Diversified Security Solutions CEO James E. Henry Says Acquisitions and Internal Growth Set Stage for Company's Future.

Business Editors

SADDLE BROOK, N.J.--(BUSINESS WIRE)--Oct. 29, 2002

Also Sees Growing Demand for Risk and Threat Assessment Services

Diversified Security Solutions, Inc. (AMEX: DVS) Chairman and Chief Executive Office James E. Henry told shareholders at the annual meeting yesterday that the Company's strategic acquisition program has set the stage for potential growth in new markets.

"We are just beginning to feel the full benefit of the recent acquisitions of three systems integrators, which enabled Diversified Security Solutions to expand its current operations to the West Coast and in the Southwest and to move into new specialized markets," Mr. Henry stated. "We are continuing to lay the groundwork for growth and are pursuing new business opportunities on both the East and West coasts."

Mr. Henry noted that the Company entered a new niche market in May 2002 when it acquired PhotoScan Systems, Inc., a Los Angeles-based integrator specializing in security systems for medical facilities. The Company moved into another specialized market in August 2002 with the acquisition of National Safe of California, which provides security integration services to financial institutions. As for growth opportunities in traditional markets, Diversified Security Solutions acquired Corporate Security Integration, LLC, of Phoenix, Ariz., in September 2002. CSI offers products and services similar to the Company's Henry Bros. Electronics (HBE) integration subsidiary and fits well with Diversified Security Solutions' business operations.

Diversified Security Solutions is also seeing a growing demand for risk and threat assessment capabilities and established a new Technical Services Division headed by Executive Vice President Sal Lifrieri, who joined the Company in August 2002. Mr. Lifrieri previously served under New York City's Mayor Rudolph Giuliani as the Director of Security and Intelligence Operations for the Office of Emergency Management. In addition to consulting with government agencies and corporate clients on anti-terrorism measures, Mr. Lifrieri's team is also focusing on preventing theft, insurance fraud, workplace violence and protecting technology.

Mr. Henry said that the Company is on target with its 2002 budget, which calls for revenues in the range of $15-18 million for the current year, including new projects valued at approximately $7 million. At the end of the third quarter, backlog stood at approximately $7 million. Results for the third quarter and first nine months ended Sept. 30, 2002, are expected to be reported on or about Nov. 14, 2002.

Mr. Henry said that Diversified Security Solutions is continuing to make inroads into its traditional markets such as airports, high rise buildings and government facilities. "Through the acquisition of Corporate Security Integration, we are continuing work on a systems integration and maintenance project currently under way at Scottsdale Airport in Arizona and are continuing to provide similar services to the three major airports serving the New York City metropolitan area - John F. Kennedy, LaGuardia and Newark."

"Achieving Internal growth by developing our core integration business is also a key part of our Company's over-all business strategy," Mr. Henry said. In addition to ongoing work for the New York City Transit Authority and the Port Authority of New York & New Jersey, Mr. Henry said that Henry Bros. Electronics also has a $1 million project with the management company of a large high-rise office tower in Manhattan and a $1.4 million project with the State University of New York (SUNY) at Stony Brook, which were both previously announced publicly, to provide security systems integration and maintenance services.

Shareholders attending the annual meeting and those voting by proxy elected Mr. Lifrieri to the Board of Directors and re-elected Mr. Henry; Irvin F. Witcosky, the Company's President and Chief Operating Officer; and Louis Massad, the Company's Vice President and Chief Financial Officer. Three outside directors re-elected were Leroy Kirchner, an independent consultant; Robert S. Benou, Chairman of Conolog Corp., and Joseph P. Ritorto, co-founder of First Aviation Services, Inc.

Shareholders also approved the 2002 stock option plan and the appointment of Demetrius & Company, L.L.C, as the Company's independent auditors for 2002.

Diversified Security Solutions, Inc. (www.dssi-hq.com) is a turnkey provider of technology-based integrated electronic security solutions for commercial enterprises and governmental agencies. The Company provides integrated security systems and services, emergency preparedness planning, and product development and manufacturing.

Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Specifically, there can be no assurance that any particular level of sales and/or earnings will be attained. There is also no assurance that acquisitions made by the Company or the offering of emergency preparedness and risk assessment services will result in the establishment of new markets or generate revenue for the Company. Additional information concerning factors that could cause actual results to differ materially from those in the forward looking statements is contained under the heading of risk factors listed from time to time in the Company's prospectus and in filings with the U.S. Securities and Exchange Commission. We do not assume any obligation to update the forward-looking information.