Q1 2011 Interim Report - positive outlook

In the first quarter of 2011, Nio Security continued
to expand its international market reach through the
cooperation with partners in the security industry.
The pipeline of firm and potential future sales,
constituted by received orders and distributor
agreements, remained attractive and the Company
remains on track towards increasing revenue and
reaching profitability.

Comprehensive training on Nio products has been
conducted, and several sales representatives and
technicians from our distribution partners have been
educated. This training process has taken more time
than first anticipated, however the distributors have
now integrated Nio's products into their security
offerings and are currently ramping up sales.

Nio is again experiencing strong interest from United
States customers which traditionally has been Nio's
largest market, and expects growth in this region as
a result of our sales and marketing efforts towards
our dealer network.

Nio's sales in the first quarter were USD 102
thousand, which a slight improvement over last year's
first quarter. Margins developed positively and the
net loss for the quarter ended at USD 614 thousand,
which is a USD 120 thousand improvement from last
year.

See attached Q1-2011 Interim Report. For further
information please contact Tore Formo (CEO) +47 91
668 678.