TraceGuard Has Completed Operational Pilot Development Program of CompactSafe(tm) System

- Improving Explosives Detection at Israel's Primary Airport
- Company Reports Completion of Operational Test of System for Screening Complex Items at Country's Major International Airport

( NEW YORK, February 1, 2007 ) -- TraceGuard Technologies Inc. (OTCBB: TCGD), a developer of innovative security technologies and solutions, announced today that its CompactSafe(tm) system has completed an operational pilot program at Israel's primary airport. CompactSafe(tm) inspects complex items at passenger and baggage screening checkpoints, and works in conjunction with security equipment currently in use to improve accuracy and efficiency in detecting explosives.

CompactSafe(tm) is designed specifically to extract traces of explosives from items such as laptops, medical devices, cameras and electronic devices. Because of their small size and sophisticated internal structure, these items pose a considerable challenge for current screening technologies and methods. By automating the sampling process, CompactSafe(tm) is expected to improve detection of explosives and reduce overall inspection time. There is currently no system deployed that is designed specifically for the items that CompactSafe(tm) inspects.

TraceGuard's objective for the operational pilot program was to examine CompactSafe's performance and durability in a realistic operational setting. In the course of this operation, which lasted three weeks, CompactSafe(tm) inspected thousands of passenger items and bags. TraceGuard tested CompactSafe(tm) in inspections for items for both carry-on and checked luggage, in conjunction with the CT, X-ray and trace detector machines already deployed at the airport.

Dr. Ehud Ganani, Chairman and CEO of TraceGuard, said: "We are quite pleased to have reached this critical milestone in our mission to enable improved detection of explosives in aviation security and beyond. CompactSafe(tm) is a unique solution to one of the critical challenges in homeland security today, and offers security authorities the dual benefit of enhanced security and improved operational efficiency, both of which are in great demand by our prospective customers. TraceGuard is proud of the successful completion of this operational pilot program, in which we proved that CompactSafe(tm) can operate successfully in the challenging operating environment of a major international airport, and believe that this will help us attain our strategic objectives."

The CompactSafe(tm) system is based on TraceGuard's proprietary extraction method for automated trace sampling. CompactSafe(tm) can be adapted for a variety of applications, including protection of critical infrastructure, narcotics detection and mail-sorting.

Source : TraceGuard Technologies Inc