Brekford Corp. Reports Positive Net Income for the 6th Consecutive Quarter

HANOVER, Md., May 6, 2010 (GLOBE NEWSWIRE) -- Brekford Corp. (the "Company") (OTCBB:BFDI) www.brekford.com, a leading homeland technology service provider of fully integrated vehicle installations and rugged technology solutions, reports fiscal first quarter 2010 results. First quarter performance includes 223% improvement in cash position, 10% cut in operating expenses and positive net income.

Financial highlights for the first quarter 2010:

For the first quarter ended March 31, 2010, net sales totaled $3.3 million, unchanged from the first quarter of 2009.

Operating expenses decreased 10% for the first quarter 2010 to $0.353 million compared to $0.392 million for the first quarter of 2009, as the result of controlled spending. Net income for the first quarter of 2010 totaled $26,465 compared to $153,469 for the first quarter of 2009.

Gross profit for the first quarter 2010 was $0.4 million compared to $0.5 million for the first quarter of 2009. Gross profit margin decreased to 13% for the first quarter 2010 compared with 16% for the first quarter of 2009 due to a slower month in February 2010. The Company expects gross margin to improve in the remaining quarters of the year due to a spike in vehicle upfitting sales orders in March and April of 2010. Furthermore, the Company is ahead of schedule and under budget for its automated photo enforcement program and plans on unveiling and beginning implementation in third quarter 2010.

As of March 31, 2010, the Company's assets totaled approximately $5.0 million compared to approximately $4.3 million at the end of first quarter of 2009, an increase of 15%. The Company's cash position as of the end of first quarter of 2010 improved 223% to total $1.2 million, up from $0.4 million at the end of first quarter of 2009, to reflect positive net income. Shareholder's equity as of March 31, 2010 was at $2.4 million, up from $2.2 million at the end of first quarter of 2009.

Company highlights first quarter ended March 31, 2010:

• Expansion into rapidly growing traffic photo enforcement industry. Brekford's Automated Traffic Enforcement Group, spearheaded by industry veteran Maurice Nelson, will launch its own technological traffic photo enforcement solution, as well as open its brand new software, and state of the art processing and call center. Mr. Nelson states, "Brekford is everything that others are not. I am very excited at the immense possibilities that the Brekford Automated Traffic Enforcement Group (ATEG), is poised to bring to the industry. After more than a decade of crafting some, and observing other programs being implemented across the country, it has been my desire to affect the greatest amount of best-practices and positive program management to an industry that sometimes lacks in customer-centered focus. It is with the full acknowledgement of our shared core values of integrity, value and ethics that we will seek to erase any negative stigmas associated with the Automated Traffic Enforcement vendor community. Brekford ATEG plans to demonstrate that an automated traffic enforcement contractor can be both successful and deliver on all the objectives of their clients and the communities that they serve."  
• Award of indefinite delivery/indefinite quantity (IDIQ) or blanket purchase agreement contracts from United States Marshalls, U.S. Immigration and Customs Enforcement and U.S. Park Police. The contracts are valued up to $2.0 million over two years.

C.B. Brechin, Chief Executive Officer of Brekford, commented: "The fact that Brekford continues to attain solid revenues despite reduced government spending we believe may be attributed to our trusted name in the public safety industry. We believe that our established relationships and reputation with public safety agencies will play a crucial role in our expansion into the automated traffic enforcement industry. We are confident that with new markets opening up every day within the United States, counties and municipalities, Brekford is poised for rapid growth in the remaining months and we are very thrilled to launch and begin implementing our solution in the third quarter of 2010."

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 International 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