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David Singer

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We believe that this repurchase program is an excellent opportunity to build long-term value for our stockholders and demonstrates the confidence we have in our company, ... Our strong balance sheet and cash flow enable us to repurchase shares while investing in our strategic growth plans.

Tom's has a strong heritage and solid reputation in the snack food business, and we believe that this opportunity will make our company stronger. The transaction developed quickly, and we are still developing our plans. In the near term we intend to continue business as usual while we develop a plan to effectively meet the needs of our customers and consumers. We are confident that the combination of increased sales and operating synergies will create value for Lance, Inc. stockholders.

The first time we were able to even look at any of the assets or consider any of their business was Oct. 5. We don't have a very detailed plan yet.

We don't have to shore (the company) up. That debt is wiped out, ... Our shareholder value is about $500 million and we have almost no debt. So this transaction is not a financial burden to us.

We were pleased to see sales momentum remain strong during the quarter, ... Branded product sales continued to respond favorably to our selling efforts and stepped-up marketing initiatives. Additionally, our private label products recorded another quarter of double-digit revenue growth.

As innovative security technologies transform the way the world lives, works and plays, Homeland Security Corporation is positioned as the vital link of this still-expanding industry, matching customer needs with the products, services and solutions when and where they need them most. When our customers need to build, maintain, run and/or use security products, they need to know Homeland Security Corporation will deliver for them.

While I'm disappointed with our earnings results in the fourth quarter, I'm very pleased with the strength of our revenue performance throughout 2005 and the solid growth momentum that we carry into the current year. As we move into 2006, we are focused on several key priorities: maintaining sales momentum in sandwich crackers and salty snacks, implementing revenue management strategies targeted at enhancing profit margins, integrating the Tom's acquisition and executing on our supply chain restructuring plan.

One of our primary objectives is to bring HOMELAND SECURITY CORPORATION to a fully reporting status. Further, it is our intent to move forward with our sales and marketing plan for 2006 and develop strategic alliances in the government security sector. These actions underline the commitment to build shareholder equity and confidence.

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