SEC’S SISTER COMPANY POLIMATRIX, INC., PERFORMS SUCCESSFUL DEMONSTRATION

Recent Product/Technology Demonstrations Prove High Quality and Success of Performance

Arlington, VA – August 5, 2008   Homeland Security Capital Corporation (OTCBB: HOMS), an international provider of specialized technology-based radiological, nuclear, environmental, disaster relief, and security solutions to government and commercial customers, announced today that its subsidiary, Polimatrix, Inc., a solutions provider and systems integrator of radiation and nuclear detection and identification systems, has successfully performed product and technology demonstrations at live scenarios that require nuclear material detection to support the country’s national security objectives.

“These recent demonstrations underscore the performance of our radiation detection technologies and the ability to support the increasing demands of nuclear material detection as a critical component of our nation’s security program,” said former Maryland Congressman C. Thomas McMillen, Homeland Security Capital Corporation’s Chairman and CEO.

Polimatrix participated as a technology provider at the Operation Golden Phoenix 2008 event in San Diego, CA the week of July 21-24. The four-day training exercise allowed local, state, and federal agencies to join other partners in a simulated response to mock terrorism attacks and post incident responses including the smuggling of “dirty bomb” materials through security and border checkpoints. The goal of the event was to allow participating agencies to cooperatively practice command, communication, and logistical skills along with the latest commercially available technology used in the response to natural disasters, security threats, and other emergencies.

As a member of the Epsilon Systems Solutions (Epsilon Systems) Team, which included several industry leaders, Polimatrix provided radiation detection technology, training, and data communications throughout the demonstration event. The Polimatrix technical managers demonstrated the effectiveness of the technology in both the response to border crossing/terrorist threats and the mitigation of those threats through teams deployed in the field. San Diego Fire, Police HAZMAT, and the USMC were trained and used Polimatrix devices and communication capabilities during the live exercise events. After integrating the Polimatrix system into the Epsilon Team’s comprehensive mobile integrated security system, performance objectives were defined. Each of these goals were achieved throughout the demonstration by the USMC and emergency response personnel.

Don Goebel, recently appointed Polimatrix CEO, stated, “The performance of the Polimatrix technologies in this environment further demonstrates the capability and reliability of our systems to meet the needs for detection of nuclear threats at U.S. borders and portals.”

Additionally, Polimatrix recently participated in the security for a stock car race held over July Fourth weekend in Daytona Beach, Florida. Polimatrix’s radiological detection equipment was deployed by the Florida National Guard, the Florida Department of Transportation, and the Florida Bureau of Radiation Control. Working closely with these agencies, Polimatrix’s equipment was used during “pre – race” security sweeps of the infield area, track, stands, and surrounding perimeter; as well as for security patrols during the race itself.

“These exercises allow us the opportunity to work with multiple agencies and to test our detection devices and communications systems in the field during live events with real potential ramifications should an incident occur,” said Mr. Goebel. “This was an ideal way to demonstrate the value and benefit our devices to these agencies.”

About Polimatrix, Inc.
Polimatrix, Inc. is 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.