General Defense Systems, Inc. Launches Shipping Container Inspection System As an Adjunct to U.S. Port Security

Implemented As Deterrent Against Shipping Biological Weapons and Radioactive Materials System Capable of Inspecting Up to 100% of Shipping Containers Entering U.S. Ports

BOCA RATON, Fla. -- June 25, 2002 -- General Defense Systems, Inc. [OTC: GNDF] announces the introduction of its Shipping Container Inspection System (SCIS), an advanced chemical, biological and radioactive inspection system for shipping containers, designed as a key component of a comprehensive plan to intensify current security measures at U.S. ports.

Without impeding the movement of containers, our SCIS system enables inspection of up to 100% of the shipping containers moving through U.S. ports, minimizing risk and significantly curtailing vulnerability," states Frank Fawcett, president and CEO of General Defense Systems, Inc. (GDS). With more than 6 million shipping containers entering U.S. ports annually and only approximately 2% inspected pre-September 11th, the threat to national security is viable. SCIS can mitigate the potential for disaster."

According to the American Association of Port Authorities (AAPA), each U.S. state receives goods from an average 15 different ports every day. Efforts by the Maritime Administration (MARAD) at the U.S. Department of Transportation to implement the Container Security Initiative (CSI) include establishing security criteria to identify high-risk containers and using technology to pre-screen these containers.

GDS SCIS system deploys highly sensitive, accurate detection devices on the cranes and lift trucks that move the shipping containers in and out of U.S. ports. The port cranes control close to 100% of the shipping containers that pass through these ports, hoisting the containers on and off shipping vessels.

SCIS, a complement to the GDS security and surveillance product line, is expected to provide an extremely effective deterrent against the shipment of biological weapons and radioactive materials into U.S. ports," concludes Fawcett.

GDS is an integrated security and surveillance company that deploys and implements large-scale security applications for agencies of the U.S. Government and other formidable clients from the public and private sectors.

About General Defense Systems, Inc.
General Defense Systems, Inc. (GDS), headquartered in Boca Raton, Fla., is a full-spectrum integrated services firm that specializes in the conception, development and deployment of its mission-critical broadband network and wireless surveillance applications. Its customer base spans the U.S. Defense Industry, the Federal Aviation Administration, the U.S. Customs Service and other formidable companies from the public and private sectors, both national and international. GDS is a publicly listed company on the Over-The-Counter market [OTC: GNDF]. More information is available at www.generaldefense.com.

This News Release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Securities Reform Act of 1995 or subsequent updates or revisions thereto. Actual events or results may differ from the company's expectations on a negative or positive basis, and are subject to a number of known and unknown risk and uncertainties. Risk factors that may affect the actual results achieved by the company are listed in the company's SEC filings, which can be obtained at www.sec.gov. Investors should seek professional investment advice on this or any security.