DVS Diversified Security Solutions

Diversified Security Solutions, Inc. Reports Financial Results for the Three and Six Months Ended June 30, 2004 Company to Host Conference Call SADDLE BROOK, N.J., Aug. 10 /PRNewswire-FirstCall/ -- Diversified Security Solutions, Inc. (AMEX:DVS), a full service provider of integrated electronic security systems, announced financial results for the three and six months ended June 30, 2004. Sales for the quarter ended June 30, 2004 increased $3,003,772 or 85.3% to $6,524,490 from $3,520,718 for the same period of the prior year. The net loss for the quarter ended June 30, 2004 was $54,823 or $.01 net loss per common share as compared to a net loss of $996,081 or $0.19 per common share for the same period of the prior year. Jim Henry, the Company's CEO stated "June 2004 quarterly sales in each of our four regions showed improvement versus the same period of the prior year resulting in a consolidated gross profit margin of 23.4% for the June 2004 quarter versus 16.2% in the June 2003 quarter and 22.6% in the March 2004 quarter. In addition, the Company ended the quarter with a backlog of approximately $22.5 million." Sales for the six months ended June 30, 2004 increased $4,965,562 or 68.7% to $12,191,983 from $7,226,421 for the same period of the prior year. The net loss for the six months ended June 30, 2004 was $155,955 or $.03 net loss per common share as compared to a net loss of $1,629,237 or $0.32 per common share for the same period of the prior year. The Company will host a conference call on Wednesday August 11, 2004 at 1:30 PM EST to discuss these results. To participate in the conference call, dial 1-800-683-1575 by 1:25 PM EST. A digital recording of the call will be available by dialing 877-519-4471 using code 5054260 until Wednesday August 18, 2004. About Diversified Security Solutions Diversified Security Solutions (AMEX:DVS) provides technology-based integrated electronic security systems, services and emergency preparedness consultation to commercial enterprises and government agencies. DVS' integration subsidiary Henry Bros. Electronics (HBE) has offices in New Jersey, California, Texas, and Arizona. For more information visit http://www.hbeonline.net/, or http://www.dssi-hq.com/. Safe Harbor: Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward looking statements is contained under the heading of risk factors listed in the Company's filings with the U.S. Securities and Exchange Commission. Diversified Security Solutions does not assume any obligation to update the forward-looking information. DIVERSIFIED SECURITY SOLUTIONS INC CONSOLIDATED STATEMENT OF OPERATIONS Unaudited Six Months Ended June 30, Three Months Ended June 30, 2004 2003 2004 2003 Revenue $12,191,983 $ 7,226,421 $6,524,490 $3,520,718 Cost of Sales 9,384,475 5,604,699 4,995,689 2,950,163 Gross Profit 2,807,508 1,621,722 1,528,801 570,555 Operating Expenses: Selling General & Administrative Expenses 3,026,223 4,385,578 1,599,389 2,212,438 Operating Loss (218,715) (2,763,856) (70,588) (1,641,883) Interest Income 3,404 6,733 1,879 1,193 Interest Expense (49,019) (51,114) (24,211) (24,391) Net (Loss) Before Tax Benefit (264,330) (2,808,237) (92,920) (1,665,081) Tax Benefit For Income Tax 108,375 1,179,000 38,097 699,000 Net (Loss) After Tax $(155,955) $(1,629,237) $(54,823) $(966,081) Basic and Diluted (Loss) Per Common Share: Basic (Loss) Per Common Share $(0.03) $ (0.32) $(0.01) $(0.19) Weighted Average Common Shares 5,214,796 5,138,357 5,228,013 5,138,357 Diluted (Loss) Per Common Share: $(0.03) $ (0.32) $(0.01) $(0.19) Weighted Average Diluted Common Shares 5,214,796 5,138,357 5,228,013 5,138,357 Diversified Security Solutions, Inc. BPC Financial Marketing Company Contact: Investor Relations Contact: James Henry John Baldissera (201) 794-6500 (800) 368-1217 DATASOURCE: Diversified Security Solutions, Inc. CONTACT: James Henry of Diversified Security Solutions, Inc., +1-201- 794-6500; or John Baldissera of BPC Financial Marketing, +1-800-368-1217 Web site: http://www.dssi-hq.com/

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