Zareba Systems Completes Perimeter Security Testing by U.S. Army Corps of Engineers

Business Wire, Sept 12, 2006

MINNEAPOLIS -- Zareba Systems, Inc. (NASDAQ:ZRBA) recently completed its Cooperative Research and Development Agreement (CRADA) with the U.S. Army Corps of Engineers Engineer Research and Development Center (ERDC) at its Cold Regions Research and Engineering Laboratory (CRREL) in Hanover, New Hampshire.

The CRADA was established in 2003 in conjunction with a range security project at CRREL. Zareba Systems and CRREL entered into the CRADA to investigate whether the Guard Tower(R) intrusion detection system could be adapted to irregular terrain. CRREL researchers investigate the impact of weather and terrain on sensor systems installed at the CRREL intrusion detection system site, and generate guidance on the selection and operation of intrusion detection systems to avoid environmentally caused security vulnerabilities.

Penetration tests were recently conducted and witnessed at the CRREL site in Hanover, New Hampshire. Results of those tests are available from Zareba Security by calling 763-509-7437 or by request from the company website at www.ZarebaSecurity.com.

A CRADA is a means by which a Federal laboratory and the public or private sector can partner on a non-exclusive basis and collaborate in technology development. The intent of this CRADA was to increase the security options available to the Army for unimproved sites. As policy, neither collaboration under a CRADA, nor release of testing results, constitutes ERDC endorsement of Zareba Security or the Guard Tower(R) intrusion detection system.

"We are pleased to have had the opportunity to work with the U.S. Army Corps of Engineers to modify and enhance the intrusion detection capabilities of our Guard Tower(R) perimeter protection system. As a result of the work done by both the Army Corps and Zareba Security, we believe the system has been significantly enhanced in the areas of environmental robustness and penetration hardness," said Jerry Grabowski, President and CEO.

Zareba Security customizes perimeter security solutions to affordably meet each installation's security requirements. Potential applications include airports, oil refineries, remote utilities sites, high value storage sites, correctional facilities as well as other commercial or government buildings and locations. Products include the Guard Tower(R) perimeter protection system and the Induced Pulse(TM) non-lethal electric fence (NLEF) system. Zareba's patent-pending Guard Tower(R) system can detect breaches to within 10 feet, while providing the option to integrate closed circuit cameras, directing video footage of the breach point directly to a central monitoring system.

"With significant experience in the electronic fence systems industry, we believe we are positioned to take advantage of opportunities in the security market," said Grabowski. "The heightened awareness of the need for greater security, from government to commercial applications, presents exciting possibilities. We are also proud to design and manufacture our Guard Tower(R) perimeter security products in the U.S.A."

About Zareba Systems, Inc.

Zareba Systems, Inc. is the world's leading manufacturer of electronic perimeter fence systems for animal and access control, and through its subsidiary, Waters Medical Systems, Inc., is a global leader in kidney perfusion devices. A Minnesota corporation since 1960, the Company's corporate headquarters is located in Minneapolis, with manufacturing facilities in Rochester and Ellendale, Minn. Its Zareba Systems Europe subsidiary owns Rutland Electric Fencing Co., the largest manufacturer of electric fencing products in the United Kingdom. The corporate web site is located at www.ZarebaSystemsInc.com.