Paragon Joint Venture Awarded $19 Million Government Contract
General
Posted: May 4, 2006
JV Selected to Secure Social Security Administration
Metro West Complex
Metro West Complex
ATLANTA – Thursday, May 4, 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., has been chosen by the Social Security Administration (SSA) to provide security services to its Metro West Complex in Baltimore, MD. The joint venture, called Southeastern Paragon (SEP), won the award for a base year plus four one-year extension periods; the contract is expected to generate approximately $19 million in revenues for SEP over five years.
The SSA contract, estimated to begin on June 1, 2006, requires SEP to supply both armed and unarmed guards to the north and south blocks of SSA’s Metro West Complex, one of the largest SSA facilities in the country. This is the second contract awarded to SEP in the past 30 days and the fourth new contract award for Paragon Systems since Jan. 1, 2006. Paragon Systems’ new business contracts awarded year-to-date have an estimated value of $45 million in revenues over five years.
“Our partnership between Southeastern Protective Services and Paragon Systems is a joining of two strong companies,” said Marty Melton, president of Southeastern Protective Services Corp. and SEP. “We are proud to partner with Paragon Systems where our organization can continue to learn and grow. We are also proud that the Social Security Administration has selected our joint venture to secure their Metro West Complex. We take great honor is protecting this important facility.”
“We are excited that the Social Security Administration has selected SEP as its security services provider,” said Leslie Kaciban, Jr., president of Paragon Systems. “Our joint venture was established under the Small Business Administration’s Mentor Protégé Program and the relationship is already producing great success and added value for our customers. We look forward to providing the Social Security Administration the same critical customer service we provide all our federal government clients.”
The mission of the SSA is to advance the economic security of the nation's people through compassionate and vigilant leadership in shaping and managing America's Social Security programs. When the Social Security Act was signed into law by President Franklin Roosevelt on August 14, 1935, it established a social insurance program designed to pay retired workers age 65 or older a continuing income after retirement. Today, the SSA is comprised of over 65,000 employees and is responsible for a wide variety of tasks such as the distribution of retirement benefits, social security numbers/cards and disability benefits. Many of these functions have their foundation in the Baltimore complex SEP will secure.
“This contract award is a great testament to the management of SEP,” said Ronald Farrell, CEO, Tri-S Security Corp. “We are quite pleased with the success rate of new contract awards thus far in 2006 for Paragon Systems and we are looking forward to similar continued results throughout the remainder of the year. SEP is a strong partnership and we are looking forward to expanding this relationship into even more business.”
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
The SSA contract, estimated to begin on June 1, 2006, requires SEP to supply both armed and unarmed guards to the north and south blocks of SSA’s Metro West Complex, one of the largest SSA facilities in the country. This is the second contract awarded to SEP in the past 30 days and the fourth new contract award for Paragon Systems since Jan. 1, 2006. Paragon Systems’ new business contracts awarded year-to-date have an estimated value of $45 million in revenues over five years.
“Our partnership between Southeastern Protective Services and Paragon Systems is a joining of two strong companies,” said Marty Melton, president of Southeastern Protective Services Corp. and SEP. “We are proud to partner with Paragon Systems where our organization can continue to learn and grow. We are also proud that the Social Security Administration has selected our joint venture to secure their Metro West Complex. We take great honor is protecting this important facility.”
“We are excited that the Social Security Administration has selected SEP as its security services provider,” said Leslie Kaciban, Jr., president of Paragon Systems. “Our joint venture was established under the Small Business Administration’s Mentor Protégé Program and the relationship is already producing great success and added value for our customers. We look forward to providing the Social Security Administration the same critical customer service we provide all our federal government clients.”
The mission of the SSA is to advance the economic security of the nation's people through compassionate and vigilant leadership in shaping and managing America's Social Security programs. When the Social Security Act was signed into law by President Franklin Roosevelt on August 14, 1935, it established a social insurance program designed to pay retired workers age 65 or older a continuing income after retirement. Today, the SSA is comprised of over 65,000 employees and is responsible for a wide variety of tasks such as the distribution of retirement benefits, social security numbers/cards and disability benefits. Many of these functions have their foundation in the Baltimore complex SEP will secure.
“This contract award is a great testament to the management of SEP,” said Ronald Farrell, CEO, Tri-S Security Corp. “We are quite pleased with the success rate of new contract awards thus far in 2006 for Paragon Systems and we are looking forward to similar continued results throughout the remainder of the year. SEP is a strong partnership and we are looking forward to expanding this relationship into even more business.”
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