SEC SISTER COMPANY, POLIMATRIX SIGNS CONTRACT WITH ILLINOIS LAW ENFORCEMENT ALARM SYSTEM (ILEAS) FOR MAJOR STATE OF ILLINOIS PORTABLE RADIATION DETECTOR PROCUREMENT

ARLINGTON, Va.--(BUSINESS WIRE)--Polimatrix, Inc., a solutions provider and systems integrator of radiation & nuclear detection and identification systems and a majority owned subsidiary of Homeland Security Capital Corporation (OTCBB: HOMS - News), announced today both the execution of a master purchase contract with and an initial purchase order from the Illinois Law Enforcement Alarm System (“ILEAS”). Homeland Security Capital Corporation delivers products and services to the fast growing homeland security industry through its portfolio of companies, and is an international provider of specialized, technology-based radiological, nuclear, environmental, disaster relief, and security solutions to government and commercial customers.

On November 1, 2007, Polimatrix was awarded a statewide law enforcement and first responder procurement that we believe was the largest such award in the United States. The award could result in the placement of approximately 20,000 portable radiation detector/dosimeters into every First Responder vehicle in the state of Illinois. The award followed a yearlong process that included an industry-wide competition with detailed technical and field-testing by the Illinois Emergency Management Agency and Illinois State Police and technical analysis by the Argonne National Laboratory. The recent contract execution followed negotiations regarding final technical specifications. As part of the Purchase Agreement, ILEAS immediately issued an initial purchase order for over 5,000 instruments. Executive Director James R. Page of ILEAS said, “We look forward to a long and mutually profitable relationship with Polimatrix.” C. Thomas McMillen, Homeland Security Capital chairman and CEO said, “Homeland Security Capital Corporation and Polimatrix are pleased to move forward into the operational phase of this important project with Illinois. This program will be monitored by many other state and local entities around the country, and we are ready to assist them with this important security issue.” Polimatrix, Incorporated CEO A. Martin Erim said, “We are eager to start production, delivery and training support for this milestone program.”

About Polimatrix, Incorporated Polimatrix, Inc., a system integrator and total solutions provider delivering advanced radiation and nuclear protection and detection services. The company has been operating since September 2006 as a joint venture between Homeland Security Capital Corporation and Polimaster, Inc. For more information about Polimatrix, visit www.polimatrix.com.

About Homeland Security Capital Corporation
Homeland Security Capital Corporation is a company engaged in the strategic acquisition, development, and consolidation of homeland security-related businesses, within the fragmented homeland security industry. The company is focused on creating long-term value by taking controlling interest and developing its subsidiary companies through superior operations and management. The company is headed by former Congressman C. Thomas McMillen, who served three consecutive terms in the U.S. House of Representatives from the 4th Congressional District of Maryland. Homeland Security Capital Corporation operates businesses that provide homeland security products and services solutions, growing organically and by acquisitions. The company is targeting emerging companies that are generating revenues but face challenges in scaling their businesses to capitalize on homeland security opportunities. Homeland Security Capital Corporation’s portfolio of companies, in addition to Polimatrix, include: Safety and Ecology Corporation is a rapidly growing environmental services companies in the US, providing services nationally, in Europe and the Caribbean. The Company specializes in the removal and remediation of hazardous nuclear materials for the US Department of Energy, US Department of Defense, and other federal agencies. SEC also provides advanced environmental services for private industry across the country and internationally. Since its founding in 1991, SEC has grown approximately 30 percent per year, and has emerged as a technology innovator with more than 420 personnel worldwide and with annual revenues of more than US $50 million. For more information on SEC, visit www.sec-tn.com. Nexus Technologies Group, a mid-Atlantic security integrator for the corporate and governmental security markets that specializes in non-proprietary integrated security solutions including access control, alarm, video, communication, perimeter protection and bomb and metal detection security systems. Nexus provides integrated security solutions for the corporate and government security markets. For more information about Nexus, visit www.nexusna.com. For more information about Homeland Security Capital Corporation, visit www.hscapcorp.com.

Forward-Looking Statement
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future activities, performance, events or developments, are forward-looking statements. Although Homeland Security Capital Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements.

Contact:
Homeland Security Capital Corporation, Arlington, VA
Marianne Ricci, 703-528-7073 Ext. 100
IR@hscapcorp.com
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Anne Smith, 865-342-7668 asmith@sec-tn.com
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The Investor Relations Group
212-825-3210
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