   | 1,468,391                              |   |
| Prepaid                  expenses and deposits                                                                                                                                                                                                                               |   |   | 231,142                            |   |   | 445,832                                |   |
| Other                  receivables                                                                                                                                                                                                                                           |   |   | 126,931                            |   |   | 59,983                                 |   |
| Total                  current assets                                                                                                                                                                                                                                        |   |   | 15,701,955                         |   |   | 20,220,366                             |   |
| Securities                  available for sale                                                                                                                                                                                                                               |   |   | 7,125,000                          |   |   | 7,500,000                              |   |
| Property                  and equipment - net                                                                                                                                                                                                                                |   |   | 3,528,310                          |   |   | 1,600,887                              |   |
| Intangible                  assets - net                                                                                                                                                                                                                                     |   |   | 61,500                             |   |   | 86,100                                 |   |
| Other                  assets                                                                                                                                                                                                                                                |   |   | 50,153                             |   |   | 59,517                                 |   |
| TOTAL                  ASSETS                                                                                                                                                                                                                                                |   | $      | 26,466,918                         |   | $      | 29,466,870                             |   |
|                                                                                                                                                                                                                                                                         |   |   |                               |   |   |                                   |   |
| LIABILITIES                  AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                  |   |   |                               |   |   |                                   |   |
| Current                  liabilities                                                                                                                                                                                                                                         |   |   |                               |   |   |                                   |   |
| Accounts                  payable                                                                                                                                                                                                                                            |   | $      | 589,233                            |   | $      | 1,148,266                              |   |
| Accrued                  expenses                                                                                                                                                                                                                                            |   |   | 661,145                            |   |   | 516,589                                |   |
| Accrued                  compensation                                                                                                                                                                                                                                        |   |   | 706,814                            |   |   | 1,060,603                              |   |
| Customer                  deposits                                                                                                                                                                                                                                           |   |   | 824,850                            |   |   | 936,373                                |   |
| Billings                  in excess of costs                                                                                                                                                                                                                                 |   |   | 197,455                            |   |   | -                                      |   |
| Current                  portion of capital lease obligations                                                                                                                                                                                                                |   |   | 6,916                              |   |   | 13,937                                 |   |
| Total                  current liabilities                                                                                                                                                                                                                                   |   |   | 2,986,413                          |   |   | 3,675,768                              |   |
| Capital                  lease obligations                                                                                                                                                                                                                                   |   |   | -                                  |   |   | 2,028                                  |   |
| Deferred                  rent                                                                                                                                                                                                                                               |   |   | 5,787                              |   |   | 125,814                                |   |
| Total                  liabilities                                                                                                                                                                                                                                           |   |   | 2,992,200                          |   |   | 3,803,610                              |   |
|                                                                                                                                                                                                                                                                         |   |   |                               |   |   |                                   |   |
| Commitments                  and contingencies                                                                                                                                                                                                                               |   |   |                               |   |   |                                   |   |
|                                                                                                                                                                                                                                                                         |   |   |                               |   |   |                                   |   |
| Stockholders’                  equity                                                                                                                                                                                                                                  |   |   |                               |   |   |                                   |   |
