2010.08.02

Distribution Agreement in UK to exceed USD 1 Million

Nio Security, Inc. (OSE: NIO) announce today a distribution agreement with a new distributor that will focus mainly on the UK market.

The agreement includes a guaranteed minimum sale of NIO products over a 12 month period of in excess of USD 1 million. Nio's Partner sees this order as a verification of Nio’s avanced technology within the fast growing Video Analytics market. Video Analytics is key to their customers need for effective and efficient surveillance. This market grows by more than an estimated 25% per year.

Nio view this agreement as an important milestone for their new sales strategy towards distributors, OEM and VAR agreements. Since Nio's partner will buy products at a monthly basis, Nio is close to the target of profit within 2010. Nio's order backlog continues to improve and is now more than USD 2.2 million.

Nio's partner is a privately funded company specializing in the supply of high-quality security equipment to the European market.

For further Information contact Espen Brodin, Chairman & CEO, +47 920 44 558