TRACEGUARD TECHNOLOGIES, INC.

TRACEGUARD TECHNOLOGIES, INC.

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Company Overview
The company is a publicly quoted entity that is engaged in developing and deploying system for automated trace extraction of explosives for the homeland security market. It was incorporated in March of 2002 and conducts its business from its registered head office located in New York, New York, United States.
The company’s technology enables the rapid and precise detection of any type of explosive, whether in solid or liquid form. Its product suite is based on technology that automatically extracts traces of suspect substances from the entrior and exterior of checked items, and transfers the collected particles to detectors for analysis and identification. The company’s product suite includes products include CompactSafe (compact items), CarrySafe (carry-on luggage), HoldSafe (checked luggage), and CargoSafe (palletized cargo).
The company’s mission is to lead the market in providing systems that enable effective automated trace detection of explosives and other hazardous materials, for applications in aviation security and across the homeland defense sector.
The company’s common shares are traded on the NASDAQ OTC Bulletin Board under the ticker symbol TCGD.
Business Summary
TraceGuard Technologies, Inc. (TraceGuard) focuses its business operations on the development and marketing of products for the homeland security market. On February 15, 2006, the Company’s wholly owned subsidiary, TraceGuard Technologies Ltd. entered into a License Agreement (the Agreement) with Tracetrack Technology Ltd. (Tracetrack). Pursuant to the Agreement, the Company acquired an exclusive, worldwide, perpetual license to the patents and related know-how owned by Tracetrack, which involves technology being developed to be used for the collection of explosive traces. The Company’s products are designed to deliver explosive trace extraction solutions for the screening of luggage and freight items. At the core of TraceGuard’s technology is the use of non-destructive physical methods to automatically release and extract traces, molecules, particles and vapors of explosives from both the exterior and interior of screened objects. Its products include CompactSafe and CarrySafe.
Description and history
TraceGuard Technologies, Inc. (TraceGuard), incorporated on March 20, 2002, focuses its business operations on the development and marketing of products for the homeland security market. On February 15, 2006, the Company’s wholly owned subsidiary, TraceGuard Technologies Ltd. entered into a License Agreement (the Agreement) with Tracetrack Technology Ltd. (Tracetrack). Pursuant to the Agreement, the Company acquired an exclusive, worldwide, perpetual license to the patents and related know-how owned by Tracetrack, which involves technology being developed to be used for the collection of explosive traces. The Company’s products are designed to deliver explosive trace extraction solutions for the screening of luggage and freight items. The Company’s automated trace extraction technology extracts samples of suspect substances from the interior and exterior of checked items, and transfers the collected particles to standard off-the-shelf analyzers. At the core of TraceGuard’s technology is the use of non-destructive physical methods to automatically release and extract traces, molecules, particles and vapors of explosives from both the exterior and interior of screened objects. The Company’s most immediate target markets are aviation security and airports. Beyond explosives, additional capabilities include the screening of narcotics, biological contaminants and other hazardous materials. TraceGuard is developing a series of products for performing automated trace extraction geared for various applications.

CompactSafe

The CompactSafe product automatically extracts traces of explosives from compact items, and is designed for use in aviation security systems, as well as other homeland defense applications. Items such as laptops, medical devices and cameras often have complex internal mechanisms, which are difficult to open, requiring more sophisticated inspection mechanisms than those used to screen standard carry-on items. CompactSafe enables extraction and sampling of substances from both the interior and exterior of the items it inspects.

CarrySafe

The CarrySafe system is designed to automatically extract and collect particle residue of explosives from the interiors and exteriors of suspect carry-on luggage at aviation screening passenger checkpoints. CarrySafe provides a second-level check when bags require resolution or a more in-depth inspection. CarrySafe is targeted to meet the security requirements of the Transportation Security Administration (TSA) and other aviation and homeland security agencies worldwide. At the core of the CarrySafe system is TraceGuard’s automated trace extraction technology, which seals and manipulates air molecules to cause the rapid release and extraction of particles from items being inspected. This technology can extract mere micrograms of explosives, traces weighing less than the weight of a fingerprint residue. As with other TraceGuard products, CarrySafe is capable of extracting any type of explosive trace, in both solid and liquid form. The CarrySafe product is in its preliminary prototype stage.

ShoeSafe

The Shoesafe system is designed to address and solve the problem of hidden substance in passenger’s shoes. At the core of the ShoeSafe system is TraceGuard’s automated non-invasive trace explosive extraction method. ShoeSafe is designed to extract particles from passenger’s shoes without the need to remove the shoes.

HoldSafe

The HoldSafe system is designed to be compatible with Hold Baggage Screening (HBS) and will automatically collect particle residue of explosives from checked luggage. At the core of the HoldSafe system is TraceGuard’s automated non-invasive trace explosive extraction method. Unlike existing screening technologies that rely on bulk identification, HoldSafe is designed to extract and collect explosive traces from both the inner and outer surfaces of checked luggage. It closely resembles the CarrySafe but is larger in size. The HoldSafe concept will be able to be adapted for use in ground and sea transportation terminals, mail-sorting facilities, public buildings, stadiums and additional points of security concern.

CargoSafe

The CargoSafe system is designed to automatically collect particle residue of explosives from both external and internal surfaces of palletized air cargo. Combining CargoSafe with existing airport screening technologies, including X-Ray and computerized tomography (CT) systems will further reduce the risk of explosives being transported through airborne cargo. At the core of the CargoSafe system is TraceGuard’s automated non-invasive trace explosive extraction method. Unlike existing screening technologies that rely on bulk identification, CargoSafe is designed to extract and collect explosive traces from within the palletized cargo.

Business Line
Engaged in developing and deploying system for automated trace extraction of explosives for the homeland security market
Subsidiary

Advisor
KESSELMAN & KESSELMAN
IPO date
3/22/2005
US SIC Code
7371
Company Address
9th Floor
330, Madison Avenue
City province or state postal code
10017, NEW YORK, NY
Phone: +1 866 401 5969
Fax: +1 646 495 5009
Country address: UNITED STATES OF AMERICA
Website url: www.traceguard.com