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Law Enforcement Associates Says $4 Billion in New Justice Department Grants Will Provide Financial Boost for LEA's Customer Base
| Source: Law Enforcement Associates
RALEIGH, NC--(Marketwire - February 19, 2009) - Law Enforcement Associates Corporation (LEA)
(OTCBB : LAWE ), the largest U.S.-based developer and manufacturer of
electronic surveillance equipment for the law enforcement industry, today
lauded the $4 billion in new law enforcement grant funding that was
included in the American Recovery and Reinvestment Act, which was signed
into law by President Obama on February 17.
The U.S. Department of Justice, which will administer the grants, said $2
billion in new funding will be allocated to the Edward Byrne Justice
Assistance Grant (JAG) program, and will be used to fund state and local
crime fighting programs. The JAG program allocates 60 percent of its funds
to states and 40 percent to local law enforcement efforts. Specifically,
the grants are designed to provide personnel, equipment, training,
technical assistance and information systems for more widespread
apprehension, prosecution, adjudication, detention, and rehabilitation of
offenders who violate state and local laws. More information about the JAG
program can be found at the following links:
http://www.usdoj.gov/opa/pr/2009/February/09-opa-130.html
http://www.ojp.usdoj.gov/recovery/
In addition, $1 billion in new grant money will be used to fund hiring and
equipping local police officers through the Community Oriented Policing
Services (COPS) program. According to the Department of Justice, these
grants will fund an estimated 5,500 local police officers through the COPS
Hiring Recovery Program. The funds will also help local agencies acquire
new crime fighting tools and technologies.
Paul Feldman, president of LEA, said funds from the JAG and COPS grant
programs have historically been a vital resource to LEA's customers, who
used the proceeds in part to augment their crime fighting equipment
budgets. "Unfortunately, Congress has made dramatic reductions to these
programs in recent years. In 2008, for instance, total funding for the
Byrne Justice Assistance program was reduced to $170 million from $520
million in 2007. These deep cuts have severely limited our customers'
capital spending programs. Consequently, we believe there now is
substantial pent up demand for the new surveillance and security tools that
have become available in recent years. We are optimistic that these new
grant programs will assist state and local agencies in addressing those
needs."
Feldman said new funding resources for customers is just one of several
positive developments that have taken place in recent weeks. "As we have
previously stated, we expect to report full-year revenue growth for fiscal
2008 of approximately 35%. Moreover, we have started fiscal 2009 with
significant momentum and are optimistic that our financial growth will
continue into the coming year."
LEA will provide additional detail on recent developments during a year-end
conference call to be held in March. Details for participating in the call
will be provided in a subsequent news release.
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 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, including
Smith & Wesson, one of the world's largest manufacturers of quality
firearms and firearm safety/security products. 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 Raleigh, 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.