SOURCE: Somerset International Group, Inc.

November 15, 2007 08:45 ET

Somerset International Group Reports Strong Increases in Revenue for Its Third Quarter and Nine-Month Period

Results Demonstrate Improvements in Operating Efficiencies and Gross Margins

BEDMINSTER, NJ--(Marketwire - November 15, 2007) - Somerset International Group, Inc. (OTCBB: SOSI) (http://www.somersetinternational.com), a security technology holding company, reported the Company's financial results for the third quarter and nine months ended September 30, 2007.

"The Company's financial performance this quarter reflects an increased and diversified revenue stream, improved SG&A margins and increased gross margins," said John X. Adiletta, President and Chief Executive Officer of Somerset. "Our improved financial performance resulted not only from contributions of our recent acquisition of portfolio companies, Meadowlands and Vanwell Electronics, but also from Secure System's strong performance, with a 15% increase in revenue for the nine-month period.

"Our growth strategy includes establishing a source of revenues sufficient to cover our operating costs by acquiring additional profitable companies or near-term profitable companies. The demand for safety and security products continues to drive growth to our business of providing proprietary security products and solutions to both people and enterprises."

Mr. Adiletta concludes, "Somerset remains focused on expanding our portfolio of companies to include those in the industry that have strong margins, are at or near profitability, and which can be acquired at favorable private-to-public market valuations. I am pleased to note that we remain on track to meet our goal of completing three acquisitions, maintain organic growth of 10 - 15%, and achieve a revenue run-rate of at least $50 million within three years."

Financial Highlights:

--  Revenue for the three months ended September 30, 2007 increased to
    $1,281,305 from $474,093 for the third quarter of 2006.  Revenue for the
    nine months ended September 30, 2007 increased to $2,399,370 from
    $1,380,969 for the comparable nine-month period of 2006.
    
--  Net loss attributable to common stockholders for the three months
    ended September 30, 2007 was $462,787 or $0.04 per share versus a net loss
    of $334,415 or $0.05 per share in the third quarter of 2006. For the nine-
    month periods, the net loss attributable to common stockholders was
    $1,154,622 or $0.14 per share, compared with a net loss of  $1,077,955 or
    $0.17 per share for the comparable period last year.
    
--  Organic revenue increased 15% for the nine-month period.
    
--  Gross margins for the three months ended September 30, 2007 increased
    to 38.9% from 37.1% for the third quarter of 2006.  Gross margins for the
    nine-month period increased to 42.4% from 37.4% for the comparable year.
    
--  Selling, general and administrative (SG&A) expenses improved to 58.4%
    of revenue for the quarter from 80% of revenue for the prior year's third
    quarter.  For the current nine-month period, SG&A improved to 66% of
    revenue from 87% last year. SG&A for the quarter was $747,801 versus
    $379,676 for the third quarter of 2006.  For the nine-month period, SG&A
    was $1,591,889 compared with $1,199,977 last year.
    

For more information on the results, please visit the Company's Form 10Q filing at www.sec.gov.

About Somerset International Group, Inc.

Somerset International Group, Inc. finds undervalued technology investments aligned around the exponential growth in concern and demand for security and the acquisition of profitable and near-term profitable private small- and medium-sized businesses that provide proprietary security products and solutions for people and enterprises -- from personal safety to information security. Its current portfolio companies consist of Secure System, Inc. and Meadowlands Fire, Safety, and Electrical Supply Co., Inc./Vanwell Electronics, Inc. Additional information about the company is available at: http://www.somersetinternational.com.

About Secure System, Inc.

Secure System, Inc. provides personal alarm systems, wireless transmitters and receivers, and personal alarm locators. The company currently serves colleges and universities and medical and mental health facilities. Its products are also easily adaptable for office campuses, residential facilities, and correctional facilities. The system works by providing an individual with a wireless personal alarm locater with which they can summon help and be located by the pressing of a button. Additional information about the company is available at: http://www.securesysteminc.com.

About Meadowlands Fire, Safety, and Electrical Supply Co., Inc./Vanwell Electronics, Inc.

Meadowlands and Vanwell specialize in the distribution, sale, installation and maintenance of fire and security equipment and systems that include fire detection, video surveillance, and burglar alarm equipment. Meadowlands and Vanwell have similar product availability from distinct manufacturers. This affords the opportunity to provide a wide array of specified equipment with the flexibility to offer cost effective alternates when appropriate. The products encompass complete lines of fire, CCTV (closed circuit TV), communications and PA systems; services include maintenance contracts, monitoring services and system engineering. Additional information about the company is available at: http://www.meadowlandselec.com.

Forward-Looking Statements

Statements about our future expectations are "forward-looking statements" within the meaning of applicable Federal Securities Laws, and are not guarantees of future performance. When used herein, the words "may," "will," "should," "anticipate," "believe," "appear," "intend," "plan," "expect," "estimate," "approximate," and similar expressions are intended to identify such forward-looking statements. These statements involve risks and uncertainties inherent in our business, including those set forth under the caption "Risk Factors" in our most recent Registration Statement on Form SB-2 dated December 6, 2006 filed with the SEC and other filings with the SEC, and are subject to change at any time. Our actual results could differ materially from these forward-looking statements. We undertake no obligation to update publicly any forward-looking statement.

Contact Information

  • Contact:

    Somerset International Group, Inc.
    John X. Adiletta
    908-719-8909

    Investor Relations:
    Adam Holdsworth
    Rachel Colgate
    Erica Ruderman
    212-825-3210

    Media Relations:
    Mike Graff
    Bill Douglass
    212-825-3210