Law Enforcement Associates Reports 23% Revenue Increase for Fiscal 2009

RALEIGH, NC--(Marketwire - April 1, 2010) - Law Enforcement Associates Corporation (LEA) (OTCBB: LAWE), a leading U.S.-based developer, manufacturer and distributor of electronic surveillance and monitoring equipment, today announced financial results for its fiscal year ended December 31, 2009.

Revenue advanced 23% to $11.9 million from of $9.2 million during fiscal 2008. The increase was primarily due to the second quarter shipment of a major order from a large federal customer. Operating income was $382,000, up 57% from $243,000 during fiscal 2008. Net income was $127,000, or less than $0.01 per share, versus net income of $72,000, or less than $0.01 per share, in the prior year.

"Fiscal 2009 was a transitional year for LEA, and it was encouraging that we could deliver improved financial results while concurrently implementing broad strategic enhancements to our business," said Paul Briggs, president and CEO. "In addition to the management changes we made during the fourth quarter, we conducted a detailed analysis of our entire product portfolio, and also began restructuring our sales infrastructure."

Briggs, who was appointed president and CEO in December, added, "We are enhancing the features and functionality of several of our existing surveillance products, and recently introduced our anticipated PDT Digital Audio offering. This new suite of RF transmitters, receivers and repeaters is generating significant interest from our existing customer base and has given us access to a range of prospective federal organizations that were not customer candidates prior to our transition to digital. We are preparing to ship our first PDT order, which we received in February."

Briggs said the Company will soon introduce a sophisticated new digital video product that will initially be marketed to the Company's traditional law enforcement customers, but could ultimately be used to target ancillary markets. "The additions we have made to our product portfolio, particularly in the area of digital technology, represent a significant strategic accomplishment and position us to address a much broader pool of customers."

"I am particularly encouraged by enhancements we have made to our sales and marketing organization," Briggs added. "We recently hired a California-based sales executive who has an extensive law enforcement background and should significantly improve our exposure on the West Coast. We have added new marketing personnel at our headquarters in Raleigh, and a new director of customer training will join the Company in May. We also just shipped approximately 27,000 of our new product catalogs to law enforcement agencies across the country."

"We continue to make progress on the legal issues that emerged in 2009, and believe we are a fundamentally stronger company than we have been in recent years," Briggs added. "We are optimistic that 2010 will be a much improved year for our core business."

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. 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), 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:

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Among other things, these statements relate to our financial condition, results of operations and future business plans, operations, opportunities and prospects. In addition, we and our representatives may from time to time make written or oral forward-looking statements, including statements contained in filings with the Securities and Exchange Commission and in our reports to stockholders. These forward-looking statements are generally identified by the words or phrases "may," "could," "should," "expect," "anticipate," "plan," "believe," "seek," "estimate," "predict," "project" or words of similar import. These forward-looking statements are based upon our current knowledge and assumptions about future events and involve risks and uncertainties that could cause our actual results, performance or achievements to be materially different from any anticipated results, prospects, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are not guarantees of future performance. Many factors are beyond our ability to control or predict. You are accordingly cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date that we make them. For a description of factors that may cause actual results to differ materially from such forward-looking statements, see the Company's Annual Report on Form 10-K for the year ended 2008, and other reports from time to time filed with or furnished to the Securities and Exchange Commission. We do not undertake to update any forward-looking statement that may be made from time to time by us or on our behalf.

