SOURCE: SteelCloud, Inc.

March 18, 2008 17:00 ET

SteelCloud Receives Nasdaq Non-Compliance Notice

Issue Centers on Minimum Share Price Requirement

HERNDON, VA--(Marketwire - March 18, 2008) - SteelCloud, Inc. (NASDAQ: SCLD), a manufacturer of embedded integrated computing systems for the industrial automation marketplace ("SteelCloud"), today announced it has received notice from Nasdaq, under Marketplace Rule 4310(c)(4)(the "Rule"), that its common stock is subject to potential delisting from the Nasdaq National Market because the bid price of the Company's common stock closed below the minimum $1.00 per share requirement for 30 consecutive business days prior to March 13, 2008.

Under Marketplace Rule 4310(c)(8)(D) the Company has been granted an initial 180 calendar days, or until September 9, 2008, to regain compliance. If at anytime before September 9, 2008, the bid price of the Company's common stock closes at $1.00 per share or more for a minimum of 10 consecutive business days, the Company will be provided written notification that it complies with the Rule.

Further, if compliance with this Rule cannot be demonstrated by September 9, 2008, Nasdaq will determine whether the Company meets the Nasdaq Capital Market initial listing criteria as set forth in Marketplace Rule 4310(c), except for the bid price requirement. If the Company meets the initial listing criteria, Nasdaq will notify the Company that it has been granted an additional 180 calendar days to regain compliance.

If the Company is not eligible for an additional compliance period, Nasdaq will notify the Company that its common stock will be delisted. At that time, the Company may appeal this determination to delist its securities to a listing qualification panel.

The Company continues to operate in the normal course of business and is actively pursuing a number of initiatives to bring the Company into compliance with the minimum share price requirement.

About the Company

SteelCloud is a manufacturer of embedded integrated computing systems for the industrial automation marketplace. The Company designs and manufactures specialized servers and appliances for federal integrators, software vendors and volume users. For both the government and commercial markets the Company delivers integration services and software focused on risk management and network management solutions. The Company'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, the Company has won numerous awards for technical excellence and customer satisfaction. The Company 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 the Company's stock; and the risk factors set forth from time to time in the Company'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 current reports on Form 8K. The Company undertakes no obligation to update or correct forward-looking statements.