ICTS International Reports Third Quarter Financial Results.

AMSTELVEEN, The Netherlands--(BUSINESS WIRE)--November 7, 1997-- ICTS International N.V. (NASDAQ:ICTSF) today reported financial results for the third quarter and nine months ended September 30, 1997.

Revenues for the third quarter amounted to $16,212,000, up 36.7% from $11,860,000 in the corresponding period a year ago. This is the first quarter to include results of the German subsidiary, which increased revenues by approximately $3.5 million in the three month period ended Sept. 30, 1997. Gross profit increased to $3,084,000, from $2,151,000 in the similar period of 1996, an increase of 43.4%. Income before income taxes and equity in results of affiliates amounted to $1,607,000, compared with $1,014,000 a year ago, a 58.5% increase. Net income amounted to $975,000, or $0.15 per share, compared with $1,124,000, or $0.20 per share, in the corresponding year-earlier period. Net income reflected a 41% effective tax rate, partly because of consolidation of the German subsidiary, as compared to a slight tax credit a year ago,.

For the nine-month period ended September 30, 1997, revenues amounted to $38,412,000, up 34.4% from $28,573,000, in the corresponding year-earlier period. Gross profit increased to $6,398,000, from $4,759,000 in the similar year earlier period, and income before income taxes and equity in results of affiliates totaled $5,052,000, compared with $1,892,000 a year earlier, a 167% increase. Despite a higher effective tax rate of 40.3%, vs.14.3% a year ago, nine-month net income increased to $3,127,000 or $0.47 per share, compared with $1,753,000, or $0.38 per share, last year.

At the end of September 1997, ICTS had cash items and other securities of approximately $18.1 million.

"As underscored by the increased revenues, ICTS continues to grow, while at the same time we continue to invest in our Company's future," said Lior Zouker, President and CEO. "Our Automated Pre-Screening System (APS) programs with Continental Airlines and Northwest Airlines are anticipated to be installed before the end of the year, and the investment ICTS announced recently in the John Bryce group of software companies will provide access to important new aviation-based technology that should benefit materially from our extensive relationships in the global aviation industry."

ICTS International N.V. is a leading provider of enhanced aviation security services, at present primarily serving the European operations of major U.S. carriers by implementing passenger classification procedures known as "profiling." ICTS also is engaged in security consulting, design, training and auditing for airlines and airports, as well as other security services. -0-

                       ICTS INTERNATIONAL N.V.
          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
              (US $ in Thousands, except share data)

                        Three months ended       Nine months ended
                       30-Sep-96  30-Sep-97    30-Sep-96   30-Sep-97
                           (Unaudited)              (Unaudited)

Revenues              $ 11,860    $ 16,212  $ 28,573    $ 38,412
Cost of revenues         9,709      13,128    23,814      32,014
Gross profit             2,151       3,084     4,759       6,398
 Amortization of
  goodwill                  37         120       116         202
 R&D expenses                            0                     0
 Selling, general
 and admin. expenses     1,099       1,603     2,658       4,161
Operating income         1,015       1,361     1,985       2,035
Interest income            113         374       212       3,429
Interest expense           (86)       (102)     (290)       (299)
Other income
 (expense), net            (28)        (26)      (15)       (113)
Income before income
 taxes and equity
 in results of
 affiliates               1,014       1,607     1,892      5,052
Income taxes (expense)       18        (660)     (270)    (2,037)
Income before equity
 in results of
  affiliates              1,032         947      1,622     3,015
Equity in results
 of affiliates               92          28        131       112
Net income               $1,124     $   975    $ 1,753   $ 3,127
Net income per share      $0.20     $  0.15    $  0.38   $  0.47

Weighted average of
 common shares
  outstanding        5,611,397   6,667,083   4,553,475 6,649,728


                         SELECTED BALANCE SHEET DATA
                            (US$ in thousands)

                           31-Dec-96    30-Sep-97

Cash and cash
 equivalents                $16,366      $ 11,021
Time Deposits, Debt and
Equity Securities             8,888         7,114
Working Capital              23,535        16,947
Total assets                 41,947        44,197
Short-term bank dept and
 current maturies of long
 term debt                      780         1,161
Long term debt, net             250         1,283
Retained earnings             7,507        10,634
Cumulative Translation
Adjustments                     (60)       (3,787)
Shareholders' equity         30,073        29,473

CONTACT: Steven Anreder or Stanley Rubenstein

Anreder Hirschhorn Silver and Company

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