The National Homeland Security Knowledgebase Newsletter January 2006

The Department of Homeland Security (DHS) announced the expansion of Operation Stonegarden, an initiative that will give states additional funding and flexibility to strengthen America’s borders.

The new grant guidance reflects Secretary Michael Chertoff's top priorities to strengthen border security and establish a common approach to enhancing preparedness capabilities throughout our nation.

As part of the 2006 fiscal year Homeland Security Grant Program (HSGP), the Law Enforcement Terrorism Prevention Program (LETPP) will award $400 million in grants to states based on risk and need. In fiscal year 2006, the LETPP allows for up to 25 percent of the funds awarded to each border state to be used for border protection.

"Operation Stonegarden was a series of innovative pilot programs that gave states flexibility to use DHS grant dollars to support closer coordination of state and federal law enforcement agencies at our borders," said Secretary Michael Chertoff. "By expanding this successful program, we are giving border states and communities the ability to target additional resources to secure their borders."

Under the auspices of the LETPP, DHS plans to reinitiate the highly successful Operation Stonegarden as a means of improving border security and countering the terrorist threat. During fiscal year 2005, Operation Stonegarden was extremely effective in bolstering border security in areas deemed vulnerable or at risk with 214 state, local, and tribal agencies working a total of 36,755 man-days along the Mexican and Canadian borders. Funding will be contingent upon recipients having an approved operational plan developed jointly between state, tribal and local law enforcement officials and U.S. Customs and Border Protection (CBP).

Starting in fiscal year 2006, funds may be used toward the hiring of new staff or contractors to serve as intelligence analysts. Prospective personnel must successfully complete training to ensure baseline proficiency in intelligence analysis and production.

The department will award more than $2.5 billion in grant funding through the fiscal year 2006 HSGP, which augments the nearly $9 billion already delivered to state and local governments and first responders.

Homeland Security Chief Medical Officer Warns Health Policy and Administration Grads To Prepare for a Disease-Like Terrorist Attack

The U.S. government must deal with disease outbreaks just like a terrorist attack, the newly appointed chief medical officer of the Department of Homeland Security told graduates of the Health Policy and Administration certificate programs at The University of North Carolina at Chapel Hill’s School of Public Health.

January 12, 2006 -- The U.S. government must deal with disease outbreaks just like a terrorist attack, the newly appointed chief medical officer of the Department of Homeland Security told graduates of the Health Policy and Administration certificate programs at The University of North Carolina at Chapel Hill’s School of Public Health.

Dr. Jeffrey Runge said the United States must now look at health in a “whole new way,” including preparing for and responding to significant health events, such as a pandemic outbreak of the bird flu virus.

“We need to reorganize, not to protect buildings, but to protect people,” said Runge.

The graduation ceremony was held Saturday for 33 graduates of the department's Community Preparedness and Disaster Management (CPDM) and Health Care Management (HCM) certificate programs. CPDM graduates were primarily North Carolina community leaders in emergency services and other health fields who took the 12-month program to enhance their knowledge of management systems used to combat national and man-made disasters. The HCM graduates were comprised primarily of new or recent healthcare managers.

Runge told the audience that the work that must be done to prepare for a natural disaster, terrorist attack or disease outbreak will begin at the local and state level, not in Washington.

“As a nation, we are only as prepared as communities are prepared,” said Runge. “That means we must be prepared from the top to the smallest community. We are only as strong as the weakest link.”

Prior to being appointed to his current position, Runge was the Administrator of the National Highway Traffic Safety Administration and assistant chairman of the Department of Emergency Medicine at Carolinas Medical Center in Charlotte.

Taught almost entirely online, the Community Preparedness and Disaster Management and Health Care Management certificate programs offered by the Health Policy and Administration department are designed for working professionals seeking to expand their knowledge and training in their respective fields. For more information about either one of these programs, call (919) 843-1219.

