HERNDON, VA–( EMWNews – April 1, 2008) – SteelCloud, Inc. (NASDAQ: SCLD), a manufacturer

of embedded integrated computing systems for the industrial automation

marketplace (“SteelCloud”), today announced that it is providing rugged

COTS servers with Mil-Spec I/O connectors for the United States Marine

Corps and Navy spiral development programs at the Naval Surface Weapons

Center in Dahlgren, Virginia.

These servers provide unique, high-performance processing for the Navy’s

Gunslinger and related programs. The use of Mil-Spec connectors on rugged

COTS servers promotes the military’s new directives to use hardened server

products in place of the more expensive VME and CompactPCI computers

currently used in war zones. Additionally, these servers offer the latest

processing technology and performance that will significantly improve

soldiers’ ability to respond to enemy fire in protected environments (such

as vehicles) by using computer equipment to detect and respond to enemy

fire without direct exposure.

The Navy plans to test these systems in “live fire” demonstrations in a

HUMVEE application. “Since these development systems offer the potential to

provide field troops a much higher level of protection in combat

situations, we believe that SteelCloud’s participation will extend into

similar spiral programs for Stryker and Cougar MRAP vehicles and Special

Forces watercraft,” said Robert Frick, SteelCloud’s President and CEO.

“After developing this product for the Gunslinger program, SteelCloud has

seen significant interest from other Navy commands and its prime

integrators to provide additional rugged COTS server products with Mil-Spec

connectors for other shipboard, submarine and landing craft applications.”

About SteelCloud

SteelCloud is a manufacturer of embedded integrated computing systems for

the industrial automation marketplace. SteelCloud designs and manufactures

specialized servers and appliances for federal integrators, software

vendors and volume users. For both the government and commercial markets

SteelCloud delivers integration services and software focused on risk

management and network management solutions. SteelCloud’s ISO 9001:2000

certified Quality Management System provides procedures for continuous

quality improvement in all aspects of its business. Over its nearly

20-year history, the SteelCloud has won numerous awards for technical

excellence and customer satisfaction. SteelCloud can be reached at (703)

674-5500. Additional information is available at www.SteelCloud.com.

“Safe Harbor” statement under the Private Securities Litigation Reform Act

of 1995: Except for historical information, all of the statements,

expectations and assumptions contained in the foregoing are forward looking

statements that involve a number of risks and uncertainties. It is possible

that the assumptions made by management are not necessarily the most likely

and may not materialize. In addition, other important factors that could

cause actual results to differ materially include the following: business

conditions and the amount of growth in the computer industry and general

economy; competitive factors; ability to attract and retain personnel,

including key sales and management personnel; the price of SteelCloud’s

stock; and the risk factors set forth from time to time in SteelCloud’s

Securities and Exchange Commission reports, including but not limited to

its annual reports on Form 10-K, quarterly reports on Form10-Q; and any

current reports on Form 8-K. SteelCloud takes no obligation to update or

correct forward-looking statements.