Exhibit 99.1

For Immediate Release

 TRACEGUARD TO LAUNCH COMPACTSAFE(TM) SYSTEM FOR AUTOMATED TRACE EXTRACTION OF
                          EXPLOSIVES FOR COMPACT ITEMS

- -Company announces development of breakthrough system for screening complex,
sophisticated devices in order to advance aviation security-

New York - August 22, 2006 - TraceGuard Technologies Inc. (OTC BB:TCGD), a
developer of innovative security technologies and solutions, announced today
that the Company plans to launch CompactSafe(TM), a unique system fOr inspecting
compact electronic items at passenger checkpoints at airports and other
transportation hubs. CompactSafe(TM) is based on TraceGuard's proprietary
automated trace explosive extraction method, which extractS traces of explosives
and other hazardous materials from both the internal contents and external
surfaces of inspected items.

CompactSafe(TM), currently under development, is designed specifically to
extract explosives from items like laptops, medical devices and cameras. Because
of their small size and sophisticated internal components, these items pose a
considerable challenge for current screening technologies and methods.
CompactSafe(TM) performs a non-intrusive, non-destructive extraction of the air
molecules surrounding the inspected item, which allows for significantly
improved accuracy in removing traces of explosive materials. Additionally, the
automation of the screening process will allow the Transportation Security
Administration (TSA) and other security agencies to reduce manpower and
operating costs.

CompactSafe(TM) offers a unique solution to a serious threat and could
potentially become an industry standard at airports worldwide. There is
currently no system deployed for automated trace extraction for the items that
CompactSafe(TM) is designed to inspect. The system is intended to be used as an
addition to existing X-ray and detection equipment already deployed at airports,
and is expected to begin field evaluations by the end of 2006, assuming
completion of TraceGuard's internal testing.

"Clearly TraceGuard is at the cutting edge of trace extraction and detection
technology in a world ridden by terrorism and threats to security. As we move
ahead with a strong mergers and acquisitions strategy and creation of key
strategic alliances including ITL Optronics (TASE:ITL) and Rapiscan
(NASDAQ:OSIS), we remain committed to our mission of providing the most
effective solutions in the identification of hazardous materials and homeland
security. With CompactSafe(TM), we are committed to providing a unique solution
to a complex and challenging security dilemma." stated Dr. Ehud Ganani, Chairman
and Chief Executive Officer of TraceGuard.

Beyond aviation security, TraceGuard is also exploring additional applications
for CompactSafe(TM), including inspection at subways, rail and other
transportation hubs, as well as mail-sorting applications.




ABOUT TRACEGUARD

TraceGuard Technologies Inc. develops innovative security technologies and
solutions for explosives detection, a growth segment of the US and global
homeland security market. The Company's systems are designed to improve the
screening and detection of explosives, narcotics, biological contaminants and
other hazardous materials, and are targeted to meet the needs of airport and
aviation security agencies worldwide. By advancing the efficacy and efficiency
of trace extraction, TraceGuard's product suite offers dramatic improvement over
the current mechanisms in place at present.

TraceGuard is a US public company traded on the Over-The-Counter Bulletin Board
(TCGD.OB). The Company's management team has broad experience and expertise in
the international defense and homeland security sectors, including product
development and engineering, operations, marketing and business development.
TraceGuard is headquartered in New York and maintains a Research and Development
Center in Tel Aviv, Israel. For additional information on TraceGuard, please
contact TraceGuard at 1 866-401-5969 or at www.traceguard.com.

This press release contains forward-looking statements that involve a number of
risks and uncertainties. Forward-looking statements may be identified by the use
of forward-looking terminology such as: "may," "will," "expect," "believe,"
"estimate," "anticipate," "continue," or similar terms, variations of those
terms or the negative of those terms. Important factors that could cause actual
results to differ materially from those indicated by such forward-looking
statements are set forth in the Company's filings with the Securities and
Exchange Commission (SEC) and other filings and releases. These include
uncertainties relating to government regulation and approvals and those relating
to the development and introduction of new products.

MEDIA/INVESTOR INQUIRIES

FOR TRACEGUARD:

Cynthia DeMonte
DeMonte Associates
718-706-5005
cdemonte@demonte.com
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