The three companies are considering the combination of corporate resources to create a compelling Homeland Security solution offering for domestic and foreign municipal governments.

Defense Technology Systems had announced launching a search for Homeland Security solutions and technologies earlier this year. Defense Technology has been actively seeking solutions that fit into a product portfolio focused on preemptive, precautionary and resilient response solutions.

The managements of NewMarket, Defense Technology and SkyLynx have been discussing mutually beneficial strategies to enhance the shareholder value of each company by aggressively exploiting targeted security solutions and expanding the target markets.

All three companies have recognized the need to provide Homeland Security solutions to municipal governments and developing economic allies. Cities and developing economic allies are primary terrorist targets and as such, become a virtual "military outpost" in the eyes of terrorist organizations.

Domestic cities and developing countries are new to the general disciplines required of a "military outpost." The threat of terrorism is also substantially different from the threat of a conventional military attack. In either regard, these potential city targets and developing countries allied with the U.S. are in need of emerging technologies and innovations to equip themselves for this new terrorist threat.

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