DGLY.OB Digital Ally, Inc.

[BigSully1]

Digital Ally, Inc. Reports 372% Sales Increase and Record Earnings for 2007
Thursday February 21, 8:00 am ET 
Basic E.P.S. of $0.21, Exclusive of Income Tax Benefits, Compares With Net Loss of ($0.26) in 2006
Company Expects Revenue to More Than Double in 2008


OVERLAND PARK, Kan., Feb. 21 /PRNewswire-FirstCall/ -- Digital Ally, Inc. (Nasdaq: DGLY - News), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial security applications, today reported record revenue and net income for the fourth quarter and full year 2007. An investor conference call is scheduled for 11:00 a.m. EST today, February 21, 2008 (see details below).
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For the three months ended December 31, 2007, revenue increased 283% to approximately $7.0 million, when compared with revenue of approximately $1.8 million in the fourth quarter of 2006. Sales during the fourth quarter of 2007 increased 38% when compared with approximately $5.1 million in the third quarter of 2007.

Gross profits totaled $4,066,712 (57.8% of revenue) in the quarter ended December 31, 2007, compared with gross profits of $911,243 (49.6% of revenue) in the corresponding period of the previous year. The Company recorded net income of $983,750 in the fourth quarter of 2007, versus a net loss of ($165,195) in the prior-year quarter. Basic earnings per share of $0.07 in the quarter ended December 31, 2007 compared with a net loss of ($0.01) per share in the prior-year period. Diluted earnings per share totaled $0.06 in the quarter ended December 31, 2007, versus a net loss of ($0.01) per share in the fourth quarter of 2006. Net income for the three months ended December 31, 2007 included a $490,143 income tax expense.

The Company incurred non-cash stock compensation expense of $402,681 for the quarter ended December 31, 2007, compared with $147,662 in the prior-year quarter.

For the twelve months ended December 31, 2007, revenue increased 372% to approximately $19.4 million, when compared with revenue of approximately $4.1 million in year ended December 31, 2006. Gross profits improved 492% to $11,741,152 (60.5% of revenue) in 2007, when compared with gross profits of $1,982,650 (48.2% of revenue) in the previous year. The Company reported net income of $4,523,334 in the year ended December 31, 2007, versus a net loss of ($3,361,229) in the year ended December 31, 2006. Basic earnings per share of $0.33 in 2007 compared with a net loss of ($0.26) per share in 2006. Diluted earnings per share totaled $0.28 in the year ended December 31, 2007, versus a net loss of ($0.26) per share in 2006. Net income for the year ended December 31, 2007 included an income tax benefit of $1,663,000. This benefit resulted from the Company's reduction of its deferred tax valuation allowance due to the utilization of its net operating loss carryforward in 2007 and anticipated future usage of the carryforward because of expected future profitability, among other items. Excluding this income tax benefit, the Company would have reported net income of $2,860,334, or $0.21 per basic and $0.18 per diluted share, for the year ended December 31, 2007.

The Company incurred non-cash stock compensation expense totaling $1,784,459 in the year ended December 31, 2007, compared with $1,940,998 in 2006.

"I am very pleased to report outstanding growth in sales and earnings for the quarter and year ended December 31, 2007, as enthusiasm for our DVM-500 In-Car Video Mirror continued to build among law enforcement agencies throughout the United States and internationally," stated Stanton E. Ross, Chief Executive Officer of the Company. "Not only did our sales increase 372% to a record $19.4 million in 2007, but our gross profits rose at an even faster pace as gross margins improved to 60.5% of revenue, compared with 48.2% in 2006. Sales during the three months ended December 31, 2007 represented the seventh consecutive increase in quarterly sales since Digital Ally commenced shipping its advanced digital surveillance products to customers in March 2006."

"We now have customers in all 50 states and 12 foreign countries, and our largest order, to date, was from an international customer that has since placed additional orders for the DVM-500. We introduced a number of additional features to enhance the functionality and utility of our DVM-500 last year, including a wireless software file transfer feature that allows law enforcement officers to easily and inexpensively download video files to police headquarters or other remote locations, a Live Streaming Video capability, and a new VideoManager Server that enhances the ability of authorized headquarters personnel to view, upload, playback, search and manage video files from any networked computer with proper access rights."

