Paragon Awarded $8 Million Government Contract
General
Posted: May 8, 2006
JV to Secure Social Security Administration
Wilkes-Barre Facility
Wilkes-Barre Facility
ATLANTA – Monday, May 8 2006 – Tri-S Security Corp. (NASDAQ: TRIS), a provider of security services and equipment for federal government and private entities, today announced its subsidiary, Paragon Systems, Inc., through a joint venture with Southeastern Protective Services Corp. called Southeastern Paragon (SEP), has been awarded a security services contract by the Social Security Administration (SSA). The joint venture contract requires SEP to protect its Wilkes-Barre Complex in Wilkes-Barre, PA. Expected to generate approximately $8 million in revenues for SEP over five years, the contract timeframe is for one base year plus four one-year extension options.
SEP will provide both armed and unarmed security guards to the Wilkes-Barre facility. Preparations for providing services under the new contract are underway but physical work on-site is estimated to commence on June 1, 2006. This is the second SSA contract awarded to SEP in the past 30 days and the fifth new contract award for Paragon Systems and affiliates since Jan. 1, 2006. SEP’s estimated revenues from contract wins in 2006 are $27 million over five years; Paragon Systems’ contracts awarded year-to-date have an estimated value of $49 million in revenues over five years.
“We are proud to be a strong supporter of the Social Security Administration and we are excited that it sees the value in our joint venture security force,” said Marty Melton, president of Southeastern Protective Services Corp. and SEP. “Working with Paragon Systems under the Small Business Administration’s Mentor Protégé program has been an enriching experience for our organization and we are looking forward to continuing our success together.”
“It is a great testament to our mission here at Paragon and SEP that the Social Security Administration has entrusted us with another security contract,” said Leslie Kaciban, Jr., president of Paragon Systems. “Along with Southeastern Protective Services, we strive to provide the highest level of security services to our federal government clients. This partnership has strong synergies and it is gratifying that the SSA recognizes our joint commitment to them.”
“We are quite pleased with the success our SEP joint venture has seen in 2006 thus far,” said Ronald Farrell, CEO, Tri-S Security Corp. “As we continue to increase the value of our security services offering, we look forward to continuing the great path Paragon Systems and SEP have laid. We value our relationships with the federal government and are anxious to continue obtaining new contracts so that we might bring our company’s mission into fruition.”
About Southeastern Paragon (SEP)
Southeastern Paragon is the product of a joint venture between Southeastern Protective Services, Inc., a small business concern in good standing in the Small Business Administration’s 8(a) business development program, and its mentor, Paragon Systems, Inc. Formed through an approved Mentor/Protégé Agreement in accordance with Title 13, Section 124 of the Code of Federal Regulations, Southeastern Paragon was created for the exclusive purpose of providing security services to the Social Security Administration, utilizing the considerable financial, operational and managerial resources and experience of both principal ventures.
About Tri-S Security Corp.
Based in Atlanta, GA, Tri-S Security Corp. (NASDAQ: TRIS) is a provider of security services and equipment for government and private entities spanning a wide range of industries. Security services include uniformed guards, electronic monitoring systems, personnel protection, access control, crowd control and the prevention of sabotage, terrorist and criminal activities. As a leading aggregator of elite security companies, Tri-S Security is designed to build a strong enterprise in which to service a unique customer base that ensures America’s safety at home and work. Tri-S Security assumes responsibility for the marketing, infrastructure and overall operational performance for its subsidiaries. Tri-S Security’s management leverages highly trained government officers, experienced industry leaders, proven financial executives and infrastructure experts to consolidate the fragmented security industry into one efficient and effective security force.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Federal securities laws. Forward-looking statements are commonly identified by such terms and phrases as “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “projects” and other terms with similar meaning indicating potential impact on our business. Although we believe that the assumptions upon which such forward looking statements are based are reasonable, we can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from our projections and expectations are disclosed in our filings with the Securities and Exchange Commission, including the “Risk Factors” section set forth in our Annual Report on Form 10-K for the year ended December 31, 2005. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to their underlying assumptions. We do not undertake to publicly update the forward-looking statements contained herein to conform to actual results or changes in our expectations, whether as a result of new information, future events or otherwise. You may obtain and review our filings with the Securities and Exchange Commissions by visiting http://www.sec.gov.
