Sector 10, Inc. (OTCBB:SECT) (Frankfurt:4SR), a company focused on becoming the world’s leading provider of mobile and stationary emergency life response equipment, announced today that the Company has been rated Speculative Buy with a price target of $0.50 by Reovest Growth Research, a wholly owned subsidiary of Reovest Financial. The 10-page report provides an overview of the company, its products, potential within the emergency response industry, as well as the reasoning behind its Speculative Buy rating and $.50 price target.

Key Highlights of Reovest Research Report:

• Product offerings have recently become available (2Q 2009), and have been placed on-site. The products offer single point access to: Risk and Crisis Management, Emergency Preparedness Assets, Community Response Integration, Monitoring of Evacuation and Assets, First Aid Access Point, Internal Security System, Data Management, Scalable Wireless and Ethernet Network, as well as Information Technology.
• Governor David A. Paterson announced that $34 million in homeland security grant funds were awarded to the New York City urban area as part of the federal government’s Urban Area Security Initiative in April 2008 through the federal Public Safety Interoperable Communications (PSIC) Grant.
• The Department of Homeland Security recently announced its fiscal year budget request of $50.5 billion with a gross discretionary budget request of $40.7 billion. This represents an increase of 7 percent and 8 percent, respectively, from FY 2008 figures.
• Sector 10, Inc. has made arrangements with Dutro Company to provide outsourced manufacturing for all of Sector 10’s products. Dutro Company has sufficient capacity to accommodate production requirements without consuming the company’s working capital.

In the report, the analyst stated, “If management is able to generate three to four million dollars in net income over the next two years, investors could see a valuation range of between $0.50 -$1.00 using a 15x’s P/E multiple in a conservative and cautious environment. We are encouraged that the company is fully reporting and has been making SEC filings on a timely basis. In addition, there does not appear to be a high percentage of toxicity in the float, which is often a problem with penny stocks.