Visual Defence Announces Results for the Six Months Ending June 30, 2007

Sept. 26, 2007

RICHMOND HILL, Ontario, Sept. 26 /PRNewswire/ -- Visual Defence Inc. (LSE: VDI), the security convergence company, today announced interim results for the six months ending June 30, 2007 and highlights of the significant wins secured during those months.

Financial Highlights

Revenues increased by 32 percent to $10.2 million against the comparative period last year ( June 30 2006: $7.7 million). Revenue growth was recorded in all geographic regions including a 67 percent increase against the comparative period last year in Europe , Middle East and Africa . Excluding stock based compensation, amortization, depreciation and financial expenses, losses were reduced to $2.0 million compared with $2.1 million in the prior year. The balance sheet remains strong, with cash and equivalent balances of $14.5 million (December 31, 2006: $14.6 million).

Visual Defence Wins

US Homeland Defense

The US National Guard contract was significantly increased to deploy intrusion detection systems in armories. The implementations will take place across 30 states.

Hospitality and Education - Canada

The Visual Defence Vancouver office won two contracts to supply advanced audio visual solutions to a convention center and a high school in British Columbia.

Public Transit - Canada

Visual Defence secured a $2.6 million contract to supply advanced intelligent transit solutions to a large public transit organization in the Montreal area. This success is the Company's first major win in the Province of Quebec and re-affirms the Company's position as a leading supplier of advanced solutions to the public transit industry.

Military - Israel

The Israel Ministry of Defense extended its order for proprietary security solutions.

Public Transit - United States

The Massachusetts Bay Transportation Authority extended its contract for an additional 2,100 video streaming licenses, reaffirming the Company's capability to handle large enterprise wide video management installations.

Product Development

The Company's IP centric products and platforms provide our customers with leading edge solutions. The integration of our Mobile Digital Video Storage System (DVSSm) with our Virtual Matrix System (VMS) provides customers with an integrated solution to handle mobile video including remote tagging and downloading of key video events. The success of this device was recognized by the industry at the 2007 IFSEC show, where the DVSSm was a finalist for Product of the Year.

Our Command and Control Center Platform (3C), continued its enhancement development plan with the release of version 2.0, increasing the capability of the system to handle up to 100,000 events or alarms per day. The 3C was built specifically for large campus and enterprise-wide installations that have extensive alarm and subsystem requirements.

Transportation - Project Deployments

The continued deployment of VDI technology across the globe has resulted in the installation of our video management platform at Terminals 2, 3, 4 and the newly commissioned T5 of London Heathrow airport managed by BAA, as well as new installations with Air Canada and the Canadian Border Service Agency at Pearson Airport in Toronto . Additionally, this year saw the delivery and installation of 100 3C systems (video, event management and mapping) at Stockholm transit stations and the current deployment of over 2,000 DVSSm storage devices on Stockholm's buses.

"I am pleased to report strong growth in our business, continued investment in management, sales strength and product development," said Oved Tal, Chairman, Visual Defence. "The first six months of 2007 have yielded substantially improved results from the previous year and we carry a strong momentum into the second half of the year. I am confident of the Company's prospects for 2007 and expect the Company to deliver strong full year results."

About Visual Defence

Visual Defence, the security convergence company, provides advanced solutions that manage mission critical systems for leading organizations around the world. The Company provides government, airport, public transportation and commercial customers with public safety and security solutions that increase management efficiency while leveraging existing security infrastructure. With its Common Management Platform, Visual Defence provides customers with customizable and scaleable solutions that meet their business goals. Visual Defence is headquartered in Canada . Additional information is available at

CONTACT: Claire Barton Bethany Moir Nadel Phelan, Inc. Visual Defence Inc. 831-440-2406 905-731-1254 x226 [email protected] [email protected]

SOURCE Visual Defence Inc.

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