Virtual Technologies, Ltd. announces development of Virtual Arrest™ satellite surveillance system.

Spokane, WA – August 21, 2000

Virtual Technologies, Ltd. announced this morning its research and development of the Virtual Arrest™ offender Tracking Global Network. When released, Virtual Arrest™ will incorporate the companies revolutionary, patent pending, Virtual Shadow™ Route Following technology to offer what no other company can – the ability to track anyone, anywhere, anytime.

The Virtual Arrest™ Offender Tracking Global Network will exploit the emerging business-to-business personnel monitoring industry. In the U.S. alone, the rapidly growing industry of 100,000 daily monitored offenders generates over $200 million annually. Virtual Arrest™ combines Virtual Shadow™ Route Following technology with real-time interactive wireless communications, Global Positioning System (GPS), and wireless Internet (i.e. Palm VII™, Internet enabled cell phones, etc.) to solve global offender tracking problems, and to dominate the global electronic monitoring industry. Product demand demonstrates significant potential for global revenues of over $22 billion annually.

Virtual Arrest™ uses Internet-based mapping, Department of Defense Global Positioning System satellite technology, Virtual Guardian™ wireless identification and proximity detection, and revolutionary Virtual Shadow™ tracking technology, to provide affordable real-time satellite tracking, monitoring, and reporting of monitored personnel. For the first time, the Virtual Arrest™ Offender Tracking Global Network will provide law enforcement the means to effectively monitor both lower risk misdemeanor offenders and, more importantly, track higher risk felons and offenders sentenced to community supervision.

The Virtual Arrest™ solution will give corrections authorities the tools to efficiently monitor parolees, probationers, sexual offenders sentenced to community supervision, individuals on work release, work crews, offenders in transport status, and pretrial release defendants, thus providing a more secure criminal justice incarceration alternative for over 371 million offenders comprising the rapidly increasing global correctional population.

Through controlled monitoring at Virtual Technologies’ Network Operations Center, or via customer secure wireless Internet access, Virtual Arrest™ will track the Geospatial position of every monitored person, report specific activities, and identify violations of customer-established restricted areas (i.e., schools, day cares, prior victims residences, etc.). Information will be transmitted in real-time to authorities via secure wireless Internet, telephone, paging, and Internet-based mapping services. Moreover, prior crime victims may be immediately notified when offenders violate conditions of their probation/parole or approach their location.

Virtual Technologies, Ltd. is a Spokane, Washington based global business-to-business telemetry, communications, remote control, and remote monitoring company, providing a cost-effective line of satellite and wireless solutions for tracking, monitoring, control and reporting of assets and personnel. Virtual Technologies, Ltd. is a privately owned corporation. Its web address is www.VirtualTechnologiesLtd.com.

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For More Information Contact:

Mike Whitefoot Virtual Technologies, Ltd. Tel: (509) 244-3252 info@VirtualTechnologiesLtd.com