iSECUREtrac Reports Record 3rd Quarter Revenues

Nov. 9 /PRNewswire/ --

              24% Revenue Increase Projected for Fourth Quarter

OMAHA, Neb., Nov. 9 /PRNewswire-FirstCall/ iSECUREtrac(TM) Corp. (OTC Bulletin Board: ISEC), an industry leader in offender monitoring solutions utilizing global positioning systems (GPS) and wireless technologies, reported third quarter 2005 revenues of $1.37 million, a 6% increase over the third quarter of 2004. Recurring revenues from the leasing and hosting of monitoring systems were $1.18 million for the third quarter, an increase of 24% over the comparable period last year. Year to date, total revenues were $3.83 million, a 13% increase over the same period a year ago. The Company reported net loss of $1.02 million and $3.05 million, respectively, for the three and nine months ending September 30, 2005, compared to net losses of $1.61 and $7.78 million for the same periods last year.

"The successful completion in June of our strategic initiative has allowed us to concentrate efforts on growing our recurring revenue stream. It is paying off as evidenced by October billings in excess of $500,000," said David Vana, CFO of iSECUREtrac. "This growth is continuing at an accelerated pace and we expect $1.7 million of revenues for the 4th quarter, a 24% increase over the 3rd quarter. For the year, we project revenues in excess of $5.5 million primarily on the strength of offender monitoring devices in the field under lease agreements which should top out at over 3,800 units by December 31st."

"We are proud to be taking over the leading role of offender monitoring in the USA," said Tom Wharton, CEO of iSECUREtrac. "As the demand for GPS monitoring continues to grow from sex offender monitoring legislation, domestic violence programs, methamphetamine user supervision programs, and critical federal and state offender re-entry initiatives, specialized community supervision programs are developing that require our state of the art GPS monitoring systems,"

"We are pleased to have recently won contracts with the most sophisticated EM users in the country, each requiring GPS systems that demand the critical features that our system has to offer. Market momentum continues to build, and state legislation for sex offender monitoring will produce a record number of GPS monitoring requirements for years to come," continued Wharton.

The company will discuss the third quarter 2005 results today. The details for the call are as follows:

     Date:                          Wednesday, November 9, 2005
     Time:                          3:30 PM Central (4:30 PM Eastern)
     Dial-in number:                1-800-936-9754
     International:                 1-973-935-2048

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 the Liolios Group at (949) 574- 3860.

    A replay of the conference call will be available until November 16, 2005
     Replay number:                 1-877-519-4471
     International Replay number:   1-973-341-3080
     Replay Pin Number:             6679099

    About iSECUREtrac

iSECUREtrac Corp is a technology and information services company providing advanced GPS tracking solutions for the remote tracking and monitoring of individuals, including real time data collection, secure remote reporting, and data warehousing. iSECUREtrac is currently focused in the area of Pretrial, Corrections, Probation and Parole, and Homeland Security for monitoring offenders in community release programs, such as sex offenders and other persons requiring community supervision. iSECUREtrac's GPS monitoring systems are designed to improve public safety, enhance the management of monitoring information, provide the fastest analysis and response, and reduce the financial cost of incarceration. Further information on iSECUREtrac Corp can be found on the company's Web site at www.isecuretrac.com.

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 SHEET

                                            (Unaudited)
                                           September 30,     December 31,
                                               2005              2004
       ASSETS
       Current Assets
         Cash                               $2,531,571          $44,997
         Cash - restricted                          --          700,000
         Investments                         3,391,836               --
         Accounts receivable, net of
          allowance for doubtful
          accounts of $62,000
          in 2005 and $13,869 in 2004        1,182,266        1,049,654
         Inventories                           152,038          140,938
         Prepaid expenses and other            127,879           75,734
           Total current assets              7,385,590        2,011,323
       Equipment, net of accumulated
        depreciation of $637,254
         in 2005 and $582,243 in 2004                  224,609                    222,834
              Leasehold  Improvements,  net  of
                accumulated  depreciation  of
                $1,817  in  2005  and  $177  in  2004                  14,669                      10,434
              Monitoring  Equipment,  net  of
                accumulated  depreciation  of
                $3,105,904  in  2005  and
                $3,249,971  in  2004                                      2,666,637                2,496,657
              Product  Development  Costs,  net
                of  accumulated  amortization  of
                $971,054  in  2005  and  $907,233
                in  2004                                                                  18,907                      82,728
              Intangibles,  net  of  accumulated
                amortization  of  $643,328
                  in  2005  and  $548,639  in  2004                    268,194                    362,883
              Goodwill                                                            2,302,179                2,302,179
              Other  assets                                                        146,630                    173,651
                      Total  assets                                        $13,027,415              $7,662,689

