SOURCE: Fortified Holdings Corp.

September 25, 2007 02:30 ET

Fortified Holdings Updates Acquisition of FastNet Solutions, Inc.

WASHINGTON, DC--(Marketwire - September 25, 2007) - Fortified Holdings Corp. (OTCBB: FFDH) ("Fortified " or the "Company") wishes to advise that the Company intends to move ahead with its previously announced intentions to acquire the assets of FastNet Solutions, Inc. ("FastNet"), a Lynn, Massachusetts-based manufacturer of products developed for the military, first responders, relief workers, and others within high-risk industries.

The transaction is expected to be structured as a cashless merger in which FastNet would merge with a subsidiary of the Company. Both parties have agreed in principle to transaction terms that include, as consideration for the merger, 1,000,000 shares of Fortified common stock, and provide for maximum levels of allowed trade and affiliate debt at the time of closing. Upon closing, FastNet President & CEO Mr. Robinson Nuñez will join the Fortified DataCom management team. At this time, it is anticipated that the completion of the acquisition will take place in mid-October 2007.

FastNet Solutions products are sold under the Mobile Rugged™ brand name and include a product line of ultra-rugged, man-portable servers, data storage options, DVRs, and mobile surveillance products. Customers of FastNet include, among others, the U.S. Army, U.S. Air Force, and the Department of Homeland Security.

Company Management has determined that soon after the close of the transaction, manufacturing of Fortified's flagship NOMAD Incident Command Platform will be transferred to the FastNet manufacturing facility in Massachusetts. This move is expected to enable Fortified to achieve significantly improved production capabilities, streamlined inventory controls, bulk purchasing capacity and enhanced engineering support, all of which paves the way towards faster customer delivery along with substantial economies of scale. These benefits are designed to improve overall gross profitability of the product line, and ultimately lead to increased shareholder value.

Fortified President & CEO, Brendan Reilly stated, "Simply put, we believe our strategic acquisition of FastNet Solutions is the perfect complement to our Fortified DataCom business. Its manufacturing and R&D capabilities will significantly broaden our ability to develop new products through the balance of 2007 and beyond, and at the same time position us for enhanced profit margins on our NOMAD product line in 2008. As important, as part of the acquisition of FastNet, Fortified is now establishing a streamlined process for acquiring additional synergistic businesses, improving our ability to deliver on our business plan."

The Company and FastNet intend to enter into a definitive purchase agreement during the next several weeks, with the expectation of completing the transaction on the timetable indicated above; however, neither party is subject to any binding commitment to proceed with the transaction until the execution of a definitive purchase agreement.

About FastNet Solutions, Inc. (

FastNet Solutions, Inc. specializes in designing and manufacturing mobile and wearable integrated ultra-rugged device for communications, surveillance and remote data management. FastNet Solutions, through its Mobile Rugged Technologies business unit, provides off the shelf and custom rugged products to government primes, VARs, OEMs, the Department of Defense and Department of Homeland Security, embedded system customers and many of the Fortune 100 companies.

FastNet Solutions is an engineering focused organization. With its 6000 sq. ft. manufacturing and 3000 sq. ft. engineering facilities, FastNet has the ability to rapidly develop and deliver solutions built to the demanding specifications of its customers around the world.

Fortified Holdings Corp. (OTCBB: FFDH)

Fortified Holdings Corp. aims to become a diversified internationally focused holding company with a portfolio of dynamic and rapidly expanding industry leading subsidiaries servicing the needs of first responders, the military, relief organizations, high-risk industries and similar sectors. It completed the acquisition of its first such business, Z5 Technologies, in September 2007. The proposed subsidiaries and the portfolio companies within them will all share a common goal of designing, developing, manufacturing and globally marketing products and solutions designed to enhance the ability of personnel in this sector to collaborate, to provide improved security services, and to respond to individuals and communities in need at times of crisis.

Forward-Looking Statements

Except for statements of historical fact, this news release contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, expectations, beliefs, plans and objectives regarding future activities. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Fortified Holdings to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop future assets, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Fortified Holdings Corp., or any affiliates, has little or no control.

Fortified Holdings Corp.
Brendan Reilly, President & CEO

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