CLIFTON, N.J., Feb. 17 /PRNewswire-FirstCall/ -- Electronic Control Security, Inc. (OTC:EKCS) (BULLETIN BOARD: EKCS) (ECSI), a leading provider of a broad line of electronic security system technologies to the government and private sectors, announced financial results of operations for the six and three months ended December 31, 2008. Arthur Barchenko, President and CEO, stated, "We had net revenues of $2,438,190 for the six months ended December 31, 2008 compared to $1,454,375 for the corresponding six month period in 2007, representing an increase of approximately 68%. Net revenues for the three months ended December 31, 2008 were $1,612,674 as compared to $326,804 for the corresponding three month period in 2007. The increase in net revenues during the 2008 periods compared to the 2007 periods is primarily attributable to task orders released on contracts in-house for the U.S. Air Force IBDSS program, Department of Energy projects and Nuclear Power Station orders received during the period." Further, "Gross margins for the six months ended December 31, 2008 were 25.39% compared to 27.85% of revenue for the corresponding six months in 2007. Gross margins were 31.04% of revenue for the three months ended December 31, 2008 compared to 40.96% for the corresponding three-month period in 2007. The decrease in gross margins for the three months ended December 31,2008 compared to the corresponding period in 2007 is primarily attributable to a change in the order mix of equipment sales and support services. We encountered an increase in material cost while experiencing a decrease in higher margin design and engineering support service billings which, combined, resulted in the decrease in gross margins for the period." Mr. Barchenko then stated, "that the selling, general and administrative expenses for the six and three months ended December 31, 2008 were $543,355 and $324,745, respectively, compared to $737,265 and $380,098 for each of the corresponding periods in 2007. The decrease in selling, general and administrative expenses is primarily attributable to a concerted effort by management to reduce such costs including a reduction in personnel corresponding to reduced sales volume." "We are pleased with the results for this quarter based on the fact that the net loss from operations decreased from $522,749 for the six months ended December 31, the 2007 to $58,758 for the corresponding period in 2008. For the three months ended December 31, 2008, there was net income from operations of $125,017 compared to a net loss of $(352,613) for the corresponding period in 2007." The net loss before deemed dividends related to preferred stock for the six months ended December 31, 2008 Period was $(211,175) compared to $(837,292) for the corresponding period in 2007. For the three months ended December 31, 2008, there was net income of $24,634 compared to a loss of $(407,239) in the corresponding period in 2007. Ongoing discussions with certain of the holders of the convertible debentures continue in an effort resolve this matter. However, no assurance can be provided that we and the debenture holders will in fact be able to resolve this matter in a manner satisfactory to us. "During the year ended June 30, 2008, the Company submitted proposals on major projects in South Korea, two nuclear power stations and two Department of Defense facilities in the United States valued at approximately $4,350,000. Of these proposals, $3,650,000 were awarded, and we anticipate approval and funding by the end of the third quarter of fiscal 2009." A more detailed description of our business, results of operations and financial statements are contained in the Quarterly Report on Form 10-Q filed on February 13, 2009. ABOUT ECSI ECSI is recognized as a global leader in perimeter security and an effective quality provider for both the Department of Defense and Homeland Security programs. The Company designs, manufactures and markets physical electronic security systems for high profile, high threat environments. The employment of risk assessment and analysis allows ECSI to determine and address the security needs of government and commercial-industrial installations. The Company has teaming agreements with major system integrators in both the United States and overseas to support the installation and aftermarket. ECSI is located at 790 Bloomfield Avenue, Bldg. C-1, Clifton, NJ 07012. Tel: 973-574-8555; Fax: 973-574-8562. For more information on ECSI and its customers, please visit http://www.anti-terrorism.com/. ECSI INTERNATIONAL, INC. SAFE HARBOR STATEMENT: This press release contains forward-looking statements that involve substantial uncertainties and risks. These forward-looking statements are based upon our current expectations, estimates and projections about our business and our industry and reflect our beliefs and assumptions based upon information available to us at the date of this release. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including but not limited to changes in economic conditions generally and in our industry specifically, changes in security technology, legislative or regulatory changes that affect us, the availability of working capital, changes in costs and the availability of goods and services, the introduction of competing products, changes in our operating strategy or development plans, our ability to attract and retain qualified personnel, changes in our acquisition and capital expenditure plans, sufficiency of cash reserves and the risks and uncertainties discussed under the heading "RISK FACTORS" in Item 1 of our Annual Report on Form 10-KSB for the fiscal year ended June 30, 2008 and in our other filings with the Securities and Exchange Commission. We undertake no obligation to revise or update any forward-looking statement for any reason. DATASOURCE: Electronic Control Security, Inc. CONTACT: Natalie Schneider of Electronic Control Security, Inc., +1-973-574-8555 Web Site: http://www.anti-terrorism.com/

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