 

                  Law Enforcement Associates Corporation                   
                        Consolidated Balance Sheets                        
                  December 31, 2009 and December 31, 2008                  
       
                                                December 31,  December 31,
                                                    2009          2008
                     ASSETS                       (Audited)     (Audited)
                                                ------------  ------------ 
 CURRENT ASSETS
   Cash                                         $    480,148       254,705
   Trade accounts receivable (net of allowance
    for doubtful accounts of $55,000 and $30,000
    at December 31, 2009 and December 31, 2008,
    respectively)                                    982,505     2,011,293
   Tax Refund                                        150,000             -
   Inventories                                     1,505,777     1,368,049
   Prepaid expenses                                   43,946        45,629
   Deferred tax asset-current                        246,368       244,741

                                                ------------  ------------ 
     Total current assets                          3,408,744     3,924,417
                                                ------------  ------------ 

 PROPERTY AND EQUIPMENT - net                        150,971       170,027
                                                ------------  ------------ 

 OTHER NON-CURRENT ASSETS
   Intangibles-net                                 1,989,304     2,174,564
   Assets held for sale                              335,505       335,505
   Deferred tax asset less current portion           704,643       820,425

                                                ------------  ------------ 
     Total non-current assets                      3,029,452     3,330,494
                                                ------------  ------------ 

 Total assets                                   $  6,589,167  $  7,424,938
                                                ============  ============ 

      LIABILITIES AND STOCKHOLDERS' EQUITY
 CURRENT LIABILITIES
   Trade accounts payable                       $    490,646  $    331,451
   Line of credit                                          -     1,038,809
   Accrued expenses:
     Accrued salaries, wages and benefits            116,288       203,464
     Contract settlement                             100,000             -
     Warranty provision                               50,271        58,809
     Other accrued expenses                           65,072       201,833
   Customer deposits                                  20,000        30,540
                                                ------------  ------------ 
     Total current liabilities, before shares
      subject to redemption                          842,277     1,864,906
                                                ------------  ------------ 

   Common stock, subject to possible redemption,
    1,200,000 shares, at redemption value          1,500,000     1,440,374

     Total current liabilities                     2,342,277     3,305,280
                                                ------------  ------------ 

     Total liabilities                             2,342,277     3,305,280
                                                ------------  ------------ 

 STOCKHOLDERS' EQUITY
   Common stock, $0.001 par value, 50,000,000
    authorized, 25,782,436 issued and outstanding
    at December 31, 2009 and December 31, 2008        25,782        25,782
   Treasury stock at cost, 595 shares of common
    stock held by the Company                           (625)         (625)
   Paid in capital in excess of par                4,995,595     4,995,595
   Retained earnings/(accumulated deficit)          (773,862)     (901,094)
                                                ------------  ------------ 
     Total stockholders' equity                    4,246,890     4,119,658
                                                ------------  ------------ 

 Total liabilities and stockholders' equity     $  6,589,167  $  7,424,938
                                                ------------  ------------ 

                  Law Enforcement Associates Corporation                   
                   Consolidated Statement of Operations                    
        Twelve Months ended December 31, 2009 and December 31, 2008        
       
                                                December 31,  December 31,
                                                    2009          2008
                                                ------------  ------------ 

 Net sales                                      $ 11,945,501  $  9,246,170

 Cost of sales                                     8,559,876     6,193,180
                                                ------------  ------------ 

     Gross profit                                  3,385,625     3,052,990
                                                ------------  ------------ 

 Research and development                            296,667        81,327
 Operating expenses                                2,707,291     2,728,271
                                                ------------  ------------ 

     Total operating expenses                      3,003,958     2,809,598
                                                ------------  ------------ 


 Operating income                                    381,667       243,392
                                                ------------  ------------ 

 Other income (expense)
   Loss on sale of assets                            (10,373)      (43,666)
   Other income                                       14,005        14,234
   Interest income                                     1,276         1,507
   Interest expense                                 (145,188)     (143,295)
                                                ------------  ------------ 

     Total other income (expense)                   (140,280)     (171,220)
                                                ------------  ------------ 

 Net income (loss) before income taxes               241,387        72,172

 Income tax (expense) benefit                       (114,155)         (319)
                                                ------------  ------------ 

 Net income (loss)                              $    127,232  $     71,853
                                                ============  ============ 
 Net income (loss) per weighted average share,
  basic and diluted                             $       0.00  $       0.00
                                                ============  ============ 
 Weighted average number of shares, basic and
  diluted                                         25,782,436    25,782,436
                                                ============  ============ 

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