Homeland Security Capital Corporation (OTCBB: HOMS), an international provider of specialized technology-based radiological, nuclear, environmental, disaster relief, and electronic security solutions to government and commercial customers, will add a new line of business through the purchase of certain assets of the former Default Servicing, LLC, previously reported in its 8K filing on June 23, 2011.

The purchase of substantially all of the assets of the former Default Servicing, LLC, a provider of national real estate-owned liquidation services to institutional REO customers, including property inspection, valuation, eviction, broker assignments, closing and other residential property services, is intended to be a core component of a new subsidiary to be called Fiducia Real Estate Solutions, Inc. ("Fiducia"), which will primarily focus on providing diversified mortgage and settlement services to the mortgage lending and real estate industry. Default Servicing USA, Inc., the new subsidiary of Fiducia acquiring the assets will receive, along with numerous other assets, a contract to provide liquidation services for over 1,400 properties, for a major US bank. The initial purchase price for the asset purchase is $480,700, with contingent payments of up to approximately $2,900,000 from the closing through 2014.

C. Thomas McMillen, HOMS Chairman and CEO, stated, "With Washington, DC now having effective control of the housing market, either owning or guaranteeing an estimated 9 out of 10 new mortgages, this acquisition provides us with an opportunity to leverage our government contracting expertise to generate new business and revenue."

The Company consolidates the results of subsidiaries Safety & Ecology Holdings Corporation, Nexus Technologies Group, Inc., Polimatrix, Inc., Homeland Security Capital Corporation, the holding company and will also consolidate the results of Fiducia. The Company will continue to measure its operating performance against plan taking into consideration EBITDA adjustments and one time charges.

About Homeland Security Capital Corporation

Homeland Security Capital Corporation is a company engaged in the strategic acquisition, development, and consolidation of homeland security-related businesses, within the fragmented homeland security industry. The company is focused on creating long-term value by taking controlling interest and developing its subsidiary companies through superior operations and management. Former Maryland Congressman C. Thomas McMillen, who served three consecutive terms in the U.S. House of Representatives from the 4th Congressional District of Maryland, heads the company.

Homeland Security Capital Corporation operates businesses that provide homeland security products and services solutions, growing organically and by acquisitions. The company is targeting emerging companies that are generating revenues but face challenges in scaling their businesses to capitalize on homeland security opportunities.

Homeland Security Capital Corporation's portfolio of companies include:

Safety and Ecology Corporation is a rapidly growing environmental services company in the U.S., providing services nationally, in Europe and the Caribbean. The Company specializes in the removal and remediation of hazardous nuclear materials for the U.S. Department of Energy, U.S. Department of Defense, and other federal agencies. SEC also provides advanced environmental services for private industry across the country and internationally. Since its founding in 1991, SEC has grown approximately 30 percent per year, and has emerged as a technology innovator with more than 450 personnel worldwide and with annual revenues of more than U.S. $70 million. For more information on SEC, visit www.sec-tn.com.

Nexus Technologies Group, a mid-Atlantic security integrator for the corporate and governmental security markets that specializes in non-proprietary integrated security solutions including access control, alarm, video, communication, perimeter protection and bomb and metal detection security systems. Utilizing cutting-edge technologies, Nexus provides innovative, engineered and scalable solutions to effectively protect people, property and assets. For more information about Nexus, visit www.nexusna.com.

Polimatrix, Inc., a system integrator and total solutions provider delivering advanced radiation and nuclear protection and detection services. The company has been operating since September 2006 as a joint venture between Homeland Security Capital Corporation and Polimaster, Inc. For more information about Polimatrix, visit www.polimatrix.com.

For more information about Homeland Security Capital Corporation, visit www.hscapcorp.com.

Forward-Looking Statement

This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future activities, performance, events or developments, are forward-looking statements. Although HOMS believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements.

Homeland Security Capital Corporation
Knoxville, TN office
Anne Smith, 865-342-7668
asmith@sec-tn.com