CEO's Letter to MSGI Security Solutions Shareholders

NEW YORK , Nov. 5 /PRNewswire-FirstCall/ -- MSGI Security Solutions, Inc. (OTC Bulletin Board: MSGIE) today released a letter to its shareholders from the CEO and Chairman of the Company. Dear MSGI Shareholder, The current state of the...


Like most businesses, MSGI's plans have been delayed by the credit market's recent difficulties. On October 30th , we received a first in a series of two revolving irrevocable commercial letters of credit from Shinhan Bank Seoul Korea in conjunction with Wells Fargo Bank, NA. The first letter of credit for one million dollars is in the process of being funded and a second letter of credit for an additional three million dollars has just been approved.

Beginning mid-November, the LOCs will revolve month to month such that MSGI will have access to one million dollars on a weekly basis for the purpose of acquiring hardware and inventory from various suppliers in Korea. With this LOC in hand, MSGI now can fulfill existing purchase orders from clients both in the United States and abroad. Each letter of credit generally stays open for approximately 60 days to allow for adequate processing time of orders. The first such letter of credit was issued on October 22, 2008 .

These revolving LOCs will provide MSGI with the necessary purchasing power to deliver on open contracts and importantly give us the ability for the first time to make weekly deliveries to our clients without the added expense of maintaining onsite inventory. We will now be able to start working through our significant backlog of orders and plan to provide progress reports to our shareholders on a regular basis.

In closing, I would like to take this opportunity to thank our shareholders for your support and to thank our hardworking staff, as they create the foundation of a strong and profitable company.

Jeremy Barbera

Chairman and CEO

MSGI Security Solutions, Inc.

About MSGI Security Solutions

MSGI Security Solutions, Inc. is a leading international provider of proprietary security solutions to commercial and government organizations. MSGI is developing a combination of innovative emerging businesses that leverage information and technology with a focus on encryption technologies for actionable surveillance and intelligence monitoring. The Company is headquartered in New York City where it serves the needs of counter-terrorism, public safety, and law enforcement in the United States , Europe , the Middle East and Asia . More information on MSGI is available on the company's website at www.msgisecurity.com

The information contained in this news release, other than historical information, consists of forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors, including general economic conditions, spending levels and other factors could cause actual results to differ materially from the Company's expectations.

SOURCE MSGI Security Solutions, Inc.