Zareba Systems Providing Perimeter Security System at Water Treatment Facilities in California Community.

MINNEAPOLIS -- Zareba Systems, Inc. (NASDAQ:ZRBA) said it has received an order from one of its integrators for a perimeter security system at a water treatment facility in a southern California community. The project is being installed by BKM Technology Partners, based in Phoenix. The purchase price for the system was not disclosed.

The order follows a year-long test by the end-user of the Zareba Guard Tower[R] electronic perimeter security fence system. This second installation is currently in process, and will secure a half-mile perimeter. While this initial order alone is not expected to contribute a significant amount of revenue to Zareba Systems, the company believes that it represents an important step in its developing security systems business. In fact, BKM has indicated the community has up to 10 additional water treatment facilities that could utilize the Guard Tower[R] perimeter security system within the next 18 months.

"Water treatment facilities have been identified as part of our country's crucial infrastructure," said Jerry Grabowski, president and CEO of Zareba Systems. "As a result, we are seeing demand from water treatment facilities looking for perimeter protection."

Through its Zareba Security subsidiary, the company customizes electronic security solutions to meet each installation's security requirements. The system provides security solutions designed to deter, detect, delay, assess and respond to intrusions in a wide range of applications. Products include the Guard Tower[R] intrusion detection system and the Induced Pulse[R] Anti-Penetration System.

"This particular community tried other intrusion detection systems to secure its water supply and reservoirs and the false alarm rate was very high, and maintenance was difficult and expensive for general wear and tear," said Grabowski. "The Zareba Guard Tower system passed a year-long test that the community had on one of its well sites with flying colors. The Guard Tower system is being evaluated by other water treatment facilities and we are expecting similar results," Grabowski concluded.

The company manufactures its electronic perimeter security fence systems at its Ellendale, Minn., facility. Because Zareba Systems does not have installation capability, it contracts with integrators to work with the end user. In the case of the southern California community, the integrator is BKM.

"Zareba offers something that no one else does," said Bart Katz, a partner with BKM, which provides its customers with industry leading technologies for perimeter security. "There are other products out there but nothing matches the Guard Tower as a perimeter intrusion detection system along with the ability to deter people from entry.

"There's also a zero false alarm rate, which is a tremendous selling point. This saves huge amounts of manpower and expense because a facility doesn't have to continually send someone out to check on a breach. All the other systems out there have fairly substantial amounts of false alarms," Katz concluded.

About Zareba Systems, Inc.

Zareba Systems, Inc. is the world's leading manufacturer of electronic perimeter fence systems for animal and access control. A Minnesota corporation since 1960, the Company's corporate headquarters is located in Minneapolis, with manufacturing facilities in Rochester and Ellendale, Minn. Its Zareba Systems Europe subsidiary owns Rutland Electric Fencing Co., the largest manufacturer of electric fencing products in the United Kingdom. More information on the company's security products can be found at www.ZarebaSecurity.com. The corporate web site is located at www.ZarebaSystemsInc.com.

This release includes certain "forward-looking statements" as defined under Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements, including those relating to the utilization of perimeter security systems and the testing of the Zareba Guard Tower System at additional water treatment facilities and the false alarm rate of the Guard Tower System, are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. Such risks and uncertainties include customer acceptance of prices and products, customer demand for products, the successful testing and utilization of products, the timing of customer purchases, as well as the development, introduction, or acceptance of competing products, changes in technology, pricing or other actions by competitors, and general economic conditions.