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TraceGuard Signs Letter of Intent with Smiths Detection

November 9, 2007

The companies will work toward a definitive agreement to accelerate the process of bringing TraceGuard's Automated Trace Extraction technology to market.


NEW YORK /BUSINESS WIRE/ -- TraceGuard Technologies Inc., a developer of innovative systems and solutions for improving detection of explosives and hazardous materials, announced that it has signed a letter of intent with Smiths Detection, a world leader in airport and critical infrastructure security-screening systems.

Under the letter of intent, Smiths and TraceGuard will work exclusively toward a definitive agreement to accelerate the process of bringing TraceGuard's Automated Trace Extraction (ATE) technology to market. In the first phase of the definitive agreement, the companies would cooperate in marketing TraceGuard's CompactSafe ATE system to select aviation and homeland security customers.

Additionally, TraceGuard and Smiths Detection may cooperate on integration of CompactSafe and other TraceGuard products and capabilities for improving and automating trace-sample collection with Smiths Detection's IONSCSAN IMS explosives trace detectors.

Tony McEnroe, Smiths Detection's Vice President of Business Development stated:

"After an extensive review across the sector, we concluded that TraceGuard offers considerable attractions as a partner for developing enhanced capabilities in explosives detection for homeland security. We look forward to working closely with TraceGuard in the months ahead to explore the development of new and complementary solutions for segments of the homeland security market."

Dr. Ehud Ganani, TraceGuard's Chairman and CEO commented:

"Smiths Detection is the global market leader in detection, and we are proud to be working with them. Combining TraceGuard's own technological strengths with Smiths Detection's experience and extensive capabilities in the homeland security market offers considerable synergies. We look forward to working together to develop further breakthroughs in the explosives-detection field."

About Smiths Detection
Smiths Detection is part of the global technology business Smiths Group. It offers advanced, integrated security solutions for customers in civil and military markets worldwide and is a leading technology developer and manufacturer of sensors that detect and identify explosives, chemical and biological agents, weapons, and contraband. Its advanced technology security solutions also include Smiths Heimann x-ray imaging systems, millimeter-wave technology, and a specialist software supply business for the management of large sensor and video surveillance networks. Separate business units focus on related products for the life sciences and food-manufacturing industries.

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 over the current mechanisms in place at present."

TraceGuard is a U.S. public company and 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 866-401-5969.


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