VIEW SYSTEMS MANAGEMENT'S DISCUSSION AND ANALYSIS OF SECOND QUARTER '06 RESULTS AND PLAN OF OPERATION GOING FORWARD

    /24-7PressRelease/ - BALTIMORE, MD - August 22, 2006. View Systems, Inc. (OTC BB:VYST.OB), a leading homeland defense solutions provider, has issued a discussion and analysis of second quarter results and plan of operation going forward.

Our product lines are related to visual surveillance, intrusion detection and physical security. Our principal products include:

• SecureScan Concealed Weapons Detection System - Including Fingerprint biometric verification, Passport and drivers license verification system for positive identification in correctional facilities, large government and commercial office buildings combined with our concealed weapons detection SecureScan.

• RADView - a patented integrated neutron and gamma-ray radiation sub-system which are being integrated into other detection systems.

• Digitial Video products including Visual First Responder - a lightweight, wireless camera system housed in a tough, waterproof flashlight body. The camera systems sends real-time images back to a video monitor at a command post located outside the exclusion zone or containment area.

In June 2006 we introduced our Biometric SecureScan III which includes positive identification and biometric verification capabilities. The SecureScan III includes a fingerprint identification and verification system, state-issued ID scanning device (drivers license and passports) and a visitor badge printing system.

The communications of data about the POE (Point of Entry) will be extended include higher levels of supervision both intra-state, inter-state and federal. These enhancements lend themselves to a recurring revenue product model necessary to continued growth and long term stability. Ongoing repetitive revenue is critical to long term survival of the product line and the company.

The western region continues to grow with orders being placed by a variety of institutions such as schools, probation offices, and government buildings. The mid-Atlantic region is gaining strength as we reach out to other states beyond our core installations. We have entered into a strategic alliance with one of our New York City groups, T&M Protection Resources, that provide protection services for large multi-national corporations. This group has technical support expertise, mobile service technicians which operate in the greater New York City area and are highly motivated to enhance the distribution of more SecureScans. Their focus will be large commercial building security applications, executive protection services and large event meetings both public and private.

We have reached out to international markets over the past six months and have made significant progress in establishing several footholds. We have made progress with the mid-east representatives and have installed at one of their embassies. We have received letters of recommendation from one of the installation location's ambassadors. Several other countries have expressed interest and we are in the process of negotiating multiple unit installations. In addition, we have been requested to site survey multiple overseas facilities and are planning to do so early this fall. We believe that when we install SecureScans in the Middle East that we can now support them through several dealer/installer relationships. In addition, there is a specific interest in our nuclear fissionable material sensing ability.

We have retained the services of several well connected individuals that are multi-lingual and exceedingly experienced in the mid-east geographical region. Specifically, we will be able to partner financially and technologically with the region's infrastructure. We plan to be operational in the mid-east area well before the end of this year. We are finalizing a relationship with an international partner which represents a dealer network of more than 50 international dealers, sales representative and installers. This partnership will penetrate markets that have hitherto been out of reach due to lack of experience, finance and expertise in markets including large events and remote locations. The Thailand representatives have taken delivery of a SecureScan III and are presenting it to government agencies and several high level influential individuals.

Management believes revenues will continue to increase. Revenues for the six month period which ended June, 2006 were $624,978. Our backlog at the end of June, 2006 is approximately $380,000. Management anticipates that increases in revenues will continue as we develop our sales and marketing channels and establish local sales and service offices in geographic areas where we have already completed sales. In addition, the introduction of our new products that have the capability to sense enriched nuclear material may also increase our revenues.

We are entertaining several offers for larger financing to be used for manufacturing, sales expansion, acquisitions and public relations. It is the intent of management to build our sales vertically through the addition of more sales personnel, expanding our dealer network (domestically and internationally), and enhancing our product offerings. We also feel that in kind acquisitions will allow us to take advantage of our tax loss forward. Acquisitions of this kind will allow us to grow horizontally. Several targets have been identified. We feel that our history and products lend themselves to an additive acquisition path. In addition, a public relations program will enhance our visibility for product sales, acquisition candidates and increased interest in our company.

About View Systems, Inc.
View Systems, Inc. provides security and surveillance products to law enforcement facilities such as correctional institutions as well as to government agencies, schools, courthouses, event and sports venues, the Military, and commercial businesses. View Systems has a network of distributors, licensees and strategic alliance affiliates. View Systems designs and develops concealed weapons detection (CWD) portal systems with biometric capabilities, as well as a camera system geared towards emergency first responders.

Forward-Looking Statements
This press release contains certain forward-looking statements. Investors are cautioned that certain statements in this release are "forward-looking statements" and involve both known and unknown risks, uncertainties and other factors. Such uncertainties include, among others, certain risks associated with the operation of the company described above. The Company's actual results could differ materially from expected results.

Contact:

View Systems
877-843-9462
www.viewsystems.com

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