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| PRINCETON      SECURITY TECHNOLOGIES, INC.                                                                                                                                                  |                    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|
| CONSOLIDATED      BALANCE SHEETS                                                                                                                                                            |                    |
|                                                                                                                                                                                        |                    |   |   |   |   |   |
|                                                                                                                                                                                        | September      30, 2009 |   |   | December      31, 2008 |   |
| ASSETS                                                                                                                                                                                      | (Unaudited)             |   |   |   |   |
| Current      Assets                                                                                                                                                                         |                    |   |   |   |   |   |
| Cash                                                                                                                                                                                        |                    | $ | 116,406 |   |   | $ | 40,490 |   |
| Accounts      receivable (net of allowance for doubtful accounts of $16,426 for both      periods)                                                                                          |                    |   | 173,686 |   |   |   | 119,016 |   |
| Other      receivables                                                                                                                                                                      |                    |   | 18,831 |   |   |   | 77,831 |   |
| Inventory                                                                                                                                                                                   |                    |   | 304,638 |   |   |   | 460,741 |   |
| Prepaid      expenses                                                                                                                                                                       |                    |   | 44,951 |   |   |   | 54,059 |   |
|                                                                                                                                                                                        |                    |   |   |   |   |   |   |   |
| Total      Current Assets                                                                                                                                                                   |                    |   | 658,512 |   |   |   | 752,137 |   |
|                                                                                                                                                                                        |                    |   |   |   |   |   |   |   |
| Property,      plant & equipment (net of accumulated depreciation of $1,366,534 and      $1,353,231 respectively)                                                                       |                    |   | 37,177 |   |   |   | 50,480 |   |
| Deposits                                                                                                                                                                                    |                    |   | 49,282 |   |   |   | 11,450 |   |
|                                                                                                                                                                                        |                    |   |   |   |   |   |   |   |
| Total      Assets                                                                                                                                                                           |                    | $ | 744,971 |   |   | $ | 814,067 |   |
|                                                                                                                                                                                        |                    |   |   |   |   |   |   |   |
| LIABILITIES                                                                                                                                                                                 |                    |   |   |   |   |   |   |   |
| Current      Liabilities                                                                                                                                                                    |                    |   |   |   |   |   |   |   |
| Accounts      payable and accrued liabilities                                                                                                                                               |                    | $ | 583,053 |   |   | $ | 554,972 |   |
| Accrued      other liabilities                                                                                                                                                              |                    |   | 906 |   |   |   | 10,185 |   |
| Accrued      vacation expenses                                                                                                                                                              |                    |   | 33,988 |   |   |   | 25,443 |   |
| Deferred      sales revenue                                                                                                                                                                 |                    |   | 91,290 |   |   |   | 31,679 |   |
|                                                                                                                                                                                        |                    |   |   |   |   |   |   |   |
| Total      Current Liabilities                                                                                                                                                              |                    |   | 709,237 |   |   |   | 622,279 |   |
|                                                                                                                                                                                        |                    |   |   |   |   |   |   |   |
| Notes      payable                                                                                                                                                                          |                    |   | 235,105 |   |   |   | 212,303 |   |
| Total      Liabilities                                                                                                                                                                      |                    |   | 944,342 |   |   |   | 834,582 |   |
|                                                                                                                                                                                        |                    |   |   |   |   |   |   |   |
| STOCKHOLDERS’ DEFICIT                                                                                                                                                                 |                    |   |   |   |   |   |   |   |
| Preferred      stock; $.001 par value, 10,000,000 shares authorized; no shares issued and      outstanding                                                                                  |                    |   | - |   |   |   | - |   |
| Common      stock; $.001 par value, 90,000,000 shares authorized; 12,100,375 and      11,781,375 shares issued and outstanding as of June 30, 2009 and December      31, 2008, respectively |                    |   | 12,100 |   |   |   | 11,781 |   |
| Additional      paid-in capital                                                                                                                                                             |                    |   | 1,486,390 |   |   |   | 1,406,959 |   |
| Retained      earnings (deficit)                                                                                                                                                            |                    |   | (1,697,861 | ) |   |   | (1,439,255 | ) |
|                                                                                                                                                                                        |                    |   |   |   |   |   |   |   |
| Total      Stockholders’ Deficit                                                                                                                                                      |                    |   | (199,371 | ) |   |   | (20,515 | ) |
|                                                                                                                                                                                        |                    |   |   |   |   |   |   |   |
| Total      Liabilities and Stockholders’ Deficit                                                                                                                                      |                    | $ | 744,971 |   |   | $ | 814,067 |   |
|                                                                                                                                                                                        |                    |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of these unaudited consolidated      Financial Statements.                                                                                 |                    |

