Top 10 performing security stocks for January.

                           %         Stock
Company/Symbol             Increase  Price   Analysis

Analex                     72%        $3.63  Analex said it has signed a
NLX                                          merger agreement with
                                             QinetiQ which will commence
                                             a cash tender offer to
                                             acquire all of Analex's
                                             outstanding shares of
                                             common stock for $3.70 per
                                             share.
Henry Bros. Electronics    58%        $6.00  Appearing in the Top 10
HBE                                          list for the second month
                                             in a row, Henry Bros. stock
                                             has almost doubled since
                                             early Dec. 2006 despite
                                             issuing no news since Nov.
                                             9 and no new SEC filings
                                             since Nov. 13.
Zix Corp.                  37%        $1.63  ZIXI announced that the
ZIXI                                         FDIC will be using the
                                             company's Email Encryption
                                             Service to communicate
                                             securely with other
                                             financial regulators.
Allen-Vanguard             35%        $3.98  Allen-Vanguard reports an
ALNVF.PK                                     order worth $3 million for
                                             its advanced digital ECM
                                             equipment, which is used to
                                             counter the threat of
                                             remotely detonated
                                             explosives.
Arotech                    34%        $4.10  Arotech reports its
ARTX                                         Simulation and Training
                                             Division has recently
                                             received contract awards
                                             totaling more than $2.8
                                             million for weapon
                                             simulation solutions.
AXCESS International       33%        $1.55  AXCESS introduced a lower
AXSI.OB                                      price for its comprehensive
                                             physical asset management
                                             solution, Asset Activator.
                                             Management says that ROI is
                                             less than 6 months.
Ionatron                   26%        $5.16  IOTN announced $500,000 of
IOTN                                         new contracts including
                                             major aerospace, defense,
                                             and semiconductor equipment
                                             customers.
Alanco Technologies        24%        $1.74  Alanco expects to report
ALAN                                         sales revenue in excess of
                                             $10.5 million for the first
                                             six months of its fiscal
                                             year 2007 ending June 30,
                                             2007.
VASCO Data Security        24%       $14.70  VASCO said at its 3rd
VDSI                                         Investor and Media Summit
                                             in New York that it has
                                             passed the landmark of 150
                                             customers in the U.S.
                                             banking sector.
Telecommunication Systems  23%        $3.81  TSYS said it has been
TSYS                                         awarded a contract by the
                                             U.S. Army valued at $10.8
                                             million for satellite
                                             communications terminals
                                             and maintenance that will
                                             be used in support of the
                                             Military Transition Team.

List excludes stocks valued below $1 or whose revenue is not derived
primarily from security.
Data and analysis provided by SecurityStockWatch.com, publishers of
Investment Guide to Security Stocks[c]
Chart: Mike Moran