Homeland Security Capital Corporation Awarded $10.8 Million Contract

Business Wire, Oct 21, 2008

Company Performing Industrial Facility Construction for Tennessee Manufacturing Plant

ARLINGTON, Va. -- Homeland Security Capital Corporation (HSCC) (OTCBB: HOMS) announced today that its environmental remediation subsidiary, Safety and Ecology Corporation (SEC), was awarded a contract potentially valued just under $11 million to provide construction installation services to support a Tennessee manufacturer's capital improvement expansion project. Phase I is funded at $6.8 million with the scope of Phase II being a $4 million option.

Over the next ten months, the SEC team will perform the total installation of special equipment that automates a process currently being used at the manufacturer's other facilities, yet new to the Tennessee facility. The installation of this equipment will provide streamlined solutions that improve operational efficiency. In addition, SEC will provide mechanical, piping and ductwork, and electrical installation.

Since 2007, SEC has been awarded eighteen projects from this commercial client totaling over $34 million. The scope of this work includes: infrastructure support and facility upgrades, system modernization, new industrial facility construction, and excavation and demolition services.

"Our environmental restoration and infrastructure division continues to provide expanding value to our client's facility renovations and upgrades," said HSCC President and SEC CEO Chris Leichtweis.

Safety and Ecology Corporation has been able to utilize seventeen years of hands-on field experience at federal facilities to support the client's mission. Headquartered in Knoxville, Tennessee, SEC's working relationship with the Tennessee manufacturer broadens its local presence with commercial clients.

"This project affords us the opportunity to demonstrate our expanding suite of infrastructure upgrade and refurbishment services to one of our most important commercial clients. The award is a direct result of our outstanding performance on previous projects and will allow us to continue to execute our growth strategy," commented former Congressman and HSCC Chairman C. Thomas McMillen.

About Safety and Ecology Corporation

Safety and Ecology Corporation is an international leader in environmental services and chemical, radiological, and nuclear consequence management company in the U.S., providing services nationally, in Europe and the Caribbean. The Company specializes in the response, removal and remediation of hazardous, munitions, nuclear materials for the U.S. Department of Energy, U.S. Department of Defense, other federal agencies including critical consequence management UK government agencies. SEC also provides advanced environmental services for private industry across the country and internationally. Since its founding in 1991, SEC has grown approximately 20 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. SEC expects a ramp-up of project work for the 2009 fiscal year which began in July of this year due to its recent quarterly bookings of projects totaling in value of $50 million. For more information on SEC, please visit us: www.sec-tn.com.

About Homeland Security Capital Corporation

HSCC is an international provider of specialized technology-based radiological, nuclear, environmental, disaster relief, and security solutions to government and commercial customers through its portfolio companies. 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.

For more information about Homeland Security Capital Corporation, or to be added to our e-mail distribution list, please 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.