February 20, 2007 09:00 ET

RemoteMDx Announces First Quarter Results

SANDY, UT -- (MARKET WIRE) -- February 20, 2007 --RemoteMDx (OTCBB: RMDX) reported operating revenue of $988,000 for the quarter ended December 31, 2006, a 450% increase compared to $219,000 for the same period last year. The primary reason for the increase was the introduction of the TrackerPAL unit that started a full-scale deployment in December of 2006 and will demonstrate continued revenue growth throughout the calendar year of 2007. Even though the Company had a $7.8 million loss (of which a large portion was non cash) for the quarter ended December 31, 2006, the Company did have positive cash flow from operating activities in excess of $500,000 for the quarter. During the three months ended December 31, 2006, the Company purchased $7.1 million in monitoring equipment and ended the quarter with $18 million in assets and $11 million in liabilities.

RemoteMDx also further clarified its contractual relationship with Seguridad Satelital Vehicular (SSV) for the country of Mexico. SSV is a privately owned firm that was founded in 1970. It has a variety of subsidiaries and products ranging from consumer electronics to telematics and telecommunications. In 1999 it started its vehicle tracking service under the name of "GTE Rastreo Vehicular" through its distribution relationship with GTE. It is through this division that it has established numerous government relationships as it helps the Mexican Federal Police and other local police departments track their officers' vehicles and also aid in recovering stolen vehicles. Their website is which also contains information concerning TrackerPAL in Mexico.

The specifics of the contract are that in order for SSV to maintain exclusivity in Mexico it must purchase and put into a monitoring state 10,000 units during the first 16 months of the contract; an additional 10,000 units must be purchased and maintained for the next 12 months and finally another 10,000 units for the following 12 months for a total of 30,000 units. The total value of the contract just on unit sales is a minimum of $18 million. In addition, the Company will assist SSV with software and monitoring controls for which RemoteMDx will receive through its subsidiary SecureAlert $2 per day per unit royalty. This revenue stream is neither subject to the special dividend that SecureAlert normally pays nor the normal monitoring costs incurred by the Company. Ultimately, the gross profit from this contract could exceed $21,000,000 per year.

The Company also announced that it has entered into a settlement agreement with plaintiffs Michael Sibbett and HGR Enterprises, resolving all claims asserted in litigation against the Company.

About RemoteMDx

Through its SecureAlert subsidiary, RemoteMDx offers a unique personal security service combing two-way communications, patented wireless location technology and affordable real-time 24/7 mobile monitoring to assist law enforcement in protecting neighborhoods from predators and to provide peace of mind for families with elderly loved ones who live alone or far away. More information is available on the Company's website,

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, including future growth and earnings opportunities of the Company. Actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, including the Company's ability to retain and to promptly satisfy current backorders and other economic, competitive, governmental, technological, regulatory, manufacturing and marketing risks associated with the Company's business and financial plans. The contents of this release should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in the Company's most recent filings with the Securities and Exchange Commission.

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