Argyle Security, Inc. and ISI Security Group Announce Financial Results for the Second Quarter 2007.

SAN ANTONIO -- Argyle Security, Inc. (OTC BB:ARGL), a service and solutions provider in the physical electronic security industry, and its wholly owned subsidiary ISI Security Group ("ISI"), today released financial results for ISI's second quarter ended June 30, 2007. These results are for a period prior to the acquisition of ISI by Argyle.

For the three months ended June 30, 2007, ISI generated revenues of $17.8 million, up 43% compared to $12.4 million for the same period last year. Year-to-date through the second quarter of 2007, revenues were $36.6 million, versus $25.8 million for the first six months of 2006. ISI's backlog (1) was $114 million (2) on June 30, 2007, up 76% from a backlog of $65 million on June 30, 2006, and up 11% from the March 30, 2007 backlog of $103 million. Revenues and backlog were previously reported in a press release dated July 30, 2007.

For the three months ended June 30, 2007, ISI reported EBITDA of $1.7 million, up 54% from $1.1 million in the period a year ago. Year-to-date through June 30, 2007, ISI generated EBITDA of $3.1 million (3), an increase of 68% as compared to the first six months of 2006.

The net loss, in accordance with Generally Accepted Accounting Principals, or GAAP, for the three months ended June 30, 2007 was $0.6 million, an increase of $0.5 million over the loss in the second quarter of 2006.

Sam Youngblood, CEO of ISI, commented, "We are very pleased with the financial results announced today. The 45% revenue growth and the 54% growth in our earnings before interest, taxes, depreciation and amortization over the second quarter of 2006 indicates top-line growth, higher margins and strong cash flows. With the high demand for increasingly complex security solutions, we believe our ability to offer customers total solutions is a critical factor in helping ISI to gain market share and repeat business. Aided by the additional financial flexibility and new capabilities that ISI gained through joining Argyle Security, we believe ISI is strongly positioned to expand its business."

Bob Marbut, Chairman and Co-CEO of Argyle Security, stated, "Our vision remains to establish Argyle Security as a leading global company in the rapidly growing security industry. We believe that ISI will serve as a strong platform as we seek to grow our business both organically and through acquisitions. It's important to note that our management team - both at Argyle Security and ISI - has a successful track record in integrating acquisitions. As such, we are confident that we have the right team in place to effectively execute our integrated buildup strategy."

Ron Chaimovski, Vice-Chairman and Co-CEO of Argyle Security, added, "We are very pleased with ISI's second quarter results. Overcrowding of inmate populations and growth in detention facilities continue to be a major driver of ISI's detention business, and we see a solid opportunity to capture additional share in this market. The commercial business - ISI's largest and fastest growing division - also continues to outperform. We are sharply focused on expanding this business into key, new vertical markets."

Argyle Security, Inc. Third Quarter Financial Results

Argyle Security plans to release consolidated financial results for the quarter ended September 30, 2007 on November 13, 2007. Argyle Security will host a conference call at 10 a.m. Eastern Time to discuss the results. The dial-in number for participants is 800-798-2864, passcode 56799425. The international dial in number is 617-614-6206, passcode 56799425. A replay will be available through November 27, 2007. The domestic and international dial-in numbers for the replay are 888-286-8010 and 617-801-6888, respectively, with the passcode 62324352.

Additionally, the conference call will be webcast. To access the webcast, go to: http://phx.corporate-ir.net/playerlink.zhtml?c=196589&s=wm&e=1672826.

(1) Based on the percentage-of-completion method of accounting utilized by ISI, each project that is booked has an amount referred to as "earned gross margin" and "earned revenue" for the total project. The earned revenue and the amount of earned gross margin are subtracted from the total project amount and the total estimated gross margin as the project is completed. The net difference is the backlog available for each project. The total of these sums for all projects makes up the amount of gross backlog.

(2) After adjusting for intercompany eliminations, the adjusted backlog was $94 million on June 30, 2007, up 80% from the June 30, 2006 backlog of $52 million, and up 12% from the March 30, 2007 backlog of $84 million.

(3) EBITDA for the six months ended June 30, 2007 include $34,000 of state income taxes that were previously reported as general and administrative expenses.

Disclosure Regarding Non-GAAP Financial Measures

EBITDA (earnings before interest, taxes, depreciation and amortization) is used by management as a performance measure for benchmarking against the Company's peers and competitors. The Company believes EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties to evaluate companies in the security industry. EBITDA is not a recognized term under GAAP. The presentation of EBITDA is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Argyle and ISI compute EBITDA using the same consistent method from quarter to quarter. Following the attached financial statements is a reconciliation of EBITDA to net loss.

About Argyle Security, Inc.

Formed in 2005 and headquartered in San Antonio, TX, Argyle Security's goal is to become a leading global provider of services and solutions in the physical electronic security industry through an integrated buildup strategy. Argyle's channel focus is Video Surveillance, Access Control, Perimeter Protection, Intrusion Protection, Fire Detection and Threat Analysis, serving selected commercial, governmental and residential markets.

In July 2007, Argyle acquired ISI Security Group ("ISI"), the parent company for three rapidly growing service and solution businesses in the physical security industry: ISI Detention Contracting ("ISI-Detention"), Metroplex Control Systems ("MCS-Detention") and Metroplex Commercial Fire and Security Alarms ("MCS-Commercial"). ISI Detention is one of the nation's largest providers of detention equipment products and service solutions. MCS-Detention and MCS-Commercial specialize in turnkey, electronic security systems for facilities that include unique engineering competencies and proprietary software products, which have security system integration capabilities as applied to the correctional facilities market as well as to commercial markets. ISI was founded in 1976.

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. When used in this press release, words such as "will," "believe," "expect," "anticipate," "encouraged" and similar expressions, as they relate to the company or its management, as well as assumptions made by and information currently available to the company's management identify forward-looking statements. Additional information concerning forward looking statements is contained under the heading of risk factors listed from time to time in the company's filings with the Securities and Exchange Commission. We do not assume any obligation to update the forward-looking information.

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