SOURCE: SteelCloud, Inc.

March 10, 2008 17:24 ET

SteelCloud Receives $1.3 Million Order

Contract Option Exercised to Deliver Additional Servers

HERNDON, VA--(Marketwire - March 10, 2008) - SteelCloud, Inc. (NASDAQ: SCLD), a manufacturer of embedded integrated computing systems for the industrial automation marketplace ("SteelCloud"), announced today that a current client has exercised an option to increase its existing contract order for an additional $1.3 million. SteelCloud will provide additional specially designed, fully integrated servers for the client that will be deployed in harsh industrial environments.

These additional servers will be delivered during SteelCloud's fiscal quarters which end on April 30, 2008 and July 31, 2008. Each server contains advanced technology high speed processing solutions and will be housed in a patent-pending chassis with SteelCloud-designed cooling and filtration features to withstand the heat and dust found in factory automation environments. In addition, server hard drives are specially mounted to withstand the shock and vibration conditions found in industrial settings.

"We have engineered an excellent solution for our client that solves their unique hardware and software requirements. We believe that the fact that they have exercised the option to purchase additional units demonstrates their complete satisfaction with our solution," said Bob Frick, SteelCloud CEO and President. "Our continued goal, as evidenced by the exercise of this purchase option, is to exceed our customers' expectations which should result in additional contracts and growth in our fiscal 2008 backlog."

All servers will be delivered in accordance with the SteelCloud's ISO 9001:2000 Quality Management System.

About SteelCloud

SteelCloud is an engineering and manufacturing integrator specializing in network centric and embedded computing solutions for the federal government and independent software vendors. SteelCloud designs and manufactures specialized servers and appliances for federal integrators, software vendors and volume users. SteelCloud's ISO 9001:2000 certified Quality Management System provides procedures for continuous quality improvement in all aspects of its business. Over its nearly 20-year history, SteelCloud has won numerous awards for technical excellence and customer satisfaction. SteelCloud can be reached at 703-674-5500. Additional information is available at www.steelcloud.com.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward looking statements that involve a number of risks and uncertainties. It is possible that the assumptions made by management are not necessarily the most likely and may not materialize. In addition, other important factors that could cause actual results to differ materially include the following: business conditions and the amount of growth in the computer industry and general economy; competitive factors; ability to attract and retain personnel, including key sales and management personnel; the price of SteelCloud's stock; and the risk factors set forth from time to time in SteelCloud's SEC reports, including but not limited to its annual report on Form 10-K and its quarterly reports on Forms 10-Q; and any reports on Form 8K. SteelCloud takes no obligation to update or correct forward-looking statements.