MSGI Security Solutions Receives Notice of Non-Compliance from Nasdaq

NEW YORK -- MSGI Security Solutions, Inc. (Nasdaq: MSGI), a leading provider of proprietary security products and services, announced that on July 11, 2006, the Company received a determination from the Listing Qualifications Staff of The Nasdaq Stock Market, Inc. indicating that, based upon the Company's non-compliance with Nasdaq Marketplace Rule 4310(c)(2)(B), which requires the Company to evidence a minimum of $2,500,000 in stockholders' equity, the Company's securities are subject to delisting from The Nasdaq Capital Market.

In response to an earlier notice of non-compliance, the Company timely provided its plan to evidence compliance with the $2.5 million shareholders' equity requirement to the Listing Qualifications Staff on June 7, 2006. However, by letter dated July 11, 2006, the Nasdaq Staff indicated that it had not accepted the Company's plan to regain compliance. As a result, the Company plans to request a hearing before the Nasdaq Listing Qualifications Panel to seek continued listing pending its return to compliance.

The company's securities will remain listed on The Nasdaq Capital Market pending the issuance of the panel's decision; however, there can be no assurance that the panel will grant the company's request for continued listing.