Homeland Defense News

May 26, 2005

According to Homeland Security Research Corp, the Homeland Security global market is expected to grow from $28 billion in 2003 to over $170 billion in 2015. While growth numbers are positive, there has been a pull back in the stocks. Explanation for the current stock price levels can be attributed in part due to the stock market in general and the overall downtrends we’ve seen, and partially due to the transition in the Homeland Security industry from a reactive to a long term strategy. Some of the original euphoria may have settled, but the Homeland Security industry appears to be here for the long term.

Positive first quarter earnings were reported in April by several of the defense contractors. Northrop Grumman Corp (NYSE: NOC) and Raytheon Co (NYSE: RTN) both announced sharp increases. Northrop showed a 73% rise from last year, helped by solid sales growth, higher operating profit across all segments and lower corporate and interest expense, while Raytheon reported a 30% increase in profits in first quarter earnings as a result of higher growth in its defense and government business and higher sales at a commuter aircraft unit. Lockheed Martin Corp. (NYSE: LMT), reported that the Company’s first-quarter earnings rose 27% from a year ago and raised profit and sales guidance for fiscal 2005 which is attributed mainly to the improved performance in Lockheed's space systems segment and the anticipated growth from their recent acquisitions of Sytex Group Inc. and Stasys Ltd. In addition, demand generated by the Pentagon and the Department of Homeland Security helped Titan Corp. (NYSE: TTN) to realize a sixfold rise in earnings for the first quarter.

Late April and early May highlights include the acquisition of significant contracts by a variety of industry players to include: L-3 Communications Holdings Inc. (NYSE: LLL) who received a $50 million contract from the Transportation Security Administration to provide maintenance services for X-ray and explosives detection systems at national airports, American Science and Engineering, Inc. (NASDAQ: ASEI) who received a contract totaling $2.9 million multiple Z® Backscatter Van(TM) (ZBV) X-ray screening systems from a Middle Eastern client, and Armor Holdings (NYSE: AH) who was awarded a $31.1 million Army contract by the U.S. Army Tank-automotive and Armaments Command for delivery of vehicle armoring in 2005, and received contract modifications for new production totaling $19.7 million from the U.S. Army Tank-automotive and Armaments Command and the Defense Logistics Agency to provide additional Up-Armored HMMWVs, Gunner Protection Kits, and armor component spare parts.

April proved to be a busy month for many of our Homeland Defense Stocks (HDS) featured companies.

In the first half of April, BlueBear Network International (OTCBB: BLBR) entered into a 3 year outsourcing deal with IT/ NET on the development of world class biometric systems and finalized an agreement to incorporate the East-Shore Technologies' Automated Fingerprint Information Systems (AFIS) into BlueBear's distributed biometric information sharing software Integrated Digital Law Enforcement (IDLE). Towards the end of April, BlueBear announced the creation of its LACE package that utilizes the Company’s face recognition software to help law enforcement agencies in the battle against the sexual exploitation of children.

For all of BlueBear Network International’s News Click Here: http://www.investorideas.com/CO/BLBR/NewsReleases.asp

In April, Global Matrechs (OTCBB: GMTH) distributed a shareholder update, communicating the Company’s current focus on two of their emerging technology products, HNIPU and EKOR™. The Company expressed their expects to complete, an agreement for manufacturing, marketing and sale of products based on their licensed EKOR™ product and in connection with this agreement, will be changing the name of EKOR™ to NuCap™ effective immediately. As their European partner EFM moves closer to finalizing their distribution path, Global Matrechs hopes to see some activity from sales of HNIPU in Europe this year. The Company has also filed for approval with the EPA which they anticipate to receive within the next couple of months so that HNIPU can also be marketed and sold in the United States .

For all of Global Matrechs News Click Here: http://www.homelanddefensestocks.com/CO/GWYI/NewsReleases.asp

Law Enforcement Associates Corporation (OTCBB: LENF) in April received a request from the Victoria, British Columbia Police Department to obtain the Company’s MP1 Stun Pistols(TM) and ammunition for testing. LENF also received an order for multiple Under Vehicle Surveillance Systems and spare parts to be deployed in Iraq by the United States Marine Corp. The Company reported first quarter 2005 revenues of approximately $2.6 million up from approximately $1.3 million for the first quarter of 2004.