Humanetics Corporation Receives $1.25 Million in Funding Under Department of Defense 2006 Appropriations Budget, Thursday January 12, 2005
Funding Earmarked to Develop Oral Countermeasures to Ionizing Radiation

MINNEAPOLIS---Jan. 12, 2006--Humanetics Corporation today announced that Congress has provided $1.25 million in the FY 2006 Department of Defense (DoD) Appropriations bill to Humanetics for the development of oral countermeasures to ionizing radiation resulting from a nuclear event or terrorist attack involving radioactive materials. The FY 2006 DoD spending measure was approved by Congress in late December and signed by President Bush on December 30, 2005. Minnesota Senator Norm Coleman provided critical support for this project and helped secure the Congressional funding, which will be used to accelerate the development of safe and effective oral countermeasures to improve the nation's ability to respond to a nuclear crisis.

About Humanetics Corporation

Humanetics Corporation is a privately-held specialty pharmaceutical company headquartered in Minneapolis, Minnesota. The Company is focused on the rapid discovery, development and commercialization of orally-administered bioactive compounds for the prevention and treatment of diseases in categories with urgent and unmet needs. The Company has several proprietary compounds in preclinical and/or clinical stages of development in the areas of bioterrorism, Alzheimer's disease and obesity. For more information, visit: http://www.humaneticscorp.com
DNDO to Conduct Nuclear Detector Systems Testing in Nevada

The Domestic Nuclear Detection Office (DNDO) announced that it will be testing current and prototype next-generation handheld and mobile nuclear detectors at the Nevada Test Site (NTS) from Jan. 9 through Feb. 3, 2006.

While handheld detection technologies have been available for some time, the performance of these technologies can be greatly improved, particularly in the areas of detection range and threat identification capability. This testing is the next step in a comprehensive and long-range plan to continually improve upon nuclear and radiation detection technologies.

This testing will subject detectors to a series of realistic materials and threats encountered in legitimate commerce, as well as occur in potentially illicit activities. Testing will offer insights into the performance of the nuclear and radiological detectors, and how they are to be integrated into the DNDO-developed domestic nuclear detection strategy. Following the test series, DNDO will make these evaluations available to state and local agencies to aid their selection and acquisition of preventive nuclear detection equipment using Department of Homeland Security (DHS) grants.

“A critical component of the Domestic Nuclear Detection Office’s program is high fidelity testing and evaluation, using test objects and configurations representative of actual threats,” said Vayl Oxford, the DNDO Director. “Characterization of detection systems will provide for more educated acquisition and deployment decisions.”

DNDO was established in April 2005 to coordinate and improve the ability of the U.S. Government to counter the threat of terrorist nuclear attack. DNDO is responsible for all DHS research and development in support of this mission, as well as the acquisition of nuclear detection equipment for domestic use. To date, DNDO and CBP have deployed over 650 portal monitors to the nation’s ports of entry. In addition, DNDO and the DHS Office of Grants and Training are currently working with representatives from 34 state and local agencies to develop comprehensive domestic nuclear detection programs, to include planning, exercises, training, and acquisition of detection systems.

* Media tours at the NTS are available Jan. 25, 2006. For more information, please contact Jenny Burke, DNDO External Affairs, at 202-254-6667, or jenny.burke@associates.dhs.gov

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Also – Visit our Current list of Homeland Security Stocks:
http://www.nationalhomelandsecurityknowledgebase.com/research/HSStocks.htm

Plug Power and Ballard Power Systems Awarded $2M Program to Develop Advanced PEM Fuel Cell System

LATHAM, N.Y. and VANCOUVER, British Columbia, Jan 12, 2006 /-- Plug Power Inc. (PLUG), a leader in providing clean, reliable on-site energy, and Ballard Power Systems (BLDP) (CA:BLD), a leading developer of proton exchange membrane (PEM) fuel cells, today announced they have been awarded a $2M program by the U.S. Department of Defense to develop an advanced prototype PEM fuel cell system to support Defense Continuity of Operations (COOP).

Under this program, Plug Power and Ballard will jointly develop a next- generation prototype PEM fuel cell power solution to be used in backup power applications. Plug Power will act as the systems integrator, using a Ballard(R) fuel cell stack for evaluation and potential use in COOP programs for the U.S. Department of Defense and Department of Homeland Security.

M&A news In Homeland Security - Viisage and Identix
Viisage and Identix to Merge to Create Biometric Identity Solution Leader

BILLERICA, Mass. & MINNETONKA, Minn - Jan. 12, 2006 - Viisage Technology, Inc. (Nasdaq: VISGD) and Identix Incorporated (Nasdaq: IDNX): Establishes the Industry's Most Comprehensive Multi-Modal Biometric Platform for Securing and Protecting Personal Identities.

