CONTACT:  Lynn O'Mara
                      Irvine Sensors Corporation
                      714-444-8718
                      lomara@irvine-sensors.com

CCOSTA MESA, CALIFORNIA - October 30, 2001 - Irvine Sensors Corporation (NASDAQ: IRSN, Boston Stock Exchange: ISC) today announced that the non-binding letter-of-intent ("LOI") regarding the financing of its iNetWorks Corporation subsidiary, announced on July 23, 2001, will expire on October 31, 2001 pursuant to its terms. Discussions regarding iNetWorks are continuing with the investment group that had executed the LOI, as well as other potential strategic investors.

iNetWorks is developing a telecommunications router product for potential introduction in 2003 that combines Irvine Sensors' 3-dimensional (3-D) chip stacking and interconnect structures with superconducting electronics expected to result in significant advantages in terms of throughput, power, operational flexibility and economics. iNetWorks is presently co-located with its parent, Irvine Sensors Corporation, in Costa Mesa, California.

Except for historical information contained herein, the matters set forth in this news release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are dependent on risks and uncertainties including such factors, among others, as the ability of the Company to control and further reduce its operating expense, the technological risk in new products and the impact of competition. The Company undertakes no obligation to publicly release the results of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Further information on the Company's status and the matters discussed herein are contained in publicly-filed disclosures available through the SEC's EDGAR data base (www.sec.gov) or the Company's Shareholder Relations.