Homeland Integrated Security Systems Inc., (Pink Sheets: HISC)

Dear Reader,

The United States is at war.

And today's featured stock, Homeland Integrated Security Systems (HISC), has proven that its seaport-security products and services are of unique and of immediate importance by developing a relationship with the Tampa Bay Port Authority (Tampa is a huge jumping-off point for the cruise industry) less than two months after Homeland went public. 

As the nation undergoes a complete overhaul of its security brought on by 9-11, Homeland is focused on transportation protection primarily at U.S. seaports and secondarily at U.S. airports and train terminals. With its five "port security products" and management's extensive knowledge of port operations and public security, Homeland is positioned to supply a market with a great deal of demand. And port security is of course, a demand that has to be met. 

The opportunities at hand are immense for an up and running company with state-of-the-art, proven security devices, and an experienced management team to implement a complete security protocol at a port anywhere in the U.S. We are excited to bring Homeland Integrated Security Systems to you because we are patriots and we want a safer U.S. that prevents disaster and hopefully never again suffers the treachery of terrorists. 

We are also excited that Homeland Integrated Security Systems has established its business model with the Tampa Bay Port Authority of tracking, detecting, and alarming authorities with instantaneous information to stop a disaster before it happens. When stocks go public, there is the usual run-up in price, profit taking, leveling out, and price fall until the company begins reporting it's revenues. The potential for growth at HISC seems obvious to us and we are confident that Company management will succeed in providing shareholder value and more secure seaports in the U.S. 
 

About Homeland Integrated Security Systems

Based in Asheville, North Carolina, Homeland Integrated Security Systems went public in October of 2004 and began trading on the Pink Sheets. The Company owns proprietary technology and has the right to use some of the most innovative and sophisticated patented and seaport security products available today. Homeland's target market is the 361 commercial seaports in the U.S. which are vulnerable to terrorists and criminal elements. 

Homeland provides five different security devices, ranging from the large scale "Spreader Bar" for containers, to the small scale "Cyber Tracker," a 5 inch square by 1 inch thick battery powered GPS device that is placed on a vehicle or asset when it enters the shipping process. Homeland also provides complete vulnerability assessments to its clients and sub-contracts, as needed, to bring in local and regional expertise to provide the most complete security available.

Homeland began its first business relationship with the Tampa Port Authority and is now active in establishing itself with minor and major ports at every maritime point of entry throughout the 50 states including the Great Lakes. 

Public Safety And The Ports

Public safety and international security continue to be a global concern due to the threat of international terrorism. Many government officials and security experts have dubbed our ports as the weakest link in our fight against terrorist activities. The need to protect our borders, ports and airports from terrorist entry and activity has never been higher. In some of our nation’s busiest commercial ports, tractor trailer trucks by the thousands enter and exit every day completely un-monitored. 

A single terrorist could enter a restricted area undetected and detonate explosives or a nuclear dirty bomb and, in some instances, cause more collateral damage than we have ever experienced on our nation's soil.  Without the ability to track and monitor those entering and exiting our ports, airports and military facilities, a lone delivery person is fully capable of dealing a crippling blow.

Even with armed sea marshals stopping and boarding more ships than ever at the nation’s busiest ports, security experts and port officials have warned that the nation’s seaports still remain critically vulnerable to infiltration and attack. Nearly half of the 12 million cargo containers in the world eventually pass through U.S. ports during any given year, a fact that poses a staggering challenge to those trying to secure cities along America’s coasts and rivers against attack. 

U.S. Coast Guard and private companies that own and operate more than 1,000 port terminals are calling for greater use of IT-based systems. Such systems would be used to alert officials about cargo containers that have been tampered with before they enter U.S. territorial waters and enable tighter personnel screening and access control at all U.S. ports. 

More than 7,500 foreign vessels make more than 51,000 port calls in the U.S. every year. In addition, more than 6 million containers, including 156 million tons of hazardous material and 1 billion tons of petroleum products, enter U.S. ports each year. 

Homeland Integrated Security Systems Products & Technology

The Cyber Tracker, a 5 inch square by 1 inch thick battery powered GPS device, is placed in the entering vehicle or asset.  A customized software application transmitted wirelessly imposes an icon specific to that vehicle on a computerized map in any number of on or off site locations. Administratively defined criteria (i.e. speed, location, stopping time, and route designation to name a few) can be set so that a series of alarms can be triggered if the criteria are violated. 

