Iowa State Penitentiary Selects Stellar Technologies' Stellar Internet GEM(TM) Over SurfControl(R)

The Oldest Maximum Security Penitentiary West of the Mississippi River Chooses Stellar Internet GEM to Manage and Enforce Its Internet Policy

Stellar Technologies, Inc. (OTC BB: SLLR), a leading provider of employee Internet management and data migration solutions, announced today the Iowa State Penitentiary selected Stellar Internet GEM as its Internet management solution of choice. The organization performed an evaluation of SurfControl and Stellar Internet GEM prior to moving forward with Stellar to manage its Web surfing and instant messaging within the penitentiary.

Iowa State Penitentiary is one of two maximum-security prisons in Iowa and is located at the most south-east region, in Fort Madison. The penitentiary currently houses 1,067 inmates, including 131 inmates located at 2 remote facilities. The prison is the oldest maximum-security prison west of the Mississippi River. In total, 8,708 offenders are distributed across Iowa's nine facilities with the Fort Madison location accountable for 11.4% of the state's offenders.

"At our location, we worked with SurfControl for over a year to make their solution work in our environment. Each attempt was unsuccessful. After much wasted time, we contacted Stellar Technologies and their superior customer service and technical support staff gave our organization the immediate assistance we had hoped for all along," states Linda Bruce, System Administrator of the Iowa State Penitentiary. "Not only did Stellar visit our location on several occasions, they made sure Stellar Internet GEM was up and running before they left our location."

Iowa State Penitentiary required filtering, reporting and search capabilities for employee Web surfing and instant messaging within their organization to enforce and monitor its Internet usage policy. Through Stellar Internet GEM, the penitentiary is able to effectively filter content from categorized policies as well as through customized additions to further enhance management of Web surfing and instant messaging by staff members.

Bruce continued, "Because of our network configuration and remote sites, we were unable to simply drop a solution onto our network and generate reports the next day. We needed a company that would walk us through the process from beginning to end. Stellar Technologies spent time with our IT staff to ensure a successful installation of their solution, and the results speak for themselves. We are currently filtering Internet activity with Stellar Internet GEM, and Stellar has been there for us every step of the way from assisting us with hardware decisions, helping with installation and configuration of the product down to running our first management report."

"We are pleased to assist Iowa State Penitentiary with their Internet management needs as well as having the organization implement Stellar Internet GEM to enforce their Internet usage policy. Through detailed attention and dedication to each customer site, we continue to pride ourselves on delivering unmatched customer service and support alongside our innovative solutions including Stellar Internet GEM," states Stellar Technologies VP of Product Management, Eric M. Cole.

Stellar Internet GEM(TM) is a fully integrated solution for establishing and consistently enforcing policy through filtering, reporting, archiving and data search and retrieval for employee use of the Internet and electronic communications with others inside and outside of the organization. Using the principles of active policy management, Stellar Internet GEM helps organizations meet the demands of regulatory compliance, proactively manage communications with an awareness of potential legal liability, increase employee productivity, reduce wasted bandwidth and protect confidential and sensitive corporate information assets, copyrighted materials, and intellectual property.

About Stellar Technologies, Inc.

Florida-based Stellar Technologies, Inc. (OTC BB: SLLR) is a leading provider of employee Internet management and data migration solutions offering a complete line of management and security products to business and government organizations. Specializing in filtering, reporting and archiving employee e-mail, Web browsing, instant messaging and e-communication attachments, Stellar's products and services assist in heightening litigation control, increasing compliance with applicable regulations, reducing wasted IT resources and improving employee productivity. For more information, visit www.stellartechnologies.com.

Forward-Looking Statements:

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained herein, including without limitation, statements regarding the Company's future financial position, business strategy, budget, projected revenues, projected costs and plans and objectives of management for future operations are forward-looking statements. The words "estimate," "project," "intends," "expects," "believes," "may," "will," "should," "could," or "would," the negative of such terms or similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause the Company's actual results, events or financial position to differ materially from those included within the forward-looking statements. These factors include, but are not limited to, the acceptance of the Company's products in the marketplace, competition, the Company's ability to generate additional financing, as well as those factors set forth in the Company's Reports on SEC Form 10-KSB for the period ended June 30, 2004, Form 10-QSB for the period ended March 31, 2005 and its other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made and the Company undertakes no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.

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