SOURCE: Homeland Integrated Security Systems, Inc.

May 16, 2007 09:45 ET

Homeland Integrated Security Systems Posts Financials for First Quarter 2007

Results Show Record Sales for First Quarter 2007 as Sales Increased by 98% Compared to Fourth Quarter 2006

ASHEVILLE, NC -- (MARKET WIRE) -- May 16, 2007 -- Homeland Integrated Security Systems, Inc. (PINKSHEETS: HISC) announced today that it has posted its financial results for the First Quarter of 2007. Highlights of the financials include:

--  Sales in the First Quarter of 2007 were the highest on record for any
    quarter.
    
--  Sales rose by 98% compared to Fourth Quarter of 2006 and were up more
    that 220% compared to year earlier first quarter results.
    
--  Gross profit improved to 32.7% compared to 18.7% in the Fourth Quarter
    of 2006.
    
--  Selling, General and Administrative expenses as a percentage of sales
    were reduced by 46% compared to Fourth Quarter 2006.
    
--  The operating loss as a percentage of sales was reduced by 57.9% from
    Fourth Quarter 2006.
    
--  Outstanding shares of common stock in the float were reduced by
    823,468,456 during the quarter.
    
"We are seeing a continued upward trend in demand for our Cyber Tracker," stated Brian Riley, Chairman and COO of Homeland. "Once we release the GSM version of the Cyber Tracker, I anticipate even better results in our sales numbers."

"I am very pleased with this continued improvement in our financial performance," stated CEO and President Fredrick Wicks. "We are doing everything we can to accelerate this trend during the remainder of 2007."

The complete financials for the First Quarter 2007 can be viewed at:

http://www.pinksheets.com/quote/finance.jsp?symbol=HISC.

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.

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