SOURCE: RemoteMDx, Inc.

February 25, 2008 09:00 ET

RemoteMDx Business Update

SANDY, UT--(Marketwire - February 25, 2008) - RemoteMDx (OTCBB: RMDX) is presenting additional detail and clarification from its press releases dated February 14, 2008 and February 19, 2008.

For the quarter ended December 31, 2007 as reported in the Company's public filings, the Company had total revenues of $6,005,545. Excluding the $2,400,000 sale of intellectual property, which did not pertain to RemoteMDx's core business, and Volu-Sol Reagents division's revenue of $169,592, offender monitoring revenues were $3,435,953.

Offender monitoring revenue included $1,000,000 in device sales and only one month contribution from two recent acquisitions, Court Programs and Midwest Monitoring Surveillance, which closed on December 1, 2007, contributing $209,313 and $351,582 for the Quarter, respectively. Therefore, recurring monitoring revenues for SecureAlert were $1,875,058. Monitoring revenues on a normalized quarterly basis would have been much greater; however, due to the replacement of a large number of updated units the company did not receive revenues during the transition time. The replacement process was complete by December 31, 2007 and the Company does not anticipate any further replacement will be necessary.

As of December 31, 2007 the Company had sold or leased 13,415 devices of which 5,194 were leased at approximately $8 per day. Over the next 10 months, the Company expects that the 8,221 devices that were sold will turn into monthly revenue generating units. In addition, Court Programs and Midwest Monitoring & Surveillance the Company oversees more than 5,000 additional offenders who are not monitored but that will be converted to the Company's monitoring system. These conversion units will increase realized average revenue per unit per day from $8 as the Company will be providing full case management to these offenders. For example, at December 31, 2007 Midwest Monitoring & Surveillance currently leased devices at an average of $13.04 per day.

On a proforma basis as of December 31, 2007, the Company had a revenue run rate of $19 million with recurring revenue run-rate of $15 million and device sales run rate of $4 million. The Company expects devices sales to continue to distributors such as Electronic Monitoring Services, which uses TrackerPAL exclusively in Puerto Rico.

In January 2008 the Company began to address backlog that was delayed until the completion of the replacement process. The current backlog for the TrackerPAL device is in excess of several thousand units. The Company anticipates significant unit orders from existing and new customers at all governmental levels including, but not limited to, counties, states, and federal. In particular, there are several large state level RFPs each representing potential orders in the thousands of units. In addition, management believes with the introduction of the Company's second generation devices known as TrackerPAL HouseArrest there will be significant order from all agencies. Finally, the Company recently signed a distribution agreement with a leading national organization that represents a milestone in the offender monitoring industry. Additional information will be disclosed in a separate press release. The Company also continues to explore strategic alternatives including, but not limited to, partnerships and acquisitions. As a result of these immediate opportunities, RemoteMDx's 2008 Business Plan projects revenues for the calendar year ending December 31, 2008 to total $49,000,000 with a run rate of revenues in excess of $100 million by year's end representing the monitoring of approximately 40,000 offenders.

About RemoteMDx

RemoteMDx has in excess of 200 employees with a centralized monitoring center located in Sandy, Utah. It has proprietary technologies and offers offender management solution to the criminal justice system including: offender pay programs that require the offenders to pay for their monitoring saving millions of dollars to governmental agencies, drug and alcohol monitoring, real-time monitoring offenders combined with job service programs. RemoteMDx through all of its subsidiaries currently manages in excess of 13,000 offenders and is looking to grow this number through its TrackerPAL HouseArrest solution.

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.

SecureAlert, TrackerPAL and Offender Monitoring Center are trademarks of SecureAlert. RemoteMDx is a trademark of RemoteMDx, Inc.

Contact Information