March 11, 2012 NASDAQ: UNDT

UNIVERSAL DETECTION TECHNOL

BUY A+ A AB+ B BC+ HOLD C CBeta 0.49 D+ D DSELL E+ E EF

SELL
52-Week Range $0.00-$0.00

RATING SINCE

03/08/2010

Annual Dividend Rate NA

Annual Dividend Yield NA

Market Capitalization $3.7 Million

Price as of 3/8/2012 $0.00

Sector: Technology UNDT BUSINESS DESCRIPTION Universal Detection Technology engages in the research, development, and marketing of bioterrorism detection devices in the United States. STOCK PERFORMANCE (%) 3 Mo. Price Change 100.00 GROWTH (%) Revenues Net Income EPS Last Qtr 5,550.00 -11.92 NA 12 Mo. 2,820.00 -0.18 NA 3 Yr CAGR 9.90 NA 25.99

Sub-Industry: Electronic Equipment & Instruments SMA (50) SMA (100)

Source: S&P 1 Year 2 Years 0.00

Weekly Price: (US$)

1 Yr. -50.00

3 Yr (Ann) -65.80

0.00

0.00
Rating History

RETURN ON EQUITY (%) UNDT Q3 2011 NM Q3 2010 NM Q3 2009 NM P/E COMPARISON

SELL Ind Avg 10.51 12.69 -6.64 S&P 500 14.77 12.84 3.25
Volume in Millions

4,000 2,000 2011 2012 0

COMPUSTAT for Price and Volume, TheStreet.com Ratings, Inc. for Rating History

RECOMMENDATION We rate UNIVERSAL DETECTION TECHNOL (UNDT) a SELL. This is based on the combination of unfavorable investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. Among the areas we feel are negative, one of the most important has been poor profit margins. HIGHLIGHTS The gross profit margin for UNIVERSAL DETECTION TECHNOL is currently extremely low, coming in at 3.50%. Regardless of UNDT's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, UNDT's net profit margin of -448.70% significantly underperformed when compared to the industry average. The change in net income from the same quarter one year ago has significantly exceeded that of the Electronic Equipment, Instruments & Components industry average, but is less than that of the S&P 500. The net income has decreased by 11.9% when compared to the same quarter one year ago, dropping from -$0.45 million to -$0.51 million. UNIVERSAL DETECTION TECHNOL has shown no change in earnings for its most recently reported quarter when compared with the same quarter a year earlier. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, UNIVERSAL DETECTION TECHNOL turned its bottom line around by earning $0.00 versus -$0.01 in the prior year. Compared to where it was trading one year ago, UNDT is down 50.00% to its most recent closing price of 0.00. Looking ahead, our view is that this stock still does not have good upside potential and may even suffer further declines. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.01 is very low and demonstrates very weak liquidity.

NA UNDT EPS ANALYSIS ($) Q2 0.00 Q3 0.00 Q4 0.00 Q1 0.00

17.85 Ind Avg

15.71 S&P 500

Q2 0.00

Q3 0.00

Q4 0.00

Q1 0.00

Q2 0.00

Q1 -0.01

2009

2010

2011

NA = not available NM = not meaningful 1 Compustat fiscal year convention is used for all fundamental data items.

This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet.com Ratings nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet.com Ratings, Inc. Copyright(c) 2006-2010. All rights reserved.

Q3 0.00

Report Date: March 11, 2012

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March 11, 2012 NASDAQ: UNDT

UNIVERSAL DETECTION TECHNOL

Sector: Technology Electronic Equipment & Instruments Source: S&P Annual Dividend Rate NA PEER GROUP ANALYSIS REVENUE GROWTH AND EBITDA MARGIN*
3000%