| Series                  A Convertible Preferred stock, $.001 par value, 2,000,000                  sharesauthorized;                  678,000 shares issued and outstanding at June 30, 2008 and                  690,000 shares issued and outstanding at December 31, 2007 |   |   | 678                                |   |   | 690                                    |   |
| Common                  stock, $.001 par value, 125,000,000 shares authorized; 80,622,710                  shares issued and outstanding at June 30, 2008 and80,244,617                  shares issued and outstanding at December 31, 2007                                  |   |   | 80,623                             |   |   | 80,245                                 |   |
| Additional                  paid-in capital                                                                                                                                                                                                                                  |   |   | 68,941,062                         |   |   | 66,344,066                             |   |
| Accumulated                  deficit                                                                                                                                                                                                                                         |   |   | (45,172,645                        | )      |   | (40,761,741                            | )      |
| Accumulated                  other comprehensive loss                                                                                                                                                                                                                        |   |   | (375,000                           | )      |   | -                                      |   |
| Total                  stockholders’ equity                                                                                                                                                                                                                            |   |   | 23,474,718                         |   |   | 25,663,260                             |   |
| TOTAL                  LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                            |   | $      | 26,466,918                         |   | $      | 29,466,870                             |   |

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|                                                                                               |   | For                  the three months endedJune                  30, |       |
|----------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|------------|
|                                                                                               |   |                                                                 | 2008       |   |   | 2007 |   |
|                                                                                               |   |                                                                 |       |   |   |   |   |
| Revenue                                                                                            |   | $                                                                    | 5,677,998  |   | $ | 3,149,173 |   |
|                                                                                               |   |                                                                 |       |   |   |   |   |
| Cost                  of revenue                                                                   |   |                                                                 | 5,189,454  |   |   | 3,135,603 |   |
|                                                                                               |   |                                                                 |       |   |   |   |   |
| Gross                  profit                                                                      |   |                                                                 | 488,544    |   |   | 13,570 |   |
|                                                                                               |   |                                                                 |       |   |   |   |   |
| Operating                  expenses:                                                               |   |                                                                 |       |   |   |   |   |
| General                  and administrative                                                        |   |                                                                 | 1,157,277  |   |   | 2,317,578 |   |
| Selling                  and marketing                                                             |   |                                                                 | 72,854     |   |   | 125,015 |   |
| Research                  and development                                                          |   |                                                                 | 243,272    |   |   | 183,804 |   |
| Total                  operating expenses                                                          |   |                                                                 | 1,473,403  |   |   | 2,626,397 |   |
|                                                                                               |   |                                                                 |       |   |   |   |   |
| Operating                  loss                                                                    |   |                                                                 | (984,859   | ) |   | (2,612,827 | ) |
|                                                                                               |   |                                                                 |       |   |   |   |   |
| Other                  (expense) income                                                            |   |                                                                 |       |   |   |   |   |
| Interest                  expense                                                                  |   |                                                                 | (239       | ) |   | (489 | ) |
| Interest                  income                                                                   |   |                                                                 | 165,780    |   |   | 354,143 |   |
| Other                                                                                              |   |                                                                 | -          |   |   | 7,835 |   |
| Total                  other                                                                       |   |                                                                 | 165,541    |   |   | 361,489 |   |
|                                                                                               |   |                                                                 |       |   |   |   |   |
| Net                  loss                                                                          |   |                                                                 | (819,318   | ) |   | (2,251,338 | ) |
|                                                                                               |   |                                                                 |       |   |   |   |   |
| Preferred                  stock dividends                                                         |   |                                                                 | (282,220   | ) |   | (295,105 | ) |
|                                                                                               |   |                                                                 |       |   |   |   |   |
| Net                  loss attributable to common stockholders                                      |   | $                                                                    | (1,101,538 | ) | $ | (2,546,443 | ) |
|                                                                                               |   |                                                                 |       |   |   |   |   |
| Net                  loss per common share – basic and diluted                               |   | $                                                                    | (0.01      | ) | $ | (0.03 | ) |
|                                                                                               |   |                                                                 |       |   |   |   |   |
| Weighted                  average number of shares outstanding, basic and                  diluted |   |                                                                 | 80,594,626 |   |   | 78,741,988 |   |

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|                                                                                               |   | For                  the six months endedJune                  30, |       |
|----------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|------------|
