SteelCloud, Inc. announced that NASDAQ has granted the Company's request for continued listing, subject to the Company evidencing, on or before January 4, 2010, at least $2.5 million in stockholder's equity or demonstrating compliance with one of NASDAQ's alternative listing criteria. As previously reported, SteelCloud requested a hearing before the NASDAQ Hearings Panel to appeal the NASDAQ Suspension Notice it received on July 8, 2009, and to present its plan for regaining compliance with NASDAQ Listing Rule 5550(b). The hearing was held on September 3, 2009 and SteelCloud received the NASDAQ Hearings Panel's determination on October 5, 2009. Brian Hajost, SteelCloud's President and CEO said: "This is another milestone achieved by SteelCloud. We believe the NASDAQ Hearings Panel's decision will give our shareowners and the market confidence that we continue, and will continue, to accomplish the goals that we set for SteelCloud earlier this year." He added: "We can now concentrate on our business and on the special shareholders' meeting which we are holding on October 19th. Raising equity is the key to satisfying our listing requirements. We anticipate a successful meeting, which we believe will result in helping SteelCloud to raise the equity necessary to achieve NASDAQ compliance."

SteelCloud Inc. was awarded a $500,000 professional services contract for BlackBerry-related consulting and the purchase of SteelWorks� appliances. Work on the new contract is scheduled to begin immediately and should conclude at the end of the second calendar quarter of next year. Depending on additional requirements determined during the initial period of performance, this agreement provides for multiple follow-on phases of deliverables potentially increasing the value of this contract. Revenue is projected to be recognized, ratably over the nine month period.

SteelCloud Inc., Special/Extraordinary Shareholders Meeting, Oct 19, 2009, at 10:00 US Eastern Time. Location: 13962 Park Center Road, Herndon, VA 20171,United States. Agenda: To authorize the company to issue up to 14,500,000 shares of common stock and accompanying warrants to purchase up to 14,500,000 shares of common stock, together with the potential issuance to prospective placement agents of warrants to purchase up to 3,200,000 shares of common stock on the same terms as the accompanying warrants, pursuant to the company's registration statement on Form S-1, in accordance with NASDAQ Marketplace Rule 5635(d); to authorize the company to issue common stock, and/or securities convertible into or exchangeable or exercisable for common stock, in connection with a future financing, in accordance with NASDAQ Marketplace Rule 5635; to approve the sale of warrants by the company to its directors in a private placement; and to approve the adjournment, postponement or continuation of the special meeting .