Annual Dividend Yield NA

Beta 0.49

Market Capitalization $3.7 Million

52-Week Range $0.00-$0.00

Price as of 3/8/2012 $0.00

UNDT
V FA AB OR LE

INDUSTRY ANALYSIS The US electronic equipment and instruments industry includes technology distributors, electronic equipment manufacturers, and service providers. Electronic equipment manufacturers and service providers make analytical components, electronic test and measurement instruments, and connection devices. Electronic manufacturing services companies operate in the Original Equipment Manufacturers (OEM) market. Distributors of technology hardware and equipment are also part of this industry. The industry is highly competitive, rapidly evolving, subject to changing customer needs and the frequent introduction of new products and services. Major players are large and diversified companies such as Amphenol (APH), Avnet (AVT), Agilent Technologies (A), and Tyco Electronics (TEL). Changing technology, capital spending, and consumer demand are growth drivers. Consumer spending is affected by various economic factors, including credit conditions, consumer confidence, and commodity prices. Companies compete on engineering, product quality, price, customer service, and delivery time. Availability of raw materials is another challenge facing the industry, given the limited number of producers and suppliers. Also, the price of raw materials, including gold, copper and aluminum, has increased considerably. The industry is currently facing competition from low-cost manufacturers in Japan, Korea, and China. In an effort to achieve economies of scale, companies are embracing large-scale consolidation. Larger entities seek diversification of manufacturing operations and elimination of redundant product lines. The electronic appliances sector has registered outstanding growth in recent years. Also, inclination towards the newest technologies continually boosts demand. The industry is subject to a variety of environmental laws and regulations of international, US federal, state, and local bodies. The European Union (EU) directives, such as the Restriction of Certain Hazardous Substances Directive (RoHS) and the Waste Electrical and Electronic Equipment Directive, are of particular importance. These directives restrict the sale and distribution of products containing certain prohibited substances and require manufacturers or importers to recycle those products. Looking forward, the industry will continue to grow, driven by the needs of OEMs to adopt new technologies and reduce product costs. Due to a dynamic technological environment and lackluster consumer and business spending, industry growth and sustainability depends on the ability to develop new products and modify existing products to meet customer preferences. PEER GROUP: Electronic Equipment, Instruments & Components Recent Market Ticker Company Name Price ($) Cap ($M) UNDT UNIVERSAL DETECTION TECHN 0.00 4 SMIT SCHMITT INDUSTRIES INC/OR 3.40 10 DGLY DIGITAL ALLY INC 0.60 10 ITSI INTL LOTTERY & TOTALIZATOR 0.56 7 GIGA GIGA-TRONICS INC 1.32 7 BKYI BIO-KEY INTERNATIONAL INC 0.09 7 VSUL VISUALANT INC 0.07 4 ERMS EROOMSYSTEM TECHNOLOGIES IN 0.16 4 INSA INVISA INC 0.20 3 EKCS ELECTRONIC CONTROL SECURITY 0.12 1 INVI INTEGRAL VISION INC 0.02 1

Revenue Growth (TTM)

-500%

EBITDA Margin (TTM) Companies with higher EBITDA margins and revenue growth rates are outperforming companies with lower EBITDA margins and revenue growth rates. Companies for this scatter plot have a market capitalization between $0.7 Million and $10 Million. Companies with NA or NM values do not appear.
*EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization.

REVENUE GROWTH AND EARNINGS YIELD

3000%

UN
-300%

R VO FA LE AB R VO FA LE AB

GIGA

VSUL SMIT EKCS ERMS DGLY ITSI BKYI INVI

50%

UNDT
V FA AB OR LE

-500%

VSUL GIGA

INVI
-450%

SMIT INSA BKYI ERMS EKCS DGLY ITSI

0%

Earnings Yield (TTM) Companies that exhibit both a high earnings yield and high revenue growth are generally more attractive than companies with low revenue growth and low earnings yield. Companies for this scatter plot have revenue growth rates between -65.7% and 2820%. Companies with NA or NM values do not appear.

Price/ Earnings NA NM NM NM NM NM NM NA NM NM NM

Net Sales TTM ($M) 0.15 13.12 21.65 4.75 17.32 3.53 8.88 0.85 0.09 3.74 0.61

Net Income TTM ($M) -2.72 -0.07 -7.43 -1.88 -16.67 -1.49 -2.71 -0.02 -0.13 -0.11 -2.91

Revenue Growth (TTM)

This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet.com Ratings nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet.com Ratings, Inc. Copyright(c) 2006-2010. All rights reserved.

UN

The peer group comparison is based on Major Electronic Equipment & Instruments companies of comparable size.