Media Contact:
Tri-S Security Corp.
Ginger Lightburn, 678-808-1540, x 111
gingerlightburn@trissecurity.com
SEP will provide both armed and unarmed security guards to the Wilkes-Barre facility. Preparations for providing services under the new contract are underway but physical work on-site is estimated to commence on June 1, 2006. This is the second SSA contract awarded to SEP in the past 30 days and the fifth new contract award for Paragon Systems and affiliates since Jan. 1, 2006. SEP’s estimated revenues from contract wins in 2006 are $27 million over five years; Paragon Systems’ contracts awarded year-to-date have an estimated value of $49 million in revenues over five years.
“We are proud to be a strong supporter of the Social Security Administration and we are excited that it sees the value in our joint venture security force,” said Marty Melton, president of Southeastern Protective Services Corp. and SEP. “Working with Paragon Systems under the Small Business Administration’s Mentor Protégé program has been an enriching experience for our organization and we are looking forward to continuing our success together.”
“It is a great testament to our mission here at Paragon and SEP that the Social Security Administration has entrusted us with another security contract,” said Leslie Kaciban, Jr., president of Paragon Systems. “Along with Southeastern Protective Services, we strive to provide the highest level of security services to our federal government clients. This partnership has strong synergies and it is gratifying that the SSA recognizes our joint commitment to them.”
“We are quite pleased with the success our SEP joint venture has seen in 2006 thus far,” said Ronald Farrell, CEO, Tri-S Security Corp. “As we continue to increase the value of our security services offering, we look forward to continuing the great path Paragon Systems and SEP have laid. We value our relationships with the federal government and are anxious to continue obtaining new contracts so that we might bring our company’s mission into fruition.”
About Southeastern Paragon (SEP)
Southeastern Paragon is the product of a joint venture between Southeastern Protective Services, Inc., a small business concern in good standing in the Small Business Administration’s 8(a) business development program, and its mentor, Paragon Systems, Inc. Formed through an approved Mentor/Protégé Agreement in accordance with Title 13, Section 124 of the Code of Federal Regulations, Southeastern Paragon was created for the exclusive purpose of providing security services to the Social Security Administration, utilizing the considerable financial, operational and managerial resources and experience of both principal ventures.
About Tri-S Security Corp.
Based in Atlanta, GA, Tri-S Security Corp. (NASDAQ: TRIS) is a provider of security services and equipment for government and private entities spanning a wide range of industries. Security services include uniformed guards, electronic monitoring systems, personnel protection, access control, crowd control and the prevention of sabotage, terrorist and criminal activities. As a leading aggregator of elite security companies, Tri-S Security is designed to build a strong enterprise in which to service a unique customer base that ensures America’s safety at home and work. Tri-S Security assumes responsibility for the marketing, infrastructure and overall operational performance for its subsidiaries. Tri-S Security’s management leverages highly trained government officers, experienced industry leaders, proven financial executives and infrastructure experts to consolidate the fragmented security industry into one efficient and effective security force.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Federal securities laws. Forward-looking statements are commonly identified by such terms and phrases as “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “projects” and other terms with similar meaning indicating potential impact on our business. Although we believe that the assumptions upon which such forward looking statements are based are reasonable, we can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from our projections and expectations are disclosed in our filings with the Securities and Exchange Commission, including the “Risk Factors” section set forth in our Annual Report on Form 10-K for the year ended December 31, 2005. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to their underlying assumptions. We do not undertake to publicly update the forward-looking statements contained herein to conform to actual results or changes in our expectations, whether as a result of new information, future events or otherwise. You may obtain and review our filings with the Securities and Exchange Commissions by visiting http://www.sec.gov.
Media Contact:
Tri-S Security Corp.
Ginger Lightburn, 678-808-1540, x 111
gingerlightburn@trissecurity.com