Mr. Bill Frain reports

LIBERTY DEFENSE ANNOUNCES FACTORING AGREEMENT TO SUPPORT IMPROVED WORKING CAPITAL CREDIT FACILITY UP TO $10M USD

Liberty Defense Holdings Ltd. has finalized an accounts receivable-based factoring agreement with a well-established financial firm that will advance capital to the company.

Highlights:

• Liberty will leverage accounts receivables from commercial product sales to support working capital needs;
• The agreement provides immediate access to cash flow to support production of inventory to meet continuing demand;
• The agreement is to finance purchase orders from $1-million and up to $10-million.

"This factoring agreement gives us a source of non-dilutive funding that helps us advance our go-to-market objectives," said Bill Frain, chief executive officer of Liberty Defense. "The ongoing demand we are seeing for Hexwave in the marketplace is driving the need to manufacture more product and manage our working capital in support of sales."

The company is currently in sales discussions with organizations that range from airports, professional sports, universities, a national laboratory, state legislatures and a large religious centre, and has recently sold systems to The Greater Toronto Airports Authority for use at Toronto Pearson International Airport.

About Liberty Defense Holdings Ltd.

Liberty Defense provides multitechnology security solutions for concealed weapons detection in high-volume-foot-traffic areas and locations requiring enhanced security such as airports, stadiums, schools and more. Liberty's Hexwave product, for which the company has secured an exclusive licence from Massachusetts Institute of Technology (MIT) as well as a technology transfer agreement for patents related to active 3-D radar imaging technology, provides discrete, modular and scalable protection to provide layered, standoff detection capability of metallic and non-metallic weapons. Liberty has also recently licensed the millimetre-wave-based, high-definition advanced imaging technology (HD-AIT) body scanner and shoe scanner technologies as part of its technology portfolio. Liberty is committed to protecting communities and preserving peace of mind through superior security detection solutions.

We seek Safe Harbor.