Universal Detection Technology Releases Corporate Update From Chairman and Chief Executive Officer

Market Wire, July, 2008

Universal Detection Technology ( www.udetection.com ) (OTCBB: UNDT) (FRANKFURT: PO8), a developer of early-warning monitoring technologies to protect people from bioterrorism and other infectious health threats and provider of counter-terrorism consulting and training services, today reported the following corporate update from the Company's Chairman and Chief Executive Officer.

Table of Contents

-- Marketing of BSM-2000, UNDT 's Anthrax Detector

-- Increasing Threat of Bio-Terrorism

-- The Threat of an Airborne Anthrax Attack and Current Defense Systems

-- Beijing Olympics

-- The Threat of Ricin and UNDT's Solution

-- CBRN

-- Department of Homeland Security

-- MRSA

-- Stock Split and Symbol Change

Dear Shareholder:

It is unfortunate that we are living under the threat of terrorism and biological warfare. What's of greatest concern is the lack of proper preparation at various levels for dealing with a potential attack with these deadly agents. Consequently, we have intensified our efforts to address the growing need to protect our families and businesses.

As a result of these efforts, I am pleased to report the progress we have made in the past year. In conjunction with NASA's Jet Propulsion Laboratory (JPL), we have successfully completed the development phase of our BSM-2000 bacterial and anthrax spore monitoring and detection device. We are now establishing our domestic and international marketing and sales programs. The purpose of this communication is to provide you with an update of our recent efforts as well as our vision of the road ahead and our future plans.

Marketing of BSM-2000 , UNDT's Anthrax Detection System

We launched a prototype of our BSM-2000, Anthrax Detection System in 2004 and have now produced a commercially available device. We are committed to further research for acquisition of new technologies and for enhancing the performance of BSM-2000. In order to market the device to the US Federal Government, in the past we have engaged in direct marketing as well as marketing through intermediaries to Federal and State Governments. While we have not sold any units of BSM-2000 in the US, we are in talks with third parties to collaborate on ways to market, sell, and distribute this technology internationally.

Increasing Threat of Bio-Terrorism

The risk of a large-scale biological attack on the Nation is significant. It is well known that terrorists have sought to use chemical, biological, radiological, and nuclear weapons as instruments of their warfare, and that the capability is within their reach. A recent Government analysis indicates that anthrax is a likely choice of pathogen; and a successful single-city attack on an unprepared population could kill hundreds of thousands of citizens. A coordinated attack on multiple targets would come much closer in magnitude to our enemy's goal.

The Threat of an Airborne Anthrax Attack and Our Defense System

The threat of an aerosolized anthrax attack is the nation's number one bioterrorism concern, and it is that threat which should be vigorously planned for, and invested in, with the intent to defeat. The ramifications of such an attack include tremendous loss of life, economic costs, damage to critical infrastructure, and unprecedented environmental contamination. UNDT's technology is perfectly suited to fill the technology gap that exists in the nation's biodetection infrastructure. Current technologies in use are either cost-prohibitive for mass-deployment or hampered with inaccuracies and high false positive rates. UNDT's technology has been reviewed by government agencies and the conclusion has been that the BSM-2000 can rapidly and accurately detect harmful spores in the air at a fraction of the cost of systems based on DNA analysis.

Beijing Olympics

UNDT received separate contracts to provide radiological and biological detection instruments for use for site protection at the 2008 Beijing Olympics. The radiological detection equipment will be used for search and identification of gamma and neutron radioactive materials. The instruments feature the capability to identify the detected isotopes and characterize categories from medical, industrial, natural occurring radioactive materials (NORM) and special nuclear materials (SNM). UNDT's biological detection equipment are designed to detect Anthrax, Ricin, Botulinum Toxin, Plague and SEB's in as little as 3 minutes. UNDT also received a contract to provide training equipment for the biological detection system. The Beijing Organizing Committee for the Games of the XXIX Olympiad (BOCOG) is responsible for all aspects of security for the Olympics. BOCOG plans to deploy 80,000 security personal for the Olympics.

The Threat of Ricin and Our Solution

Ricin is one of the most toxic and easily produced plant toxins. It has been used in the past as a bioterrorist weapon and remains a serious threat as seen in the March 2008 incident in Las Vegas. If injected, as little as 500 micrograms of ricin could be enough to kill an adult; some animal research indicates that similar amounts could be lethal, if inhaled. UNDT's hand-held Ricin detection kit can detect Ricin powder on a surface or in a liquid in as little as 3 minutes. The kits have been used by law enforced and private security firms throughout the country.