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| Nevada                                                        | 20-5506885                        |
|---------------------------------------------------------------|-----------------------------------|
| (State or other jurisdiction ofincorporation or organization) | (IRS Employer Identification No.) |

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|  PRINCETON SECURITY TECHNOLOGIES, INC.                                                                                                                                             |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CONSOLIDATED BALANCE SHEETS                                                                                                                                                             |
|                                                                                                                                                                                    |   |   |   |   |   |   |
|                                                                                                                                                                                    | June 30, 2010 |   |   | December 31, 2009 |   |
| ASSETS                                                                                                                                                                                  | (Unaudited) |   |   |   |   |
| Current Assets                                                                                                                                                                          |   |   |   |   |   |   |
| Cash                                                                                                                                                                                    |   | $ | 27,342 |   |   | $ | 21,333 |   |
| Accounts receivable (net of allowance for doubtful accounts of $16,426 for both periods)                                                                                                |   |   | 132,701 |   |   |   | 265,006 |   |
| Other receivables                                                                                                                                                                       |   |   | 11,847 |   |   |   | - |   |
| Inventory                                                                                                                                                                               |   |   | 238,386 |   |   |   | 199,949 |   |
| Prepaid expenses                                                                                                                                                                        |   |   | 22,023 |   |   |   | 32,892 |   |
|                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Total Current Assets                                                                                                                                                                    |   |   | 432,299 |   |   |   | 519,180 |   |
|                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Property, plant & equipment (net of accumulated depreciation of $1,386,374 and $1,375,337 respectively)                                                                             |   |   | 27,687 |   |   |   | 28,374 |   |
| Other assets                                                                                                                                                                            |   |   | - |   |   |   | 600 |   |
|                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Total Assets                                                                                                                                                                            |   | $ | 459,986 |   |   | $ | 548,154 |   |
|                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| LIABILITIES                                                                                                                                                                             |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Accounts payable and accrued liabilities                                                                                                                                                |   | $ | 305,655 |   |   | $ | 321,701 |   |
| Accrued other liabilities                                                                                                                                                               |   |   | 132 |   |   |   | 534 |   |
| Accrued expenses                                                                                                                                                                        |   |   | 5,250 |   |   |   | 10,500 |   |
| Accrued vacation expenses                                                                                                                                                               |   |   | 39,656 |   |   |   | 27,594 |   |
| Deferred sales revenue                                                                                                                                                                  |   |   | 129,986 |   |   |   | 62,407 |   |
|                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Total Current Liabilities                                                                                                                                                               |   |   | 480,679 |   |   |   | 422,736 |   |
|                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Notes payable                                                                                                                                                                           |   |   | 39,368 |   |   |   | 38,878 |   |
| Total Liabilities                                                                                                                                                                       |   |   | 520,047 |   |   |   | 461,614 |   |
|                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| STOCKHOLDERS’ EQUITY (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; 13,788,513 and 13,703,513 shares issued and outstanding as of June  30, 2010 and December 31, 2009, respectively |   |   | 13,788 |   |   |   | 13,703 |   |
| Additional paid-in capital                                                                                                                                                              |   |   | 1,944,830 |   |   |   | 1,932,915 |   |
| Retained earnings (deficit)                                                                                                                                                             |   |   | (2,018,679 | ) |   |   | (1,860,078 | ) |
|                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Total Stockholders’ Equity (Deficit)                                                                                                                                              |   |   | (60,061 | ) |   |   | 86,540 |   |
|                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Total Liabilities and Stockholders’ Equity (Deficit)                                                                                                                              |   | $ | 459,986 |   |   | $ | 548,154 |   |
|                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| 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 the Three Months Ended June 30, |   |   | For the Six Months Ended June 30, |   |
|                                                                                              |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Revenues                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales (net of returns)                                                                            |   | $ | 455,076 |   |   | $ | 408,693 |   |   |   | 940,777 |   |   |   | 904,881 |   |
| Costs of goods sold                                                                               |   |   | 258,724 |   |   |   | 238,899 |   |   |   | 509,624 |   |   |   | 534,654 |   |
| Gross Profit                                                                                      |   |   | 196,352 |   |   |   | 169,794 |   |   |   | 431,153 |   |   |   | 370,227 |   |
|                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                     |   |   | 5,518 |   |   |   | 5,490 |   |   |   | 11,037 |   |   |   | 11,070 |   |
| Selling and marketing                                                                             |   |   | 53,957 |   |   |   | 14,856 |   |   |   | 108,122 |   |   |   | 30,630 |   |
| General and administrative                                                                        |   |   | 152,272 |   |   |   | 230,440 |   |   |   | 324,419 |   |   |   | 366,710 |   |
| Research and development                                                                          |   |   | 78,384 |   |   |   | 108,858 |   |   |   | 144,405 |   |   |   | 188,601 |   |
| Total Expenses                                                                                    |   |   | 290,131 |   |   |   | 359,644 |   |   |   | 587,983 |   |   |   | 597,011 |   |
|                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) from operations                                                                            |   |   | (93,779 | ) |   |   | (189,850 | ) |   |   | (156,830 | ) |   |   | (226,784 | ) |
|                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income/(expenses)                                                                           |   |   | 769 |   |   |   | (24,409 | ) |   |   | (1,771 | ) |   |   | (34,959 | ) |
|                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income taxes                                                                        |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
|                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                          |   | $ | (93,010 | ) |   | $ | (214,259 | ) |   |   | (158,601 | ) |   |   | (261,743 | ) |
|                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss per share of common stock                                                                |   | $ | (0.01 | ) |   | $ | (0.02 | ) |   |   | (0.01 | ) |   |   | (0.02 | ) |
|                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares                                                          |   |   | 13,729,172 |   |   |   | 11,811,924 |   |   |   | 13,727,601 |   |   |   | 11,796,734 |   |
|                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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 Six Months ending June 30, 2010 and 2009                                                  |
|                                                                                              |   |   |   |   |   |   |
|                                                                                              |   | 2010 |   |   | 2009 |   |
| Cash flow from operating activities                                                               |   |   |   |   |   |   |
| Net income/(loss)                                                                                 |   | $ | (158,601 | ) |   | $ | (261,743 | ) |
| Depreciation and amortization                                                                     |   |   | 11,037 |   |   |   | 11,070 |   |
| Provision for allowance on accounts receivable                                                    |   |   |   |   |   |   | - |   |
| Stock issued for services                                                                         |   |   | 12,000 |   |   |   | 79,750 |   |
| Change in operating assets and liabilities                                                        |   |   |   |   |   |   |   |   |
|   Accounts receivable                                                                   |   |   | 132,305 |   |   |   | (70,666 | ) |
|   Other receivables and deposits                                                        |   |   | (11,847 | ) |   |   | 37,989 |   |
|   Inventory                                                                             |   |   | (38,437 | ) |   |   | 62,515 |   |
|   Prepaid expenses                                                                      |   |   | 11,469 |   |   |   | 14,471 |   |
|   Accounts payable                                                                      |   |   | (16,046 | ) |   |   | 60,226 |   |
|   Accrued expenses                                                                      |   |   | 11,660 |   |   |   | (35,628 | ) |
|   Warranty expenses                                                                     |   |   | (5,250 | ) |   |   | - |   |
|   Deferred sales                                                                        |   |   | 67,579 |   |   |   | 84,434 |   |
| Cash flow used in operating activities                                                            |   |   | 15,869 |   |   |   | (17,582 | ) |
|                                                                                              |   |   |   |   |   |   |   |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Cash flow from investing activities                                                               |   |   |   |   |   |   |   |   |
|   Purchace of property and equipment                                                    |   |   | (10,350 | ) |   |   |   |   |
| Cash flow from investing activities                                                               |   |   | (10,350 | ) |   |   | - |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Cash flow from financing activities                                                               |   |   |   |   |   |   |   |   |
|   Lines of credit                                                                       |   |   | 490 |   |   |   | 13,349 |   |
| Cash flow from financing activities                                                               |   |   | 490 |   |   |   | 13,349 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Increase/(decrease) in cash position                                                              |   |   | 6,009 |   |   |   | 4,233 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Cash position at beginning of period                                                              |   |   | 21,333 |   |   |   | 40,490 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Cash position at end of period                                                                    |   | $ | 27,342 |   |   | $ | 36,257 |   |
|                                                                                              |   |   | - |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                                                 |   |   |   |   |   |   |   |   |
| Cash paid for:                                                                                    |   |   |   |   |   |   |   |   |
| Interest expense                                                                                  |   | $ | - |   |   | $ | - |   |
| Income taxes                                                                                      |   | $ | - |   |   | $ | - |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these unaudited consolidated Financial Statements. |   |

