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Homeland Security Capital Corporation Awarded over $550,000 in New Security Projects for State Government Client

Homeland Security Capital Corporation “HSCC” (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, Nexus Technologies Group (“Nexus”), a mid-Atlantic security integrator for the corporate and governmental security markets, and majority owned subsidiary of HSCC, has received in excess of $550,000 in purchase orders for security projects for one of its state government clients.

After successfully completing Phase I during the 3rd quarter 2009, Nexus has been issued a purchase order for Phase II of the security system for the relocation of an entire state government office complex. This project, which is funded by a Homeland Security Grant, encompasses the design, engineering, and installation of an integrated CCTV and access control security system across multiple floors in a historic building that is being renovated as part of this project. In addition, the purchase order calls for Nexus to provide ongoing service and maintenance of the security system at this facility when it becomes operational. This state government client has been a multi-year client of the Company and this project represents the expansion of that relationship for both security project work and service and maintenance, in a new facility and region.

Nexus has also been awarded several purchase orders for additional security installations and upgrade projects at the State Capitol Complex. The service and maintenance relationship that the Company maintains with the State, continues to be a source of new and add-on business for Nexus.

Separately, the HSCC Board of Directors has appointed Michael T. Brigante as Chief Executive Officer of Nexus. Mr. Brigante is the Chief Financial Officer of HSCC and had been the interim President of Nexus since July 2008. Additionally, Robert Biscardi, formerly the Chief Operating Officer of Nexus, has been appointed President of Nexus effective July 1, 2009.

Mr. Brigante commented, “Nexus has undergone quite a transition during this fiscal year. After a restructuring early in the year, the new management group has stepped up to meet the challenges presented by this difficult economy and is now poised for robust growth in FY 2010.” Brigante continued, “We continue to build our backlog through solid customer relationships and contracting for new projects in business segments which we previously had no presence.”

“We have reached out to all our customers and have been pleased with the level of new business available to us,” said Robert Biscardi, Nexus President. “Our management team looks forward to a number of successes in 2010.”

All of the above-mentioned security work is expected to be completed by the end of the second quarter of fiscal 2010.

About Nexus Technologies Group

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. Utilizing cutting-edge technologies, Nexus provides innovative, engineered and scalable solutions to effectively protect people, property and assets. For more information about Nexus, visit www.nexusna.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 Nexus Technologies Group, includes:

Safety and Ecology Corporation (SEC) is a rapidly growing environmental services company in the U.S., providing services nationally, in Europe and the Caribbean. The Company specializes in the removal and remediation of hazardous nuclear materials for the U.S. Department of Energy, U.S. 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 450 personnel worldwide and with annual revenues of more than U.S. $70 million. For more information on SEC, visit www.sec-tn.com.

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.

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.

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