CLIFTON, N.J., Oct. 2 /PRNewswire-FirstCall/ -- Electronic Control Security, Inc. (OTC:EKCS) (BULLETIN BOARD: EKCS) (ECSI), a leading provider of a broad line of electronic security system technologies to the government and private sectors, announced financial results for the fiscal year ended June 30, 2009. Arthur Barchenko, President and CEO, stated "We had net revenues of $3,472,696 for fiscal year 2009 as compared to $2,916,410 for fiscal year 2008, representing an increase of approximately 19%. The increase in net revenues during 2009 as compared to 2008 is primarily attributable to management's decision to pursue commercial-industrial sales, which afford higher gross margins, rather than the Department of Defense prime contract sales that afford greater sales volume but significantly lower gross margins." "Gross margins for 2009 were 27.8% as compared to 35.0% of revenue for the 2008. The decrease in gross margin for the fiscal year ended June 30, 2009 compared to the corresponding period in 2008 is primarily attributable to higher material costs and a decrease in design and engineering support services." Selling, general and administrative expenses increased approximately 10% in 2009 Period to $1,318,910 from $1,201,211 in 2008. The increase is attributable to costs relating to the U.N. project in Ethiopia where we incurred significant increases in freight and marketing related expenses. We also recognized a bad debt write-off in the amount of $295,845 related to two overseas projects in Asia and the Middle East. During the year ended June 30, 2009, the Company submitted proposals on major projects in South Korea and Ethiopia, two nuclear power stations, the Department of Energy and Department of Defense facilities in the United States valued at approximately $9,750,000. Of these proposals, we anticipate approval and funding for approximately $4 million within the next few weeks. These projects, once awarded, would be delivered and invoiced over the next eighteen months." A more detailed description of our business, results of operations and financial statements are contained in the Annual Report on Form 10-K filed on September 30, 2009. We have sustained losses since its inception and expect to incur additional losses for the immediate future requiring the need to raise additional funds. ABOUT ECSI ECSI is recognized as a global leader in perimeter security and an effective quality provider for both the Department of Defense and Homeland Security programs. The Company designs, manufactures and markets physical electronic security systems for high profile, high threat environments. The employment of risk assessment and analysis allows ECSI to determine and address the security needs of government and commercial-industrial installations. The Company has teaming agreements with major system integrators in both the United States and overseas to support the installation and aftermarket. ECSI is located at 790 Bloomfield Avenue, Bldg. C-1, Clifton, NJ 07012. Tel: 973-574-8555; Fax: 973-574-8562. For more information on ECSI and its customers, please visit http://www.ecsiinternational.com/. ECSI INTERNATIONAL, INC. SAFE HARBOR STATEMENT: This press release contains forward-looking statements that involve substantial uncertainties and risks. These forward-looking statements are based upon our current expectations, estimates and projections about our business and our industry and reflect our beliefs and assumptions based upon information available to us at the date of this release. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including but not limited to changes in economic conditions generally and in our industry specifically, changes in security technology, legislative or regulatory changes that affect us, the availability of working capital, changes in costs and the availability of goods and services, the introduction of competing products, changes in our operating strategy or development plans, our ability to attract and retain qualified personnel, changes in our acquisition and capital expenditure plans, and the risks and uncertainties discussed under the heading "RISK FACTORS" in Item 1 of our Annual Report on Form 10-K for the fiscal year ended June 30, 2009 and in our other filings with the Securities and Exchange Commission. We undertake no obligation to revise or update any forward-looking statement for any reason. DATASOURCE: Electronic Control Security, Inc. CONTACT: Natalie Schneider, +1-973-574-8555 Web Site: http://www.ecsiinternational.com/

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