“Geo fencing”, a unique characteristic of the Cyber Tracker, allows the administrator to define specific areas that can be determined as “off limits” and as such will trigger alarms if the assigned Cyber Tracker enters the defined space.  The reverse can also be used by “fencing” a vehicle or asset inside a defined area.  It is also capable of providing position reports at predetermined intervals ranging from minutes to hours.

The alarm system can notify the individual monitoring the computer screen by an audible alarm or a variety of other short or long distance calls to any land line phone, cell phone or pager.  Essentially, an alarm can be triggered and notification can be sent via any of a variety of means to anywhere on the globe.  Remote monitoring from multiple locations simultaneously is also available. 

Designed specifically for the scrap metals industry, the RC/2 Portable Radiation Detector is an extremely effective handheld detector that utilizes a large 32 cu. In. internal PVT plastic scintillation detector (up to 40 times larger than most other portable units). In addition to Gamma and Beta radiation detection capabilities, the RC/2 is also sensitive to Neutron radiation. 

Operation of the RC/2 is fully automatic and designed to allow fast and easy inspection of areas, containers or vehicles that may contain radioactive materials, or to verify or separate radioactive materials that have triggered radioactive alarms on large scale detection systems. The RC/2 contains a state of the art microprocessor and internal electronic circuitry that produces a varying audio tone to help locate the source of radiation. 

Homeland Integrated Security Systems has developed a vehicle radiation detection system that incorporates Photo Multiplier Tubes (PMTs), high speed microprocessors, and infrared vehicle presence sensors to evaluate potential radiation levels as a vehicle transverses between the detector panels. To assist in security control, a graphic indication with a variable alarm level and source location indicator is triggered when a radioactive source has been detected inside a vehicle. The information is transmitted wirelessly over a secured network and stored in memory so it can be retrieved, viewed or printed as required. An analysis can occur on a stationary or moving vehicle. The system is user friendly with menus and terminology that makes it easy and simple for an operator to understand the overall operation. To assist the user with operational issues or service there is an internal telephone modem with software control program that allows the system to be accessed remotely for technical assistance as is required.

The HISC unique spreader bar radiation detection system is highly sensitive and can immediately detect lead-sealed and low-level radioactive sources in container and bulk material shipments before they enter the United States. The spreader bar radiation detection system provides a level of detection capability required to instill the highest degree of confidence. 

The system performs all detector signal analyses to determine whether a radioactive source is present in the container. In normal operating mode, the system provides all the information necessary to inform the crane operator of a radiation detection, system scanning condition and system operating conditions. The data logging system can be located in a central office up to 5 miles away (line of site). The controller can transmit on a continuous basis, every 1-5 seconds. The detection system operated in three modes: continuous area scanning, selective load scanning and a manual search and find scan (to help pin-point the cause of a radiation alarm).

The incoming signal data from the cargo will be analyzed in two different ways: homogeneous and point sources. For example, a load of Brazil nuts usually contain concentration of N.O.R.M. that could emit a very low level of radiation, with a high probability that would be homogeneously spread through the cargo. The system will display a warning message and make a recommendation that the cargo be inspected. In a situation where an alarm condition occurs as a result of a point source, the measured radiation levels will show a specific footprint to clearly indicate that a point source is present and the alarm condition would be considered a "positive alarm" telling the operator that the container must be isolated and inspected. 

Homeland can provide a proven system for the detection of radioactive materials (gamma rays and neutrons), such as those used in radiological dispersal devices (dirty bombs). As a reliable and compact detection system, our products can be easily integrated into existing security arrangements. Our solution offers protection by detecting the movement of potentially hazardous radioactive materials and alerting security so that quick and decisive action can be taken. Radiation Detection Monitors are available for inspecting individuals through the use of a walk-through portal radiation monitor and cargo containers through the use of a spreader bar radiation monitor. 

