LONDON, December 9 /PRNewswire/ --

Since the accession to the European Union (EU) in 2004, nearly 
US$2.5 billion dollars (estimated until 2009, including investments in 
Romania and Bulgaria after joining the EU in 2007) have been invested on the 
EU-accession states' eastern external borders.

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The latest Frost & Sullivan analysis on Border Security Market Assessment
- EU-Accession States (http://www.aerospace.frost.com), estimates that the
market revenues will grow from US$777.8 million in 2008 to US$1,245.9 million
in 2017, at an expected CAGR of 4.8 per cent.

If you are interested in a virtual brochure, which provides
manufacturers, end users and other industry participants with an overview of
the border security market assessment of EU-accession states, then send an
e-mail to Anna Anlauft, Corporate Communications, at anna.anlauft@frost.com,
with your full name, company name, title, telephone number, company e-mail
address, company website, city, state and country. Upon receipt of the above
information, an overview will be sent to you by e-mail.

"In the last three years, nine of the twelve EU accession states
(excluding Romania, Bulgaria and Cyprus) have made significant investments on
border security to comply with the high-level security standards mandated by
Schengen," notes Frost & Sullivan Research Analyst Abdallah Binmadhi. "These
include investments in construction, renovation and upgrading of border
crossing infrastructure, operating equipment such as laboratory equipment,
detection tools, hardware, software, means of transport as well as logistics
and operations."

Investments will focus on the EU external border management tools to
comply with the Schengen requirements. These cover operational equipment
(movement optical sensors and vehicles), border infrastructure, Schengen
Information System (SIS) and visa information system, including biometric
technology.

In order to include Romania and Bulgaria in the Schengen area, the
European Commission has allocated the Schengen Facility II funds for both
countries, of which 70 per cent will be used for implementing the Schengen
Aquis and external border control in the next three years.

"The European Commission's Directorate-General (DG) for Justice, Freedom
and Security has established USD 2 billion as part of the external border
funds that will be used for implementation of common standards on control and
surveillance of external border policy to be invested until 2013," states
Binmadhi. "About a quarter of these funds will be invested in the EU eastern
borders."

The border security market in the EU accession states is fragmented, and
there is no single institution in each of these countries that manages
procurements and contracts. Governmental institutions to invest funds for
border security also vary from country to country. Moreover, corrupt and
fraudulent procurement practices are considered a real problem.

"The high level of local protectionism can be significant in certain
EU-accession states. Furthermore local companies are preferred to foreign
competitors during bidding," cautions Binmadhi. "To overcome this challenge,
there is a need to forge strategic partnerships with local companies
certifying that enforcement of the EC competition rules (policies on state
aid, merger control and anti-trust) are being applied, and that efficiency
and innovation are being encouraged and duly rewarded."

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    Contact:
    Anna Anlauft
    Corporate Communications - Europe
    P: +49-(0)-69-770-33-12
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    E: anna.anlauft@frost.com