Invisa Closes $2.2 Million Private Placement of Preferred Convertible Shares SARASOTA, Fla., Aug. 17 /PRNewswire-FirstCall/ -- Invisa, Inc. (OTC Bulletin Board: INSA), an electronic life safety and security company that has commercialized patented presence-sensing technologies, announced today the completion of a $2.2 million private placement of convertible preferred shares. The preferred shares are convertible into shares of common stock. The investors also received three-year warrants to purchase an additional 1,500,000 shares of common stock at an exercise price of $1.00 per share. 60% of the total has been funded and the remainder will be funded upon filing of a registration statement. Invisa President and CEO, Herb Lustig, stated, "This financing is a very important step in our growth. It's a vote of confidence in our business plan and ability to execute. We plan to use the financing proceeds to repay certain existing debt and to fund sales, marketing, research and development and to provide working capital." In connection with the financing, the Company negotiated the cancellation of $776,132 in accrued salary to certain directors, officers, and former employees, as well as the termination of a royalty agreement whereby 7% of gross revenue derived from all non-safety industry sales would have been paid to certain individuals. Mercator Advisory Group, LLC, of Los Angeles, CA, arranged for the investment through its designated, accredited funds, Mercator Momentum Fund, LP and Monarch Pointe Fund, Ltd. Ascendiant Securities, LLC, of Irvine, CA, served as placement agent on the transaction. G.M. Capital Partners Ltd. of Zurich, Switzerland has acted as financial advisor to Invisa, Inc. About Invisa Invisa's versatile, reliable, compact next-generation presence-sensing solutions are targeted to the multi-billion dollar global electronic life safety and security markets. InvisaShield(TM) technology, an advanced implementation of capacitive sensing, is resistant to known methods of circumvention. It does not employ infrared, laser, ultrasound or microwave radiation. Used in security applications, InvisaShield technology can detect intruders who violate a sensing zone ranging from millimeters up to one meter. Invisa sensors have been in service at a major New England museum since April 2003. Invisa's SmartGate(R) safety systems incorporate the InvisaShield capacitive-sensing technology to generate an invisible protective field around the potentially hazardous edge of powered gates, garage doors, sliding doors and other powered closures. A video of SmartGate in action can be viewed at http://www.invisa.com/. The securities offered and sold in the private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. As part of the terms of the private placement, the company is obligated to file a registration statement to register for resale under the Securities Act the shares of common stock underlying the shares of preferred stock and warrants issued in the private placement. This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect the company's current beliefs and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. The company undertakes no obligation to update or advise in the event of any change, addition or alteration to the information catered in this press release including such forward-looking statements. For Company, Product, and Technology information visit http://www.invisa.com/. Corporate Headquarters: Invisa, Inc. 4400 Independence Court, Sarasota, FL 34234, Tel: 941.355.9361, Fax: 941-355-9373. For Investor Relations: Contact Dave Gentry, Aurelius Consulting Group, 225 S. Swoope Ave, Suite 214, Maitland, FL 32751, Tel: 407.644.4256, or http://www.runonideas.com/. DATASOURCE: Invisa, Inc. CONTACT: Investor Relations: Dave Gentry of Aurelius Consulting Group +1-407-644-4256, Web site: http://www.invisa.com/

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