Avalon Technology Group Receives $7.5 Million Purchase Order for Avalon Biometric Products

ORLANDO, FL, Jul 31 (MARKET WIRE) --
Avalon Technology Group, Inc. (PINKSHEETS: AVLN) announced today that the
company has received a purchase order under a sole source contract for
its biometric mouse and flash drives for $7.5 Million. Avalon Technology
Group's (ATG) biometric products were chosen over all competitors for its
superior software and encryption technology. After extensive product
testing ATG received a blanket purchase order with a base of $7.5 million
and a potential secondary order of $5 Million for the later part of the
fiscal year.

ATG has been working on this supply contract for BSG Group (BSG) which is
launching a nationwide rollout on August 15th of a premier identity, data
and child protection service underwritten by a worldwide insurance
conglomerate. BSG new service, called "The Vault," will use ATG biometric
mouse and flash drives combined with the world's leading child protection
software and identity theft insurance coverage underwritten by one of the
world's largest insurance conglomerates.

BSG's Vault Service is headed by Todd Folds who has over 5 years'
experience in the identity theft industry and shown proven past track
record of building major service organizations with tens of thousands of
members. BSG service will be vastly superior to the current competition in
the identity theft industry whose leaders such as Trusted ID(TM) and
LifeLock(TM) are doing in excess of $100 Million per year with claims in
company press releases of adding thousands of members per day. BSG Vault
service will offer biometric hardware to protect members' data, child
protection software to protect their children, identity theft protection
and data monitoring with a proprietary software scanning thousands of
databases per day, Early Alert(TM) System notifying members by phone 24
hours a day 365 days a year of any alerts and a proprietary data
retention and computer recovery service.

ATG and BSG will issue a joint press release for the BSG Vault Service
launch on August 15th with further details. ATG also announced today that
the company's biometric products are currently being tested for cable
subscribers and educational institutions. ATG is confident that the
current test will lead to additional major purchase orders and the
company is reaffirming its guidance of $35-50 Million in revenue for the
current fiscal year and gross profit of $10-15 Million.

About Avalon Technology Group, Inc.:

Avalon Technology Group is a technology company with operations in
software, manufacturing and security products. The Company and its
affiliates currently conduct government sales under three GSA contracting
vehicles including Minority Owned Women Business and Service Disabled
Veteran Owned Small Business, which specializes in providing commercial
and government entities with quality services, software and biometric
technologies.

Forward-Looking Statements

This press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Statements in this release that are forward-looking statements are based
on current expectations and assumptions that are subject to known and
unknown risks, uncertainties, or other factors which may cause actual
results, performance, or achievements of the company to be materially
different from any future results, performance, or achievements expressed
or implied by such forward-looking statements. Actual results could
differ materially because of factors such as the effect of general
economic and market conditions, entry into markets with vigorous
competition, market acceptance of new products and services, continued
acceptance of existing products and services, technological shifts, and
delays in product development and related product release schedules, any
of which may cause revenues and income to fall short of anticipated
levels. All information in this release is as of the date of this
release. The company undertakes no duty to update any forward-looking
statement to conform the statement to actual results or changes in the
company's expectations.

Contact:
Avalon Technology Group, Inc.
http://www.AvalonTechSolutions.com
or Call
Investor Relations
1-866-THE-APPL(E)

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