SOURCE: Avalon Technology Group, Inc.

August 07, 2008 10:33 ET

Avalon Technology Group to Acquire Biometric Company With GSA Contracts

Avalon Technology Group to Use Surplus Cash Flow to Repurchase up to 50 Million Shares

ORLANDO, FL--(Marketwire - August 7, 2008) - Avalon Technology Group, Inc. (PINKSHEETS: AVLN) announced today that the company has agreed to acquire Worldwide Security Acquisitions (http://www.wsasecurity.com), a cutting edge biometric and security company currently selling to Fortune 500 companies and government agencies under a GSA contract.

Avalon Technology Group (ATG) has agreed to pay $1,000,000 plus future incremental payments based on future revenue targets for this acquisition. ATG chooses to do an all cash deal using surplus cash flow from the previously announced $7.5 Million purchase order for its biometric products.

ATG will change the name of Worldwide Security Acquisitions to Avalon Biometric Solutions, and become a wholly owned subsidiary of Avalon Technology Group. ATG believes this acquisition will help the company achieve an additional $50 Million in sales through GSA purchases of Avalon Biometric Solutions cutting edge biometric products. This purchase includes all proprietary software currently being prepared to be submitted for FIPS certification and certain utility patents that are being submitted this quarter.

ATG believes that the company's stock price is currently extremely undervalued based on current and projected purchase orders for the fiscal year and the increased revenue stream to being immediately recognized with this acquisition. Therefore, ATG has authorized to purchase as market conditions permit, in both public and private transactions, up to 50 Million of the company's common stock shares in the current fiscal period. Based on future purchase orders the company may increase the share repurchase amount based on prevailing market conditions at the time.

ATG and its affiliates are currently negotiating contracts which when completed will allow the company to meet the current fiscal year's target of sales of over 1 Million units of its biometric mouse and biometric flash drives.

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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