SOURCE: Security With Advanced Technology

May 07, 2008 12:42 ET

Security With Advanced Technology Reports Developments With Its Less-Lethal and Technology Group Business Segments

Veritas Tactical Receives Initial Mark-IV Rifle Launchers for Agency Evaluations and Commences Shipping; Technology Division Contract Back-Log Increases and Hires Experienced Security Industry Sales Executive

LOUISVILLE, CO--(Marketwire - May 7, 2008) - Security With Advanced Technology, Inc. (NASDAQ: SWAT) today reported positive developments with its Veritas Tactical and Technology Division business segments. The company has been conserving cash and thereby gaining time to allow focused marketing and sales generation efforts to gain momentum. Commencing in late 2007 and continuing to the present, SWAT has cut expenses, reduced its workforce by over 50% and eliminated or deferred many marketing and development initiatives. The company has a current cash position of approximately $2.5 million and is gaining sales momentum. The primary current developments, summarized by segment are as follows:

Veritas Tactical -

--  The Veritas Mark IV rifle launcher has completed final testing and our
    manufacturer has commenced production. We are pleased to report that the
    first 100 units have been received at our facility and are in the process
    of being distributed on a priority basis to law enforcement departments and
    military agencies that we have developed relationships with over the last
    six months for their test and evaluation. Initial reports from a few
    departments that have received the first units are encouraging. Veritas
    believes this new launcher represents the first ruggedized, rapidly
    reloadable magazine-fed launcher in the market place. SWAT anticipates
    receiving purchase orders for shipments of its less-lethal Mark IV
    launchers and associated products during the second quarter.
    
--  Municipalities in the Denver area, including the Denver, CO Police
    Department, that are receiving logistic and security-related funding from
    the Democratic National Convention are among the initial departments
    evaluating the Mark IV units. Preliminary reports from those evaluations
    are encouraging and SWAT expects to be receiving purchase orders for its
    less-lethal weapons to be available for security-related use during the DNC
    in August.
    
--  Veritas Tactical has also just received a purchase order and a 50%
    deposit for less-lethal products from an international customer for over
    $150,000 US that is expected to ship in the second quarter.
    

Ben Cook, Director of Veritas Tactical division, noted, "We believe that our latest Mark IV rifle launcher will prove, in the near future, to be a very functional and highly ruggedized less-lethal product that will experience demand worldwide. We are currently focused on follow-up with agencies that we believe have near term revenue opportunities for this product." Cook added, "The recent modifications that we had built into the units dramatically increase its functionality to a wide array of users. A significant modification is the ability of the launcher to fire the top two less-lethal projectile configurations currently in use in the worldwide market.

Technology Division -

--  Vizer Group, the Company's subsidiary which leads the Technology
    Division, recently added Rodger Jones as sales manager to head its sales
    and marketing initiatives for its facility security and access control
    systems products.  Jones brings over twenty-five years of experience to
    Vizer including senior sales positions with national global security
    integration companies.  Over the past decade, Rodger has developed
    significant market penetration in the front-range areas, including
    Colorado, Wyoming and Montana with an emphasis in security related products
    for the education, healthcare and energy sectors.
    
--  As a result of focused marketing initiatives, including an on-line
    campaign and existing customer follow-up, Vizer has leveraged its market
    niche expertise into a record level of contract proposals currently in
    evaluation.  This has also resulted in contract extensions at the
    previously announced FedEx shipping hub located in Gypsum, Colo., as well
    as a second facility installation.
    
--  An agreement has also been finalized for a contract with a major
    credit card processing facility that is anticipated to be substantially
    completed during the second and third quarters.
    

"Rodger's experience, expertise and industry contacts will be a real asset to the Vizer team as he has a unique understanding of technology and product integration and we are excited that he agreed to join us," said Corey Holland, Director of SWAT's Technology Division. "Rodger's proven track record as a Security Integration expert will assist Vizer in winning sales and developing new focused marketing strategies to generate opportunities as we move forward."

SWAT CEO, Jeff McGonegal, added, "We have a clear and focused strategy for 2008 in managing our business to create and support near-term revenue opportunities. While we continue to manage certain issues that arose in 2007, the recent events and progress as summarized above are generating optimism at SWAT for 2008. The implemented and continued cost reduction initiatives have resulted in significantly reducing our monthly burn rate and our being in a position to proceed in 2008 with the ability to make prudent business decisions. We are disappointed with our recent stock performance and appreciate our shareholder patience as we advance on initiatives on multiple fronts to work to restore value for our investors."

About Veritas Tactical -

The Veritas Tactical division of SWAT is on the cutting edge of product innovation for less-lethal weapons and tactical training. Veritas Tactical's goal is to provide innovative tools and training to increase the tactical effectiveness of law enforcement and military agencies worldwide. The division's products and training are currently only offered to military, law enforcement, and qualified personnel. To learn more about Veritas Tactical go to www.veritastactical.com.

About the Technology Division -

Security With Advanced Technology's Vizer Group specializes in product design, system design, engineering, installation, and integration of facility security systems including access control, video surveillance, intrusion detection, and wireless mesh network systems. Vizer has also developed a unique and proprietary security solution called CommandGrid™, which gives clients complete control over access, alarms, and video systems remotely, through a secure connection accessed at www.vizergroup.com.

About Security With Advanced Technology, Inc. -

Security With Advanced Technology, Inc. is a provider of high-tech security products and services, which include non-lethal personal protection devices, surveillance and intrusion detection systems and mobile digital video surveillance solutions. SWAT's products and services are designed for government agencies, military and law enforcement, in addition to transportation, commercial facilities and non-lethal personal protection segments. For additional information visit www.swat-systems.com or call the corporate headquarters at (800) 498-7965.

Forward-Looking Statement

This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission (the "SEC"). All statements, other than statements of historical fact, included in the press release that address activities, events or developments that the company believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors the company believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company and may not materialize, including, without limitation, the efficacy of the company's products and services, the company's ability to secure its ownership of, right to use and protect its intellectual property and proprietary technology and the company's ability to complete development of, launch and achieve acceptable levels of sales and margins for its products and services. Investors are cautioned that any such statements are not guarantees of future performance. Actual results or developments may differ materially from those projected in the forward-looking statements as a result of many factors. Furthermore, the company does not intend (and is not obligated) to update publicly any forward-looking statements, except as required by law. The contents of this release should be considered in conjunction with the warnings and cautionary statements contained in the company's recent filings with the SEC.

Contact Information

  • Contacts:

    Jeff McGonegal
    SWAT CEO
    303-475-3786

    Ben Cook
    Veritas Director
    303-952-3451

    Corey Holland
    Technology Division Director
    720-227-0375