GVI Security Solutions, Inc. (OTCBB: GVSS), a leading provider of video security solutions featuring the complete Samsung Electronics line of products, today announced its year-end financial results for 2007.

“With four straight profitable quarters and a net income of $2.6 million for 2007, we clearly achieved our stated goals for the year,” said GVI Chairman/CEO Steven Walin. “More importantly, we put in place the tools that we need to help us aggressively grow the company moving forward. We re-built and expanded our sales teams, we assembled an outstanding management team, we improved our margins, we put the company on a solid financial footing and in the fourth quarter we jointly announced a marketing plan with our strategic partner, Samsung Electronics providing $1.5 million in marketing funding through next January to fund the launch of our new GVI Samsung IP products line targeting a doubling of market share and 2010 sales of $100 Million.”

For the year ending December 31, 2007 net income was approximately $2.6 million or $0.08 per diluted share. That compares to a loss of approximately $16.5 million or ($4.46) per diluted share in the year ending December 31, 2006. For 2007, pre-tax earnings from continuing operations were approximately $1.5 million or $0.05 per fully diluted share as compared to a loss of approximately $13.8 million or ($3.74) per share in 2006. The difference between net income and pre-tax income from continuing operations was due to a tax loss carry-forward that produced a net income tax benefit of approximately $942,000 and a gain from discontinued operations, net of tax, of $233,000 reflecting the reversal of the remaining reserve taken in connection with obligations to service discontinued retail product line, which ended December 31, 2007.

“Operationally and financially we delivered strong results throughout 2007,” stated GVI COO/CFO Joe Restivo. “An important factor contributing to our success is the strong service and support we deliver to our customers. We are stocking the right products for our customers and backing the product up with instantly available technical support. As a result, we’ve been able to achieve premium pricing with fewer returns and that has positively impacted our profits, gross margin and revenue.”

Net Revenue for the year ended December 31, 2007 was up $1 million to just over $45 million from about $44 million in 2006. The increase in revenues reflects increased sales to distributors, integrators and installers of a variety of products manufactured by Samsung Electronics as well as GVI branded products as well as a decrease of about $2 million in total returns and allowances as compared to 2006.

Selling, general and administrative expenses for the year ended December 31, 2007 decreased 24% to approximately $10.3 million for 2007 from approximately $13.5 million in the prior year. The results reflected continued effective cost controls across the company’s operations.

Interest expense for the year ended December 31, 2007 decreased 83% to approximately $1.0 million, from approximately $5.9 million in the year ended December 31, 2006.

For the fourth quarter of 2007, net income was approximately $1.7 million or $0.05 per diluted share. Pre-tax earnings from continuing operations were approximately $0.5 million, or $0.01 per diluted share. That compares to a net loss of approximately $6.5 million, or ($1.76) per diluted share in the fourth quarter of 2006.