"Improvements in our balance sheet during 2007 were as strong as our operating results," observed Ross. "Stockholders' equity increased from $1.9 million at the end of 2006 to $9.0 million as of December 31, 2007, we paid off all of our short and long-term debt during the year, and we had $4.2 million of cash and a current ratio of 5.0-to-1.0 at year-end. Financially, we are very well-positioned for the growth anticipated in 2008."

"Looking forward, 2008 will be a year marked by our introduction of several new products and our entry into new markets," continued Ross. "Our experience with the Digital Video Flashlight ("DVF"), which contributed modestly to 2007 sales, has resulted in a redesign of that product that we believe will increase its appeal to both existing and new customers. We plan to introduce our initial digital surveillance products for the school bus and mass transit markets during the second quarter of 2008, and a new product for law enforcement and military applications should be forthcoming in the second half of the year."

"We expect to achieve our eighth consecutive quarter of record sales during the three months ending March 31, 2008, and based upon information currently available to the Company, we anticipate that full year 2008 revenues should more than double to approximately $40 million. We also believe that the Company should be able to maintain the 21% operating margin reported in the most recent quarter in 2008."

The Company will host an investor conference call at 11:00 a.m. Eastern Time today, February 21, 2008, to discuss its fourth quarter and full-year 2007 operating results. Shareholders and other interested parties may participate in the conference call by dialing 866-406-5369 (international/local participants dial 973-582-2847) and referencing the ID code 32445911 a few minutes before 11:00 a.m. EST on February 21, 2008. A replay of the conference call will be available two hours after completion of the conference call from February 21, 2008 until February 28, 2008 by dialing 800-642-1687 (international/local participants dial 706-645-9291) and entering the conference ID 32445911.

About Digital Ally, Inc.

Digital Ally, Inc. develops, manufactures and markets advanced technology products for law enforcement, homeland security and commercial security applications. The Company's primary focus is the field of Digital Video Imaging and Storage. For additional information, visit http://www.digitalallyinc.com.

The Company is headquartered in Overland Park, Kansas, and its shares are traded on The Nasdaq Capital Market under the symbol "DGLY".

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. These forward-looking statements are based largely on the expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the control of management. Therefore, actual results could differ materially from the forward-looking statements contained in this press release. A wide variety of factors that may cause actual results to differ from the forward-looking statements include, but are not limited to, the following: the Company's ability to have all of its new product offerings perform as planned or advertised; whether there will be a commercial market, domestically and internationally, for one or more of its new products; its ability to commercialize its products and production processes, including increasing its production capabilities to satisfy orders in a cost-effective manner; its ability to continue to increase revenue and profits, including the achievement of $40 million in revenues and 21% operating margins in 2008; whether the Company will be able to adapt its technology to new and different uses, including being able to introduce new products; competition from larger, more established companies with far greater economic and human resources; its ability to attract and retain customers and quality employees; its ability to obtain patent protection on any of its products and, if obtained, to defend such intellectual property rights; the effect of changing economic conditions; and changes in government regulations, tax rates and similar matters. These cautionary statements should not be construed as exhaustive or as any admission as to the adequacy of the Company's disclosures. The Company cannot predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. The reader should consider statements that include the words "believes", "expects", "anticipates", "intends", "estimates", "plans", "projects", "should", or other expressions that are predictions of or indicate future events or trends, to be uncertain and forward-looking. The Company does not undertake to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.


                 For Additional Information, Please Contact:
                    Stanton E. Ross, CEO at (913) 814-7774
                                      or
   RJ Falkner & Company, Inc., Investor Relations Counsel at (800) 377-9893
                      or via email at [email protected]

                        (Financial Highlights Follow)



                              DIGITAL ALLY, INC.
                           CONDENSED BALANCE SHEETS
                          DECEMBER 31, 2007 AND 2006

                                                      (Unaudited)    (Audited)
                                                         2007           2006
                           Assets
    Current assets:
      Cash and cash equivalents                       $4,255,039      $57,160
      Accounts receivable-trade, net                     523,011      977,826
      Accounts receivable-other                          211,687      225,716
      Inventories                                      2,964,098    1,526,222
      Prepaid expenses                                   232,901      422,279
      Deferred taxes                                     795,000         -
           Total current assets                        8,981,736    3,209,203
    Furniture, fixtures and equipment                  1,180,318      622,592
    Less accumulated depreciation                        301,632      114,851
                                                         878,686      507,741
    Deferred taxes                                       980,000         -
    Other assets                                          65,007       59,305
      Total assets                                   $10,905,429   $3,776,249