Identity solutions provider Viisage Technology, Inc. (Nasdaq: VISGD) and biometric technology innovator Identix Incorporated (Nasdaq: IDNX) today announced they have entered into a definitive agreement to merge in an all stock transaction. The combined company will blend two complementary approaches to solving the challenge of protecting and securing personal identities by establishing the industry's most comprehensive single platform for multi-modal finger, face, skin and imaging identity solutions. The combination has been approved by the respective boards of directors of each company.

The combined company, on a pro forma calendar 2006 basis, is expected to have revenue of approximately $220 million and EBITDA of at least $40 million, including synergies and operating efficiencies.

Under the terms of the transaction, Identix shareholders will receive a fixed exchange ratio of 0.473 newly issued shares of Viisage stock for each share of Identix stock. The transaction is expected to be tax-free to shareholders of both companies for U.S. federal income tax purposes. Based on Viisage's closing stock price of $17.69 on January 11, 2006, the transaction is valued at approximately $770 million on a fully diluted basis.

Upon completion of the transaction, current Identix shareholders will own approximately 59 percent of the combined company and current Viisage shareholders will own approximately 41 percent of the combined company. The combined company's board of directors will consist of 12 directors, with seven of the members designated by Viisage and affiliates and five designated by Identix. The headquarters of the combined company will be in Stamford, Connecticut. In addition, certain affiliates of both Viisage and Identix have agreed to vote their shares in favor of the merger.

Following the close of the transaction, the company expects to evaluate alternatives for repurchasing outstanding shares, including the potential issuance of convertible debt.

"The combination of Identix' advanced multi-biometric search technology with Viisage's expertise in secure credentials, document authentication and verification will create a global leader in biometric security, providing end-to-end identity solutions for state, local, national and foreign government use, as well as a wide application across the commercial sector," said Robert V. LaPenta, Chairman of the Board of Viisage. "With its proven technology, strength of management and services, and marquee customer base, the combined entity has the ability to achieve significant revenue growth and profitability."

Wednesday, January 04, 2006
SPADE Defense Index Outperforms S&P 500

SPADE Defense Index Outperforms S&P 500 for Sixth Consecutive Year

Year-End Summary
* SPADE Defense Index Outperforms S&P 500 for Sixth Consecutive Year
* Exceeded Returns of S&P 500 in 18 of last 22 quarters
* Reached all-time high of 1804.88 on December 27, 2005
* Since 2000, the Index has gained 79.2% vs. [-15.0%] for the S&P 500
* ETF Tracking the Index Launched by Powershares
* Options for ETF and Index Launched by the American Stock Exchange

The SPADE Defense Index (Amex: DXS - News) ended the year at 1764.97, up 5.30% from the last day of trading in 2004, outperforming the S&P 500 for the sixth consecutive year.

2005 SPADE 5.30% / S&P500 - 3.00%
2004 SPADE 20.47% / S&P500 - 8.99%
2003 SPADE 37.27% / S&P500 - 26.38%
2002 SPADE <2.87%> / S&P500 - <23.37%>
2001 SPADE 0.94% / S&P500 - <13.04%>
2000 SPADE 4.98% / S&P500 - <10.14%>

About the Index

The SPADE Defense Index is a modified capitalization-weighted index comprised of 59 firms involved with defense, homeland security, and space. Information regarding the Index methodology, rules, performance, and constituents can be found at http://www.spadeindex.com

HDS Portal Articles and News Releases

Tuesday, January 10, 2006
HomelandDefenseStocks.com – Protecting Critical Infrastructure through Biometrics

Biometric Security Identification Helps to Control Access to Key Assets, Structures, Borders and Ports.

POINT ROBERTS, Wash., January 10th, 2006 – www.HomelandDefenseStocks.com and www.BorderandPortSecurity.com, global investor and industry news portals for the homeland defense and security sector, provide an overview entitled “Protecting Critical Infrastructure through Biometrics”, discussing the utilization of biometric identification for the protection of critical infrastructure through screening and access control of key assets, borders and ports. Perspectives on key challenges, innovations and market direction are revealed by Sense Holdings, Inc., Motorola Inc., Identix, Inc., and Technest Holdings Inc. with insights provided by Brian Ruttenbur, Equity Research Analyst, for Homeland Security Technology with Morgan Keegan & Co. Inc.

