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The Visualant M&A Business Model

Visualant’s strategy is to accelerate market entry and penetration through the acquisition of well- operated and positioned distributors of security and authentication systems like TransTech. This consolidation strategy creates a natural distribution channel for products featuring the company’s proprietary Spectrum Pattern Matching (SPM) technology.

This will accelerate the company’s access to national distribution channels and an established base of customers, enabling Visualant to create new and enhance existing products based on Visualant’s SPM technology. This strategy will also stimulate product sales and generate new revenue, enhancing profitability across the entire distribution network.

The TransTech Acquisition

TransTech Systems, Inc. (www.ttsys.com), a subsidiary of Visualant, Inc., is a provider of industry-leading identification solutions. TransTech has created a distribution channel for its premier ID-Badging and access control security products by searching out the newest technologies and building and maintaining customer and cutting-edge industry supplier partnerships, all supported by TransTech’s exceptional service.

SEATTLE(BUSINESS WIRE)TransTech Systems, Inc. (“TransTech”), a subsidiary of Visualant, Inc. (OTCBB:VSUL.ob

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    News), a pioneer provider of industry-

leading identification solutions, is pleased to announce it has been awarded a new contract from a major North American defense and aerospace contractor.

The contract involves the sale of a high-end digital video capture technology solution which will be integrated into the company’s enterprise-wide employee badging system.

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Once again TransTech has been selected as the provider for the worldwide employee badge printing systems of this unidentified Fortune 50 manufacturing company. TransTech has worked consistently with this customer since 2002. The latest award is a continuing vote of confidence in the customer’s satisfaction with TransTech’s historic performance and the ability of TransTech to meet the company’s future needs as identification and certification requirements continue to evolve.

Jim Gingo, TransTech President, said, “We are proud of our long-term relationship with this customer. We work hard to always provide consistent professional service. This new contract reinforces our relationship and our commitment to sustained excellence.”

TransTech Acquistion: Deal Terms

Visualant, Inc., an emerging leader in authentication systems technology, announced that the acquisition of TransTech Systems, Inc., closed on June 8, 2010.

TransTech, founded in 1994, is a distributor of access control and authentication systems serving the security and law enforcement markets. With recorded revenues of approximately $10 million in 2009, TransTech has a respected national reputation for outstanding product knowledge, sales and service excellence.

The company acquired its 100% interest in TransTech by issuing a promissory note to James Gingo, the President of TransTech, in the amount of $2,300,000, plus interest at the rate of 3.5% per annum from the date of the note. The note is secured by a security interest in the stock and assets of TransTech, and is payable over a period of three years as follows:

NBTEQUITY RESEARCH © Copyright 2011

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