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

COSTA MESA, CALIFORNIA - July 18, 2001 -- Irvine Sensors Corporation (NASDAQ: IRSN, Boston Stock Exchange: ISC) announced today that it has received additional funding through its strategic relationship with Zimmer Lucas Partners, LLC, Vertical Ventures LLC, and MLT Capital, L.P., all of New York. This latest round is a continuation of the previously announced financing intended to "bridge" the period prior to funding its iNetWorks Corporation subsidiary. Pursuant to this relationship, the Company has executed this financing consisting of the sale of common stock from its outstanding "shelf" registration for gross proceeds of approximately $2.5 million.

Mel R. Brashears, Chairman of the Board of both Irvine Sensors and iNetWorks, said, "This second and third increment of bridge financing demonstrates the fundamental commitment of these investors to Irvine Sensors and our business pursuits. As we continue the due diligence associated with the funding of iNetWorks for the development of our SuperRouter™, this round of funding permits us to continue to move forward on our other product initiatives."

Irvine Sensors Corporation, headquartered in Costa Mesa, California, is primarily engaged in the development of high density electronics, MicroElectroMechanical sensors (MEMS) and readout circuits, miniature cameras, electro-optical and optical switches, image processing devices and software, electronic image stabilization, wireless infrared communications products, and low-power analog and mixed-signal integrated circuits for diverse systems applications. It primarily seeks to commercialize its technologies through independently financed and managed subsidiaries.

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.