Infrastruct Security

In The Boardroom With...

Mr. Daniel Weiss
President and CEO
Infrastruct Security, Inc. Thank you for joining us today, Dan. Please give us an overview of your background and your role at Infrastruct Security, Inc.

Daniel Weiss: I am the Chairman, CEO and President of Infrastruct Security, Inc. After leaving graduate school in Boston, I went to work as a door-to-door salesman for Boston-based security company, Alarmex. From Alarmex I went on to work for Wells Fargo Alarm in Phoenix, Arizona, and Chubb Security in Houston, Texas. While working there, I discovered that bigger does not always mean better, so I decided to establish and develop a company that would cater to the needs of the client, making customer service our number one priority. In 1997, I founded EPS Security, which became one of the largest and most respected commercial/industrial integrators in the Houston area. EPS was an integrator that produced an exceptional customer base and generated strong, reoccurring monthly revenue. I sold EPS to TYCO in 2001. A year later, I funded and co-founded General Cabling Services, a computer networking company that focused on cabling infrastructure. After my non-compete with TYCO expired, we added security. Most entrepreneurs would have been satisfied with this level of success, but now you’re at it again. Tell our readers how Infrastruct Security, Inc. began?

Daniel Weiss: Entrepreneurs are problem solvers. They see a real issue and craft a solution. The electronic security marketplace is fragmented and focused on segments that include: home alarms, light retail, and major public sector projects. The industrial private sector has few players. We realized the major changes that were occurring in this vertical niche, including the push by the federal, state and local government to “harden” the critical infrastructure of public and private entities. We predicted the passage of the Chemical Security Act and we understood that the Houston area is the epicenter of the western hemisphere’s petrochemical industry, which houses critical infrastructure. A native Houstonian, I found myself and my company perfectly positioned to take advantage of this change. We also realized that petrochemical organizations were beginning to take a proactive approach to securing their assets. In addition, their boards began to understand that security was no longer an option, but a keystone to survival. The market needs a provider that understands these regulations and how to implement solutions that would enable them to function in a heavy industrial environment. We understand both and we’re well positioned to lead.

The marketplace also asked for a company that understood the convergence between information technology (IT) and security. IT is one of Infrastruct Security, Inc.’s cores, thus we’re far ahead of our competitors in understanding how IT fits into the overall security plan, and how the physical devices best take advantage of the IT infrastructure. I carefully studied these two factors and completed a business plan for a new company, Infrastruct Security. I contributed General Cabling to Infrastruct and we raised five million dollars in a Series A round of funding. With a re-sharpened focus, we went after the private sector critical infrastructure marketplace.

We will continue to bring critical infrastructure security solutions to organizations across the Gulf Coast region. In 2008, we will expand our reach to bring innovative security solutions to the East Coast, West Coast and Midwest regions. Who are your customers and why do they do business with Infrastruct Security, Inc.?

Daniel Weiss: Over 90 percent of the nation’s critical infrastructure is held by the private sector. Our customers are part of the private sector critical infrastructure within the Texas-Louisiana Gulf Coast region impacted by federal regulations. These private sectors include: water, financial and petrochemical.

Our customers do business with us because we stay ahead of the curve in meeting their new security challenges. Our strategic partnerships make us unique and enable us to use proprietary methodologies to determine how to best secure our customers’ sites. At the center of this is the IS3 Process. The IS3 Process is a method that individually identifies and bonds the areas of consultation, systems, and service into cohesive transitions for our customers’ projects. The IS3 Process ensures a first class customer experience. As our customers begin to evolve their organizational structure to incorporate the next generation of security regulations, we will be there with the best process and the correct solution. Looking to 2007, what are the key factors that will ensure your rapid growth in this market space?

Daniel Weiss: After less than one year, we have become the dominant provider in private sector critical infrastructure security in the Greater Houston Area. Ninety percent of the United States’ chemicals are produced in Houston and surrounding area and most of the CSO’s and CIO’s for these companies reside there, making Houston the hub of the petrochemical industry. We are defining the market and creating the keystone brand. We have a partnership with Texas A&M’s Texas Engineering Extension Service (TEEX) program that trains 175,000 first responders per year. TEEX and Infrastruct Security, Inc. are co-owners of one of the key methods of analyzing risk, IVAS. In addition, we have made two successful acquisitions in this segment and have integrated them smoothly. We have a $14 million run rate with an anticipated growth of $16 million. By mid 2008, we should hit the $30 million dollar mark. Infrastruct Security, Inc. employs the key brain power that understands this niche and has included all of them in an ISO program. Infrastruct Security, Inc. is at the “tip of the sword.” It took me 15 years to get to this point, and we are making strides that enable us to continue dominating this segment.

A few key factors that will ensure our rapid growth include: A first class team, a strong knowledge of the niche we are pursuing, and an understanding of the legislative changes that impact the security industry.

Some of our key executives include:

Rick Fisher, CSO. Rick has been in the petrochemical industry as a senior security officer for over 20 years. Rick served on ASIS Energy Group, Energy Security Council and API. Rick is very well regarded in this segment. His contacts and industry knowledge continue to be a real advantage for Infrastruct Security, Inc.

Andrew Wray, Vice President of Sales and Marketing. Andrew has worked with me for over 10 years and has been a real leader in focusing the sales and marketing teams for Infrastruct Security, Inc. You are going to see a fresh consistent message and strong vertical market penetration coming from Andrew and his team in 2007.

Additionally, we are extremely knowledgeable in industrial security. Most security companies are not licensed and do not understand how to meet the often complex requirements of the critical infrastructure marketplace. Long before the legislative push, the Infrastruct Security, Inc. team cultivated and successfully implemented security solutions for entities in this niche market. Where do you plan to take Infrastruct Security, Inc. and your mission beyond 2007?

Daniel Weiss: We take great pride and responsibility in the mission of “Securing America's Critical Infrastructure.” We are pleased with our progress and believe we will make a difference in making our customers more secure now and in the years to come.

We will continue to execute on the expansion plan in 2007-2008, with offices opening up in key petrochemical markets. It would be exciting to see Infrastruct Security, Inc. partner with a Homeland Security contractor, petrochemical service provider or environmental services company.

Most importantly, we are fortunate to have a great group of investors. They are committed to our success. We anticipate closing a Series B round of funding in the second quarter to make additional acquisitions and return substantial value to our investors and the marketplace.