Payment of long term debt

On December 31, 2009, Nio Security, Inc. entered into

an agreement with California Bank & Trust regarding

full prepayment of Nio's two long term SBA loans. As

part of the agreement, Nio paid USD 553,500 to the

bank on December 31, 2009, and the two loans are now

paid in full.

The two SBA loans were entered into in 2004 and 2006

by Tempest Microsystems Inc, and as a result of Nio's

acquisition of Tempest in 2007, Nio assumed the

outstanding loan balance. The outstanding principal

on December 31, 2009 was USD 1,088,000.

After the payment, Nio has no debt except for normal

trading payables, and has through the refinancing in

November 2009 and the payment of the two SBA loans,

significantly strengthened its balance sheet and are

financially well positioned for 2010.

For further information, please contact: Espen

Brodin, Chairman & CEO, +47 92 04 45 58

AI Terminal