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Brekford Corp. Reports $2,058,000 Net Income Increase in Fiscal 2009

HANOVER, MDâ??March 16, 2010 - Brekford Corp. (BFDI.OB) www.brekford.com, a leading provider of fully integrated vehicle installation and rugged technology solutions geared toward mission critical operations, reports fiscal fourth quarter and full year 2009 results. 2009 performance includes a 128% improvement in our cash position, 32% increase in gross profit and 43% decrease in operating expenses and 8% increase in net sales. Net income increased to $0.6 million in 2009, compared with a loss of $1.5 million in 2008.

Financial Highlights for the Fiscal 2009 Fourth Quarter and Year Ended December 31, 2009:

For the fourth quarter ended December 31, 2009, net sales totaled $3.6 million compared to $4.1 million in the fourth quarter ended December 31, 2008 . For the full year. net sales rose 8% to $14.6 million compared to $13.5 million in the year-ago period.

Gross profit for the fourth quarter 2009 rose 50% to $0.8 million compared to $0.6 million in the fourth quarter 2008. Gross profit margin improved to 22% of net sales for the fourth quarter 2009 from 14 % of net sales in the fourth quarter 2008, a 60% increase.

Net income for the fourth quarter of 2009 totaled $27k, compared to net income of $0.5 million, in the fourth quarter of 2008. For 2009 Brekford posted net income of $0.6 million compared to the 2008 net loss of $1.5 million, an increase of $2.1 million.

For 2009, gross profit rose 32% to $2.6 million compared to $2.0 million in fiscal 2008. Gross profit margin increased to 18% of net sales for 2009 from 15% of net sales in 2008. Operating expenses decreased 43% for 2009 to $2.0 million compared with $3.5 million in fiscal 2008 as the result of controlled spending.

As of December 31, 2009 the Company's assets totaled 4.1 million compared to 4.3 million at the end of 2008. Our cash position at December 31,2009 improved 128% to total $1.8 million, up from $0.8 million at the end of fiscal 2008, to reflect increased cash flow from operations. Shareholders' equity at December 31,2009 stood at $2.4 million, up from $2.1 million at the end of fiscal year 2008.

C.B. Brechin, Chief Executive Officer of Brekford commented: "We are proud to report strong results despite the economic downturn. Our revenue and net income growth reflect our leading position in the east coast and our growing recognition as a leading homeland technology service provider. Our recent successful expansion into the federal market and awards of photo speed enforcement services reflect our commitment to future growth. We are starting to reach critical mass and are confident that continued sales growth and controlled spending position us to further increase our profitability in the coming year."

Company Highlights in Fiscal Year Ended December 31, 2009:

  • -Repurchase of 18,910,000 shares of the company's common stock and 10,000,000 common stock purchase warrants. Share repurchase offers numerous benefits including higher net earnings per share and potential increased stock demand.
  • -Award of indefinite delivery / indefinite quantity (IDIQ) or blanket purchase agreement (BPA) contracts from United States Secret Service, United States Park Police, United States Navy Police and Fort Belvoir Military Police. The contracts are valued up to $3 million over two years. Under the terms of the contracts, Brekford will upfit marked and unmarked police vehicles, install mobile data solutions, mobile video systems, lights/sirens, radio communications equipment and accessories.
  • -Award of contracts for automated traffic photo speed enforcement services to Maryland counties and municipalities.
  • -Award of indefinite delivery / indefinite quantity (IDIQ) or blanket purchase agreement (BPA) contracts from United States Marshals, US Immigration and Customs Enforcement (ICE) and US Park Police. The indefinite delivery/indefinite quantity contract is valued up to $2 million over two years. Under the terms of the contracts, Brekford will upfit unmarked police vehicles, install lights/sirens, radio communications equipment and accessories.
Brekford Corp. is a homeland technology service provider of fully integrated vehicle installation and rugged technology and video solutions geared towards mission critical operations. For more than a decade, we have 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 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 for vehicle upfitting, cutting edge technology, video and installation services for homeland security, law enforcement, fire and emergency vehicles.

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

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 risk factors which could cause actual results to differ materially from the forward-looking statements in this release. The Company expressly disclaims any obligation to update any forward-looking statements.

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