Homeland Security Capital Corporation's Environmental Remediation Division Participated in the National Nuclear Security Administration's Historical Footprint Reduction Event

Business Wire, August 29, 2008

Division's Current Project Featured In Ceremonial Demolition Demonstration At The Y-12 National Security Complex In Oak Ridge, TN

Event's Principal Deputy Administrator Expresses Support Of Successful Program

ARLINGTON, Va. -- 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 that its subsidiary, Safety and Ecology Corporation (SEC) participated in a historical footprint-reduction event on August 13, 2008 at the Y-12 National Security Complex in Oak Ridge, Tennessee. The National Nuclear Security Administration's (NNSA) demolition project featured an active SEC project.

NNSA Principal Deputy Administrator William Ostendorff spoke to Y-12 employees before taking the ceremonial first blow at a five-building cluster that will push the total over the three million square foot mark. In an article posted to the NNSA website regarding the infrastructure reduction program, Ostendorff stated, "I am extremely proud of the hard work done across NNSA to quickly and safely tear down these aging facilities, which accounted for more than a third of the building reductions. This shows the taxpayers that we are taking steps to reduce the cost of maintaining the U.S. nuclear weapons stockpile."

The Federal Infrastructure Reduction Program (FIRP) has provided the Y-12 National Security Complex with significant facility and infrastructure upgrades through recapitalization projects and much-needed real estate for new facility disposition activities, since its inception in 2002. Contracted by B&W Y-12 Company, a leading international provider of energy products and services, and through the NNSA, SEC has performed approximately $20 million in task order projects supporting the FIRP for the Y-12.

"SEC was honored to assist with the demonstration," said Safety and Ecology Corporation Chairman and CEO, and HSCC President Christopher P. Leichtweis. "The success of this program is a testament to the dedication NNSA has in implementing the changes necessary to efficiently meet national security measures and establish a more secure and cost effective nuclear weapons infrastructure. We are well-positioned to support the future scope."

More information on the event can be found on the NNSA website, www.NNSA.energy.gov and in the following articles.

http://www.nnsa.energy.gov/2094.htm

http://www.knoxnews.com/news/2008/aug/14/y-12-finishes-first-set- of-refurbished-parts-for/ (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

About B&W Y-12

B&W Y-12, a limited liability enterprise of The Babcock and Wilcox Company and Bechtel National Inc., operates the Y-12 National Security Complex for the National Nuclear Security Administration.

About Safety and Ecology Corporation

Safety and Ecology Corporation 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 420 personnel worldwide and with annual revenues of more than $55 million. For more information on SEC, visit www.sec-tn.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. Former Maryland Congressman C. Thomas McMillen, who served three consecutive terms in the U.S. House of Representatives from the 4th Congressional District of Maryland, heads the company.

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 Safety and Ecology Corporation, includes:

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.