SOURCE: Avalon Technology Group, Inc.

July 31, 2008 09:23 ET

Avalon Technology Group Receives $7.5 Million Purchase Order for Avalon Biometric Products

ORLANDO, FL--(Marketwire - July 31, 2008) - Avalon Technology Group, Inc. (PINKSHEETS: AVLN) announced today that the company has received a purchase order under a sole source contract for its biometric mouse and flash drives for $7.5 Million. Avalon Technology Group's (ATG) biometric products were chosen over all competitors for its superior software and encryption technology. After extensive product testing ATG received a blanket purchase order with a base of $7.5 million and a potential secondary order of $5 Million for the later part of the fiscal year.

ATG has been working on this supply contract for BSG Group (BSG) which is launching a nationwide rollout on August 15th of a premier identity, data and child protection service underwritten by a worldwide insurance conglomerate. BSG new service, called "The Vault," will use ATG biometric mouse and flash drives combined with the world's leading child protection software and identity theft insurance coverage underwritten by one of the world's largest insurance conglomerates.

BSG's Vault Service is headed by Todd Folds who has over 5 years' experience in the identity theft industry and shown proven past track record of building major service organizations with tens of thousands of members. BSG service will be vastly superior to the current competition in the identity theft industry whose leaders such as Trusted ID™ and LifeLock™ are doing in excess of $100 Million per year with claims in company press releases of adding thousands of members per day. BSG Vault service will offer biometric hardware to protect members' data, child protection software to protect their children, identity theft protection and data monitoring with a proprietary software scanning thousands of databases per day, Early Alert™ System notifying members by phone 24 hours a day 365 days a year of any alerts and a proprietary data retention and computer recovery service.

ATG and BSG will issue a joint press release for the BSG Vault Service launch on August 15th with further details. ATG also announced today that the company's biometric products are currently being tested for cable subscribers and educational institutions. ATG is confident that the current test will lead to additional major purchase orders and the company is reaffirming its guidance of $35-50 Million in revenue for the current fiscal year and gross profit of $10-15 Million.

About Avalon Technology Group, Inc.:

Avalon Technology Group is a technology company with operations in software, manufacturing and security products. The Company and its affiliates currently conduct government sales under three GSA contracting vehicles including Minority Owned Women Business and Service Disabled Veteran Owned Small Business, which specializes in providing commercial and government entities with quality services, software and biometric technologies.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this release that are forward-looking statements are based on current expectations and assumptions that are subject to known and unknown risks, uncertainties, or other factors which may cause actual results, performance, or achievements of the company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Actual results could differ materially because of factors such as the effect of general economic and market conditions, entry into markets with vigorous competition, market acceptance of new products and services, continued acceptance of existing products and services, technological shifts, and delays in product development and related product release schedules, any of which may cause revenues and income to fall short of anticipated levels. All information in this release is as of the date of this release. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.

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