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|  PRINCETON      SECURITY TECHNOLOGIES, INC.                                                            |   |
|-------------------------------------------------------------------------------------------------------------|--------|
| UNAUDITED      CONSOLIDATED STATEMENTS OF OPERATIONS                                                        |   |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                        |   | For      theThree Months Ended September 30, |   |   | For      the Nine Months ended September 30, |   |
|                                                                                                        |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Revenues                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|         Sales (net of returns)                                                                    |   | $ | 595,833 |   |   | $ | 594,654 |   |   | $ | 1,500,714 |   |   | $ | 2,007,347 |   |
|         Costs of goods sold                                                                       |   |   | 372,320 |   |   |   | 441,474 |   |   |   | 906,974 |   |   |   | 1,312,328 |   |
| Gross      Profit                                                                                           |   |   | 223,513 |   |   |   | 153,180 |   |   |   | 593,740 |   |   |   | 695,019 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Depreciation and amortization                                                             |   |   | 2,233 |   |   |   | 6,195 |   |   |   | 13,303 |   |   |   | 18,153 |   |
|         Selling and marketing                                                                     |   |   | 19,102 |   |   |   | 71,159 |   |   |   | 49,732 |   |   |   | 197,840 |   |
|         General and administrative                                                                |   |   | 88,443 |   |   |   | 130,946 |   |   |   | 455,153 |   |   |   | 443,099 |   |
|         Research and development                                                                  |   |   | 96,139 |   |   |   | 97,571 |   |   |   | 284,740 |   |   |   | 318,352 |   |
| Total      Expenses                                                                                         |   |   | 205,917 |   |   |   | 305,871 |   |   |   | 802,928 |   |   |   | 977,444 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gain      (loss) from operations                                                                            |   |   | 17,596 |   |   |   | (152,691 | ) |   |   | (209,188 | ) |   |   | (282,425 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      income/(expenses)                                                                                |   |   | (14,459 | ) |   |   | (3,680 | ) |   |   | (49,418 | ) |   |   | (5,758 | ) |
| Provision      for income taxes                                                                             |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss)                                                                                      |   | $ | 3,137 |   |   | $ | (156,371 | ) |   | $ | (258,606 | ) |   | $ | (288,183 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss) per share of common stock                                                            |   | $ | 0.00 |   |   | $ | (0.01 | ) |   | $ | (0.02 | ) |   | $ | (0.02 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average number of common shares                                                               |   |   | 12,100,375 |   |   |   | 11,781,375 |   |   |   | 11,899,060 |   |   |   | 11,781,375 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of these unaudited consolidated      Financial Statements. |   |   |   |   |   |

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| PRINCETON      SECURITY TECHNOLOGIES, INC.                                                                  |
|-------------------------------------------------------------------------------------------------------------|
| UNAUDITED      CONSOLIDATED STATEMENTS OF CASH FLOWS                                                        |
| For      the Nine Months ending September 30, 2009 and 2008                                                 |
|                                                                                                        |   |   |   |   |   |   |
|                                                                                                        |   | 2009 |   |   | 2008 |   |
| Cash      flow from operating activities                                                                    |   |   |   |   |   |   |
| Net      loss                                                                                               |   | $ | (258,606 | ) |   | $ | (288,183 | ) |
| Adjustments      to reconcile net loss to net cash provided by (used in) operating      activities:         |   |
|   Depreciation      and amortization                                                              |   |   | 13,303 |   |   |   | 18,157 |   |
|   Provision      for allowance on accounts receivable                                             |   |   | - |   |   |   | (2,232 | ) |
|   Accrued      interest                                                                           |   |   | 27,630 |   |   |   | - |   |
|   Stock      issued for services                                                                  |   |   | 79,750 |   |   |   | - |   |
| Change      in non-cash working capital items:                                                              |   |   |   |   |   |   |   |   |
|   Accounts      receivable                                                                        |   |   | (54,670 | ) |   |   | 44,213 |   |
|   Other      receivables and deposits                                                             |   |   | 21,168 |   |   |   | (87,781 | ) |
|   Inventory                                                                                       |   |   | 156,103 |   |   |   | 109,536 |   |
|   Prepaid      expenses                                                                           |   |   | 9,108 |   |   |   | (35,026 | ) |
|   Accounts      payable                                                                           |   |   | 28,081 |   |   |   | 20,984 |   |
|   Accrued      expenses                                                                           |   |   | (734 | ) |   |   | (24,708 | ) |
|   Lines      of credit                                                                            |   |   | (4,828 | ) |   |   | 210,607 |   |
|   Deferred      services contracts                                                                |   |   | - |   |   |   | (4,708 | ) |
|   Deferred      sales                                                                             |   |   | 59,611 |   |   |   | (27,131 | ) |
| Cash      flow used in operating activities                                                                 |   |   | 75,916 |   |   |   | (66,272 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |
| Cash      flow provided by investing activities                                                             |   |   | - |   |   |   | - |   |
|                                                                                                        |   |   |   |   |   |   |   |   |
| Cash      flow provided by financing activities                                                             |   |   | - |   |   |   | - |   |
|                                                                                                        |   |   |   |   |   |   |   |   |
| (Increase)      decrease in cash position                                                                   |   |   | 75,916 |   |   |   | (66,272 | ) |
|                                                                                                        |   |   |   |   |   |   |   |   |
| Cash      position at beginning of period                                                                   |   |   | 40,490 |   |   |   | 81,179 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |
| Cash      position at end of period                                                                         |   | $ | 116,406 |   |   | $ | 14,907 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |
| Supplemental      disclosure of cash flow information:                                                      |   |   |   |   |   |   |   |   |
| Cash      paid for:                                                                                         |   |   |   |   |   |   |   |   |
| Interest                                                                                                    |   | $ | 21,788 |   |   | $ | 5,758 |   |
| Income      taxes                                                                                           |   | $ | - |   |   | $ | - |   |
|                                                                                                        |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of these unaudited consolidated      Financial Statements. |   |

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| -   | Category 1:      Radioactive Isotope IdentifierProducts. |
|---------------|----------------------------------------------------------|

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| -   | Category 2: Nuclear/      Gamma-ray detectors andspectrometers: |
|---------------|-----------------------------------------------------------------|

| -   | Category 3: X-ray      detectors and spectrometers. |
|---------------|-----------------------------------------------------|

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