Milestone Systems Retains Number One Global Position

IMS Research Surveillance Market Analysis Reports Milestone is World Leader for Open Platform IP Video Management Software Sixth Year in a Row

COPENHAGEN, September 21, 2010 - Milestone Systems is listed again as the number one provider of open
platform IP video management software by IMS Research in its latest report:
The World Market for CCTV and Video Surveillance Equipment - 2010 Edition.
This report from IMS Research found that Milestone Systems increased its
market share and maintained its top position of the last six years. Milestone
holds the leadership standing for the world market category of "Open Platform
Network Video Management Software."

"Milestone Systems continued to perform as the leader in the open
platform network video management software category on a global scale,"
states Lars Thinggaard, President & CEO at Milestone Systems. "Milestone
maintained a strong cash position and we are very well positioned for
continued growth. We have already expanded again in 2010 with the addition of
new talent, both in leadership and staff head counts, in support of our
international scope."

The IMS report reflects patterns of growth in the surveillance industry
that are marked by increasing competition from new entries in low-end
software offerings in regional areas - more vendors are included in the video
software category than in previous years. Milestone is already addressing
this trend with its recently released XProtect(TM) Essential product that
combines high value advanced surveillance capabilities for up to five
concurrent users and 26 cameras, at an aggressively competitive price level.
This can be upgraded to a full range of offerings, where XProtect Corporate
is the company's high-end software for large, multi-site installations and
unlimited number of users, with features for making complex sites easier to
manage.

"Despite the challenging economic environment, Milestone continued to
grow in 2009; further strengthening its market standing. As the global
leading vendor by market share for open platform video management software,
Milestone is well positioned to build on its success as market conditions
continue to improve," concludes Gary Wong, Research Analyst at IMS Research.
"The global analog video surveillance market contracted by more than 5% in
2009, whilst the network video surveillance market grew by more than 18%. The
increasing adoption of open standards is expected to further accelerate the
migration towards network video surveillance."

IMS Research has also released its report "The European Market for
Security Systems Integration - 2010 Edition", which expands on the above
analysis. The report finds that integrated systems will account for over 70%
of the total security systems installation and maintenance market in Europe
by 2013.

Milestone Systems software provides an open platform with a
well-documented Software Development Kit. This continues to attract new
Milestone Solution Partners from all over the world: today about 300 partners
have integrated the Milestone XProtect IP video platform with such systems as
access control, Point-of-Sales, analytics, biometrics, HVAC and building
automation, ERP, RFID, production, logistics, and more.

IMS Research Analyst Niall Jenkins states: "The energy, infrastructure
and efficiency benefits of integrating systems will continue to drive markets
together."

About IMS Research

IMS Research is a supplier of market research and consultancy services on
a wide range of global electronics markets. The company is supported by
headquarters in Wellingborough, UK and offices in Austin, Texas and Shanghai,
China. IMS Research regularly publishes detailed research on video
surveillance, access control, intruder alarms and fire detection &
suppression markets, among others. www.imsresearch.com

About Milestone Systems

Founded in 1998, Milestone Systems is the leading global developer of
open platform IP video management software. XProtect(TM) provides a powerful
surveillance solution that is easy to manage, reliable and proven in over
50,000 customer installations. With support for the industry's widest choice
in network hardware and integration with other systems, XProtect provides
best-of-breed solutions to "video enable" organizations - reducing costs,
managing risk, optimizing processes, protecting people and assets. With
headquarters in Denmark and ten international offices, Milestone software is
sold through authorized partners in more than 100 countries.
www.milestonesys.com

Milestone Press Contact: Courtney Dillon Pedersen, PR & Communications Manager, Tel. +45-88-300-330, email cdp at milestonesys.com