SOURCE: Homeland Integrated Security Systems, Inc.

March 19, 2007 08:30 ET

Homeland Integrated Security Systems, Inc. Clarifies Evans Systems, Inc. Changes in Letter to Shareholders

ASHEVILLE, NC -- (MARKET WIRE) -- March 19, 2007 -- Homeland Integrated Security Systems, Inc. (PINKSHEETS: HISC) announced today that the Company has provided clarification to a recent filing made by Evans Systems, Inc.'s new management team.

"I want to set the record straight about the recent activities regarding Evans Systems, Inc.," stated Fred Wicks, CEO and President of Homeland. "Our Board of Director's wants to clarify a Report on Form 8K recently filed by Evans Systems, Inc. which could be easily misinterpreted."

In a letter to the shareholders, posted on its website, www.hissusa.com, Mr. Wicks addresses the events following the settlement of its recent law suit with Big Apple Consulting, USA, Inc. As previously reported, Evans Systems Inc., and Homeland Integrated Security Systems were named as defendants in a law suit in which Big Apple Consulting, USA, Inc. was the plaintiff. At the time, Homeland's Board members were also Officers and Directors of Evans Systems and managed the company.

"We decided to negotiate an amicable settlement so that Homeland's management could concentrate on running our core business, selling Cyber Tracker solutions," stated Mr. Wicks. "We also thought it best for our shareholders not to spend additional monies in legal fees."

The letter clarifies how Big Apple Consulting transferred a controlling stock interest in Evans Systems to Frank Moody III, former CEO of Homeland, and appointed him an Officer and Board Member. Homeland's Officers and Directors were not consulted nor had any prior knowledge of this transfer to Moody.

Currently there exists a lawsuit between Homeland, its Directors individually, and Mr. Moody. Homeland has counterclaimed against Moody, and the case is pending in North Carolina Court.

"Pending the outcome of the lawsuit with Moody, we could not in good conscience concur with the appointment of Frank Moody to any position in Evans, especially as an Officer and/or Director," stated Mr. Wicks.

The letter also explains that Homeland's management had no idea, nor had any part in the private agreement between Big Apple, Moody, and other parties, as reported in the 8K, nor of any of the terms, including issuance of $4,000,000 in preferred shares to two parties to the private agreement. The CEO shareholder letter in its entirety is available on the Company's website at www.hissusa.com.

About Homeland Integrated Security Systems:

Homeland Integrated Security Systems owns proprietary technology in conjunction with its patent pending Cyber Tracker. Cyber Tracker technology has applications for data and tracking functions across a variety of industries, utilizing IDEN, and GSM (coming 3Q 2007) technologies, In addition, CDMA and Satellite technologies are under development with release expected some time in 2007. For more information please visit our website www.hissusa.com.

Safe Harbor: This letter contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the ability of the Company to successfully implement its turnaround strategy, changes in costs of raw materials, labor, and employee benefits, as well as general market conditions, competition and pricing. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this letter will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as representation by the Company or any other person that the objectives and plans of the Company will be achieved. In assessing forward-looking statements included herein, readers are urged to carefully read those statements. When used in the Annual Report on Form 10-K, the words "estimate," "anticipate," "expect," "believe," and similar expressions are intended to be forward-looking statements.

Contact Information