CARROLLTON, Texas, Nov. 16 /PRNewswire-FirstCall/ -- GVI Security Solutions, Inc. (OTC Bulletin Board: GVSS), a leading provider of video security solutions featuring the complete Samsung Electronics line of products, today announced its financial results for the quarter ended September 30, 2009.

For the quarter ended September 30, 2009, net income was approximately $84,000 or $0.00 per diluted share, as compared to net income of approximately $254,000, or $0.01 per diluted share, in the quarter ended September 30, 2008.

Net revenues for the quarter ended September 30, 2009 were approximately $12.0 million, a decrease of approximately 2%, as compared to net revenues of approximately $12.2 million in the quarter ended September 30, 2008, and an increase of approximately 3% as compared to net revenues of approximately $11.7 million in the prior quarter ended June 30, 2009.

For the quarter ended September 30, 2009, selling general and administrative expenses increased approximately 4% to approximately $3.1 million as compared to the quarter ended September 30, 2008. Sales and marketing expenses increased approximately $155,000, or 9%, in the quarter ended September 30, 2009 as compared to the quarter ended September 30, 2008. General and administrative expenses decreased approximately $50,000, or 4% in the quarter ended September 30, 2009 as compared to the quarter ended September 30, 2008. The increase in selling, general and administrative expenses were primarily attributable an increase in expenses to operate international offices and higher net marketing expenses partially offset by a decrease in personnel expense.

Net interest expense for the three months ended September 30, 2009 decreased 35% to approximately $115,000 from approximately $176,000 in the three months ended September 30, 2008. The decrease was primarily a result of a lower interest rate on the Wells Fargo credit facility for the three months ended September 30, 2009 as compared to the three months ended September 30, 2008.

As announced on October 22, 2009, the Company has entered into a merger agreement to be acquired and taken private by investment funds managed by GenNx360 Capital Partners, a private equity firm focusing on middle market opportunities. Pursuant to the merger agreement, a subsidiary of GenNx360 Capital commenced a tender offer on November 3, 2009 to acquire all of the Company's outstanding shares of common stock for $0.38 per share. The tender offer would be followed by a merger in which all remaining shares of the Company not tendered would be acquired at the same price paid in the tender offer. The transactions are subject to customary closing conditions.

About GVI Security Solutions, Inc.

GVI Security Solutions, Inc. (OTC Bulletin Board: GVSS) is a leading provider of video surveillance and security solutions, with sales and service representation throughout North, Central and South America. The company provides Samsung Electronics and GVI branded products, software and services to the homeland security and commercial markets. Their customers include governments, major retail chains, leading financial institutions and public and private school systems.

Forward-Looking Statements:

Some of the statements made by GVI Security Solutions, Inc. in this press release are forward looking in nature. Forward-looking statements in this press release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. These statements are based on management's current expectations and assumptions and are naturally subject to uncertainty and changes in circumstances. We caution you not to place undue reliance upon any such forward-looking statements. Actual results may differ materially from those expressed or implied by the statements herein. GVI Security Solutions, Inc. believes that its primary risk factors include, but are not limited to: reliance on primary supplier; concentration of customers; credit limits imposed by primary supplier; changes in the overall economy; credit limits imposed by primary supplier; outstanding indebtedness; rapid change in technology; the number and size of competitors in its markets; effective integration of recently acquired operations and personnel; expansion risks; effective internal processes and systems; the ability to attract and retain high quality employees; control of the Company by principal stockholders; law and regulatory policy; the mix of products and services offered in the Company's target markets; and other factors detailed in the Company's filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2008 currently on file, as well as the risk that projected business opportunities will fail to materialize or will be delayed.

                               GVI Security Solutions, Inc.
                     Condensed Consolidated Statements of Operations
                                       (unaudited)
                          (in thousands, except per share amounts)


                            Three Months Ended          Nine Months Ended
                               September 30                September 30
                         -------------------------  -----------------------
                               2009           2008        2009         2008
                            -------        -------     -------      -------

    Revenues                $11,989       $12,229      $34,083      $36,393

    Cost of Revenues          8,594         8,559       24,276       25,496
                         -----------   ----------   ----------   ----------

        Gross Profit          3,395         3,670        9,807       10,897

    Selling,
     General and
     Administrative
     Expenses                 3,094         2,989        8,903        8,699
                         ----------    ----------   ----------   ----------


        Operating Income        301           681          904        2,198

    Interest Expense            115           176          351          559
                         ----------    ----------   ----------   ----------

    Income from
    operations
     before income
     taxes                      186           505          553        1,639

    Income Tax Expense          102           251          182          690
                         ----------    ----------   ----------   ----------

    Net Income                  $84          $254         $371         $949
                         ==========    ==========   ==========   ==========

    Basic income
     per common share:
         Net income Per
          common share        $0.00         $0.01        $0.01        $0.03
                         ==========    ==========   ==========   ==========
         Weighted
          average
          common
          shares
          outstanding    27,225,313    28,197,107   27,646,431   28,177,070
                         ==========    ==========   ==========   ==========

    Diluted net income
     per common share:
         Net income
          Per common
          share               $0.00         $0.01        $0.01        $0.03
                         ==========    ==========   ==========   ==========
         Weighted
          average
          common
          shares
          outstanding    27,965,413    32,265,182   29,559,847   33,238,644
                         ==========    ==========   ==========   ==========

SOURCE GVI Security Solutions, Inc.

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