Law Enforcement Associates to Delay 10-K Filing


YOUNGSVILLE, NC--(Marketwire - April 15, 2008) - Law Enforcement Associates Corporation (LEA) (AMEX: AID), today announced it will be unable to file its fiscal 2007 Form 10-K on a timely basis. The delay has resulted from complications related to the completion of the Company's year-end audit. Specifically, the issues are related to valuations of LEA's patents and its fourth-quarter acquisition of the assets of Advanced Vehicle Systems LLC. The Company has been working diligently with its auditors and Audit Committee and expects to complete the audit this week and file its 10-K no later than Friday, April 25, 2008.

LEA anticipates reporting net sales for fiscal 2007 of approximately $6.7 million as compared with $7.5 million for fiscal 2006. It also anticipates reporting a net loss of approximately $790,000 versus a net loss of $3,000 in the previous year. The decline in revenue and increased net loss is primarily attributable to the Company making the decision to bring its sales staff in-house versus utilizing independent outside sales people. As a result, more than half of the sales staff were new hires in 2007. The Company also recognized higher than expected operating expenses related to the introduction of the Graffiti Cam. However, based upon improved sales results for the quarter ended March 31, 2008, the Company does not anticipate that last year's declining financial trends will continue.

The Company anticipates reporting total assets at December 31, 2007, of approximately $6.7 million as compared with $6.0 million at the end of the previous year, while total liabilities will be approximately $1.1 million as compared with $631,000 in the prior year. The anticipated increase in liabilities is largely attributable to increases in trade accounts payable and the Company's line of credit in preparation for a large Federal Government order received during the fourth quarter. However, the revenue related to this order will not be recognized until the first quarter of 2008. The Company also anticipates reporting stockholders' equity of approximately $4.3 million as compared with $5.4 million at the end of 2006.

Paul Feldman, president, said, "While we are disappointed with our 2007 financial results, the performance of our new sales force and the overall direction of the Company is positive. Our new Graffiti Cam surveillance system has generated enormous interest and strong preliminary sales results. We also continue to achieve strong sales of our Bird Dog GPS tracking system. We believe that the reintroduction of the AID Vehicle Division also will have a positive impact on our future revenues, as it has already generated $400,000 in sales since its launch in October 2007. In light of these developments, we anticipate a turnaround in our first quarter financial results, which we expect will be profitable."

About Law Enforcement Associates Corporation

LEA is a leading security and surveillance technology company that manufactures and markets a diverse product line to the worldwide law enforcement, military, security and corrections markets. The company's Audio Intelligence Devices (AID) division has been serving the law enforcement sector for more than 30 years and is one of the most respected names in the surveillance equipment industry. LEA's products are used by a wide variety of government and non-governmental agencies, as well as public and private companies. These include military bases, nuclear facilities, embassies, government installations, oil refineries, United Nations and NATO locations. The company enjoys close working relationships with other prominent players in the security and surveillance industry, such as Smith & Wesson, one of the world's largest manufacturers of quality firearms and firearm safety/security products; and FLIR Systems, Inc., a world leader in the design, manufacture and marketing of thermal imaging and stabilized camera systems. LEA's products have been used at high-profile events such as the Summer & Winter Olympics, Super Bowl, U.S. Golf Championship, and the Democratic and Republican National Conventions. Its products include the Under Vehicle Inspection System (UVIS), Smith & Wesson-branded UVIS Swift, EDK123 (Explosive Detection Kit), Bloodhound and Birddog GPS Tracking Systems, Graffiti Cam, Letter-bomb Visualizer Spray, and a wide variety of Audio & Video Surveillance Equipment. Headquartered in Youngsville, N.C., the company has been featured in many industry publications and websites. For more information, please visit www.leacorp.com.

Forward-Looking Information:

The statements in this news release contain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that use words such as "believe," "anticipate," "estimate," "intend," "could," "plan," "expect," "project," "predict," "forecast," "outlook," "potential," "continue," "may," "future," "can," "enhance," and "should," or the negative of these, as well as similar expressions, can be used to identify forward-looking statements. Such forward-looking statements involve certain risks, assumptions and uncertainties, including the inability to generate and secure the necessary product sales, or the lack of acceptance of the company's products by its customers. In each case actual results may differ materially from such forward-looking statements. The company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results (expressed or modified) will not be realized.

Contact Information: CONTACT: Pfeiffer High Investor Relations, Inc. Geoff High 303-393-7044

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