While Tri-S Security Corporation is structured to serve corporate as well as government clients, we are pleased to have a particularly strong relationship with the federal agencies we serve. Through our operating unit Paragon Systems, we have extensive contracts with the Department of Homeland Security. These contracts include guard services for US military facilities, law enforcement facilities, NASA and the Social Security Administration.

Our employees receive numerous commendations and awards. This is one reason why, during the year ended December 31, 2004, the federal government exercised option renewals for eleven of our existing contracts and an extension on another, which should generate aggregate annual recurring revenue of approximately $30.0 million for 2005.

Our services include providing uniformed and armed guards for access control, personnel protection, plant security, theft prevention, surveillance, vehicular and foot patrol, crowd control and the prevention of sabotage, terrorist and criminal activities. In connection with providing these services, we assume responsibility for a variety of functions, including recruiting, hiring, training and supervising security guards deployed to the federal agencies we serve. We strive to provide cost-effective solutions to ensure the safety and security of the assets of our customers and to continually improve the protection we provide for their personnel, programs, resources and facilities.