Report Date: March 11, 2012

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March 11, 2012 NASDAQ: UNDT

UNIVERSAL DETECTION TECHNOL

Sector: Technology Electronic Equipment & Instruments Source: S&P Annual Dividend Rate NA Annual Dividend Yield NA Beta 0.49 Market Capitalization $3.7 Million 52-Week Range $0.00-$0.00 Price as of 3/8/2012 $0.00

COMPANY DESCRIPTION Universal Detection Technology engages in the research and development of bioterrorism detection devices in the United States. It designs, manufactures, markets, and sells automated continuous air monitoring instruments used to detect and measure various types of air pollution, such as acid rain, ozone depletion, and smog episodes. The company's flagship product, BSM-2000 device, is an automated real-time bacterial spore detector used for detection of abnormal levels of airborne endospores, such as anthrax. BSM-2000 is designed to provide unattended monitoring of airborne bacterial spores in public places, with real-time automated alert functionality. Universal Detection Technology also offers anthrax detection test kits, kits to detect bioterrorism agents, radiation detection systems, surveillance cameras, and training material and references DVDs. The company, formerly known as Pollution Research and Control Corporation, was founded in 1971 and is headquartered in Beverly Hills, California. UNIVERSAL DETECTION TECHNOL 340 North Camden Drive, Suite 302 Beverly Hills, CA 90210 USA Phone: 310-248-3655 Fax: 310-273-2662 http://www.udetection.com

STOCK-AT-A-GLANCE Below is a summary of the major fundamental and technical factors we consider when determining our overall recommendation of UNDT shares. It is provided in order to give you a deeper understanding of our rating methodology as well as to paint a more complete picture of a stock's strengths and weaknesses. It is important to note, however, that these factors only tell part of the story. To gain an even more comprehensive understanding of our stance on the stock, these factors must be assessed in combination with the stocks valuation. Please refer to our Valuation section on page 5 for further information. FACTOR SCORE

Growth out of 5 stars weak Measures the growth of both the company's income statement and cash flow. On this factor, UNDT has a growth score better than 50% of the stocks we rate. Total Return out of 5 stars weak Measures the historical price movement of the stock. The stock performance of this company has beaten 30% of the companies we cover. Efficiency out of 5 stars weak Measures the strength and historic growth of a company's return on invested capital. The company ranks at the bottom of companies we review for income generated per dollar of capital. Price volatility out of 5 stars weak Measures the volatility of the company's stock price historically. The stock is more volatile than nearly all of the stocks we monitor. Solvency out of 5 stars weak Measures the solvency of the company based on several ratios. The company is less solvent than nearly all of the companies we analyze. Income out of 5 stars weak Measures dividend yield and payouts to shareholders. This company pays no dividends. THESTREET.COM RATINGS RESEARCH METHODOLOGY

3.0

strong

2.0

strong

0.5

strong

0.5 0.5 0.5

strong

strong

strong

TheStreet.com Ratings' stock model projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to perform against a general benchmark of the equities market and interest rates. While our model is quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings. Objective elements include volatility of past operating revenues, financial strength, and company cash flows. Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's performance. These and many more derived observations are then combined, ranked, weighted, and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of selecting stocks.

This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet.com Ratings nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet.com Ratings, Inc. Copyright(c) 2006-2010. All rights reserved.

Report Date: March 11, 2012

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March 11, 2012 NASDAQ: UNDT

UNIVERSAL DETECTION TECHNOL

Sector: Technology Electronic Equipment & Instruments Source: S&P Annual Dividend Rate NA Annual Dividend Yield NA Beta 0.49 Market Capitalization $3.7 Million 52-Week Range $0.00-$0.00 Price as of 3/8/2012 $0.00

Consensus EPS Estimates ($)

IBES consensus estimates are provided by Thomson Financial

FINANCIAL ANALYSIS UNIVERSAL DETECTION TECHNOL's gross profit margin for the third quarter of its fiscal year 2011 has significantly increased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. UNIVERSAL DETECTION TECHNOL has very weak liquidity. Currently, the Quick Ratio is 0.01 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow. During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

