Securities Class Action Filed Against Citadel Security Software, Inc.

On January 14, 2005, the class action lawsuit was filed in the United States District Court for the Northern District of Texas against Citadel Security Software, Inc. (Nasdaq: CDSS). The
complaint alleges violations of federal securities laws, Sections 10(b) and
20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including
allegations of issuing a series of material misrepresentations to the market
which had the effect of artificially inflating the market price. The class
period is from February 12, 2004 through December 16, 2004.

Plaintiff seeks to recover damages on behalf of the Class. If you are a
member of the Class as described above, you may move the Court no later than
March 15, 2005, to serve as a lead plaintiff for the Class. However, in order
to do so, you must meet certain legal requirements pursuant to the Private
Securities Litigation Reform Act of 1995.

If you wish to discuss this action, participate in this suit, or have any
questions or concerns regarding this notice, or preservation of your rights,
please contact:

William B. Federman
FEDERMAN & SHERWOOD
120 N. Robinson, Suite 2720
Oklahoma City, OK 73102
(405) 235-1560/FAX: (405) 239-2112
mail to: wfederman@aol.com
http://www.federmanlaw.com