Homeland Security Capital Corporation (OTCBB: HOMS), an international provider of specialized technology-based radiological, nuclear, environmental, disaster relief and security solutions to government and commercial customers, announced today that its environmental remediation subsidiary, Safety and Ecology Corporation (SEC) has begun work at the Y-12 National Security Complex in Oak Ridge, TN., a demolition project award that was previously announced in December 2009, and is funded by the American Recovery and Reinvestment Act (ARRA).

“We’re pleased to start the Y-12 site project which will not only provide employment to workers in Tennessee but also is a good example of how stimulus funds are putting Americans back to work and helping our infrastructure,” said C. Thomas McMillen, Chairman and CEO of Homeland Security Capital Corporation.

As stated in a DOE issued press release:The Y-12 National Security Complex began its first demolition project funded by the American Recovery and Reinvestment Act (ARRA) on February 8, 2010. Building 9735 is the first of the ARRA deactivation and demolition projects at Y-12 to be torn down. Built in 1946 as an engineering laboratory, Building 9735 ceased operations in the mid-1990s. The demolition of Building 9735 is expected to take two to three days.

To complete this work, B&W Y-12 awarded a contract to SEC. The demolition of this 15,043-square-foot facility also completes the razing of an entire row of engineering buildings. The other six buildings on Engineering Row were demolished in 2008. Like other aging buildings on the Y-12 site, the deterioration of Building 9735 has been accelerating and making work in and around it more hazardous.

After the Building 9735 project is complete, the site will be converted into a 21-space parking lot for personnel on the east end of Y-12.

“By removing the contaminated footprint of buildings with radiological and hazardous material, and thus reducing risk to people and the environment, SEC is supporting Y-12’s goal toward eliminating buildings on the disposition list,” said Christopher Leichtweis, President of HOMS and CEO of SEC. “Performing this remediation allows Y-12 not only to reduce risks to workers and the environment but also to accelerate the site’s transformation plans.”

DOE issued press release can be found: www.oakridge.doe.gov

About Safety and Ecology Corporation

Safety and Ecology Corporation (SEC) is a rapidly growing environmental services company in the U.S., providing services nationally, in Europe and the Caribbean. The Company specializes in the removal and remediation of hazardous nuclear materials for the U.S. Department of Energy, U.S. Department of Defense, and other federal agencies. SEC also provides advanced environmental services for private industry across the country and internationally. Since its founding in 1991, SEC has grown approximately 30 percent per year, and has emerged as a technology innovator with more than 450 personnel worldwide and with annual revenues of more than U.S. $70 million. For more information on SEC, visit www.sec-tn.com.

About Homeland Security Capital Corporation (HOMS)

Homeland Security Capital Corporation is a company engaged in the strategic acquisition, development, and consolidation of homeland security-related businesses, within the fragmented homeland security industry. The company is focused on creating long-term value by taking controlling interest and developing its subsidiary companies through superior operations and management. The company is headed by former Congressman C. Thomas McMillen, who served three consecutive terms in the U.S. House of Representatives from the 4 th Congressional District of Maryland. HOMS operates businesses that provide homeland security products and services solutions, growing organically and by acquisitions. The company is targeting emerging companies that are generating revenues but face challenges in scaling their businesses to capitalize on homeland security opportunities.

HOMS’s portfolio of companies, in addition to SEC, includes:

Nexus Technologies Group, a mid-Atlantic security integrator for the corporate and governmental security markets that specializes in non-proprietary integrated security solutions including access control, alarm, video, communication, perimeter protection and bomb and metal detection security systems. Utilizing cutting-edge technologies, Nexus provides innovative, engineered and scalable solutions to effectively protect people, property and assets. For more information about Nexus, visit www.nexusna.com.

Polimatrix, Inc., a system integrator and total solutions provider delivering advanced radiation and nuclear protection and detection services. The company has been operating since September 2006 as a joint venture between Homeland Security Capital Corporation and Polimaster, Inc. For more information about Polimatrix, visit www.polimatrix.com.

For more information about Homeland Security Capital Corporation, visit www.hscapcorp.com.

Forward-Looking Statement

This release includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future activities, performance, events or developments, are forward-looking statements. Although HOMS believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements.

Copyright Business Wire 2010