SOURCE: Proxity, Inc.

November 15, 2007 07:30 ET

Proxity Financial Group, Inc. Announces Joint Venture Agreement With Kirkland Media, LLC

ATLANTA, GA--(Marketwire - November 15, 2007) - Proxity, Inc. (PINKSHEETS: PRXT) announced that Proxity Financial Group, Inc., its proposed merger candidate, has entered into a Joint Venture / Credit Guarantor Agreement with Kirkland Media, LLC located in Decatur, GA, regarding the construction of a multi-use recording studio and sound stage facility which shall be located in DeKalb County, GA.

Under the terms of this agreement Proxity Financial Group will facilitate approximately $70,000,000 in funding required to complete the Kirkland Media Entertainment Campus. Proxity Financial Group has already provided Kirkland Media with $185,000 in bridge financing under a separate agreement. This campus will house multiple recording studios, soundstages, and also enable the filming of motion picture projects. Kirkland Media will distribute a broad range of intellectual properties through its network of distribution partners.

Proxity Financial Group, in addition to origination fees relating to the project funding, will receive 51% of the net profits generated by this project. It is expected that this financing will close on or before January 31, 2008, with the 1st phase of the project completion anticipated during the fourth quarter of 2008.

"Proxity Financial Group is very pleased to take this step forward with Anthony Kirkland and the Kirkland Media team. I believe that, when finished, the Kirkland Media campus will greatly enhance the economy of the local region and create many new jobs. Our entire management team has been impressed with the professionalism and vision that Anthony brings to his company. This is a fine opportunity for Proxity Financial Group to partner with an outstanding young company and help to set a strong foundation for our corporation. Our shareholders should expect further developments to be announced as we move forward with our proposed merger with Proxity, Inc.," stated Sabra Dabbs, Chief Executive Officer of Proxity Financial Group, Inc.

"On the behalf of the team at Kirkland Media I would like to announce that we are both pleased and honored to be joining the family at Proxity Financial Group. Our partnership going forward with Proxity will now allow us the opportunity to facilitate the deals we have in place with our recording artists, producers and distribution partners which we plan to announce the details of within the next couple of weeks," stated Anthony Kirkland, Chief Executive Officer of Kirkland Media, LLC.

About Proxity Financial Group, Inc. (PFGI)

PFGI, a project funding and acquisitions company, specializes in providing equity capital and financial, strategic, and operational expertise to assist owners and management teams in providing liquidity for shareholders, making strategic acquisitions, and financing major capital expenditures or growth programs.

The primary requirement is that each project or acquisition has Equity, Collateral Assets, or current revenue streams that facilitate such funding through one or more sources. PFGI primary sources of funding include (but are not limited) to the following:

--  Partnering with Local, State, National, or International Government
    Development agencies relating to the issuance of Investment Grade
    Industrial Revenue Bonds
    
--  Secondary Offerings of Common Stock
    
--  Origination of Investment Grade Corporate Bonds
    
--  Capital provided by Joint Venture or Third Party Sources
    

PFGI utilizes an extensive network of U.S. and International Banks to facilitate the complex process of monetizing these financing instruments and will use its unique position as both the financing organization and majority owner of the projects to provide outstanding potential for its shareholders. http://www.proxityfinancial.com

About Kirkland Media, LLC

Kirkland Media, LLC is a privately held limited liability corporation that provides production facilities and distributes music, movies and other forms of intellectual properties. The Company is creating a multi-media facility which will be a "One Stop Shop" venue for the entertainment production community. The concept of the campus is as follows: The client will record in our state-of-the-art audio and video recording facilities while the Company handles any marketing services that may be needed. The Company will handle distribution services via our manufacturing and distribution partners. In addition to the funding provided by Proxity Financial Group Kirkland Media Senior Management Team and equity partners made up of Capstone Private Equity Bridge and Mezzanine Fund, Ironside, LLC, Porter Properties and REDLOH, LLC are contributing an additional $10,495,013 in equity to the project. http://kirklandmedia.com/

About Proxity, Inc.

Proxity, Inc. (PINKSHEETS: PRXT) is a developmental holding company specializing in the deployment and marketing of security protection technology and government contract fulfillment. Proxity formed Proxity Electronic Commerce Systems, LLC and owns approximately 35%. The company also owns and controls approximately 15,300,000 shares of Cyber Defense Systems, Inc. (OTCBB: CYDF). Proxity seeks to acquire and develop both Internet-based business opportunities and security technology. The Company plans to enter into developmental, teaming and exclusive and nonexclusive marketing and distribution agreements with products developed for Government, commercial, military and homeland defense areas. http://www.proxity.com.

About Proxity Electronic Commerce Systems, LLC (Proxity-EC)

Proxity-EC was founded in 2005 with the goal of becoming the leader in providing information systems dealing with Government logistics databases and vendor awareness of business opportunities in selling both to the Government as well as industry. The founders of Proxity-EC, developers of the PECS Database, are the originators of the current systems of logistics used by industry and the Military including FEDLOGS, Haystack and the ILI Logicom parts database.

The PECS Database provides information on 12 million parts, their suppliers, Government specs and standards as well as non-Government standards, which are linked from the database to the cited standards. The system also provides an alert service on sales opportunities to the Government's 400,000 contractors as well as requisite data used by the Military. For more on Proxity-EC, go to: http://www.proxity-ec.com/

Forward-Looking Statements:

This release contains statements that constitute forward-looking statements. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control and those actual results may differ materially from those projected in the forward-looking statements as a result of various factors.

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