SOURCE: Homeland Integrated Security Systems, Inc.

February 28, 2007 08:30 ET

Homeland Integrated Security Systems to Reduce Costs by Closing Its Two Retail Cellular Stores Located in North Carolina

ASHEVILLE, NC -- (MARKET WIRE) -- February 28, 2007 -- Homeland Integrated Security Systems, Inc. (PINKSHEETS: HISC) announced today that the Company has decided to close its retail cellular stores located in North Carolina. The company said that this decision is another in series of cost savings measures started in the second half of 2006. These closures will allow the company to focus on it core business, the patent pending Cyber Tracker. The retail stores will cease to operate effective February 28, 2007.

"The retail climate in the cellular business seems to be changing toward corporate owned stores and distribution points rather than the agent owned store. The change in corporate climate, in combination with high market penetration in the cellular industry, has contributed to decreasing revenues on the retail side," according to Brian Riley, Chairman and COO.

"We estimate that by closing these two remaining retail locations, HISS will decrease its operating expenses by nearly $100,000 per year. Homeland Integrated Security Systems is continuing its efforts to decrease expenditures in everyway possible and keep our focus on increasing the worldwide sales of Cyber Trackers. The closings will only affect the retail sales of cell phones and not affect our sales of the Cyber Tracker," stated Fred Wicks, CEO and President of Homeland Integrated Security Systems.

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 2Q 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

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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