Reverse Splits

[IRISHBULL]

Homeland Security Capital Corporation Announces Reverse Stock Split

Thursday, July 12, 2007

ARLINGTON, Va., July 12 /PRNewswire-FirstCall/ -- Homeland Security Capital Corporation (OTC Bulletin Board: HMSC), a company focused on acquiring, developing and consolidating homeland security-related businesses, announced today that it will effect a 1-for-100 reverse split of its common stock. After the reverse split, every 100 shares of common stock will be combined into one share. The split becomes effective after the market closes on July 31, 2007. Following the split, the company will have approximately 41,755,000 million shares outstanding.

Chairman and CEO of Homeland Security Capital Corporation, C. Thomas McMillen, said, "Homeland Security Capital took this action as an important step in our efforts to reposition the company and to enhance stockholder value. Along with our continued commitment to grow the company, we believe that this will have the effect of increasing both the visibility and awareness of the company's shares with potential investors. This action will also substantially widen the pool of those who would consider investing in the company."

Homeland Security Capital approved the reverse split via an amendment to the company's certificate of incorporation approved by its stockholders at the annual stockholder meeting held July 10, 2007.

Homeland Security Capital will not issue any fractional shares of its new common stock as a result of the reverse split. Stockholders who otherwise would be entitled to receive a fractional share will be entitled, upon surrender of certificate(s) representing those shares, to a cash payment in lieu of any fraction. The reverse split will affect all shares of the company's common stock, including those shares underlying stock options, warrants and convertible debentures outstanding immediately prior to the effective date of the reverse split.

Stockholders who hold their shares in brokerage accounts or "street name" will not be required to take any action to effect the exchange of their shares. Stockholders of record who hold stock certificates will receive a letter of transmittal requesting that they surrender their old certificates for new certificates reflecting the adjusted number of shares as a result of the reverse split. Worldwide Stock Transfer will serve as the company's transfer agent, implementing the exchange of stock certificates in connection with the reverse split.

About Homeland Security Capital Corp.

Homeland Security Capital is a consolidator in 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 4th Congressional District of Maryland. Homeland Security Capital intends to operate 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. The company will enhance the operations of these companies by helping them generate new business, grow revenues and improve cash flows.

An investment profile about Homeland Security Capital may be found at http://www.hawkassociates.com/hmscprofile.aspx. To sign up for free e-mail notification of future releases, visit http://www.hawkassociates.com/email.aspx.

For investor relations information regarding Homeland Security Capital, contact Frank Hawkins or Julie Marshall, Hawk Associates, at [phone], e-mail: [e-mail]. An online investor kit including press releases, current price quotes, stock charts and other valuable information for investors may be found at http://www.hawkassociates.com and http://www.americanmicrocaps.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 Homeland Security Capital Corp. 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.

Company Contact:
Homeland Security Capital Corp.
C. Thomas McMillen
[phone]
[e-mail]

Investor Relations:
Hawk Associates Inc.
Frank Hawkins or Julie Marshall
[phone]
[e-mail]

SOURCE Homeland Security Capital Corporation


--------------------------------------------------------------------------------

Contacts:

C. Thomas McMillen of Homeland Security Capital Corp.
703-528-7073
[e-mail]; or Investor Relations

Frank Hawkins
Julie Marshall
both of Hawk Associates Inc.

305-451-1888
[e-mail]


© 2007 PR Newswire (Source)