Brekford Corp. Reports Positive Net Income for the 7th Consecutive Quarter

HANOVER, Md., Aug. 5, 2010 (GLOBE NEWSWIRE) -- Brekford Corp. (the "Company") (OTCBB:BFDI) www.brekford.com, a leading homeland security technology service provider of fully integrated vehicle upfitting services, rugged information technology and automated traffic photo enforcement solutions geared towards mission critical operations, reports another profitable quarter ended June 30, 2010.

Financial highlights for the second quarter 2010:

For the second quarter ended June 30, 2010, the Company reported net sales totaling $3.5 million, a slight variation from the second quarter of 2009.

The Company's cash position as of the end of the second quarter of 2010 improved 38% to total $1.5 million compared to $1.1 million at the end of the second quarter of 2009, reflective of its positive net income during the past seven quarters.

Operating expenses of $0.265 million were up by 8% for this quarter compared to $0.213 million for the second quarter of 2009; mainly due to the initial costs for the expansion into automated traffic enforcement business. Net income for the second quarter of 2010 totaled $8,772 compared to $189,816 for the second quarter of 2009; primarily due to start-up costs and lower gross profit margins. Gross profit for the second quarter 2010 was $0.4 million compared to $0.6 million for the second quarter of 2009.

Company highlights second quarter ended June 30, 2010:

• Brekford completed 3 large projects installing notebooks, vehicle mounting and upfitting equipment and in-car-camera systems for local government agencies totaling in $1.6 million in revenue.  
• Brekford was awarded its initial multi-year 8(a) contract by the Bolling Air Force Base. Brekford 8(a) status can save government agencies time, work, and money in the procurement cycle by avoiding an extensive preliminary contracting process and set precedents for other federal agencies to purchase rapidly from Brekford.

C.B. Brechin, Chief Executive Officer of Brekford, commented: "Brekford has continued its promise to state and local law enforcement agencies to provide one-stop public safety solutions. Brekford has helped these agencies cut fleet downtime, and provide quality equipment and service to reduce equipment failure rates and increase officer safety and system reliability. Despite the continuation of reduced government spending and budget cut-backs, Brekford has maintained steady revenue growth through superior quality service and established relationship with public safety agencies."

Mr. Brechin also stated, "Brekford's newly launched automated photo enforcement program is on track and will be piloting projects with several municipalities this quarter. I am very pleased with our management and engineering teams for putting together such great a solution for municipalities, and our customers are excited and enthusiastic at the prospect of testing and implementing the new program. Brekford is poised to do well in this market sector. And our devoted shareholders understand the value of our company that is cash flow positive, has no debt and entering a new market sector completely self funded."

For more than a decade, Brekford has provided services to branches of the U.S. military, various federal entities and numerous security and public safety agencies throughout the United States. We provide these agencies with an end-to-end suite of mobile communications, information technology, video solutions and vehicle upfitting and services designed to streamline procurement processes and offer maximum functionality for their day to day operations. Brekford is a one-stop shop with its unique 360-degree approach to vehicle upfitting, cutting edge technology, and automated traffic enforcement services for homeland security and law enforcement agencies.  

For more Company information, please visit www.brekford.com

The Brekford Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6847

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of that term in Section 21E of the Securities Exchange Act of 1934, as amended. Actual results may differ materially from the results suggested by these forward-looking statements, for a number of reasons, including, but not limited to, market conditions, the cost and success of development activities and ability to successfully manage growth. Readers are referred to the documents filed by Brekford Corp. with the SEC, specifically the Company's most recent reports filed on Form 10-K and Forms 10-Q, which further identify the important risks, trends and uncertainties which could cause actual results to differ materially from the forward-looking statements in this press release. The Company expressly disclaims any obligation to update any forward-looking statements.

CONTACT:  Brekford Corp.
          C.B. Brechin, CEO
          443-557-0200
          investors@brekford.com