            Liabilities and Stockholders' Equity
    Current liabilities:
      Note payable                                         $-        $500,000
      Line of credit                                        -         500,000
      Accounts payable                                 1,008,831      651,902
      Accrued expenses                                   507,695      180,573
      Income taxes payable                                26,000         -
      Customer deposits                                  243,171       20,899
           Total current liabilities                   1,785,697    1,853,374
    Unearned income                                        3,864        5,248
    Commitments and contingencies
    Stockholders' equity:
      Common stock, $0.001 par value;
       75,000,000 shares authorized;
       Shares issued and outstanding:
       14,092,260 - 2007; 13,309,027 - 2006               14,092       13,309
      Additional paid in capital                      12,110,890    9,436,766
      Accumulated deficit                             (3,009,114)  (7,532,448)
           Total stockholders' equity                  9,115,868    1,917,627
        Total liabilities and stockholders' equity   $10,905,429   $3,776,249



                              DIGITAL ALLY, INC.
                      CONDENSED STATEMENTS OF OPERATIONS
                        FOR THE THREE MONTHS AND YEARS
                       ENDED DECEMBER 31, 2007 AND 2006

                               Three Months Ended           Years Ended
                            (Unaudited)  (Unaudited)  (Unaudited)    (Audited)
                           December 31, December 31, December 31, December 31,
                               2007         2006         2007          2006

    Revenue                 $7,031,488   $1,837,377  $19,391,082   $4,109,394
    Cost of sales            2,964,776      926,134    7,649,930    2,126,744
      Gross profit           4,066,712      911,243   11,741,152    1,982,650
    Operating expenses       2,599,989    1,064,740    8,875,915    5,324,223
      Operating income
       (loss)                1,466,723     (153,497)   2,865,237   (3,341,573)
    Financial income
     (expense)
      Interest income           18,979        2,522       34,609       20,742
      Interest expense            (303)     (14,220)     (28,006)     (40,398)
      Other, net               (11,506)        -         (11,506)        -
                                 7,170      (11,698)      (4,903)     (19,656)
      Income (loss) before
       income tax (provision)
       benefit               1,473,893     (165,195)   2,860,334   (3,361,229)
    Income tax (provision)
     benefit                  (490,143)        -       1,663,000         -
    Net income (loss)         $983,750    $(165,195)  $4,523,334  $(3,361,229)

    Net income (loss) per
     share information:
      Basic                      $0.07       $(0.01)       $0.33       $(0.26)
      Diluted                    $0.06       $(0.01)       $0.28       $(0.26)

    Weighted average shares
     outstanding:
      Basic                 14,069,133   13,309,627   13,742,070   12,829,610
      Diluted               17,639,826   13,309,627   16,163,337   12,829,610



                              DIGITAL ALLY, INC.
                      CONDENSED STATEMENT OF CASH FLOWS
                    YEARS ENDED DECEMBER 31, 2007 AND 2006

                                                    (Unaudited)     (Audited)
                                                        2007           2006
    Cash Flows From Operating Activities
      Net income (loss)                             $4,523,334    $(3,361,229)
      Adjustments to reconcile net income
       (loss) to net cash flows provided by
       (used in) operating activities:
         Depreciation                                  192,033         85,057
         Stock based compensation                    1,696,959      1,725,998
         Shares of common stock issued in
          lieu of cash compensation                     87,500        215,000
         Reserve for inventory obsolescence            196,328           -
         Reserve for bad debt allowance                 28,224           -
         Deferred tax benefits                      (1,775,000)          -

