Nio Q4 2010 Interim report - well prepared for sales growth

Nio Security, Inc. experienced improved margins also
in the fourth quarter and demonstrated that the
Company is moving towards increased sales and
profitability. Nio had a 29 per cent sales growth in
the fourth quarter compared to the same period the
previous year. Sales for the full year 2010 were
however at par with 2009.

Following the restructuring and refinancing of the
Company late 2009, Nio's gross margin has seen a
positive development through 2010. The fourth quarter
2009 gross margin of 14 per cent was turned into a 68
per cent gross margin in the last quarter of 2010.
Nio's cost base and manufacturing has been
stabilized, and the expected sales growth in 2011
will have immediate effect on the Company's financial
result. A net loss of USD 4.9 million in 2009 was
reduced to a net loss of USD 2.2 million in 2010.

During 2010, Nio security established a number of
partnerships with security vendors in Europe, most
recently in the fourth quarter with G4S, the world's
leading security company. Nio Security's order
backlog and the partnerships established combined are
expected to represent sales of more than USD 5
million over the next two years.

In January 2011, Nio Security completed a NOK 15
million private placement, securing working capital
for the increase in the Company's activities going
forward. The private placement was followed by a
subsequent offering towards existing shareholders in
February.

See attached Q4-2010 Interim Report. For further
information please contact Tore Formo (CFO) +47 91
668 678.

Nio Security, Inc. helps protect life and property
through the development and sales of sophisticated
video surveillance solutions. The Company's
technology is unrivalled and the main products, the
CloseView dynamic surveillance system and the
SteadyEye sophisticated video stabilising system, are
considered the most advanced video surveillance
systems available. Nio Security Inc is headquartered
in the United Stated and listed on the Oslo Stock
Exhange (ticker: NIO).