The Portal Radiation Monitoring System has been designed specifically for monitoring individuals as they pass within the range of the detection unit, even if the materials they are carrying are concealed. The system utilizes a series of large area Polyvinyl Toluene (PVT) plastic scintillators situated in a dual detector arrangement. Utilizing scintillators in this configuration will provide enhanced detection capability for radioactive material located anywhere on a human body and/or baggage that may be carried into a facility. 

The system utilizes two relatively large volume detectors of high grade specially prepared PVT scintillation material as the detection medium. The detection medium is internally shielded on the back, both sides and on each end, to ensure that maximum detection capability is maintained in the area where personnel will pass. The detector utilizes state of the art electronic components such as high gain/low noise Photo Multiplier Tubes, high voltage power supply and signal processing circuits. All components are modular in design requiring little effort and time to replace a defective part in the unlikely event that a repair is required. The detection system is an extremely effective radiation detection system that is easy to use, easy to setup and is completely automatic. The system technology has proven its ability to provide reliable detection on a continuous basis with an extremely low false alarm rate.

Homeland Integrated Security Systems, Inc., initially conducted its business relationship with the Tampa Port Authority for a single purpose: To aide the Port in its quest to streamline traffic and increase safety onto and off the Port property.

The process of entering the Port property was extremely cumbersome and time consuming.  A 10-minute wait was not uncommon for trucks trying to gain access to a berth, which caused enormous traffic congestion on roads leading to the entrance of the Port.  Furthermore, with the volume of trucks entering the Port, it was impossible for a security guard at the entrance to visibly check the cargo of each truck as it entered or exited the Port.

Until recently, full-access was granted to trucks and truck-drivers with no regard for what was being carried on or off the Port property.  Today, thanks to the exclusive design and engineering efforts of HISC, an unmanned Kiosk System has been created as a centralized computer networking unit where multiple tasks can be handled simultaneously and effortlessly. 

1) The only unmanned Port Kiosk System in the U.S., where automation has reduced the wait time to access the Port campus from 10-plus minutes to 30-seconds

2) An automated program with Event Logic, including a profile of the driver and trucking company is checked via a state-wide database maintained in Tallahassee, FL before the truck ever enters the Port property 

3) A prompt report detail which records the weight of the truck, what the truck carries to and from the berths, and the amount of time the truck was on the Port

4) A computer system, which integrates simultaneously with the Port’s previously existing computer hardware, camera systems, and programs

5) An unmanned, streamlined and efficient process that controls access on and off the Port 
 

In spite of the high-tech/streamlined additions that the inbound/outbound Kiosk System brought to the Tampa Port Authority, there were still a couple of areas where technology could further assist the Port Authorities in their efforts to protect the Port from unwanted activities. 

After entering the kiosk area, a dispensing system will be put in place to distribute the “Cyber Tracker” units.  The Tampa size and flow is moderate compared to other Ports in America as many have both more land mass and trafficking volume. Because the Kiosk and the Cyber Tracker are 100% automated, a dispensing system can be easily integrated by using barcodes affixed to the Bills of Lading.  In the return process, it will allow the units to be collected in an easy to track manner, for subsequent redistribution.  This will also monitor who is on, who has been on, and who is off the port property.

The reason HISC chose Nextel to provide the monitoring application for the CyberTracker is Nextel is the only wireless system, and only GPS system, which uses a dual-band network.  The dual-band network is one level of voice communication and a second level of data communication.  The data communication is wholly-sustained within the Nextel system, using JAVA-based language to communicate from the unit to an encrypted storage facility. 

In addition to the dual network, Nextel is currently being utilized by the DOJ and DOD, along with the FBI and CIA, as its data systems are 99.8% secure, making it the most secure network in existence. The Nextel network also provides us with the ability to provide carrier tracking, without the ports having to build costly infrastructure.
 
 

A) Nextel tracking uses three forms of tracking, to create accuracy within 3-feet. 
B) These are: satellite, cellular triangulation (this being an coordinate drawn between 3 towers), and an Assisted Global Positioning System. 
C) The Nextel system tracks with 99+% accuracy and pings every 3 to 5 seconds, creating a “real time,” low-cost, tracking solution. 

The primary purpose of the tracking system is to regulate the proper movement of trucks to and from the berth, which is coordinated through their Bill of Lading.  In addition, it will allow security to view trucks that are in unauthorized areas, or failing to report properly.  When programming the tracking system, and coordinating it with a Bill of Lading, we will be able to provide ports with policing functions, such as speed control, extended storage history regarding truck and trucking company movements on port grounds, and invaluable port usage reports.

