Law Enforcement Associates Transitions to Profitability on 39% Increase in Full-Year Revenue; Fourth Quarter Revenue Increases 92% Versus Prior-Year Period

Law Enforcement Associates Corporation (LEA) (OTCBB: LAWE), the largest U.S.-based developer and manufacturer of electronic surveillance equipment, today announced financial results for the fourth quarter and full fiscal year ended December 31, 2008.

Fourth quarter revenue increased 92% to $3.0 million from revenue of $1.6 million in last year's fourth quarter. Income from operations was $198,000, an improvement of $1.5 million when compared to a loss from operations of $1.3 million reported in last year's fourth quarter. Net income in the fourth quarter was $124,000, or less than $0.01 per share, versus a net loss of $784,000, or $0.03 per share, in the 2007 fourth quarter.

Related Results

For the full fiscal year, revenue increased 39% to a record $9.2 million from $6.7 million in fiscal 2007. Full-year operating income was $243,000, a $1.9 million improvement when compared to a loss from operations of $1.6 million in fiscal 2007. LEA transitioned to full-year profitability, reporting net income of $72,000, or less than $0.01 per share, versus a net loss of $1.0 million, or $0.04 per share, in fiscal 2007.

"Our financial growth and operational success during fiscal 2008 was especially encouraging given the current economic climate," said Paul Feldman, president. "Our results reflect an aggressive effort to expand our product offering and increase sales within our traditional law enforcement markets, while also establishing a broader presence in various non-core sectors. Recent large orders from the state of New Jersey and the U.S. Census bureau are clear measures of our success at expanding our customer base.

"During the past year, we also implemented a focused program designed to improve operational efficiencies and streamline our cost structure. These efforts led to an $825,000, or 23%, reduction in our full-year operating expenses, and were critical in our overall effort to return LEA to profitability."

Feldman said that during fiscal 2009, LEA is positioned to deliver improved profitability and top-line growth that could be comparable to the rate achieved in 2008. "Although we are still in the first quarter, the combined value of orders we have booked so far in 2009 are more than 60% of the record revenue we reported in all of 2008.

"Budgets have been very tight throughout the domestic law enforcement sector for several years, and this has created a backlog of demand for specialized surveillance and security equipment. With nearly $4 billion of funding from the American Recovery and Reinvestment Act being directed at the law enforcement sector, we believe LEA will soon benefit from a rebound in capital spending by our customers."

Paul Briggs, chief financial officer, said LEA's balance sheet should strengthen considerably by the mid-year point of fiscal 2009, as the Company completes deliveries on its record $5.7 million order from the U.S. Census Bureau. "We have no long-term debt and will be highly focused on enhancing our cash balance in the months ahead."

LEA will host a conference call and simultaneous webcast to discuss its 2008 results, as well as the Company's general business outlook. The event will begin at 10 a.m. Eastern on March 26, and will be accessible via the "Investor Relations" page of LEA's website, located at http://www.leacorp.com , or by dialing into the teleconference at 877-407-9205 (201-689-8054 for international callers).

Webcast participants should access the website at least 15 minutes early to register and download any necessary audio software. A replay of the webcast will be available for 90 days and a telephonic replay will be available through March 30, 2009, by calling 877-660-6853 (201-612-7415 for international callers) and entering account number 286 and conference ID number 317016.

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. The company enjoys close working relationships with other prominent players in the security and surveillance industry, such as Smith & Wesson, one of the world's largest manufacturers of quality firearms and firearm safety/security products. 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), Smith & Wesson-branded UVIS Swift, 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 .