Nio Security expands into Internet auctions

Nio Security, Inc. is expanding its business into
auctions on the Internet. Nio has entered into an
agreement to acquire Flamingo Intervest Ltd, the
owner of the Ziinga.com Internet auction site.
Flamingo is free of debt, and the acquisition
provides Nio with a strong cash flow.

Through the acquisition Nio establishes a second
business area, alongside its sophisticated video
surveillance business. Nio's strategy is to expand
the Company into dynamic areas with a strong cash
flow.

Ziinga.com is an Internet auction service currently
serving 875,000 users in 17 countries, and the
membership base is expanding rapidly. Ziinga is an
entertainment shopping website, with a concept
different from traditional Internet auctions. Ziinga
subscribers buy pre-purchased bids in order to bid
for consumer brand products and the successful bidder
of the auction is the last person to bid before the
auction ends. The successful bidder may end up paying
a fraction of the product's retail price.

The Ziinga site generated an EBITDA of NOK 15 million
in 2010 and the Ziinga owners expect a 2011 EBITDA of
NOK 25 million and further growth in 2012.

Nio Security will acquire Flamingo Intervest Ltd., a
company incorporated under the laws of British Virgin
Islands ("Flamingo"), which is the 100% owner of the
Ziinga site. Upon closing of the transaction, Nio
will issue 60 million new Nio shares as consideration
for all shares in Flamingo. The number of outstanding
shares in Nio Security after the transaction will be
105,634,309.

In addition, up to a maximum of 40 million shares
will be issued in 2012, pending Flamingo's 2011
performance. If Flamingo reaches an EBITDA of NOK 25
million or more, this will result in the maximum
payment of 40 million shares, and if the 2011 EBITDA
is lower than NOK 25 million, the second payment will
be reduced by three shares for each NOK 1.00
reduction in EBITDA.

As part of the transaction, 25,800,000 of the
outstanding warrants in Nio will be cancelled,
whereof 10,800,000 have a strike price of NOK 2.50
and 15,000,000 have a strike price of NOK 5.00.

The agreement is subject to due diligence and
approval by Nio Security's Board of Directors. Nio
Security will obtain necessary company resolutions in
accordance with applicable law.

The acquisition is expected to be completed by the
end of
November 2011.

An Information Memorandum will be issued as required
by the Oslo Stock Exchange.

For further information please contact Tore Formo,
CEO, +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 States and listed on the Oslo Stock
Exchange (ticker: NIO).
The information is subject of the disclosure
requirements pursuant to section 5-12 of the
Norwegian Securities Trading Act.