View Systems Reports Positive Second Quarter Results

BALTIMORE -- View Systems, Inc., a cutting-edge homeland defense solutions provider, today announced positive results for the six month period ending June 30th, 2005.

As reported in View Systems' recently filed 10-Q, our Revenues for the first six months was $481,556 compared to $192,394 during the same period last year, an increase of 150 percent. Our Gross profit was $252,046 as compared to $86,196, an increase of 192 percent.

Operating expenses decreased 55 percent for the comparable 2005 and 2004 periods.

Our net loss was $184,377 compared to $645,177 during the same six months last year. Net cash provided by financing activities was $137,000. Net cash provided by financing activities for the comparable 2004 six month period was $538,685, a decrease of dependence on financing of over $400,000.

In August 2005 we contracted with Inter-Connect Electronics, Inc. (a Maryland company) to manufacture and assemble our Visual First Responder units. We have also contracted with Sports Field Specialties, LLC, (a New York state manufacturer) to build the SecureScan line. These manufacturing agreements will allow us to clear our current backlog for our product lines. Our backlog as of the end of July, 2005 is in excess of $500,000 in orders and contracts.

During the last nine months we contracted with the University of Northern Florida to develop new sensor boards for the SecureScan product which has allowed us to reduce cost of the sensors by a factor of four.

During the last two years, market research has shown that our primary markets for SecureScans include mass transit, correctional facilities, court houses, stadiums and large schools. The need for safe and rapid throughput at sporting venues such as professional football, baseball and basketball is paramount. The advantages of "non-contact" imaging, a proven throughput rate and permanent picture storage of all individuals scanned provides a 'better, faster, cheaper and safer' solution to people screening.

Overall, continuing sales will be fueled by the $3.6 billion the United States Government will spend on Homeland Security in the 2006 fiscal year budget that began on July 1, 2005. Federal dollars are being applied to security at the state and local level. Management believes that heightened attention to terrorism, other security threats, and spending by the United States government on Homeland Security will continue to drive growth in the market for security products.

"We are tremendously decreasing our dependence on financing. We feel that View Systems is rounding the corner and building the business the old fashioned way by earning it," stated CEO of View Systems, Gunther Than. "Our second quarter has supported our trend of growing sales and reducing costs which have us on track towards profitability. Revenues up and costs down is the right track."

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