      Change in assets and liabilities:
      (Increase) decrease in:
         Accounts receivable - trade                   426,591       (977,826)
         Accounts receivable - other                    14,029       (211,086)
         Inventories                                (1,634,204)    (1,452,794)
         Prepaid expenses                              189,378       (162,450)
         Other assets                                   (5,702)       (45,520)
      Increase (decrease) in:
         Accounts payable                              356,929        607,725
         Accrued expenses                              327,122        145,605
         Income taxes payable                           26,000           -
         Customer deposits                             222,272         11,854
         Unearned income                                (1,384)          -
      Net cash provided by (used in)
       operating activities                          4,870,409     (3,419,666)
    Cash Flows from Investing Activities
      Purchases of furniture, fixtures
       and equipment                                  (562,978)      (482,563)
      Net cash (used in) investing activities         (562,978)      (482,563)
    Cash Flows from Financing Activities
      Net borrowings (repayments)                     (500,000)       500,000
       on line of credit
      Proceeds from exercise of stock
       options and warrants                            378,448         50,000
      Excess tax benefits related to stock based
       compensation                                     12,000           -
      Proceeds from sale of common stock                  -         1,601,467
      Net cash provided by (used in) financing
       activities                                     (109,552)     2,151,467
    Increase (decrease) in cash                        142,135     (1,750,762)
    Cash and cash equivalents, beginning of year        57,160      1,807,922
    Cash and cash equivalents, end of year            $199,295        $57,160
    Supplemental disclosures of cash flow
     information:
      Cash payments for interest                       $28,006        $40,398
      Cash payments for income taxes                   $74,000          $-
    Supplemental disclosures of non-cash
     investing and financing activities:
    Common stock issued for settlement of note
     payable                                          $500,000          $-

NOTE: FOR MORE DETAILED INFORMATION, REFER TO THE COMPANY'S ANNUAL REPORT ON FORM 10-KSB FOR THE YEAR ENDED DECEMBER 31, 2007 TO BE FILED WITH THE SEC.

[Houlahan]

Feb. 28, 2008
Stan Ross, Chief Executive Officer of Digital Ally, Inc., presides over the opening bell. He is joined by former US Attorney General and current advisory board member John Ashcroft, as well as members of the Board of Directors and company management.

See photo:
http://www.nasdaq.com/reference/200802/market_open_022808.stm

[BigSully1]

Feb. 28, 2008
Stan Ross, Chief Executive Officer of Digital Ally, Inc., presides over the opening bell. He is joined by former US Attorney General and current advisory board member John Ashcroft, as well as members of the Board of Directors and company management.

See photo:
http://www.nasdaq.com/reference/200802/market_open_022808.stm

Are you in with me Houlihan?

[Houlahan]

Hey BigSully,
I'm not in. I love security stuff, as you know. I have been following off and on. Security is not going away. I like NICE from Israel "NICE Receives a Multi-Million Dollar Order for Its IP-Based Digital Video Solution With Content Analytics Surveillance for Victoryland Greyhound Racing Facility"
Security is needed for a lot of things, including greyhound racing. 

Thanks for the updates!

[BigSully1]

Digital Ally, Inc. Anticipates 150% Increase in First Quarter Revenue to Over $8.6 Million
Thursday April 10, 8:30 am ET 
EIGHTH CONSECUTIVE INCREASE IN QUARTERLY REVENUE
CUSTOMER BASE NOW INCLUDES OVER 1,700 LAW ENFORCEMENT AGENCIES IN 50 STATES AND 12 COUNTRIES


OVERLAND PARK, Kan., April 10 /PRNewswire-FirstCall/ -- Digital Ally, Inc. (Nasdaq: DGLY - News), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial security applications, today announced that it expects to report that revenue for the three months ended March 31, 2008 increased approximately 150% to over $8.6 million when compared with revenue of approximately $3.4 million in the first quarter of the previous year. This represents an increase of approximately 17% over fourth quarter 2007 revenue of approximately $7.3 million and will be the eighth consecutive increase in quarterly revenue since Digital Ally commenced shipping its advanced digital surveillance products to customers in March 2006.
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"We sold a record number of DVM-500 In-Car Video Mirror systems to law enforcement agencies during the first quarter of 2008, and almost two-thirds of these sales represented reorders from existing customers," stated Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "Our largest shipment during the quarter involved a reorder for 265 additional DVM-500s from an international customer that placed its first order with Digital Ally in the second half of 2007. Our customer base now includes over 1,700 law enforcement agencies in all 50 states and 12 foreign countries."

