TraceGuard Completes Second Pilot Program of CompactSafe(TM) System at Ben Gurion Airport.

Company reports additional successful operational test of system for screening complex items at Israel's major international airport

NEW YORK -- TraceGuard Technologies Inc. (OTC BB:TCGD), a developer of technologies and solutions for improving explosives detection, announced today that it has completed a second pilot program of its CompactSafe[TM] system at Ben Gurion International Airport in Israel.

In the course of the pilot program, CompactSafe[TM] was operated by Israel Airport Authority (IAA) personnel, who own and operate security equipment at Ben Gurion Airport, in several screening locations at the airport. Over 4,000 passenger items were screened by IAA operators with the CompactSafe[TM].

The objectives of the pilot program were: to demonstrate the effectiveness of using an automated screening system, to verify CompactSafe's performance and durability in a realistic operational setting, and to better acquaint the personnel of the IAA with CompactSafe[TM] and its capabilities. Earlier this year, TraceGuard completed a pilot in which its personnel had operated CompactSafe[TM] at Ben Gurion with the permission of the IAA.

CompactSafe[TM] inspects complex items at passenger and baggage screening checkpoints, and works in conjunction with security equipment currently in use to improve accuracy and efficiency in detecting explosives. The system is specifically designed to extract traces of explosives from items such as laptops, electronic devices, shoes and similar size items that are carried in the carry-on luggage, and can also be adapted to improve detection for narcotics and other hazardous materials.

"The Israel Airport Authority is pleased that TraceGuard has completed this pilot program of CompactSafe[TM] in conjunction with security authorities at Ben Gurion Airport. CompactSafe[TM] has met TraceGuard's expectations in terms of the goals defined together with IAA at the outset of this pilot program to demonstrate the system's durability, operational performance and ease of use. The IAA is examining increased use of automation across Ben Gurion, and CompactSafe[TM] promises to help improve security and operational efficiency through an automated process," said a senior IAA official.

"TraceGuard is very proud to have completed this second pilot program at Ben Gurion Airport with the cooperation and participation of the Israel Airport Authority. Ben Gurion is one of the most respected airports in the world, and it is an honor for us to be given the opportunity to demonstrate CompactSafe's capabilities with the IAA in this important and unique location. We believe that CompactSafe[TM] offers a unique solution to improving explosives detection, one of the critical challenges in aviation security today, and we are confident that this demonstration will resonate both in Israel and beyond," said Dr. Ehud Ganani, Chairman and CEO of TraceGuard.

About TraceGuard

TraceGuard Technologies develops innovative security technologies and solutions for enabling explosives detection through automated trace extraction. By advancing the efficacy and efficiency of trace collection, TraceGuard's product suite offers dramatic improvement in explosives detection capabilities for aviation and homeland security authorities worldwide.

TraceGuard is a US public company traded on the Over-The-Counter Bulletin Board (OTC BB:TCGD). TraceGuard maintains a Research and Development Center in Tel Aviv, Israel and has a Sales office in New York. For additional information on TraceGuard, please contact TraceGuard at 1 866-401-5969 or visit www.traceguard.com.

Some of the statements in this press release contain forward-looking statements that involve risks and uncertainties. You can identify forward-looking statements by words such as "may," "will," "should," "expect," "plan," "could," "anticipate," "intend," "believe," "estimate," "predict," "potential," "goal," or "continue" or similar terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including, but not limited to, the risks outlined in our filings with the US Securities and Exchange Commission, that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. For example, risks that could cause actual results to vary materially from future results include, but are not limited to: our lack of an operating history, issues related to intellectual property infringement, issues relating to the introduction of our products in target markets, the need to raise capital to fund operations, our dependency on key personnel, approval of our products by regulatory authorities, matters related to the location of our operations in Israel, the extent of competition; technological developments in our target markets and the development of alternate, competing technologies in them; and sales of shares by existing shareholders. Although we believe that the expectations reflected in the forward looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.