Versus Prior Year: Recurring Revenues Up 16%; Operating Loss Down 6% OMAHA, Neb., May 7 /PRNewswire-FirstCall/ -- iSECUREtrac(TM) Corp. (OTC:ISEC) (BULLETIN BOARD: ISEC) , an industry leader in electronic monitoring solutions reported financial results for the first quarter ending March 31, 2008. Total revenue for the quarter was up 16% to approximately $2.5 million compared to approximately $2.2 million for the same quarter of the prior year and up 16% compared to Q4 2007, as well. Recurring revenues were approximately $2.2 million for the first three months ending March 31, 2008, up 16% from $1.9 million in Q1 2007, and 6% from $2.1 million recorded in the Q4 2007. Operating loss for the first three months of 2008 was $1,177,000 compared to $1,247,000 for Q1 2007 and $1,963,000 for Q4 2007. This was the first time since 2005 that the current quarter loss was less than the same quarter of the prior year. "The investments we've made in management restructuring, R&D and infrastructure improvements are beginning to pay off," said Peter Michel, president and CEO of iSECUREtrac. -- "In the first quarter of 2008, we've grown revenue, both in total and recurring, over the previous year's period as well as over the fourth quarter of 2008. -- Revenue in the first quarter was the highest in the Company's history and its operating loss was the lowest it's been in six quarters -- Total Research & Development and SG&A expenses, as a percentage of recurring revenue, were lower in the first quarter of 2008 than in any quarter over the past two years. -- We rounded out the executive team with a new VP Customer Service, Vicki Anzalone, who is an accomplished and analytical professional who takes a pro-active approach to customer service. "We are headed in the right direction," concluded Michel. Please join CEO Peter Michel and CFO Lincoln Zehr on Wednesday, May 7, 2008 as they discuss first quarter results and provide a company update. The details for the call are as follows: Date: Wednesday, May 7, 2008 Time: 3:30 PM Central (4:30 PM Eastern) Dial-in number: 1-800-762-8932 International: 1-480-629-9029 Dial in 5-10 minutes prior to the start time. An operator will request your name and organization and ask you to wait until the call begins. If you have any difficulty connecting, please call iSECUREtrac at (866) 537-0022. A replay of the conference call will be available from May 7, 2008 at 6:30 PM Central until May 14, 2008 at 10:59 PM Central. Replay number: 1-800-406-7325 International Replay number: 1-303-590-3030 Replay Pin Number: 3876365 About iSECUREtrac iSECUREtrac Corp. provides electronic monitoring systems, client management software and supplemental services for use in community supervision. The company's rich stream of reliable data concerning a client's location, movement and status better enables effective compliance management and positive behavior modification. Visit http://www.isecuretrac.com/ for more information. Safe Harbor This press release contains forward-looking statements that, if not verifiable historical fact, may be viewed as forward-looking statements that could predict future events or outcomes with respect to iSECUREtrac Corp. and its business. The predictions embodied in these statements will involve risks and uncertainties and accordingly, iSECUREtrac's actual results may differ significantly from the results discussed or implied in such forward-looking statements. iSECUREtrac Corp. and SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) March 31, 2008 December 31, 2007 ASSETS Current Assets Cash and cash equivalents $2,026,145 $3,442,712 Accounts receivable, net of allowance for doubtful accounts of $326,766 in 2008 and $292,669 in 2007 2,136,364 1,941,902 Inventories 211,581 135,376 Prepaid expenses and other 62,765 92,750 Total current assets 4,436,855 5,612,740 Leasehold improvements and equipment, net of accumulated depreciation of $7,610,793 in 2008 and $7,041,272 in 2007 4,377,671 3,875,728 Intangibles, net of accumulated amortization of $860,657 in 2008 and $850,166 in 2007 50,865 61,356 Goodwill 2,302,179 2,302,179 Other assets 114,504 88,425 Total assets $11,282,074 $11,940,428 LIABILITIES AND STOCKHOLDERS' (DEFICIT) Current Liabilities Accounts payable $1,279,378 $1,069,577 Accrued expenses 591,161 609,083 Current maturities of long-term debt 750,870 622,340 Deferred revenues & gain on sale-leaseback transactions 289,517 314,090 Accrued interest payable 230,248 30,513 Total current liabilities 3,141,174 2,645,603 Long-term debt, less current maturities 12,543,502 12,381,598 Redeemable convertible Series C preferred stock 12,187,735 11,882,545 Stockholders' (deficit) Common stock 10,782 10,779 Additional paid-in capital 55,167,329 55,109,333 Accumulated deficit (71,768,448) (70,089,430) Total stockholders' (deficit) (16,590,337) (14,969,318) Total liabilities and stockholders' (deficit) $11,282,074 $11,940,428 iSECUREtrac Corp. and SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended March 31, 2008 and 2007 (Unaudited) 2008 2007 Revenues: Equipment leasing $2,179,577 $1,934,038 Administrative, field & support service revenues 74,453 - Equipment sales 22,242 56,208 Other revenues 212,848 119,510 Gain on related party sale-leaseback transactions 13,191 44,862 Total revenues 2,502,311 2,154,618 Operating expenses: Cost of revenues 1,087,894 860,999 Research and development 339,811 473,109 Sales, general and administrative 2,251,803 2,067,227 Total operating expenses 3,679,508 3,401,335 Operating loss (1,177,197) (1,246,717) Other income (expense): Interest income 19,224 46,475 Interest expense (264,984) (152,526) Total other income (expense) (245,760) (106,051) Loss before provision for income taxes (1,422,957) (1,352,768) Provision for income taxes - - Net loss $(1,422,957) $(1,352,768) Preferred stock dividends and accretion (305,190) (283,617) Net loss available to common stockholders $(1,728,147) $(1,636,385) Basic and diluted loss per common share $(0.16) $(0.15) Weighted average shares of common stock outstanding 10,781,218 10,773,675 DATASOURCE: iSECUREtrac Corp. CONTACT: Jeff Durski of iSECUREtrac Corp., +1-402-537-0022, Web site: http://www.isecuretrac.com/

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