Homeland Security Capital Corporation Awarded Substantive Portion of $25 Million Contract

Business Wire, Sept 25, 2008

Three-Year Deactivation And Decommissioning Project At Historical Laboratory

Safety And Ecology Corporation Has Booked Contracts Increasing Backlog To Over $50 Million Since July 1, 2008

ARLINGTON, Va. -- Homeland Security Capital Corporation (HSCC) (OTCBB: HOMS) announced today that its environmental remediation subsidiary, Safety and Ecology Corporation (SEC), was awarded a substantive portion of a three-year $25 million contract.

The project involves the deactivation, decontamination, and demolition of a historically significant research accelerator at a major national laboratory, which has been in use since the 1950s. The project was awarded to Clauss Construction (Clauss) of Lakeside, CA. SEC is a subcontractor to Clauss and will receive a substantive portion of the proceeds as part of the project team.

"SEC's involvement, which amounts to 45% of the contract, will contribute substantially to the team," said SEC CEO and HSCC's President Christopher P. Leichtweis. "The facility has been extremely instrumental in the county's ongoing research and scientific understanding; however, recent advances in this type of research, coupled with the need for additional real estate at the laboratory to support new research facility construction, requires that the facility be demolished and removed."

SEC's scope of work includes environmental health and safety oversight; radiological protection and control; facility characterization; and processing, packaging, transport, and disposal of contaminated and activated materials. Additionally, SEC will be responsible for project controls, radiological, hazardous and mixed waste management, and numerous other project elements to support demolition and restoration activities.

Former Maryland Congressman and HSCC Chairman and CEO C. Thomas McMillen commented, "This project award is a testament to our expertise and experience. We look to continuing our efforts to secure similar projects in the future both as a prime and subcontractor."

About Clauss Construction

Clauss Construction is a service-disabled Veteran-owned small business headquartered in Lakeside, California specializing in demolition, hazardous waste, and earthwork serving the continental US and Hawaii. For more information, please visit us at: www.claussconstruction.com.

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, 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.