"Based upon information currently available, we expect to report record operating income for the quarter ended March 31, 2008, as well," continued Ross. "We also remain comfortable with our previous guidance that 2008 full-year revenue should approximate $40 million, compared with $19.4 million in 2007."

About Digital Ally, Inc.

Digital Ally, Inc. develops, manufactures and markets advanced technology products for law enforcement, homeland security and commercial security applications. The Company's primary focus involves Digital Video Imaging and Storage. For additional information, visit http://www.digitalallyinc.com

The Company is headquartered in Overland Park, Kansas, and its shares are traded on The Nasdaq Capital Market under the symbol "DGLY".

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. These forward-looking statements are based largely on the expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the control of management. Therefore, actual results could differ materially from the forward-looking statements contained in this press release. A wide variety of factors that may cause actual results to differ from the forward-looking statements include, but are not limited to, the following: the Company's ability to have all of its new product offerings perform as planned or advertised; whether there will be a commercial market, domestically and internationally, for one or more of its new products; its ability to commercialize its products and production processes, including increasing its production capabilities to satisfy orders in a cost-effective manner; its ability to continue to increase revenue and profits, including the achievement of approximately $40 million in revenues and 21% operating margins in 2008; whether the Company will be able to adapt its technology to new and different uses, including being able to introduce new products; competition from larger, more established companies with far greater economic and human resources; its ability to attract and retain customers and quality employees; its ability to obtain patent protection on any of its products and, if obtained, to defend such intellectual property rights; the effect of changing economic conditions; and changes in government regulations, tax rates and similar matters. These cautionary statements should not be construed as exhaustive or as any admission as to the adequacy of the Company's disclosures. The Company cannot predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. The reader should consider statements that include the words "believes", "expects", "anticipates", "intends", "estimates", "plans", "projects", "should", or other expressions that are predictions of or indicate future events or trends, to be uncertain and forward-looking. The Company does not undertake to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. Additional information respecting factors that could materially affect the Company and its operations are contained in its annual report on Form 10-KSB filed with the Securities and Exchange Commission.


                 For Additional Information, Please Contact:

                    Stanton E. Ross, CEO at (913) 814-7774
                                      or
RJ Falkner & Company, Inc., Investor Relations Counsel at (800) 377-9893 or
                       via email at [email protected]

[BigSully1]

8:33AM Digital Ally expects Q1 revenue to rise 150% yr/yr and 17% sequentially to $8.6 mln; no estimates (DGLY) 6.80 : Co says it sold a record number of DVM-500 In-Car Video Mirror systems to law enforcement agencies during Q1, and almost two-thirds of these sales represented reorders from existing customers. Co also expects to report record operating income for Q1 and co remains comfortable with our prior full yr guidance of $40 mln in revs for 2008.

up 10%

[BigSully1]

Digital Ally, Inc. Signs Statewide Contract With Utah General Services Department
Thursday April 17, 11:14 am ET 
West Virginia State Police Places Third Order for DVM-500 Systems


OVERLAND PARK, Kan., April 17 /PRNewswire-FirstCall/ -- Digital Ally, Inc. (Nasdaq: DGLY - News), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial security applications, today announced that it has signed a statewide contract with the Utah General Services Department for its DVM-500 In-Car Video Rearview Mirror Systems.
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The contract will allow all state, county and municipal law enforcement agencies to purchase Digital Ally's DVM-500 systems under the same terms and prices. All law enforcement agencies in the State of Utah are currently being notified of this contract and the terms under which DVM-500s may be purchased.

The Company also announced that the West Virginia State Police, which placed an initial order for 124 DVM-500 systems in early 2007 and ordered an additional 50 systems in September 2007, placed a third order for an additional 100 systems during the first quarter of 2008. The agency has indicated that it plans to order another 200 systems later this year.

"The Utah agreement represents the sixth statewide contract that we have received for our DVM-500 In-Car Video Rearview Mirror systems," stated Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. "Meanwhile, the receipt of a third order from the West Virginia State Police clearly illustrates the manner in which law enforcement agencies have re-ordered additional units as budget considerations allow and as they have gained experience with the DVM-500 in the field."

[Houlahan]

applaud BigSull1
I feel like a deer with the head lights in my eyes. 
This thread needs to move to Stock Picking. It is not a penny stock anymore.