This creates a virtual clearing house for both digital and analog equipment to come together at one central point, thus allowing old and new to work together to protect the Tampa Port. This is the only system of its type, and is wholly and exclusively owned by Homeland Integrated Security Systems, Inc.

Recent News From HISC

Press Release Source: Homeland Integrated Security Systems, Inc. 
Monday December 13, 10:54 am ET 

ASHEVILLE, N.C., Dec. 13, 2004 (PRIMEZONE) -- Officials at Homeland Integrated Security Systems, Inc. (Other OTC:HISC.PK - News) reported today that Nextel Communications Inc., the supplier of their data pipeline, and Sprint Corp. has reached a tentative agreement to merge. According to industry analysts, this will create the third largest cellular communications company in the nation. When asked how the potential merger might affect Homeland Integrated Security Systems, Inc. and its port related business, Frank Moody, CEO, replied by saying that the combined companies will most likely benefit from economies of scale in purchasing. In addition, Moody feels that Nextel-Sprint will complement each other's strengths and weaknesses, and the joining of forces will make the new company that much stronger. As far as Homeland Integrated Security Systems, Inc. is concerned, Moody says, ``(they) are looking forward to being able to take advantage of the potential that the possible merger will offer.'' To read the entire release and disclaimer, the link is HERE

Press Release Source: Homeland Integrated Security Systems, Inc. 
Monday December 6, 9:34 am ET 

ASHEVILLE, N.C., Dec. 6, 2004 (PRIMEZONE) -- Homeland Integrated Security Systems Inc. (Other OTC:HISC.PK - News) today announced that it had retained Broad Run Consulting. Broad Run is a leading government sales and marketing firm in Washington, D.C. Broad Run will advise HISC on all matters regarding sales to the federal government. ``We need the expertise that Broad Run brings to the table in getting the Federal Government's attention. Finding the right person to talk to in Washington can take forever. Broad Run is extremely experienced and well connected. We are thrilled to have them join our team,'' Frank Moody, HISC CEO, said.

Broad Run is a Washington based government consulting firm that advises companies on selling goods and services to the Federal Government.
To read the entire release and disclaimer, the link is HERE

Press Release Source: Homeland Integrated Security Systems, Inc. 
Thursday November 18, 10:39 am ET 

ASHEVILLE, N.C., Nov. 18, 2004 (PRIMEZONE) -- Homeland Integrated Security Systems (Other OTC:HISC.PK - News) is pleased to announce its Mission Statement: It is the goal of Homeland Integrated Security Systems, Inc. to provide America's seaports with the most up-to-date, leading-edge hardware and software available, to create a seamless flow of information which benefits commercial carriers, while at the same time providing the highest degree of security for seaports and surrounding communities. To read the entire release and disclaimer, the link is HERE

Press Release Source: Homeland Integrated Security Systems, Inc. 
Friday November 12, 10:30 am ET 

ASHEVILLE, N.C., Nov. 12, 2004 (PRIMEZONE) -- Homeland Integrated Security Systems (Other OTC:HISC.PK - News) is proud to announce that a study will begin mid-January on their Cyber Tracker line of products. The study will be conducted by the Georgia Tech Center for Maritime Technology under the direction of the Georgia Port Authority (GPA). The Study will use the Port of Savannah for the Prototype. The Study will test Cyber Tracker's ability to increase Commerce as well as increasing Port Security. The center has reviewed the technology and feels it is worthy of an eight week study. It believes this product may benefit Commerce Development as well as Port Security. Its Commerce Development Center is a ``Think Tank'' for ports to increase commercial efficiencies as well as increase Port Security. To read the entire release and disclaimer, the link is HERE

Financial Highlights

TO CONTACT HOMELAND INTEGRATED SECURITY SOLUTIONS

Headquarters 

 1 Town Square Blvd. Suite 347, Asheville, NC 28803
 828-681-5152 Office -  828-242-6652 Cellular -  828-681-9501 Fax

Contact: John Campo, Investor Relations (410) 321-5454 
For more information, visit the Company Web site, the link is HERE

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