For all of Law Enforcement Associates Corporation News Click Here: http://www.homelanddefensestocks.com/CO/LENF/NewsReleases.asp

In early April, MDM Group, Inc. (OTC.PK: MDDM) received official notification of its registered status as a partner with the International Science and Technology Center (ISTC). Mid month MGM advised that Harrington Group Limited (ASX : HGR) announced to the Australian Stock Exchange that it had appointed the Bank of New York as its Depository Bank and sponsor for the Company's Level I American Depositary Receipts (ADR) program in the United States. At the beginning of May, MDM advised of their intentions for leading oral fluid (saliva) diagnostic group, Bamburgh Marrsh LLC (See: www.bamburghmarrsh.com) which, is in the process of being acquired by the Company subject to satisfactory due diligence. MDM proposed to License the global rights to the Substance Abuse initiatives to the Company's Australian listed entity, Harrington Group Limited (HGR.AX or OTC.PK: HGRLF) as this business unit is synergetic to the Law Enforcement sector being focused on and serviced by Harrington

For all of MDM Group’s News Click Here: http://www.investorideas.com/Companies/MDMGroup/NewsReleases.asp

At the beginning of April, Gateway International Holdings, Inc. (OTC.PK: GWYI) announced the acquisition of ESK, Inc., a precision parts assembly company for the aerospace, defense and medical industries. Later in the month, Gateway also announced the completion of their financial audits for 2003 and 2004. Total revenue for 2004 was $7,204,211, with a net profit of $393,366 for earnings of $0.01 per share. Subsequent to this filing, the Board of Directors declared the company's first cash dividend to shareholders, $0.005 per share. The dividend is payable on May 13, 2005 , and all shareholders owning stock at the close of trading will be entitled to receive the cash dividend.

For all of Gateway International Holding’s News Click Here: http://www.homelanddefensestocks.com/CO/GWYI/NewsReleases.asp

On the first of April, Harrington Group Ltd. (Australia: HGR.AX) announced a development partner, U.S. based Sage Control Ordnance Inc., for the company’s ShockRounds(TM) product. Following an in-house review of the 37mm less-lethal ballistics prototype, Harrington and Sage began working diligently to release functional 37mm and 40mm ShockRounds™ prototypes ahead of the previously scheduled mid-year release.

For all of Harrington Group Ltd.’s News Click Here: http://www.homelanddefensestocks.com/CO/HGRLF/NewsReleases.asp

At the end of March, CryoPort, Inc. (OTC.PK: CYRX) announced the retention of First Capital Investors, Inc. to serve as Capital Markets Advisory and Investor Relations firm. A month later, CryoPort’s CEO, Peter Berry, announced that he would be interviewed by Kurt Schemers of Traders Nation on May 3. Mr. Berry discussed CryoPort's business projections for 2005 as well as recent developments in CryoPort's technology advancements. The broadcast is available at www.firstcapitalinvestors.com and www.thesmallcapinvestor.com.

Click here for all of Cryoport’s News and Articles: http://investorideas.com/CO/CYRX/NewsReleases.asp

In mid April, EOIR Technologies Inc (a wholly-owned subsidiary of Markland Technologies, Inc. (OTCBB: MRKL)) was awarded $2.4 million in new orders from the US Army. This brought the total of Markland's fiscal year orders from the US Army (under the multi year Omnibus contract) to $52.9 Million.The contract is part of the U.S. Army's Night Vision and Electronic Sensors Directorate (NVESD). Soon thereafter EOIR announced that the US Army had extended the Omnibus contract resulting in a total remaining potential contract value exceeding $250M over a three year period. This extends the period for contract awards out to July 2007.

Click here for all of Markland’s news: http://www.investorideas.com/Companies/MarklandTech/NewsReleases.asp

OnScreen Technologies, Inc. (OTCBB: ONSC)

In mid April, OnScreen Technologies, Inc. (OTCBB: ONSC) announced the appointment of Neil Wester to the position of Chief Technical Officer. Wester joined OnScreen with seventeen years of technical work experience with a specialization in semiconductor design, manufacturing and operations.

Click here for all of OnScreen’s news items: http://www.investorideas.com/CO/ONSC/NewsReleases.asp

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