Ziinga - Extended Stock Announcement

Nio Security, Inc. ("Nio") announced on 19 October
2011 that the Company is expanding its business into
auctions on the Internet. Nio has entered into an
agreement to acquire the company controlling the
Ziinga.com Internet auction site. The acquisition
provides Nio with a strong cash flow.

This extended stock announcement has been issued as
required by the Norwegian Securities Trading Act.

Through the acquisition Nio establishes a second
business area, alongside its sophisticated video
surveillance business. Nio's strategy is to expand
the Company's operations by accessing 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. 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.

As part of the transaction, 25,800,000 of the
outstanding warrants in Nio will be cancelled.

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

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

For more details please see the enclosed extended
stock announcement, which is prepared according to
Oslo Børs' continuing obligations, chapter 3.4.

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 Stated 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.