Q2 2011 Interim Report

In the second quarter of 2011, Nio Security continued
to expand its international market reach through the
cooperation with partners in the security industry.

United States is still Nio's largest market, with
around 70 per cent of the sales in the first six
months of 2011. In the Nordic markets, comprehensive
training on Nio products was conducted, and our
distributors are now integrating Nio products into
their security offerings. In addition, new
distribution channels are being established for
Israel, Russia and Singapore, and the Company remains
on track towards increasing revenue and reaching
profitability.

Nio's sales in the second quarter ended at USD
84,133, with a gross margin of 68 per cent. Operating
expenses are continuing to improve, and result from
operations improved from the second quarter last
year.

See attached Q2-2011 Interim Report.

For further Information contact Tore Formo (CEO) +47
91 668 678.