Press Release

25-May-2005

FOR IMMEDIATE RELEASE

American Security Resources Signs Letter of Intent to Acquire Galaxy Microsystems, Inc.

HOUSTON, Texas (BUSINESS WIRE) May 25, 2005. American Security Resources Corporation (OTCBB: ARSC) announced today that the company has signed a Letter of Intent to acquire Austin, Texas-based Galaxy Microsystems, Inc., a contract electronics manufacturing (CEM) and engineering facility. Founded in 1985, Galaxy Microsystems specializes in the engineering and production of highly sophisticated components for top-secret missile guidance systems that provide the front-line for homeland defense, and proprietary fiber optic transmission technology. Revenues are projected to exceed $3 million in 2005, and the company has secured contracts worth more than $15 million over the next three years.

According to ASRC President Joe Grace, “We are particularly impressed with Galaxy’s diverse customer base that ranges from emerging start-ups to Fortune 100 companies, as well as their experience in all major electronic engineering and product industries, including missile guidance systems, fiber optic telecommunications, computers, consumer products, government, military, industrial, and highly specialized instrumentation. From their 19,500-square-foot manufacturing facility, Galaxy employs a broad array of capabilities that enables them to customize their services to meet a customer's unique engineering and production requirements. This makes them a perfect fit for our long-term acquisition strategy.”

American Security Resources Corporation
American Security Resources Corp. is a holding company actively seeking to acquire profitable, well-managed companies that provide products or services for homeland security and national defense. For more information, please visit our website at: www.americansecurityresources.com.

Safe Harbor Statement
This news release contains certain “forward looking statements” within the meaning of Section 27a of the Securities Act of 1933 and Section 21e of the Securities Exchange Act of 1934. Although the Company believes the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that results will meet or exceed such expectations.

For more information contact:
Joe Grace, President
713-465-1001
9601 Katy Freeway, Suite 220
Houston, Texas 77024
info@amsrcorp.com