Exhibit 99.1
ARGYLE SECURITY, INC. ANNOUNCES DEREGISTRATION OF COMMON STOCK, WARRANTS AND UNITS
SAN ANTONIO, March 30, 2010 /PRNewswire via COMTEX/ — Argyle Security, Inc., (OTC Bulletin Board:
ARGL) (the “Company”), a service and solutions provider in the physical and electronic security
industry, announced that it has voluntarily deregistered its common stock, warrants and units
consisting of common stock and warrants and suspended its reporting obligations under the federal
securities laws by filing today a Form 15 with the Securities and Exchange Commission (“SEC”). The
Company is eligible to deregister these securities because it has fewer than 300 holders of record
of each class of these securities.
Upon the filing of the Form 15, the Company’s obligation to file certain reports with the SEC,
including Forms 10-K, 10-Q and 8-K, will be suspended immediately, and deregistration of the
securities is expected to be effective within 90 days after the filing of the Form 15.
The Company is taking these actions consistent with its heightened focus on cash management and
cost and expense containment initiatives stemming from its 2009 financial results that it plans to
submit to the OTC Disclosure and News Service not later than mid April 2010 as described below.
Deregistration is expected to reduce significant financial and administrative burdens associated
with being a SEC reporting company and related regulatory compliance under the Sarbanes-Oxley Act
of 2002 (“SOX”), including under Section 404 of SOX that is currently scheduled to be applicable to
the Company this year. As a result of deregistration of its securities, the Company will not
conduct the proposed rights offering to purchase shares of its common stock as previously reported
by the Company. In addition, the Company has no current plans to conduct any other “qualified
equity offering” as previously described and reported by the Company in connection with its
December 2009 refinancing transactions.
In connection with the Company’s decision to deregister its securities, the Company and its
independent director negotiated a limited standstill agreement through the end of 2010, subject to
certain exceptions, with the Company’s largest stockholder. In addition, the Company agreed to
provide annual and quarterly financial statements through the OTC Disclosure and News Service at
least through its 2010 annual financial statements. The Company plans to submit its audited
financial statements for the year ended December 31, 2009 for dissemination on the OTC Disclosure
and News Service not later than mid April 2010. Due to its prior SEC reporting and the reporting
of its annual and quarterly financial statements through the OTC Disclosure and News Service, the
Company anticipates that its common stock, units and warrants will continue to be eligible to be
quoted on the Pink Sheets in the near term, however, there can be no assurances that any broker
will make a market in the Company’s common stock or other securities.
Sam Youngblood, the President and Chief Executive Officer of the Company, commented: “After careful
consideration, the Company took this action because we believe that the costs associated with being
a SEC reporting company significantly outweigh the benefits to the Company and our stakeholders,
particularly in light of the Company’s size, small market capitalization and thin trading of our
securities.”
About Argyle Security, Inc.
Based in San Antonio, TX, Argyle is a provider of services and solutions in the physical electronic
security industry. Argyle’s Corrections division is the controlling entity for business units
consisting of ISI, PDI, Com-Tec and MCS, and is one of the nation’s largest providers of detention
equipment products and service solutions, as well as turnkey, electronic security systems. These
systems include unique engineering competencies and proprietary software products. Argyle’s
Commercial division, consisting of MCS-Commercial Fire & Security and MCS Federal Systems focuses
on the commercial security sector and provides turnkey, electronic security systems to the
commercial and government markets. Please visit www.argylesecurity.com for additional information
on Argyle.
Safe Harbor
Certain statements in this press release constitute forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, as amended. When used in this press
release, words such as “will,” “believe,” “expect,” “anticipate,” “encouraged,” “foresees,”
“forecasts,” “estimates” and similar expressions, as they relate to the company or its management,
as well as assumptions made by and information currently available to the Company’s management
identify forward-looking statements. The forward-looking statements are subject to risks and
uncertainties, including the Company’s ability to successfully implement its cash management and
cost and expense containment initiatives, the Company’s ability to have its common stock or other
securities traded on the Pink Sheets, the scope and timing of reporting future financial results,
downturns in economic conditions generally, the Company’s business or the state of the corporate
credit markets. Consider these factors carefully in evaluating the forward-looking statements. The
risk factors listed in the Company’s Form 10-K for the year ended December 31, 2008 and
subsequently filed Forms 10-Q and 8-K or the information submitted to and disseminated by the OTC
Disclosure and News Service also provide, or will provide, examples of risks, uncertainties and
events that could cause actual results to differ materially from those contained in forward-looking
statements. The forward-looking statements made herein are only made as of the date of this press
release and the Company undertakes no obligation to publicly update such forward-looking statements
and is not responsible for changes made to this press release for Internet or wire services.
CONTACT:
Argyle Security, Inc.
Sam Youngblood, President and CEO of Argyle Security, Inc.
(210) 495-5245
http://www.argylesecurity.com