Receives Ongoing Funding Commitment From M.A.G. Capital, LLC.

NEWPORT BEACH, Calif., Sept. 12 - UNIVERSAL GUARDIAN HOLDINGS, INC. (OTC Bulletin Board: UGHO - News), an emerging global leader in non-lethal protection products, integrated transportation security systems and strategic security services to protect against terrorist, criminal and security threats to governments and businesses worldwide, is pleased to announce that it has entered into an agreement to acquire MeiDa Information Technology Ltd. (Hong Kong), and its subsidiaries MeiDa Information Technology Ltd. (Beijing) and Tagistics Corporation (USA).

 
 
"MeiDa has invested several million dollars over the past 4 years in the development of integrated, turn-key RFID software and systems that will now become an integral part of our 'Trusted Shipper(TM)' program and global engine behind our SupplyChain Guardian(TM) system," stated Michael Skellern, Universal's CEO. "Trusted Shipper(TM) provides major retailers and component-based manufacturers with global supply chain efficiencies, speed to market and security compliance that translates into definitive financial advantages for participants."

"MeiDa Information Technology Ltd. is a pioneer in RFID solutions and in 'source tagging' -- implementing RFID at the point of manufacturing rather than at intermediate stops or by outsourced logistics providers. Our systems are immediately deployable, infinitely scaleable and interface with all major ERP solutions including SAP and Oracle," stated Herbert P. Goertz, MeiDa's CEO.

"The combination of our Hong Kong, Beijing and USA companies with Universal Guardian's Trusted Shipper(TM) and SupplyChain Guardian(TM) programs gives us an industry leading advantage with customers in the burgeoning RFID industry. With network operations centers already up and running in the United States, Europe and Asia and a firm foothold in China, which is rapidly becoming the world's manufacturing center, we have a significant head start as customers begin to make the decisions that will affect their choices for years to come," Mr. Goertz continued.

"Universal Guardian will exchange 2,297,000 restricted shares of Universal Guardian Holdings, Inc. common stock to acquire MeiDa Information Technology Ltd. (Hong Kong), and its subsidiaries MeiDa Information Technology Ltd. (Beijing) and Tagistics Corporation (USA)," stated Universal CEO, Michael Skellern. The acquisition is scheduled to close on October 7, 2005.

M.A.G. Capital, LLC., through its designated funds, provided $500,000 in equity financing through a Series A preferred stock transaction to help facilitate the MeiDa transaction and begin the due diligence process on other strategic acquisitions that will produce revenue and/or earnings for Universal Guardian.

"We are excited to support Universal Guardian's recent acquisition of MeiDa Information Technology, Ltd. As an existing shareholder, we are enthusiastic to participate in the growing Homeland Security industry with Universal Guardian. We have great respect for the Company and are pleased to assist them in meeting their growth objectives," commented David Firestone, Managing Partner of M.A.G. Capital, LLC.

"As an emerging global leader in groundbreaking security programs such as our Trusted Shipper(TM) program, SupplyChain Guardian(TM) source-based RFID systems and Container Guardian(TM) real-time container tracking systems, Universal Guardian is positioned for significant growth and a number of complimentary acquisitions to accelerate our growing worldwide market opportunities," concluded Michael Skellern, Universal's CEO.

About Universal Guardian Holdings, Inc.

Universal Guardian Holdings, Inc. (UGHO) and its subsidiaries provide a comprehensive range of security products, systems, and services designed to mitigate terrorist and security threats worldwide. Universal Guardian Global Security Group comprises everything from strategic and tactical security services, business risk solutions, integrated and interoperable security systems, to non-lethal defense products. Universal Guardian companies feature a wide variety of security applications for transportation and global supply chain security, maritime security and critical infrastructure protection for government and multinational businesses on every continent. www.UniversalGuardian.com

About Shield Defense International

Shield Defense International (SDI), a wholly-owned subsidiary of Universal Guardian Holdings, Inc., designs and produces non-lethal weapons and systems that provide law enforcement, military, professional security and consumers with multiple use-of-force options to address appropriate threat conditions in today's growing global security and terrorist environments. www.ShieldDefense.com

About ISR Systems

ISR Systems, Inc. a wholly owned subsidiary of Universal Guardian Holdings, Inc., provides multi-level secure, integrated and interoperable security systems that facilitate surveillance, threat detection and tracking to protect inter-modal transportation, seaport and airport facilities, and critical infrastructure from asymmetrical terrorist and security threats. ISR systems provide automated decision support from its command and control centers to coordinate notification and tactical responses among multiple agencies to interdict or respond to potential security threats. www.ISRsystems.com

About SecureRisks Limited

SecureRisks, a wholly owned subsidiary of Universal Guardian Holdings, Inc., is a London based global security group providing practical risk solutions, tactical security products and services, and critical infrastructure protection in today's most challenging environments from regional hubs located in the United States, United Kingdom, Europe, South America, Middle East, Africa, Central Asia and Asia Pacific. www.SecureRisks.com

About M.A.G. Capital

M.A.G. Capital, LLC. (formerly Mercator Advisory Group, LLC) specializes in structured equity investments in small publicly traded companies through its managed funds. M.A.G.'s investment strategy seeks micro, small and mid-cap public companies that demonstrate strong potential for near and long-term appreciation or that require financing for accretive company events. M.A.G. incorporates strict transaction criteria for its investments, including a company's liquidity, market positioning, fundamentals and the ability of management to execute on its growth strategy. M.A.G. tends to make direct investments, and capital commitments are typically subject to the company executing on predetermined milestones that ultimately enhance shareholder value. M.A.G. manages both domestic and offshore funds, and is based in Los Angeles, CA. Please call 213.533.8288 for additional information.

Safe Harbor Statement:

This news release contains certain forward-looking statements pertaining to future anticipated projected plans, performance and developments, as well as other statements relating to future operations and results. Any statements in this news release that are not statements of historical fact may be considered to be forward-looking statements. Written words such as "may," "will," "expect," "believe," "anticipate," "estimate," "intends," "goal," "objective," "seek," "attempt," or variations of these or similar words, identify forward-looking statements. These statements by their nature are estimates of future results only and involve substantial risks and uncertainties, including those detailed from time to time in Universal Guardian Holdings, Inc.'s reports filed with the Securities and Exchange Commission. There can be no assurance that actual results will not differ materially from expectations. These risks factors include potential customer interest in the sale and production of Cobra StunLight(TM) and Riot Defender(TM) and their accessories.

Further information is available on the Company's website: www.UniversalGuardian.com