$$ Subpenny mit Revenueexplosion$$

ARLINGTON, Va., Jan. 25 /PRNewswire-FirstCall/ -- Homeland Security Capital Corp. (OTC Bulletin Board: HMSC), a company focused on acquiring, developing and consolidating homeland security-related businesses, announced today that its subsidiary Nexus Technologies Group finished 2006 with a strong backlog of high margin business carrying forward into 2007. Nexus ended 2006 with a record backlog of approximately $10 million in billable projects for 2007 representing a 110% increase over the 2005 backlog of projects going into 2006.

HSCC acquired Nexus in February 2006 and has streamlined the operations throughout the year. The company has successfully focused its resources on those clients and projects that are in line with the company's unique product offerings and skill sets while continuing to increase its base of recurring revenues. Included in the backlog are multiple projects that are scheduled for completion in 2007.

Homeland Security Capital Chairman and CEO Tom McMillen said, 'Nexus has done a great job in restructuring its operations in 2006 and the resulting backlog shows the hard work and effort put forth by the whole team. We expect 2007 will be a record year for Nexus and we remain dedicated to this segment of the security integration marketplace.

'Nexus' organic growth gives us a positive indication that by following our business plan of identifying undervalued companies and adding our management expertise, financial resources and general support we will build exceptional value for our shareholders,' McMillen said.

Nexus President Len Maleonskie, 'We believe we can continue to be a security integration leader in the mid-Atlantic region and we anticipate continued strong sales growth throughout 2007.'

About Nexus Technologies Group

Nexus Technologies Group, headquartered in Hawthorne, N.Y., provides integrated security solutions for the corporate and government security markets. A subsidiary of Homeland Security Capital Corp., Nexus Technologies Group offers its own brand of security integration, which leverages more than a combined 50 years of industry experience while providing a unique solutions perspective. Ultimately, with cutting-edge technologies, Nexus provides innovative, engineered and scaleable solutions to effectively protect people, property and assets. For more information, visit http://www.nexusna.com.

About Homeland Security Capital Corp.

Homeland Security Capital is a consolidator in the fragmented homeland security industry. The company is focused on creating long-term value by taking controlling interest and developing its subsidiary companies through superior operations and management. The company is headed by former Congressman C. Thomas McMillen, who served three consecutive terms in the U.S. House of Representatives from the 4th Congressional District of Maryland. Homeland Security Capital intends to operate businesses that provide homeland security products and services solutions, growing organically and by acquisitions. The company is targeting emerging companies that are generating revenues but face challenges in scaling their businesses to capitalize on homeland security opportunities. The company will enhance the operations of these companies by helping them generate new business, grow revenues and improve cash flows. For more information, visit http://www.hscapcorp.com.

An investment profile about Homeland Security Capital may be found at http://www.hawkassociates.com/hmscprofile.aspx.

For investor relations information regarding Homeland Security Capital, contact Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, e-mail: info@hawkassociates.com. An online investor kit including press releases, current price quotes, stock charts and other valuable information for investors may be found at http://www.hawkassociates.com and http://www.americanmicrocaps.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 Corp. 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.

SOURCE Homeland Security Capital Corporation

ARLINGTON, Va., Jan. 29 /PRNewswire-FirstCall/ -- Homeland Security Capital Corp. (OTC Bulletin Board: HMSC), a company focused on acquiring, developing and consolidating homeland security-related businesses, announced today that its subsidiary Nexus Technologies Group has signed a letter of intent to acquire New York City-based Linear Technologies, Inc. The closing is expected to occur in the first quarter of 2007.

Linear generated approximately $12 million in revenues in 2006 and is expected to generate $15 million in revenues in 2007. The combined revenues of Linear and Nexus are expected to exceed $25 million in 2007.

C. Thomas McMillen, Homeland Security Capital chairman and CEO, said, 'This acquisition adds value to our company by integrating the security capabilities of Nexus with the data, voice and IT infrastructure offerings of Linear. This integration will allow the company to provide a single-source security and technology solution to its mid-Atlantic customer base.'

About Linear Technologies

Linear Technologies, Inc. is a technology services firm specializing in the design, project management and installation of data networks, voice/data cable infrastructure, telephone and security systems and complete technology relocation services. Its clients range from startups to Fortune 500 companies. For more information, visit http://www.lineartech.com.

About Nexus Technologies Group

Nexus Technologies Group, headquartered in Hawthorne, N.Y., provides integrated security solutions for the corporate and government security markets. A subsidiary of Homeland Security Capital Corp., Nexus Technologies Group offers its own brand of security integration, which leverages more than a combined 50 years of industry experience while providing a unique solutions perspective. Ultimately, with cutting-edge technologies, Nexus provides innovative, engineered and scaleable solutions to effectively protect people, property and assets. For more information, visit http://www.nexusna.com.

About Homeland Security Capital Corp.

Homeland Security Capital is a consolidator in the fragmented homeland security industry. The company is focused on creating long-term value by taking controlling interest and developing its subsidiary companies through superior operations and management. The company is headed by former Congressman C. Thomas McMillen, who served three consecutive terms in the U.S. House of Representatives from the 4th Congressional District of Maryland. Homeland Security Capital intends to operate businesses that provide homeland security products and services solutions, growing organically and by acquisitions. The company is targeting emerging companies that are generating revenues but face challenges in scaling their businesses to capitalize on homeland security opportunities. The company will enhance the operations of these companies by helping them generate new business, grow revenues and improve cash flows.

An investment profile about Homeland Security Capital may be found at http://www.hawkassociates.com/hmscprofile.aspx.

For investor relations information regarding Homeland Security Capital, contact Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, e-mail: info@hawkassociates.com. An online investor kit including press releases, current price quotes, stock charts and other valuable information for investors may be found at http://www.hawkassociates.com and http://www.americanmicrocaps.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 Corp. 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.

SOURCE Homeland Security Capital Corp.

Source: PR Newswire (January 29, 2007 - 9:03 AM EST)