Argyle Security and SteelCell Announce Strategic Relationship

SAN ANTONIO, Texas — Argyle Security Group (“Argyle”), a service and solutions provider of detention and security electronics, hardware, materials, furnishings and products, and SteelCell of North America Inc. (“SteelCell”), a manufacturer of prefabricated modular, steel units for use in the detention facilities and other security-inclined commercial construction, have entered into a strategic manufacturing and sales relationship extending SteelCell’s product offerings to the western United States.

Argyle, based in San Antonio, will have an exclusive license to manufacture and sell SteelCell products in California, Hawaii, Oregon, Washington, Utah, Nevada, Arizona, New Mexico, Wyoming, Colorado and Montana. Argyle will manufacture the SteelCell product at its Argyle Precision fabrication location in California. SteelCell will work closely with Argyle and support the sale, engineering and manufacturing of the products to enable the high quality SteelCell products to be sold for installation across the western United States.

Buddy Johns, president and CEO of Argyle said, “This opportunity to provide SteelCell’s prefabricated product solutions to the western market is exciting. Argyle’s ability to offer SteelCell solutions to our customers will provide a significant added value by reducing construction schedule and costs while also providing a more durable and maintenance-free facility design.”

Mike Smith, president of Baldwin, Ga.-based SteelCell added, “SteelCell is very happy to have this opportunity to work with Argyle and take advantage of its unique manufacturing footprint in the western portion of the United States. We have always wanted to serve a larger market and expand the geographic reach of our products and this strategic licensing arrangement will enable us to do so.”

Safe Harbor

Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. When used in this press release, words such as "will," "believe," "expect," "anticipate," "encouraged," "foresees," "forecasts," "estimates" and similar expressions, as they relate to the company or its management, as well as assumptions made by and information currently available to the Argyle’s management identify forward-looking statements. The forward-looking statements are subject to risks and uncertainties, including the possibility that legal proceedings that may be instituted against Argyle and/or others relating to the changes in the board composition, the effect of the announcement of these board changes on Argyle’s customer relationships, operating results and business generally, the risk that these board changes disrupt current plans and operations and the potential difficulties in employee relations resulting therefrom, and downturns in economic conditions generally, Argyle’s business or the state of the corporate credit markets. Consider these factors carefully in evaluating the forward-looking statements. The risk factors listed in Argyle’s annual and quarterly reports also provide examples of risks, uncertainties and events that could cause actual results to differ materially from those contained in forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and Argyle undertakes no obligation to publicly update such forward-looking statements and is not responsible for changes made to this press release for Internet or wire services.