ReleaseWire

Universal Guardian Delivers 95% Revenue Increase and 283% Gross Profit Increase for Q1 2006 over Q1 2005

We continue to deliver consistent financial performance with an increase of 95% in revenues to $5.393 million as compared to $2.764 million in the 1st quarter of 2005. Gross profit increased 283% to $3.061 million as compared to $797 thousand in the 1st quarter of 2005

Posted: Thursday, May 25, 2006 at 10:19 AM CDT

Newport Beach, CA -- (ReleaseWire) -- 05/25/2006 --Universal Guardian Holdings, Inc. (OTC: UGHO) (BULLETIN BOARD: UGHO) , an emerging global leader in inter-modal transportation security, global supply chain RFID systems, tactical products and security services to protect against business against criminal, terrorist, and security threats, today announced that it has delivered record financial performance with $5.39 million in revenue and significant bottom line improvement for Q1 2006.

"We continue to deliver consistent financial performance with an increase of 95% in revenues to $5.393 million as compared to $2.764 million in the 1st quarter of 2005. Gross profit increased 283% to $3.061 million as compared to $797 thousand in the 1st quarter of 2005. Our continued revenue growth as well our cost of revenue remaining stable coupled with the dramatic increase in gross profit over the last 7 quarters shows our continued advance toward profitability," stated Michael Skellern, CEO of Universal Guardian. "With more than $20 million in signed contracts already in-hand and the continued acceptance of our new non-lethal products and ground-breaking proprietary asset identification, authentication and monitoring technologies, container tracking and RFID supply chain management systems, we again expect to meet or exceed our public announced revenue projections of $35 Million for FY2006. We also expect to make mid-year guidance announcements regarding 2006 revenue increases, positive cash flow and year-end profitability," continued Mr. Skellern.

About Universal Guardian Holdings

Universal Guardian Holdings, Inc. (UGHO) and its subsidiaries provide a comprehensive range of products, systems, and services designed to mitigate terrorist and security threats worldwide. Universal Guardian's global risks mitigation group includes strategic and tactical security services, integrated and interoperable asset identification, authentication and monitoring systems for government and industry. Universal's non-lethal products include escalating, non-lethal, use-of-force tools for law enforcement, military, security and consumer markets. Universal Guardian companies features a wide variety of applications that provide cost-effective, end-to-end solutions for government and multi-national businesses from operations on every continent. http://www.universalguardian.com/

About Universal Guardian Products

Universal Guardian's Product Group, develops and produces safe and effective non-lethal products and systems that provide law enforcement, military, professional security and consumers with immediate offensive and defensive escalating use-of-force options in several threat environments. The Cobra StunLight™ "Stops Suspects in their Tracks". http://www.shielddefense.com/

About Universal Guardian Systems

Universal Guardian's Systems Group, ISR Systems Corporation, provides Asset Identification, Authentication and Monitoring platforms for a multitude of government and industry applications worldwide. UG Systems' integrated T/3 Platform™ and RFID Ready system provides secure end-to-end asset monitoring and management with real-time visibility and security for customers, shippers and regulatory agencies. http://www.isrsystems.com/

Safe Harbor Statement:

This news release contains certain forward-looking statements pertaining to future anticipated projected plans, performance and developments, as well as other statements relating to future operations and results. Any statements in this news release that are not statements of historical fact may be considered to be forward-looking statements. Written words such as "may," "will," "expect," "believe," "anticipate," "estimate," "intends," "goal," "objective," "seek," "attempt," or variations of these or similar words, identify forward-looking statements. These statements by their nature are estimates of future results only and involve substantial risks and uncertainties, including those detailed from time to time in Universal Guardian Holdings, Inc.'s reports filed with the Securities and Exchange Commission. There can be no assurance that actual results will not differ materially from expectations. These risks factors include potential customer interest in the sale and delivery of its SeaPort Guardian™, Container Guardian™, SupplyChain Guardian™ as well as the production and sale of Cobra StunLight™ and Riot Defender™ and their accessories.

Further information is available on the Company's website: http://www.universalguardian.com/

Investor Relations Contact:

Investor Relations
Universal Guardian Holdings, Inc.
4695 MacArthur Court., Suite 300
Newport Beach, CA USA 92626
+ 1 949. 861.8295 ext. 211

Company Contact:
Michael J. Skellern, CEO
Universal Guardian Holdings, Inc.
4695 MacArthur Court, Suite 300
Newport Beach, CA USA 92626
+ 1 949. 861.8295

SOURCE: Universal Guardian Holdings, Inc.

CONTACT: Investor Relations, +1-949-861-8295, ext. 211, or Michael J.
Skellern, CEO, +1-949-861-8295, both of Universal Guardian Holdings, Inc.

Web site: http://www.isrsystems.com/

Web site: http://www.shielddefense.com/

Web site: http://www.universalguardian.com/

Key Contacts

Manager of
Investor Relations,
Universal Guardian Holdings
Phone: +1.949.861.8219
investor@universalguardian...