Contemplated private placement

Nio Security, Inc. ("Nio") is preparing a private

placement by issuance of new shares in an amount up

to NOK 22.5 million (the "Private Placement").

The Private Placement will be directed towards

professional Norwegian investors, and will commence

after close of Oslo Stock Exchange today, 12 January

The subscription price in the Private Placement

will be NOK 2.50 per share and the minimum size

per order has been set to 160 000 shares,

approximating an aggregate purchase price of at

least EUR 50,000.

The Private Placement will represent up to 9 000 000

new shares equalling approximately 23 % of the

current number of outstanding shares of the Company.

The proceeds from the Private Placement will be used

for general corporate purposes, including service of

shareholder loans.

The subscribers in the Private Placement will receive

existing shares in the Company that are already

listed on Oslo Stock Exchange, pursuant to a share

lending agreement entered into between ABG Sundal

Collier, Nio and the Company's largest shareholder.

The shares delivered to the subscribers will thus be

tradable according to the trade date on the contract

note issued for the allocated shares.

The book building period opens today at 17:30 CET (12

January 2011) and closes at the latest on 13 January

2011 at 08:30 CET. The manager may, however, at any

time resolve to close or extend the book

building period at its own discretion, but it will

in no event close earlier than 12 January 2011 at

19:00 CET.

Nio's two largest shareholders, Lars Moldestad and

Bellamare Resources Ltd, have guaranteed that the

Private Placement will amount to minimum NOK 10

million.

Nio has retained ABG Sundal Collier Norge ASA as sole

manager and bookrunner for the equity Private

Placement.

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