Exhibit 99.1
 Homeland Security Logo FOR IMMEDIATE RELEASE HOMELAND SECURITY CAPITAL
CORPORATION
AGREES TO SELL ITS SUBSIDIARY,
SAFETY AND ECOLOGY HOLDINGS
CORPORATION,
TO PERMA-FIX ENVIRONMENTAL SERVICES, INC. FOR $24.5 MILLION ARLINGTON, VA — July 19,
2011 — Homeland Security Capital Corporation (OTCBB: HOMS,
“Homeland” or the “Company”), an international
provider of specialized technology-based radiological, nuclear, environmental,
disaster relief, electronic security solutions and domestic real estate
disposition services to government and commercial customers, announced today
that on July 15, 2011, it entered into a definitive agreement to sell all
of the capital stock of its wholly-owned subsidiary, Safety and Ecology
Holdings Corporation, to Perma-Fix Environmental Services, Inc. (NASDAQ: PESI)
for $24.5 million. The $24.5 million consideration
consists of (i) $22 million in cash, subject to working capital
adjustments, payable at closing, and (ii) a 3-year, unsecured promissory
note in the principal amount of $2.5 million, bearing interest at 6% per
year payable in 36 equal monthly installments. Of the cash consideration,
$2 million will be deposited into an escrow account for 24 months to
satisfy any indemnification claims under the agreement. As part of the
transaction, up to $1.25 million will be used to repurchase at least 90%
of the Company’s issued and outstanding Series I Convertible
Preferred Stock and up to 22,000,000 warrants, which the Company believes will
significantly enhance its capital structure. The sale, which has already
received the necessary approval of the Company’s stockholders under
applicable law, which approval will not be effective until at least 20
calendars days after an Information Statement has been furnished to the
Company’s stockholders in accordance with Rule 14c-2 under the
Securities Exchange Act of 1934, as amended, is expected to close no later than
August 30, 2011. SunTrust Robinson Humphrey acted as
exclusive financial advisor to Homeland Security Capital Corporation for the
transaction. C. Thomas McMillen, Chairman and
CEO, stated, “The sale of Safety and Ecology advances our plan to improve
our balance sheet by retiring debt and focus our efforts on new lines of
business.” Mr. McMillen further commented, “We have been
dedicated to maximizing shareholder value and this sale is another step toward
that goal.” Dr. Louis F. Centofanti, Chairman
and Chief Executive Officer, stated, “The acquisition of SEC dramatically
expands our nuclear services capabilities. On a combined basis, we can now offer customers, both government and
commercial, one of the broadest and most comprehensive end-to-end nuclear waste
solutions in the industry. We believe that this expansion of our nuclear
service capabilities, coupled with our existing nuclear waste treatment
expertise, clearly places us at the forefront of the industry and should
enhance our value to our customers and our shareholders. SEC brings a highly
qualified management team who we feel will integrate well and compliment our
current management.”  1




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About Homeland Security Capital
Corporation The company is focused on creating
long-term value by taking controlling interest and developing its subsidiary
companies through superior operations and management. Former Maryland
Congressman C. Thomas McMillen, who served three consecutive terms in the U.S.
House of Representatives from the 4th Congressional District of Maryland, heads
the company. Homeland Security Capital Corporation
operates businesses that provide products and services solutions, growing
organically and by acquisitions. The company is targeting emerging companies
that are generating revenues but face challenges in scaling their businesses to
capitalize on growth opportunities. Homeland Security Capital
Corporation’s portfolio of companies include: Safety and Ecology Corporationis an environmental services company in the U.S., providing services
nationally, in Europe and the Caribbean. The Company specializes in the removal
and remediation of hazardous nuclear materials for the U.S. Department of
Energy, U.S. Department of Defense, and other federal agencies. SEC also
provides advanced environmental services for private industry across the
country and internationally. Since its founding in 1991, SEC has grown
approximately 30 percent per year, and has emerged as a technology
innovator with more than 450 personnel worldwide and with annual revenues of
more than U.S. $70 million. For more information on SEC, visit
www.sec-tn.com. Nexus Technologies Group, a
mid-Atlantic security integrator for the corporate and governmental security
markets that specializes in non-proprietary integrated security solutions
including access control, alarm, video, communication, perimeter protection and
bomb and metal detection security systems. Utilizing cutting-edge technologies,
Nexus provides innovative, engineered and scalable solutions to effectively
protect people, property and assets. For more information about Nexus, visit
www.nexusna.com. Polimatrix, Inc.,a system
integrator and total solutions provider delivering advanced radiation and
nuclear protection and detection services. The company has been operating since
September 2006 as a joint venture between Homeland Security Capital
Corporation and Polimaster, Inc. For more information about Polimatrix, visit
www.polimatrix.com. Default Servicing USA, Inc.,a
supplier of national real estate-owned liquidation services to institutional
REO customers, including property inspection, valuation, eviction, broker
assignments, closing and other residential property services. For more information about Homeland
Security Capital Corporation, visit www.hscapcorp.com.  2




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Forward-Looking Statement This release includes certain
statements that may be deemed to be “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act of 1995. All
statements in this release, other than statements of historical facts, that
address future activities, performance, events or developments, are
forward-looking statements. Although the Company believes the expectations
expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance, and
actual results or developments may differ materially from those in the
forward-looking statements. Such forward-looking statements are current only as
of the date they are made, and we assume no obligation to update any
forward-looking statements, whether as a result of new information, future
events or otherwise. Contact: 
Homeland Security
Capital Corporation 
Knoxville, TN office 
Anne Smith, 865-342-7668
asmith@sec-tn.com  3