Shareholder Class Action Filed Against Citadel Security Software, Inc.

The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:

Notice is hereby given that a class action lawsuit was filed in the United
States District Court for the Northern District of Texas on behalf of all
securities purchasers of Citadel Security Software, Inc. (Nasdaq: CDSS)
("Citadel Security" or the "Company") from February 12, 2004 through
December 16, 2004 inclusive (the "Class Period").

If you wish to discuss this action or have any questions concerning this
notice or your rights or interests with respect to these matters, please
contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Darren J. Check,
Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
info@sbclasslaw.com.

The complaint charges Citadel Security, Steven B. Solomon, and Richard
Connelly with violations of the Securities Exchange Act of 1934. Citadel
Security Software Inc. develops and markets computer security and privacy
software. Its information technology ("IT") security computer software
products include security and management solutions for networks and personal
workstations designed to secure and manage personal computers and local area
networks. According to the complaint, the Company failed to disclose and
misrepresented the following material adverse facts which were known to
defendants or recklessly disregarded by them: (1) that customer demand in the
commercial portion of the Company's business was slowing; (2) that the much
touted, sizable pipeline of potential contracts failed to materialize due to
poor management execution; (3) that as a consequence of the above the
Company's growth was lagging; and (4) therefore, the defendants' statements
about the Company were lacking in any reasonable basis when made.
Additionally, the complaint alleges that during the Class Period, defendants
sold a total of 754,500 shares for proceeds totaling more than $3 million.

On December 17, 2004, Citadel Security provided a financial update for its
year-ended December 31, 2004. More specifically, the Company stated that
based upon preliminary estimates, Citadel now expects its revenue for the full
year 2004 to be between $15.2 million and $16.0 million, compared to previous
guidance of full-year revenue of $18.5 million to $21 million. As a result,
the Company will not meet its previously released net income guidance for the
second half of 2004 which was for net income of $1.0 million to $2.0 million.
The Company expects to end 2004 with approximately $4.9 million of deferred
revenues, most of which will be earned in 2005.

News of this shocked the market. Shares of Citadel Security fell $1.80
per share, or 41.96 percent, to close at $2.49 per share on unusually high
trading volume.

Plaintiff seeks to recover damages on behalf of class members and is
represented by the law firm of Schiffrin & Barroway, which prosecutes class
actions in both state and federal courts throughout the country. Schiffrin &
Barroway is a driving force behind corporate governance reform, and has
recovered in excess of a billion dollars on behalf of institutional and high
net worth individual investors. For more information about Schiffrin &
Barroway, or to sign up to participate in this action online, please visit
http://www.sbclasslaw.com

If you are a member of the class described above, you may, not later than
March 15, 2005 move the Court to serve as lead plaintiff of the class, if you
so choose. A lead plaintiff is a representative party that acts on behalf of
other class members in directing the litigation. In order to be appointed
lead plaintiff, the Court must determine that the class member's claim is
typical of the claims of other class members, and that the class member will
adequately represent the class. Under certain circumstances, one or more
class members may together serve as "lead plaintiff." Your ability to share
in any recovery is not, however, affected by the decision whether or not to
serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other
counsel of your choice, to serve as your counsel in this action.

CONTACT: Schiffrin & Barroway, LLP
Marc A. Topaz, Esq.
Darren J. Check, Esq.
Three Bala Plaza East, Suite 400
Bala Cynwyd, PA 19004
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at info@sbclasslaw.com