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Security Stock Trends Discussed With John E. Mack III, Co-founder and CEO of USBX Inc., In Interview With

RYE BROOK, N.Y.--(BUSINESS WIRE)--May 13, 2004--An exclusive interview with John E. Mack III, Co-founder and CEO of USBX Inc., an investment bank with a significant focus on the security industry, and former CEO of Protection One (POIX), is available at

In describing recent developments and trends in the security industry, Mr. Mack, said, "We believe GE (GE) and other large conglomerates that are in the Security Industry today are going to continue to be acquisitive... industrial companies like GE and Honeywell (HON) and others...see the growth in the security sector... natural opportunity for growth in their operations."

"The Dept. of Homeland Security has allocated incrementally probably somewhere in the neighborhood of $4-8 billion dollars of new additional spending that can ultimately get out to the private sector in the form of additional equipment and services that are being offered to government. A big part of the $40 billion plus Dept. of Homeland Security budget that we hear referenced quite often consists of existing budgets that were consolidated from other departments and don't really represent entirely new spending -- but certainly even the $4-8 plus billion of net incremental investment in technology and services is significant."

Regarding the growing trend of end users seeking to combine physical access with logical access for a simpler total solution, Mr. Mack added, "I suggest that there is a fairly significant focus on this concept, and I actually foresee an intersection of this business opportunity with a company like Viisage (VISG), which has had a very significant run recently based on their focus in building the leading high-tech ID solutions business."

According to Deborah Gilbert, President of, "Security companies no doubt have a tremendous opportunity in this environment. The questions remains; however, which companies are making money?

The Second Quarter 2004 Profitability Survey for 250+ Security Stocks, answers that question and we believe it is the most comprehensive Profit Survey of Security Stocks available anywhere with profit data on more than 250 publicly traded security companies from large cap to micro cap. In this report, Boeing (BA) is among the most profitable companies."