Homeland Security Capital Corporation Awarded $3.1 Million Remedial Action Contract

Homeland Security Capital Corporation (HSCC) (OTCBB: HOMS), an international provider of specialized technology-based radiological, nuclear, environmental, disaster relief, and security solutions to government and commercial customers, announced today that its environmental remediation subsidiary Safety and Ecology Corporation (SEC), was awarded a remedial action contract estimated to total $3.1 million from the U.S. Army Corp of Engineers – St. Louis District.

The Iowa Army Ammunition Plant (IAAAP) is a one-of-a-kind national resource that provides "total munitions solutions” for the U.S. Department of Defense’s (DOD) industrial base, which includes research, development, production, inspection, testing, assembly, packing, and demilitarization. SEC is scheduled to complete the remedial action for IAAAP’s project by December 2009.

"This particular project hits close to home for me,” said SEC CEO and HSCC President Christopher P. Leichtweis. "My career in the environmental industry began with a program such as this and I am pleased to have the opportunity to apply my twenty-five years of experience to the project.”

Mr. Leichtweis will serve as the project’s program manager on the Formerly Utilized Sites Remedial Action Program’s (FUSRAP) project site.

HSCC Chairman and former Maryland Congressman C. Thomas McMillen commented, "This is a very noteworthy contract for us as it opens up a host of other opportunities the Company did not vie for in the past in the Defense sector. With this project underway, we will continue to target similar programs and further our presence in this space.”

SEC received the award through its indefinite delivery indefinite quantity (IDIQ) contract that includes field engineering, remediation work and management services. The contract provides services necessary for the St. Louis District to execute its Hazardous, Toxic, and Radioactive Waste (HTRW) program; a major part of which is the FUSRAP or the clean up of the old Manhattan Project of World War II.

About The Iowa Army Ammunition Plant

Iowa Army Ammunition Plant is a Group Technology Center for missile warheads, tank ammunition, artillery rounds, and demolition charges. The plant is a one-of-a-kind national resource that provides "total munitions solutions” for the Defense industrial base, which includes research, development, production, inspection, testing, assembly, packing, and demilitarization. The Iowa AAP’s 1,500 building facility is built on 19,300 acres in southeast Iowa. Less than a third of the IAAAP’s 19,015-acre (30-square-mile) property is occupied by active or formerly active production or storage facilities. The remaining land is evenly divided between leased agricultural acreage and woodlands. For further information, please visit us on the web at: www.globalsecurity.org/military/facility/aap-iowa.htm

About Safety and Ecology Corporation

Safety and Ecology Corporation is an international leader in environmental services and chemical, radiological, and nuclear consequence management company in the U.S., providing services nationally, in Europe and the Caribbean. The Company specializes in the response, removal and remediation of hazardous, munitions, nuclear materials for the U.S. Department of Energy, U.S. Department of Defense, other federal agencies including critical consequence management UK government agencies. SEC also provides advanced environmental services for private industry across the country and internationally. Since its founding in 1991, SEC has grown approximately 20 percent per year, and has emerged as a technology innovator with more than 420 personnel worldwide and with annual revenues of more than $55 million. SEC expects a ramp-up of project work for the 2009 fiscal year which began in July of this year due to its recent quarterly bookings of projects totaling in value of $ 50M. For more information on SEC, please visit us: www.sec-tn.com.

About Homeland Security Capital Corporation

HSCC is an international provider of specialized technology-based radiological, nuclear, environmental, disaster relief, and security solutions to government and commercial customers through its portfolio companies. 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.

For more information about Homeland Security Capital Corporation, or to be added to our e-mail distribution list, please 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 Homeland Security Capital Corporation 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.