Successful private placement

On 15 June 2010, Nio Security, Inc. completed a

successful private placement of 3,500,000 new shares

at a subscription price of NOK 1.40 per share. Terra

Markets was Nio's financial adviser in the private

placement.

Upon completion of the transaction, the new shares

will represent approximately 8.9 per cent of total

outstanding shares. The subscription price is equal

to the latest trading price in the Nio share prior to

the transaction.

Gross proceeds from the share issue are NOK 4.9

million. The proceeds will primarily be used as

working capital in Nio's ongoing efforts to ramp up

production and general corporate purposes. Nio is

currently experiencing an increased demand for its

sophisticated video surveillance solutions. The order

backlog has developed favorably in the first half of

2010 and the Company is currently expanding its

production for delivery in the second half of 2010.

Hence, the share issue enables Nio to fulfill its

current growth strategy.

The new Nio shares were subscribed by Norwegian

investors. Nio is working to increase the trading in

the Nio share, and see the private placement as a

first step to further improve liquidity in the Nio

share.

The Board of Directors of Nio has approved the

private placement which was resolved and completed

under the Board's general authorization.

Following the share issue and registration in VPS,

Nio`s share capital will increase from USD 3,597,804

to USD 3,947,804. The number of shares will increase

from 35,978,041 to 39,478,041 (par value USD 0.10).

The company has 100,000,000 authorized shares. The

new shares are expected to be admitted to trading on

the Oslo Stock Exchange on or about 22 June 2010.

For further information, please contact: Espen

Brodin, Chairman & CEO, +47 92 044 558.

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