DVS Diversified Security Solutions

Diversified Security Solutions Reports Profit on Record Revenue for the September 30, 2004 Quarter Company To Host Conference Call SADDLE BROOK, N.J., Nov. 8 /PRNewswire-FirstCall/ -- Diversified Security Solutions, Inc. (AMEX:DVS), a full service provider of integrated electronic security systems, announced financial results for the three and nine months ended September 30, 2004. Sales for the quarter ended September 30, 2004 increased $2,691,452 or 52.8% to $7,785,290 from $5,093,838 for the same period of the prior year. The net income for the quarter ended September 30, 2004 was $113,010 or $.02 per share as compared to a net loss of $2,026,389 or $0.39 net loss per common share for the same period of the prior year. Jim Henry, the Company's CEO stated, "We are pleased to report that our September 2004 quarter turned profitable and set a new revenue record. Our gross profit margin improved sequentially over the prior year, to 25.7% in the September 2004 quarter versus 23.4% in the June 2004 and 11.6% in the September 2003 quarters, respectively. The Airorlite acquisition in April 2004, accounted for 49% of the $2.7 million increase in September 2004 quarterly revenue and 37% of the $1.4 million increase in September 2004 quarterly operating profit as compared with the September 2003 quarterly revenue and operating profit. Our consolidated backlog for the quarter ended September 30, 2004 was approximately $19.5 million." Sales for the nine months ended September 30, 2004 increased $7,657,013 or 62.1% to $19,977,273 from $12,320,260 for the same period of the prior year. The net loss for the nine months ended September 30, 2004 was $42,944 or $.01 net loss per common share as compared to a net loss of $3,655,625 or $0.71 net loss per common share for the same period of the prior year. The Company will host a conference call on Tuesday, November 9, 2004 at 1:30 PM ET to discuss these results. To participate in the conference call, dial 1-800-683-1575 by 1:25 PM ET. A digital recording of the call will be available by dialing 877-519-4471 using code 5333405 until Tuesday November 16, 2004. About Diversified Security Solutions, Inc. 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. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS Unaudited For the nine For the three months ended months ended September 30, September 30, 2004 2003 2004 2003 Revenue $19,977,273 $12,320,260 $7,785,290 $5,093,838 Cost of Sales 15,165,515 10,106,772 5,781,040 4,502,072 Gross Profit 4,811,758 2,213,488 2,004,250 591,766 Operating Expenses: Selling General & Administrative Expenses 4,817,478 6,132,358 1,791,255 1,746,781 Operating Profit (Loss) (5,720) (3,918,870) 212,995 (1,155,015) Interest Income 6,035 8,992 2,631 2,259 Interest Expense (72,887) (80,837) (23,868) (29,723) Net income (Loss) Before Tax Benefit (72,572) (3,990,715) 191,758 (1,182,479) Tax Provision (Benefit) For Income Tax (29,628) (335,090) 78,748 843,910 Net Income (Loss) After Tax ($42,944) ($3,655,625) $113,010 ($2,026,389) Basic and Diluted (Loss) Income Per Common Share: Basic (Loss) Income Per Common Share ($0.01) ($0.71) $0.02 ($0.39) Weighted Average Common Shares 5,613,187 5,137,046 5,301,287 5,133,470 Diluted (Loss) Income Per Common Share: ($0.01) ($0.71) $0.02 ($0.39) Weighted Average Diluted Common Shares 5,613,187 5,137,046 5,315,586 5,133,470 Company Contact: Investor Relations Contact: James Henry John Baldissera (201) 794-6500 (800) 368-1217 DATASOURCE: Diversified Security Solutions, Inc. CONTACT: Company Contact, James Henry, +1-201-794-6500 jhenry@dssi- hq.com; or Investor Relations Contact, John Baldissera, Inc., +1-800-368-1217, both of Diversified Security Solutions Web site: http://www.dssi-hq.com/

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