iSECUREtrac Reports Third Quarter Financial Results

Recurring Revenues Up 18% 


OMAHA, Neb., Nov. 14  /PRNewswire-FirstCall/ -- iSECUREtrac(TM) Corp. (OTC:ISEC) (BULLETIN BOARD: ISEC) , an industry leader in electronic monitoring solutions reported financial results for the third quarter and nine months ending September 30, 2007.  Total revenue for the third quarter was up 18% to approximately $2.2 million compared to approximately $1.9 million for the same quarter of the prior year. For the nine months ending September 30, 2007, total revenue increased 12% to $6.6 million from $5.9 million for the same period, year ago.  Recurring revenues were approximately $2.1 million and $6.2 million for the three and nine month periods ending September 30, 2007, up 18% and 17%, respectively, from $1.8 million and $5.3 million in 2006.

Net loss for the first nine months of 2007 was $5.1 million compared to $3.8 million for the prior year period.  The increase in net loss is primarily attributable to an accrual for expenses related to litigation with a competitor.

"As a result of the investments we've made throughout 2007, we are approaching 2008 well positioned to capitalize on the growth of the electronic monitoring market. In the third quarter, we secured a number of new awards and expanded our relationships with current customers," said Peter Michel, president and CEO of iSECUREtrac.

"We experienced a slight delay in the launch of the System 5000.  This postponement was the result of some manufacturing problems which have all been identified and successfully resolved.  I am pleased to report that there are 500 System 5000s in the field today.  Through March, 2008, we will take delivery of an additional 3,000 units which will help us meet pent up demand for this state-of-the-art system.

In addition to GPS, we expect to expand our alcohol monitoring business at a rate slightly faster than projected for the market as a whole.  Industry experts anticipate the market to grow at double digit rates through 2011."

  Conference Call Information
  Date:             Wednesday, November 14, 2007
  Time:             3:30 PM Central (4:30 PM Eastern)
  Dial-in number:   1-800-418-6860
  International:    1-973-935-8756
  Conference ID:    9436702




Please dial in 5-10 minutes prior to the start time. An operator will request your name and organization and place you on hold until the call begins.

  A replay of the conference call will be available until November 21, 2007

  Replay number:                 1-877-519-4471
  International Replay number:   1-973-341-3080
  Replay Pin Number:             9436702


  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.

  Company Contact:
  Peter Michel 
  David Vana 
  [phone]

  Investor Relations:
  Liolios Group Inc
  Ron Both 
  949-574-3860


                    iSECUREtrac Corp. and SUBSIDIARIES
                       CONSOLIDATED BALANCE SHEETS

                                         (Unaudited)
                                     September 30, 2007    December 31, 2006
  ASSETS
  Current Assets
    Cash and cash equivalents            $1,300,567            $4,341,685
    Accounts receivable, net of
     allowance for doubtful accounts
     of $300,916 in 2007 and $171,409
     in 2006                              2,105,380             2,284,177
    Inventories                             204,534                61,021
    Prepaid expenses and other               71,339                74,608
      Total current assets                3,681,820             6,761,491
  Equipment, net of accumulated
   depreciation of $417,019 in 2007
   and $336,721 in 2006                     415,845               382,072
  Leasehold improvements, net of
   accumulated depreciation of
   $39,403 in 2007 and $9,535 in 2006       187,826                67,396
  Monitoring equipment, net of
   accumulated depreciation of
   $6,108,932 in 2007 and $4,904,883
   in 2006                                2,336,002             2,930,429
  Intangibles, net of accumulated
   amortization and impairment
   charges of $829,524 in 2007 and
   $767,598 in 2006                          81,998               143,924
  Goodwill                                2,302,179             2,302,179
  Other assets                               72,388                66,045
      Total assets                       $9,078,058           $12,653,536
  LIABILITIES AND STOCKHOLDERS' (DEFICIT)
  Current Liabilities
    Accounts payable and accrued
     expenses                            $2,128,623              $847,765
    Current maturities of long-term
     debt                                   672,508               891,070
    Deferred revenues & gain on
     sale-leaseback transaction             304,515               423,349
    Accrued interest payable                351,975                37,838
      Total current liabilities           3,457,621             2,200,022
  Long-term debt, less current
   maturities                             6,657,349             6,694,102
  Redeemable convertible Series C
   preferred stock                       11,574,541            10,696,697
  Stockholders'  (Deficit)
    Common stock                             10,778                10,773
    Additional paid-in capital           55,058,563            54,950,315
    Accumulated deficit                 (67,680,794)          (61,898,373)
      Total stockholders' (deficit)     (12,611,453)           (6,937,285)
      Total liabilities and
       stockholders' (deficit)           $9,078,058           $12,653,536



                    iSECUREtrac Corp. and SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                               (Unaudited)

                              Three Months Ended        Nine Months Ended
                                 September 30              September 30
                              2007         2006         2007         2006
  Revenues:
    Equipment leasing &
     hosting              $2,141,774   $1,817,050   $6,230,187   $5,320,514
    Equipment sales           10,752       18,421       87,755      306,476
    Service revenues          38,639        5,401      188,608       79,127
    Gain on related
     party sale-leaseback
     transactions             39,828       44,844      129,534      228,543
        Total revenues     2,230,993    1,885,716    6,636,084    5,934,660
  Operating expenses:
    Cost of revenues         852,406      793,912    2,607,090    2,383,586
    Research and
     development             392,012      326,979    1,278,236      987,991
    Sales, general and
     administrative        3,163,369    2,384,055    7,459,334    6,259,082
        Total operating
         expenses          4,407,787    3,504,946   11,344,660    9,630,659
    Operating loss        (2,176,794)  (1,619,230)  (4,708,576)  (3,695,999)
  Other income (expense):
    Interest income           18,091       11,222       97,743       74,023
    Interest expense        (143,102)     (41,651)    (441,132)    (145,565)
    Total other income
     (expense)              (125,011)     (30,429)    (343,389)     (71,542)
    Loss before provision
     for income taxes     (2,301,805)  (1,649,659)  (5,051,965)  (3,767,541)
    Provision for income
     taxes                         -            -            -            -
  Net loss               $(2,301,805) $(1,649,659) $(5,051,965) $(3,767,541)
  Preferred stock
   dividends and accretion  (308,003)    (288,827)    (877,844)    (823,471)
  Net loss available to
   common stockholders   $(2,609,808) $(1,938,486) $(5,929,809) $(4,591,012)
  Basic and diluted loss
   per common share           $(0.24)      $(0.18)      $(0.55)      $(0.43)
  Weighted average shares
   of common stock
   outstanding            10,777,305   10,771,897   10,775,556   10,747,007


DATASOURCE: iSECUREtrac Corp.



CONTACT:  Peter Michel, , or David Vana,

, both of iSECUREtrac Corp., [phone]; or Investor

Relations, Ron Both of Liolios Group Inc, [phone], ,

for iSECUREtrac Corp.



Web site:  http://www.isecuretrac.com/ 

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