Visual Management Systems, Inc. (OTCBB: VMSY), a leading digital surveillance company, is pleased to announce that it has entered into a non-binding memorandum of understanding (MOU) for the acquisition of substantially all the assets of digital software company Intelligent Digital Systems, LLC (IDS), a New York Limited Liability Company. IDS is the developer and manufacturer of TechEye Digital Video Recording  technology. The terms of the agreement call for Visual Management Systems to issue to IDS's sole member a three year junior unsecured convertible promissory note in the sum of $1.5 million, with a conversion price of $1.15 a share.

In keeping with Visual Management Systems' (VMS) business model of continually delivering the latest in surveillance technology solutions, this acquisition will allow the company to further develop its proprietary DVR, which it believes is unique in the industry. VMS plans to expand on IDS's existing distribution and introduce the technology to its channel partner network. The proposed transaction also represents a further step towards VMS's goal of offering customers digital surveillance systems developed and assembled entirely in the United States. The transaction is expected to immediately increase top line revenues of VMS's PDG subsidiary.

"The execution of this MOU represents progress towards achieving a critical goal in the VMS business plan. IDS technology presents many strategic advantages in enterprise surveillance management. It's a real best of both worlds offering. End users will have the flexibility they need to leverage their existing investments in security infrastructure, while expanding functionality into state-of-the-art technologies offered by VMS," said Jason Gonzalez, CEO of Visual Management Systems.

About IDS

IDS is the manufacturer of TechEye Digital Video Recorder technology. TechEye is a feature rich, enterprise class DVR product line known for flexible storage, ease of customization, and leadership in the remote management of digital video. IDS's product portfolio includes the TechEye line as well as other software packages, trademarks and patents pending.

About Visual Management Systems

Visual Management Systems, Inc. (VMS) is a publicly held manufacturer and marketer of loss prevention systems with shares traded under the stock symbol VMSY. VMS delivers online corporate surveillance solutions that can help companies improve safety and security, worker productivity, customer service and return on investment (ROI). Users of VMS's surveillance technologies can view their operations live from anywhere in the world. Through its wholly owned subsidiary, Visual Management Financial Services, the company provides flexible financial options for equipment and service purchases, making VMS solutions affordable for all types of businesses. For more information visit the company's Web site at http://www.vmscctv.com or contact corporate headquarters at 1-877-323-CCTV.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performances or achievements express or implied by such forward-looking statements. The forward-looking statements are subject to risks and uncertainties including, without limitation, changes in levels of competition, possible loss of customers, and the company's ability to attract and retain key personnel.