$12 Million Personnel Investment Expected for Sure Trace.

DENVER -- Sure Trace Security Corporation (OTCBB:SSTY) is pleased to announce that management has approved a plan to increase the payroll budget by $12 million for the calendar year 2005. The Company anticipates closure of several contracts from overseas operations, with the main concentration of the contracts coming from South East Asia. Sure Trace's management has approved the increase in the payroll budget based on the expected labor demand and the need to comply with specific requirements in the procurement procedures from interested parties.

In the last thirty days, Sure Trace has completed satisfactory proof of concept demonstrations for several government agencies, private industry partners and several private venture partners. Sure Trace has submitted proposals to be identified as a Single Point Solution Provider in the brand and document protection markets and has entered the process to win contracts on potential revenue projects in excess of $150 million over the next twelve months. The $12 million payroll cost will represent about 25% of the Company's cost of goods needed for delivery on these projects, and will be a combination of full time and part time employment. In the event the success rate is higher than expected, Sure Trace reserves the right to increase the budget as necessary to fulfill on any potential contracts.

Sure Trace will begin to cash flowing initial contracts over the remainder of the year and is expected to increase its cash flow throughout the next year. Management is evaluating the current budget to determine if the necessary funds are available to retire current debt obligations and for the Company to begin securing long term traditional financing for its growth.

David Downes, president of Sure Trace, commented after the announcement, "The Company is preparing for a stage of rapid growth by putting the staff resources in place to deliver on our expected growth in new business. These are exciting times for Sure Trace, its partners, its clients and its investors."

About Sure Trace Security Corporation

Sure Trace is on track to be a world-class provider of integrated tracking devices and has the objective to be the premier system integrator for anti-counterfeiting and security surveillance applications world wide within 2005. This will be accomplished by delivering turnkey solutions onshore and offshore for governments, armed forces and civil industry. Sure Trace is now reviewing additional key alliance and acquisition opportunities to help it fast track growth and profitability.

For more information www.suretrace.com

Safe Harbor:

This press release contains forward-looking information within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Sure Trace to be materially different from the statements made herein.