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| -   | Category 1: Radioactive Isotope Identifier Products. |
|---------------|------------------------------------------------------|

| -   | Category 2: Nuclear/ Gamma-ray detectors and spectrometers: |
|---------------|-------------------------------------------------------------|

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

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|   | Item 4                  | Exhibit No.          | Instruments Defining the Rights of Security Holders                                                              | Location                      |
|--------|-------------------------|----------------------|------------------------------------------------------------------------------------------------------------------|-------------------------------|
|   |                    |                 |                                                                                                             |                          |
|   | 4.01               | 4               | Specimen Stock Certificate                                                                                  | Incorporatedby reference*     |
|   |                    |                 |                                                                                                             |                          |
|   | 31.01    | 31    | CEO certification Pursuantto 18 USC Section 1350, asadopted pursuant to Section 302of Sarbanes-Oxley Act of 2002 |    This Filing |
|   |                    |                 |                                                                                                             |                          |
|   | 31.02    | 31    | CFO certification Pursuantto 18 USC Section 1350, asadopted pursuant to Section 302of Sarbanes-Oxley Act of 2002 |    This Filing |
|   |                    |                 |                                                                                                             |                          |
|   | 32.01              | 32              | CEO Certification pursuant tosection 906                                                                         |  This Filing             |
|   |                    |                 |                                                                                                             |                          |
|   | 32.02                   | 32                   | CFO Certification pursuant toSection 906                                                                         |  This Filing             |

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|                                                                                                                                                                                                                        | Princeton Security Technologies, Inc.(Registrant) |                         |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|------------------------------|
|                                                                                                                                                                                                                        |                                              |                         |   |
| Date:                                 October 15, 2010 | By:                                               | /s/ Juhani Taskinen     |   |
|                                                                                                                                                                                                                        |                                              | Juhani Taskinen, CEO and CFO |   |
|                                                                                                                                                                                                                        |                                              |                         |   |
|                                                                                                                                                                                                                        |                                              |                         |   |

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