SOURCE: SecureAlert, Inc.

SecureAlert, Inc.

February 19, 2010 10:39 ET

SecureAlert, Inc. Announces Name Change, Increased Recurring Revenues and Twelve-Fold Increase in Gross Profit for the First Fiscal Quarter Ended December 31, 2009

SANDY, UT--(Marketwire - February 19, 2010) - SecureAlert (OTCBB: SCRA), Inc., formerly known as RemoteMDx, Inc. (OTCBB: RMDX), a national leader in interactive offender tracking technologies widely utilized by more than 600 public safety agencies across 35 states, reported a twelve-fold gross profit increase for its fiscal quarter ended December 31, 2009.

SecureAlert received notification from FINRA that effective February 22, 2010 the company will trade under its new trading symbol SCRA. This is in connection with the company's recent name change from RemoteMDx, Inc. to SecureAlert, Inc. The company also announced a change of name for one of its operating subsidiaries from SecureAlert, Inc. to SecureAlert Monitoring, Inc.

SecureAlert's total recurring monitoring revenues grew to $3,146,253 for the three months ended December 31, 2009 up from $2,869,547 for the same reporting period in 2008, an increase of $276,706 or 9.6%. This increase in recurring monitoring revenues was driven by a redirected focus away from one-time, lower margin device sales, which decreased to $50,370 for the three months ended December 31, 2009, down from $352,750 for the same reporting period ended December 31, 2008, a decrease of $302,380 or 86%. In total, consolidated recurring monitoring and device sales revenues were relatively flat at $3,196,623 for three months ended December 31, 2009 a slight decrease of $25,674 or less than 1% off of the $3,222,297 for the same reporting period ended December 31, 2008.

Importantly, the company's total cost of revenues was reduced to $1,965,738 or 61% of revenues for the three months ended December 31, 2009, measurably down from $3,115,457 or 97% of revenues for the same reporting period ended December 31, 2008, a decrease of $1,149,719 or 36%. The decrease in cost of revenues was primarily realized by a reduction in communications and direct labor costs, along with developing additional software enhancements to further automate alarms.

In summary, SecureAlert increased gross profit twelve-fold to $1,230,885 or 39% of revenues for the three months ended December 31, 2009, measurably up from $106,840 or 3% of revenues for the same reporting period ended December 31, 2008, an increase of $1,124,045.

"We are very pleased that our latest reported results continue to reflect our focused efforts for profitable growth from recurring monitoring revenues and the realization of key initiatives targeted at reducing costs and driving margins," said John Hastings, President and Chief Operating Officer. "What is most gratifying is that while increasing our recurring revenues, we have been able to substantively reduce our cost of revenues overall by 36% and to increase our gross profit margin to 39% for the quarter. We continue the drive on our path toward profitability and of being cash flow positive," he concluded. A more complete discussion of operating results for the first quarter ended December 31, 2009 is included in the company's quarterly report on Form 10-Q, filed with the Securities and Exchange Commission on February 16, 2010.

About SecureAlert

SecureAlert is a leading edge, patented monitoring, case management and advanced communications technology company, widely utilized by approximately 15,000 offenders in over 600 law enforcement agencies, judicial districts and county jurisdictions across 35 states, with applications targeted for offender tracking and homeland security. Through its SecureAlert Monitoring subsidiary, SecureAlert observes and tracks offenders no matter where they may be -- in their car, home or office. SecureAlert offers the only single-piece device and GPS tracking technology integrated with 3-way voice, text and data communications, which interacts with real time intervention monitoring services, and is unrivaled in the industry. The SecureAlert programs allow offenders to re-enter society by keeping them accountable 24 hours a day, every day, supporting rehabilitation initiatives and providing for enhanced public safety, while reducing the overall burdens and costs carried by the criminal justice and corrections systems. To learn more about SecureAlert, visit their website at www.securealert.com

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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