HOMELAND SECURITY CAPITAL CORP. ACQUIRES NEXUS TECHNOLOGIES GROUP
            Nexus Expected to Generate More Than $10M in 2006 Revenue

      ARLINGTON, VA, FEBRUARY 8, 2006 -- Homeland Security Capital Corp. (OTC
      Bulletin Board: HMSC), a company focused on acquiring, developing and
      consolidating homeland security-related businesses, announced today that
      it has acquired Nexus Technologies Group, Inc. (http://www.nexusna.com) in
      a merger transaction with a subsidiary of Homeland Security Capital.

      Nexus is a mid-Atlantic security integrator for the corporate and
      governmental security markets with estimated revenue in excess of $5.4
      million and normalized EBITDA of $450,000 for the fiscal year ending
      December 31, 2005. Based in Hawthorne, N.Y., Nexus was established in 2004
      and has 22 employees. The company specializes in non-proprietary
      integrated security solutions, including access control, alarm, video,
      communication, perimeter protection and bomb and metal detection security
      systems.

      C. Thomas McMillen, Homeland Security Capital Corp. chairman and CEO,
      said, "Nexus is a highly respected security integrator with experienced
      management. We believe Nexus is an excellent platform company to drive
      consolidation in the fast-growing and extremely fragmented security
      integration sector with more than 13,000 industry participants. Nexus is
      expected to generate more than $10M in revenue in 2006. We look forward to
      working with Steve Robinson and his seasoned team to grow Nexus
      organically and through acquisitions."

      Steve Robinson, CEO of Nexus, said, "I and the rest of our management team
      will be working with Tom to build shareholder value over the next few
      years. We believe that combining our operational experience with Homeland
      Security Capital's capital and business development support should
      position us for success as we execute our consolidation strategy for this
      industry."

      In connection with the acquisition, additional funding of $4 million for
      working capital has been provided by Cornell Capital Partners to Homeland
      Security Capital in the form of a convertible debenture. The debenture is
      convertible into Homeland Security Capital's common stock at the lower of
      $0.01 per share or a 10% discount to the volume weighted average price of
      the company's common stock during the 30 days prior to conversion. Cornell
      Capital is limited in such conversion to owning not more than 4.99%

      ABOUT NEXUS TECHNOLOGIES GROUP Nexus Technologies Group, headquartered in
      Hawthorne, N.Y., provides integrated security solutions for the corporate




      and government security markets. A division of Corporate Security
      Solutions, Nexus Technologies Group is a privately held company, offering
      its own brand of security integration, which leverages more than a
      combined 50 years of industry experience while providing a unique
      solutions perspective. Ultimately, with cutting-edge technologies, Nexus
      provides innovative, engineered and scaleable solutions to effectively
      protect people, property and assets. For more information, visit
      http://www.nexusna.com.

      ABOUT HOMELAND SECURITY CAPITAL Homeland Security Capital is a
      consolidator in the fragmented homeland security industry. The company is
      focused on creating long-term value by taking controlling interest and
      developing its subsidiary companies through superior operations and
      management. The company is headed by former Congressman C. Thomas
      McMillen, who served three consecutive terms in the U.S. House of
      Representatives from the 4th Congressional District of Maryland. HSCC
      intends to operate businesses that provide homeland security product and
      service solutions, growing organically and by acquisitions. The company is
      targeting emerging companies that are generating revenues from promising
      security products and services but face challenges in scaling their
      businesses to capitalize on homeland security opportunities. HSCC will
      enhance the operations of these companies by helping them generate new
      business, grow revenues and improve cash flows.

      An investment profile about Homeland Security Capital may be found at
      http://www.hawkassociates.com/Homelandsecurity/profile.htm.

      For investor relations information regarding Homeland Security Capital
      Corp., contact Frank Hawkins or Julie Marshall, Hawk Associates, at (305)
      451-1888, e-mail: info@hawkassociates.com. An online investor kit
      including press releases, current price quotes, stock charts and other
      valuable information for investors may be found at
      http://www.hawkassociates.com and http://www.americanmicrocaps.com.

      Forward-looking statement: This release includes certain statements that
      may be deemed to be "forward-looking statements" within the meaning of the
      Private Securities Litigation Reform Act of 1995. All statements in this
      release, other than statements of historical facts, that address future
      activities, performance, events or developments, are forward-looking
      statements. Although Homeland Security Capital Corporation believes the
      expectations expressed in such forward-looking statements are based on
      reasonable assumptions, such statements are not guarantees of future
      performance, and actual results or developments may differ materially from
      those in the forward-looking statements.

      Company Contact:
      Homeland Security Capital Corporation
      C. Thomas McMillen
      (703) 528-7073
      tmcmillen@hscapcorp.com

      Investor Relations:




      Hawk Associates Inc.
      Frank Hawkins or Julie Marshall
      (305) 451-1888
      info@hawkassociates.com