SOURCE: Stronghold Industries Inc.

August 22, 2007 09:45 ET

Stronghold Releases Voluntary Financial and Material Event Reports

REDONDO BEACH, CA--(Marketwire - August 22, 2007) - Stronghold Industries Inc. (PINKSHEETS: SGDS) today released three Voluntary Reports to its shareholders including its unaudited financial results for the three month periods ending March 31, and June 30, 2007, and a Notice of Material Events. These Voluntary Reports have been posted at http://www.pinksheets.com/quote/finance.jsp?symbol=SGDS and are available for download now.

The information highlighted below is contained in, and qualified in its entirety by the full text of, the Voluntary Financial Reports referenced above, and all readers are encouraged to consult the full reports which include, among other things, risk factors and other information necessary for a complete understanding of the company.

Revenues for the six months ended June 30, 2007 increased to $659,556 or approximately 158% compared to $255,782 for the six months ended June 30, 2006. The increase was due primarily to the increased revenue generated by the company's former Hawaiian subsidiary.

Operating expenses for the six months ended June 30, 2007 increased by approximately 38% to $352,076 compared to $256,419 for the six months ended June 30, 2006. The increase was due primarily to increased costs generated by the company's former Hawaiian subsidiary.

The Company generated before tax profits of $19,085 or $0.0002 per share for the six months ended June 30, 2007, as compared to a net loss of $1,171,675 for the six months ended June 30, 2006. This increase was due to a reduction in issuances of securities for services rendered.

The information highlighted below is contained in, and qualified in its entirety by the full text of, the Voluntary Notice of Material Events referenced above, and all readers are encouraged to consult the full report which includes, among other things, other information necessary for a complete understanding of the effects of these events on the Company.

On August 7, 2007, the Company received a Notice of Breach from Bear62 Corporation, its joint venture partner in its Hawaiian subsidiary, under which Bear62 demanded either payment of the Company's initial capital contribution of $12,750 or termination of the Venture, forfeiture of all of the Company's ownership interests in Stronghold Industries -- Hawaii Inc. and an unconditional release from all claims against Bear62. On August 10, 2007, the Company forfeited its ownership in the venture and released Bear62 from all claims and rights under the Joint Venture Agreement.

The Company agreed to issue 4,103,706 shares of Series A Convertible Preferred Stock to South Bay Financial Solutions Inc., a subsidiary of CorpHQ Inc., in exchange for an investment of $30,000, the return of 13,200,000 shares of Company common stock, and the extension of Secured Promissory Notes in the amount of $250,000 to July 15, 2008.

On April 29, 2007, the Company received an email of resignation from Anthony Adams, its Director. On May 25, 2007 the Company's board of directors held a valid meeting to accept Mr. Adams' resignation and to nominate a successor. The company continues to seek a director to fill the vacancy created by Mr. Adams' resignation.

Tony W. Breeden, JD, President of Stronghold Industries said, "This was a difficult period in the history of the company. Our outside director resigned because of time constraints and we withdrew from the Hawaiian joint venture. We are back to where we started -- a small but solid residential security company with the goal of maximizing long-term shareholder value."

About Stronghold Industries Inc.

Through its Moore Protection subsidiary, Stronghold provides world-class residential security and protection to elite class clientele in the Malibu, Pacific Palisades, Bel Air and Beverly Hills neighborhoods of Los Angeles, California.

Forward-Looking Statements

Any statements made in this press release that are not based on historical facts are "forward-looking statements," as such term is defined in the Private Litigation Reform Act of 1995. Although such statements are based on management's current estimates and expectations, and currently available competitive, financial, and economic data; forward-looking statements are inherently uncertain. We, therefore, caution the reader that there are a variety of factors that could cause business conditions and results to differ materially from what is contained in our forward-looking statements. For a description of some of the factors which may occur that could cause actual results to differ from our forward-looking statements please refer to our 2006 Voluntary Annual Report, and in particular the discussions contained under "Risk Factors."

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