Exhibit 99.1



Oakland, NJ- The Dewey Electronics Corporation (the "Company") announced
today that the Company has received from K. Hovnanian North Jersey
Acquisitions,  L.L.C. ("K. Hovnanian") a notice terminating the
Agreement of Sale dated December 29, 2004 (the "Agreement of
Sale") between the Company and K. Hovnanian. Pursuant to the
Agreement of Sale, K. Hovnanian had agreed (subject to the
satisfaction of certain conditions) to purchase approximately 68
acres of undeveloped and unused land owned by the Company in Bergen
County, New Jersey (the "Land") for a minimum purchase price of
$12,000,000 (or if K. Hovnanian exercised an election under the contract
to purchase a portion of the Land, a minimum purchase price of
$6,000,000).  The proposed land sale was approved by the Company's
shareholders on March 8, 2005.  Pursuant to the Agreement of Sale
and an extension entered into on June 2, 2005, K. Hovnanian was
permitted to deliver a termination notice to the Company on or
before September 7, 2005 if it was not satisfied with the results
of its investigation relating to the Land.  As a result of such
termination, the $200,000 deposit previously paid into escrow by
K. Hovnanian will be returned to K. Hovnanian.

The Company further announced it will continue to actively pursue
possible methods of monetizing the Land by its sale and/or
development, but there can be no assurance that such transaction
will be achieved or, if achieved, what the price, other terms or
timing would be.  These efforts may be complicated by the current
regulatory environment in New Jersey regarding land development.


About The Dewey Electronics Corporation

The Dewey Electronics Corporation, founded in 1955, is a diversified
manufacturer of sophisticated electronic and electromechanical
systems for the military.  Visit our website at
www.deweyelectronics.com.

This release contains forward-looking statements as defined in
Section 21E of the Securities and Exchange Act of 1934,
including statements about future business operations,
financial performance and market conditions.  Such forward-
looking statements involve risks and uncertainties including
those involved in the Company's dependence upon its Department
of Defense business, as further described in our filings
under the Securities Exchange Act.