[BigSully1]

First Quarter Net Income Rises 934% on 150% Sales Gain at Digital Ally, Inc.
Wednesday April 30, 8:30 am ET 
DILUTED E.P.S. OF $0.10 COMPARES WITH $0.01 IN FIRST QUARTER OF 2007


OVERLAND PARK, Kan., April 30 /PRNewswire-FirstCall/ -- Digital Ally, Inc. (Nasdaq: DGLY - News), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial security applications, today reported record revenue and net income for the first quarter of 2008. An investor conference call is scheduled for 11:00 a.m. EDT today, April 30, 2008 (see details below).
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For the three months ended March 31, 2008, revenue increased 150% to approximately $8.6 million when compared with revenue of approximately $3.4 million in the first quarter of 2007. Revenue during the first quarter of 2008 increased 22% when compared with approximately $7.0 million in the fourth quarter of 2007.

Gross profits improved 178% to $5,320,894 (61.9% of revenue) in the quarter ended March 31, 2008, compared with gross profits of $1,914,246 (55.7% of revenue) in the corresponding period of the previous year. Pretax income rose 1,456% to $2,522,787 in the most recent quarter, versus $162,150 in the prior-year quarter. After an income tax provision of $846,000, the Company recorded net income of $1,676,787 in the first quarter of 2008. This compared with no income tax provision and net income of $162,150 in the quarter ended March 31, 2007. Basic earnings per share increased 1,100% to $0.12 in the quarter ended March 31, 2008, compared with $0.01 per basic share in the prior-year period. Diluted earnings per share rose 900% to $0.10 in the quarter ended March 31, 2008, versus $0.01 in the first quarter of 2007.

Adjusted EBITDA (net income before interest, income taxes, depreciation, amortization, and stock-based compensation), a non-GAAP financial measure, increased 272% to $2,751,566 in the most recent quarter when compared with $739,803 in the quarter ended March 31, 2007. (Adjusted EBITDA is described in greater detail in a table at the end of this news release).

"We have achieved revenue growth in every sequential quarter since we began delivering our advanced digital video surveillance products to law enforcement agencies in March 2006, and I am very pleased to report our eighth consecutive quarter of record sales during the first quarter of 2008," stated Stanton E. Ross, Chief Executive Officer of the Company. "We continue to see follow-on orders with larger quantities from many existing customers, while converting a high percentage of opportunities with new customers to our product. Our DVM-500 In-Car Video Rearview Mirror System has achieved increasing acceptance among law enforcement agencies throughout the United States and within a growing number of foreign countries."

"Our gross profit margins improved to 61.9% of revenues in the most recent quarter, versus 55.7% a year earlier and 57.8% in the fourth quarter of 2007, reflecting higher productivity and efficiencies as we have significantly increased production rates and improved costs related to our supply chain. Operating income of approximately $2.5 million in the first quarter of 2008 was equivalent to 87% of the Company's operating income for the full year ended December 31, 2007. Even though we provided for income taxes at a 33.5% rate in the quarter ended March 31, 2008, our after-tax earnings increased 934%, when compared with the prior-year period, when no income tax provision was necessary."

"We have continued to pursue an aggressive research and development program targeting new market opportunities, with our R&D expenses increasing 250% to $432,033 in the first quarter of 2008, compared with $123,532 in the year-earlier quarter," continued Ross. "We are developing new products and line extensions for our current products, some of which we expect to bring to market during 2008. R&D projects on several new products designed for the school bus, mass transit, taxi cab and other markets, along with upgrades to our existing products, are currently underway."

"Other notable accomplishments during the first quarter of 2008 included the listing of our common stock on The Nasdaq Capital Market and an increase in the size of our production/assembly facility in order to accommodate anticipated revenue growth during 2008. We ended the quarter with approximately $4.9 million of cash and equivalents in the bank, a current ratio of 5.9-to-1.0, no long- or short-term bank debt outstanding and stockholders' equity of $12.0 million, and we are well-positioned to fund our operating requirements for the balance of the year. Based upon our performance during the first quarter and other information currently available, we reaffirm our previous guidance that revenue for the year ending December 31, 2008 should more than double, to approximately $40 million, compared with $19.4 million during 2007."