“The main vulnerabilities of our critical infrastructure are the widespread use of inadequate personal identification systems and the pronounced absence of appropriate low-cost equipment for the detection of dangerous substances,” describes Dore Perler, CEO of Sense Holdings Inc. (OTCBB: SEHO).

Motorola’s (NYSE: MOT) Robert L. Horton, Director Strategic Product Marketing, Biometrics Business Unit explains, “Balancing these conflicting goals of economics and security demands a screening process that nets the bad guys while letting legitimate visitors through with minimal delay and inconvenience. This is where biometric technology comes in.”

Robert Tarini, Chairman and CEO of Technest Holdings (OTCBB: TCNH), sees an advantage to the development of biometric systems such as facial recognition that do not require an active effort on the part of the entrant as is the case with fingerprint systems, iris scanners, and palm readers.

The awareness of the need for effective access control continues to grow according to Frances Zelazny, Director of Marketing for Identix, Inc. (NASDAQ: IDNX) who states, “In the last year there has been a surge in the demand for fingerprinting services. This increase is directly tied to the fact that more and more people understand that granting someone a job such as a teacher, bus driver, federal employees etc. are going to require background checks to establish trust and identity before you let someone into your facility.”

Overview Excerpt: Protecting Critical Infrastructure through Biometrics

By Ann-Marie Fleming, www.HomelandDefenseStocks.com, www.BorderandPortSecurity.com
January 2006

Biometrics, an authentication technology that measures unique human characteristics as a way to confirm an individual’s identity, has been around for some time now; however since 9/11 this industry has received significant attention as a valuable addition to homeland security solutions. Biometric technology encompasses a range of identification measures such as fingerprints, palm readers, facial recognition, and retina scans as they work to minimize security risks in the protection of critical infrastructure and the screening of access through borders and ports.

Brian Ruttenbur, Equity Analyst, Morgan Keegan & Co. Inc. explains, “The United States Government continues to push the use of biometrics for border and port security, and this has been a very good thing for the biometrics industry.”

To Read the Full Report Click Here: http://www.HomelandDefenseStocks.com/Articles/Biometrics.asp

The HDS and BPS websites do not make recommendations, but offer unique free information portals to research news, exclusive articles, interviews, investor conferences and a growing list of participating public companies in the homeland security and defense sector.

Featured Companies: (HDS and BPS are compensated by companies as disclosed in disclaimer.)

SENSE Holdings Inc™ (OTCBB: SEHO) is a provider of biometric solutions, and micro-sensor identification systems as well as enabling technology for explosives detection. Sense develops products targeting Homeland Security, and offers solutions that improve and secure many business, military, and personal processes.

For additional information on Sense Holdings, Inc., click here: http://www.homelanddefensestocks.com/CO/SEHO/Default.asp

Technest Holdings, Inc. (OTCBB: TCNH) is committed to setting next-generation standards in defense and security through the provision of innovative emerging technologies and expert services.

For additional information on Technest Holdings, Inc., click here: http://www.homelanddefensestocks.com/CO/THNS/Default.asp

www.HomelandDefenseStocks.com and www.BorderandPortSecurity.com are portals within the InvestorIdeas.com content umbrella, offering investors research, news, blogs, RSS Feeds, conferences and links to public companies within the security sector.

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Investorideas.com Disclaimer: www.InvestorIdeas.com/About/Disclaimer.asp Our sites do not make recommendations, but offer information portals to research news, articles, stock lists and recent research. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. We attempt to research thoroughly, but we offer no guarantees as to the accuracy of information presented. All information relating to featured companies is sourced from public documents and or the company and is not the opinion of our web sites. The site is currently compensated for by its "featured companies. Sense Holdings, Inc. (OTCBB: SEHO) Five thousand dollars per month, plus five thousand equivalent in shares; Technest Holdings, Inc. (OTCBB: TCNH) Five thousand dollars per month.

For more information contact:
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Ann-Marie Fleming 866.725.2554
Email: dvanzant@HomelandDefenseStocks.com, or afleming@HomelandDefenseStocks.com