|                                                                                               |   |                                                               | 2008       |   |   | 2007 |   |
|                                                                                               |   |                                                               |       |   |   |   |   |
| Revenue                                                                                            |   | $                                                                  | 7,639,088  |   | $ | 5,219,783 |   |
|                                                                                               |   |                                                               |       |   |   |   |   |
| Cost                  of revenue                                                                   |   |                                                               | 6,929,562  |   |   | 5,347,512 |   |
|                                                                                               |   |                                                               |       |   |   |   |   |
| Gross                  profit (loss)                                                               |   |                                                               | 709,526    |   |   | (127,729 | ) |
|                                                                                               |   |                                                               |       |   |   |   |   |
| Operating                  expenses:                                                               |   |                                                               |       |   |   |   |   |
| General                  and administrative                                                        |   |                                                               | 4,522,741  |   |   | 4,663,285 |   |
| Selling                  and marketing                                                             |   |                                                               | 111,438    |   |   | 254,815 |   |
| Research                  and development                                                          |   |                                                               | 605,210    |   |   | 307,827 |   |
| Total                  operating expenses                                                          |   |                                                               | 5,239,389  |   |   | 5,225,927 |   |
|                                                                                               |   |                                                               |       |   |   |   |   |
| Operating                  loss                                                                    |   |                                                               | (4,529,863 | ) |   | (5,353,656 | ) |
|                                                                                               |   |                                                               |       |   |   |   |   |
| Other                  (expense) income                                                            |   |                                                               |       |   |   |   |   |
| Interest                  expense                                                                  |   |                                                               | (1,552     | ) |   | (1,488 | ) |
| Interest                  income                                                                   |   |                                                               | 415,608    |   |   | 737,969 |   |
| Other                                                                                              |   |                                                               | 10         |   |   | 7,847 |   |
| Total                  other                                                                       |   |                                                               | 414,066    |   |   | 744,328 |   |
|                                                                                               |   |                                                               |       |   |   |   |   |
| Net                  loss                                                                          |   |                                                               | (4,115,797 | ) |   | (4,609,328 | ) |
|                                                                                               |   |                                                               |       |   |   |   |   |
| Preferred                  stock dividends                                                         |   |                                                               | (577,311   | ) |   | (590,221 | ) |
|                                                                                               |   |                                                               |       |   |   |   |   |
| Net                  loss attributable to common stockholders                                      |   | $                                                                  | (4,693,108 | ) | $ | (5,199,549 | ) |
|                                                                                               |   |                                                               |       |   |   |   |   |
| Net                  loss per common share – basic and diluted                               |   | $                                                                  | (0.06      | ) | $ | (0.07 | ) |
|                                                                                               |   |                                                               |       |   |   |   |   |
| Weighted                  average number of shares outstanding, basic and                  diluted |   |                                                               | 80,499,620 |   |   | 78,458,508 |   |

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|                                                       |   | For                  the three months endedJune                  30, |     | For                  the six months endedJune                  30, |   |
|------------------------------------------------------------|--------|----------------------------------------------------------------------|----------|--------------------------------------------------------------------|--------|
|                                                       |   |                                                                 | 2008     |                                                               |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                                                       |   |                                                                 |     |                                                               |   |   |   |   |   |   |   |   |   |
| Net                  loss                                  |   | $                                                                    | (819,318 | )                                                                  | $      | (2,251,338 | ) | $ | (4,115,797 | ) | $ | (4,609,328 | ) |
|                                                       |   |                                                                 |     |                                                               |   |   |   |   |   |   |   |   |   |
| Interest                  income                           |   |                                                                 | (165,780 | )                                                                  |   | (354,143 | ) |   | (415,608 | ) |   | (737,969 | ) |
| Interest                  expense                          |   |                                                                 | 239      |                                                               |   | 489 |   |   | 1,552 |   |   | 1,488 |   |
| Non-cash                  stock-based compensation expense |   |                                                                 | 952,894  |                                                               |   | 682,312 |   |   | 2,302,255 |   |   | 1,785,297 |   |
| Depreciation                  and amortization expense     |   |                                                                 | 242,318  |                                                               |   | 270,471 |   |   | 480,206 |   |   | 541,706 |   |
|                                                       |   |                                                                 |     |                                                               |   |   |   |   |   |   |   |   |   |
| EBITDA                                                     |   | $                                                                    | 210,353  |                                                               | $      | (1,652,209 | ) | $ | (1,747,392 | ) | $ | (3,018,806 | ) |

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