SOURCE: SecureAlert, Inc.

SecureAlert, Inc.

February 16, 2011 09:00 ET

SecureAlert, Inc. Announces Record Sales as Quarterly Revenues Increased by 15%

SANDY, UT--(Marketwire - February 16, 2011) - SecureAlert, Inc. (OTCBB: SCRA), a leading international provider of patented, wireless electronic monitoring systems and services to public safety agencies, reported record quarterly revenues for the three months ended December 31, 2010. SecureAlert's revenues grew to $3,676,964 for its first fiscal quarter of fiscal year 2011 compared to $3,196,623 for the same reporting period in fiscal year 2010, an increase of $480,341 or 15%.

The record revenues are accompanied by a record quarterly gross profit of $1,813,714 for the three months ended December 31, 2010, up from $1,230,885 for the same period ended December 31, 2009, an increase of $582,829 or 47%. Correspondingly, gross profit margin increased to 49% for the December 31, 2010 quarter, up from 39% for the December 31, 2009 quarter or 10 percentage points. This was achieved as the Company continued to focus on operational profit, while the loss from operations decreased by $1,751,404 to $1,928,203 for the three months ended December 31, 2010, a 48% improvement.

"I am pleased with the direction the company is heading and the many recent contracts we have obtained," said John L. Hastings, President and Chief Operating Officer of SecureAlert, Inc. Mr. Hastings continued, "We are starting to realize revenues from contracts we have won in recent months and are excited to report the full impact they will have in forthcoming quarters. Our focus, hard work and determination are driving us to operational breakeven." Mr. Hastings concluded, "We are also excited to give further details in the coming weeks regarding recent contracts we have won." A more complete discussion of operating results for the first quarter ended December 31, 2010 is included in the company's quarterly report on Form 10-Q, filed with the Securities and Exchange Commission on February 14, 2011.

About SecureAlert

SecureAlert is a leading international provider of electronic monitoring systems, case management and services widely utilized by more than 625 law enforcement agencies worldwide. SecureAlert offers real-time intervention services and innovative technologies to observe and track offenders wherever they may be: In their car, home or office. The Company delivers highly reliable solutions and peace of mind through programs that allow probationers and paroled offenders to re-enter society by electronically monitoring them 24 hours a day, for enhanced public safety, while reducing the overall burdens and costs carried by the criminal justice and corrections systems.

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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