EKCS Electronic Control Security Inc (CE)

Electronic Control Security Inc. (ECSI) (OTCBB: EKCS), a leading provider of integrated entry control and perimeter security system technologies to the government and private sectors, announced its results of operations for the three months ended September 30, 2011.

Arthur Barchenko, President and CEO, stated, "We achieved our profitability objective during the first quarter of fiscal 2012 despite a very difficult economic environment. ECSI continues to be recognized as a leading security technology manufacturer and support service provider by the large system integrators, dealers/installers and, in certain cases, the end users i.e. nuclear power stations."

"We achieved net revenues of $1,114,431 for the three months ended September 30, 2011 compared to $801,552 for the corresponding three month period in 2010. This increase is primarily attributable to the increase in deliverable products and support services to the Department of Defense facilities in the United States." Mr. Barchenko further stated that "The Navy project, which was delayed during fiscal 2011, continued to impact our performance during the first quarter of 2012."

Gross margins for the three months ended September 30, 2011 were 62% compared to 67% for the corresponding three months in 2010 due to a change in the order mix of equipment sales and support services. A small decrease in material costs during the current period was offset by an increase in design and engineering support service costs which resulted in the 5% decrease.

Mr. Barchenko further stated, "Our selling, general and administrative expenses for the three month period were $523,135 compared to $341,815 for the corresponding period in 2010. This is primarily due to an increase in our allowance for doubtful accounts to $200,000."

"Income from operations decreased to $132,009 in the three-month period in 2011 compared to $148,641 in the 2010 period. The decrease is due primarily to the increase in selling, general and administrative expenses."

During fiscal 2011, the Company submitted proposals on projects for the Department of Defense facilities and certain nuclear power stations in the United States and Southeast Asia valued at approximately $16,750,000. The Company anticipates decisions relating to these proposals during fiscal 2012.

Mr. Barchenko also advised, "As part of our ongoing marketing efforts, during fiscal 2012, ECSI has entered into agreements with several large system integrators to participate in substantial projects in the Middle East and Africa. We expect these agreements to result in significant contributions to revenues and operating profits as we go forward."

Annual Meeting of Shareholders

ECSI held its Annual Meeting of Shareholders on November 10, 2011, and each of the nominees to the Board of Directors was elected with at least 58% of the votes cast by the shareholders.

About ECSI ECSI is a global leader in perimeter security and a quality provider to the Department of Defense, Department of Energy, nuclear power stations, and other large commercial-industrial complexes. The Company designs, manufactures and markets physical electronic security systems for high profile, high threat environments utilizing risk assessment and analysis to determine and address the security needs of its customers. Teaming agreements with major system integrators enable ECSI to support the installation and aftermarket of its products in the U.S. and overseas. ECSI is located at 790 Bloomfield Avenue, Bldg. C-1, Clifton, NJ 07012. Tel: 973-574-8555; Fax: 973-574-8562. For more information on ECSI and its customers, please visit http://www.ecsiinternational.com.

ECSI INTERNATIONAL, INC. SAFE HARBOR STATEMENT: This press release contains forward-looking statements that involve substantial uncertainties and risks. These forward-looking statements are based upon our current expectations, estimates and projections about our business and our industry and reflect our beliefs and assumptions based upon information available to us at the date of this release. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including but not limited to changes in economic conditions generally and in our industry specifically, the potential failure to forecast revenues and profits and make adjustments to operating plans as a result of any failure to forecast accurately, changes in security technology, legislative or regulatory changes that affect us, the availability of working capital, timing of purchase orders, acceptance of company proposals, changes in costs and the availability of goods and services, the introduction of competing products, changes in our operating strategy or development plans, our ability to attract and retain qualified personnel, changes in our acquisition and capital expenditure plans, sufficiency of cash reserves and the risks and uncertainties discussed under the heading "RISK FACTORS" in Item 1 of our Annual Report on Form 10-K for the fiscal year ended June 30, 2011 and in our other filings with the Securities and Exchange Commission. We undertake no obligation to revise or update any forward-looking statement for any reason.

For contact: Natalie Schneider 973-574-8555