Q2 2010 Interim Report - Nio Security on track

Nio Security, Inc. today announced its second quarter

2010 results, see attached Interim Report. The

quarter confirmed that Nio is on track. Sales and

margins improved from the previous quarter and the

Company further improved its order situation in the

second quarter.

Nio reported sales of USD 173 thousand in the second

quarter, an 84 per cent revenue growth from the

previous quarter. The gross margin improved

significantly. Nio's net result for the quarter came

in at USD -420 thousand, which is a USD 314 thousand

improvement from the first quarter.

Following Nio's crisis in 2009 and the refinancing at

the end of last year, the Company has in the first

half of this year been able to ramp up production,

expected to provide a significant sales growth in the

second half of 2010. The Company's order intake is

satisfactory, with a number of new contracts and

dealerships agreements also in the second quarter.

The order backlog at the end of the second quarter is

well above Nio's total sales in 2009.

"The market for sophisticated video surveillance is

growing rapidly. Nio is now able to be part of this

exciting development and we expect further

improvements in our performance in the remaining

months of 2010," said Nio Security's Chairman and CEO

Espen Brodin.

For further information please contact Espen Brodin,

Chairman & CEO, +47 920 44 558 or Tore Formo, CFO,

+47 91 668 678.

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