Viscount Announces Free MESH Card Access and HSPD-12 Hardware

Program available for all customers, designed to reduce access panel switch costs


BURNABY, BC -- October 02, 2006 -- Viscount Systems (OTCBB: VSYS) today announced that effective immediately, the company has initiated a new and permanent pricing policy of providing Free MESH Server control equipment for most physical security card access projects. Free MESH Servers will be available for individual sites, Enterprise deployments and all US Government HSPD-12 deployments. The free pricing structure is designed to simplify the sales process, maintain margins and drive market share. A new 48-page brochure and technology overview has been released and can be accessed at www.viscount.com/meshinfo.html. This new pricing model may have profound implications for the security industry.

"This pricing policy is a powerful marketing weapon that was not possible before MESH," commented Stephen Pineau, CEO of Viscount. "For 20 years card access systems have required field panels. End users can pay over $1000 per door for this electronic hardware and at larger facilities savings from MESH can exceed $1 million. Since one MESH server motherboard can replace up to 200 panels our main revenue stream will be from powerful readers and tools so the cost to Viscount of providing free electronics is negligible. However, multi-national and other suppliers of panels cannot possibly afford to give away their main source of revenue.

"For the US Government and HSPD-12 the major issue is finding budgets based on the enormous cost of replacing equipment. To comply, it is given that agencies must replace every reader at every building with HSPD-12 readers. The beauty of MESH is that we eliminate the entire cost of new panels using Free Mesh Servers and solve the budget problem facing every facility and agency.

"As we readied the release of our full MESH platform many experts and even investors asked us how can compete with the multi-nationals which now dominate the physical security industry. They knew that MESH saves money while making buildings and systems more secure and reliable. The industry is performance and price driven industry more than brand driven. For any integrator, investor, or end user, our new Free MESH pricing really raises the industry dilemma of how any panel supplier can compete with MESH."