Homeland Security Capital Corp., Arlington, Va., a company focused on acquiring, developing and consolidating homeland security-related businesses, entered into an agreement to sell its majority-owned subsidiary, Security Holding Corp. to Vuance Ltd. (formerly SuperCom Ltd.), Qadima, Israel, a provider of incident management and active RFID solutions, for approximately $5.1 million in Vuance stock.

Security Holding Corp., which was formed by HMSC in August 2006, wholly owns two operating companies SecurityInc, LLC and Auto Access ID Security Solutions Inc. The closing is subject to certain conditions.

“This will be a good transaction for our company. For the approximately one year we have owned the company this investment has generated an internal rate of return to our shareholders of approximately 22.5 percent on our $3 million in Series A Preferred Stock,” said C. Thomas McMillen, chairman and CEO of Homeland Security Capital Corp.

“The experience that Security Holding Corp. has accumulated includes RFID-enabled applications that should be synergistic with our PureRF business initiative with respect to products, sales channels, marketing plans, positioning, logistics and operations. We believe the addition of Security Holding Corp.’s experienced management team will yield excellent results,”said Eyal Tuchman, CEO of Vuance Ltd.

Vuance Ltd. provides innovative incident management, RFID and credentialing solutions to the public safety, commercial and government sectors. For more information, visitwww.vuance.com.