              LIABILITIES  AND  STOCKHOLDERS'
                EQUITY  (DEFICIT)
              Current  Liabilities
                  Notes  payable                                                          $--                  $215,654
                  Current  maturities  of  long-
                    term  debt                                                        780,434                1,410,647
                  Accounts  payable  and  accrued
                    expenses                                                          780,807                1,823,401
                  Deferred  gain  on  sale-
                    leaseback  transaction                                557,825                    870,383
                  Accrued  interest  payable                                7,462                    142,406
                      Total  current  liabilities                  2,126,528                4,462,491
              Long-term  debt,  less  current
                maturities                                                      1,422,584                5,428,548
              Redeemable  convertible  Series  C
                preferred  stock                                            9,313,461                              --
              Stockholders'    Equity  (Deficit)
                  Series  B  convertible
                    preferred  stock                                                      --                        295,000
                  Common  stock                                                      10,636                      88,651
                  Additional  paid-in  capital                  54,643,987              48,594,197
                  Accumulated  deficit                              (54,489,781)          (51,206,198)
                      Total  stockholders'    equity
                        (deficit)                                                    164,842              (2,228,350)
                      Total  liabilities  and
                        stockholders'  equity
                        (deficit)                                            $13,027,415              $7,662,689

          See  Notes  to  Consolidated  Financial  Statements.



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

                                                            Three  Months  Ended                Nine  Months  Ended
                                                                  September  30                            September  30
                                                            2005                  2004                  2005                  2004
        Revenues:
            Equipment  sales                $4,306          $126,729            $24,792          $278,520
            Equipment  leasing
              &  hosting                    1,181,548            949,386        3,204,607        2,587,360
            Gain  on  sale-
              leaseback
              transactions
                  Related  party            172,759            162,184            549,701            390,618
                  Other                                      --                7,051                      --              18,685
            Service                                10,065              49,018              50,584              99,544
                  Total  revenues      1,368,678        1,294,368        3,829,684        3,374,727
        Operating  expenses:
            Cost  of  revenues            672,833            738,397        2,006,840        3,507,055
            Research  and
              development                    200,849            162,850            612,335            519,322
            Sales,  general  and
              administrative          1,454,829        1,048,626        3,767,588        4,536,504
                  Total
                    operating
                    expenses                2,328,511        1,949,873        6,386,763        8,562,881
            Operating  loss              (959,833)        (655,505)    (2,557,079)    (5,188,154)
        Other  income
          (expense):
            Interest  income                27,759                      23              29,725                      32
            Interest  expense            (91,618)        (958,968)        (559,025)    (2,571,373)
            Financing  fees                          --                      --                      --              21,598)
            Other,  net                                  --                      --              31,837                      --
            Total  other
              income  (expense)          (63,859)        (958,945)        (497,463)    (2,592,939)
            Loss  before
              provision  for
              income  taxes            (1,023,692)    (1,614,450)    (3,054,542)    (7,781,093)
            Provision  for
              income  taxes                            --                      --                      --                      --
        Net  loss                        $(1,023,692)  $(1,614,450)  $(3,054,542)  $(7,781,093)
        Preferred  stock
          dividends  and
          accretion                          (270,937)        (234,470)        (278,170)        (682,338)
        Net  loss  available
          to  common
          stockholders              $(1,294,629)  $(1,848,920)  $(3,332,712)  $(8,463,431)
        Basic  and  diluted
          loss  per  common
          share                                      $(0.12)            $(0.32)            $(0.35)            $(1.62)
        Weighted  average
          shares  of  common
          stock  outstanding      10,635,864        5,772,115        9,656,142        5,213,212

        See  Notes  to  Condensed  Consolidated  Financial  Statements.

 


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