NA NA

NA NA

NA NA

INCOME STATEMENT Net Sales ($mil) EBITDA ($mil) EBIT ($mil) Net Income ($mil) BALANCE SHEET Cash & Equiv. ($mil) Total Assets ($mil) Total Debt ($mil) Equity ($mil) PROFITABILITY Gross Profit Margin EBITDA Margin Operating Margin Sales Turnover Return on Assets Return on Equity DEBT Current Ratio Debt/Capital Interest Expense Interest Coverage SHARE DATA Shares outstanding (mil) Div / share EPS Book value / share Institutional Own % Avg Daily Volume Q3 FY11 6,526 0.00 0.00 0.00 NA 48,435,690 Q3 FY10 1,635 0.00 0.00 0.00 NA 25,518,551 Q3 FY11 0.02 -0.34 0.02 -11.79 Q3 FY10 0.00 -0.42 0.04 -9.08 Q3 FY11 3.54% -250.44% -250.44% 1.36 -2,539.25% NM Q3 FY10 0.00% -18,050.00% -18,150.00% 0.11 -6,026.67% NM Q3 FY11 0.06 0.11 1.13 -4.45 Q3 FY10 0.00 0.05 1.31 -4.43 Q3 FY11 0.11 -0.28 -0.28 -0.51 Q3 FY10 0.00 -0.36 -0.36 -0.45

2 Sum of quarterly figures may not match annual estimates due to use of median consensus estimates.

This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet.com Ratings nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet.com Ratings, Inc. Copyright(c) 2006-2010. All rights reserved.

Report Date: March 11, 2012

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March 11, 2012 NASDAQ: UNDT

UNIVERSAL DETECTION TECHNOL

Sector: Technology Electronic Equipment & Instruments Source: S&P Annual Dividend Rate NA Annual Dividend Yield NA Beta 0.49 Market Capitalization $3.7 Million 52-Week Range $0.00-$0.00 Price as of 3/8/2012 $0.00

RATINGS HISTORY Our rating for UNIVERSAL DETECTION TECHNOL has not changed since 11/9/2001. As of 3/8/2012, the stock was trading at a price of $0.00 which is 92.3% below its 52-week high of $0.00 and 100.0% above its 52-week low of $0.00.
2 Year Chart

VALUATION SELL. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Price/Earnings

Price/CashFlow

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SELL: $0.00

$0.00 $0.00 $0.00 $0.00

UNDT NA Peers 17.85 Neutral. A lower P/E ratio can signify a less expensive stock or lower growth potential. Ratio not available.

UNDT NA Peers 12.82 Neutral. The P/CF ratio is the stocks price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures. Ratio not available. Price to Earnings/Growth

Price/Projected Earnings 2010 2011

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MOST RECENT RATINGS CHANGES Date Price Action 3/8/10 $0.00 No Change

From Sell

To Sell

UNDT NA Peers 14.43 Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential. Ratio not available. Price/Book

UNDT NA Peers 1.83 Neutral. The PEG ratio is the stocks P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. Earnings Growth

Price reflects the closing price as of the date listed, if available

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5
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RATINGS DEFINITIONS & DISTRIBUTION OF THESTREET.COM RATINGS

(as of 3/8/2012)

44.56% Buy - We believe that this stock has the opportunity to appreciate and produce a total return of more than 10% over the next 12 months. 30.24% Hold - We do not believe this stock offers conclusive evidence to warrant the purchase or sale of shares at this time and that its likelihood of positive total return is roughly in balance with the risk of loss. 25.20% Sell - We believe that this stock is likely to decline by more than 10% over the next 12 months, with the risk involved too great to compensate for any possible returns.

UNDT NA Peers 1.97 Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. Ratio not available. Price/Sales

UNDT NA Peers -39.17 Neutral. Higher earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. The growth rate for UNDT is not available. Sales Growth

1
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UNDT 0.15 Peers 1.70 Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. UNDT is trading at a significant discount to its industry on this measurement.
DISCLAIMER:

UNDT 2820.00 Peers 11.32 Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. UNDT has a sales growth rate that significantly exceeds its peers.

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This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet.com Ratings nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet.com Ratings, Inc. Copyright(c) 2006-2010. All rights reserved.

Report Date: March 11, 2012

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