SOURCE: Avalon Technology Group, Inc.

September 12, 2008 10:50 ET

Avalon Technology Group Biometric Time Clock and Biometric Mouse Sale Channels Expanding to the Gulf Region

Avalon Technology Group Continuing Stock Buyback and Increased Authorization to Repurchase 100 Million Shares in the Open Market

ORLANDO, FL--(Marketwire - September 12, 2008) - Avalon Technology Group, Inc. (PINKSHEETS: AVLN) announced today that after stringent testing, the company's Biometric Time Clock and Biometric Mouse and Biometric Flash Drives have been chosen as the exclusive product line for distribution in the Gulf Region. ATG has signed this exclusive distribution agreement with Biometric Security Group whose channel partners are the largest IT companies in Saudi Arabia, Kuwait, UAE, Bahrain and other Gulf countries.

The distribution deal was originally for the Biometric Time Clock but after successful testing of all ATG biometric technology products the entire line of the company's products were included in the agreement. ATG announced with this added revenue stream anticipated to be a minimum of $25 Million in the 1st year will enable ATG to surpass its earlier guidance estimate and puts the company on a solid track of orders to generate approximately $.02 EPS this fiscal year. The company will continue as it has in the past ten days to aggressively repurchase the company's shares in the open market as market conditions permit. The company believes this is an appropriate use of current excess cash flow to benefit long-term shareholders. The company will not consider a reverse stock split but intends with its repurchase plan to reduce the outstanding shares substantially thru its aggressive buyback program.

ATG advisors have filed updated company information with Pinksheets.com and hope to have the updated information posted on Pinksheets shortly.

About Avalon Technology Group:

Avalon Technology Group is a technology company with operations in software and the industry leading biometric security product developer. 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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