Brekford Corp. Reports Positive Net Income for 2010

Financial highlights for the Fiscal Year 2010:

The Company's operating expenses for 2010 were $1.8 million compared to $2.0 million for 2009. The decrease was primarily due to tighter controls and cost cutting measures implemented by management. Net income for 2010 was $7,817 compared to $577,757 for 2009. The decrease in net income was primarily due to lower revenues in 2010 due to budget cuts and continued tightening of expenditures by federal, state and local governments in 2010. The gross profit for 2010 was $1.9 million compared to $2.6 million for 2009.

For the year ended December 31, 2010, the Company reported net sales totaling approximately $11.6 million, a decrease of $3.0 million from 2009. The Company's cash position as of the end of 2010 remains positive at $1.5 million.

C.B. Brechin, Chief Executive Officer of the company, commented, "2010 was a challenging year for the Company due to the budget cutbacks suffered by the federal, state and local governments. However, despite the difficult economy with budget cutbacks, I am very pleased to report that Brekford has managed to achieve a positive net income for the year. We have also self funded an entire new division of the company (Automated Traffic Enforcement Group), kept the company debt free and continue to provide superior quality equipment and services to public safety agencies. Brekford's new division is now assisting budget strapped municipalities in providing turn-key (violator funded programs) by which municipalities are witnessing positive cash flow without unduly taxing its law abiding residents."

Mr. Brechin also stated, "Brekford's automated photo enforcement program was implemented during December 2010, and the Company is starting to see a fresh stream of revenues from this newly introduced program. Brekford has been awarded automatic traffic enforcement contracts by several municipalities during the past several months and the implementation of these contracts we anticipate will bring added revenues and profitability to the Company beginning this quarter. I believe that because of the technical advantage and reputable customer service that Brekford possesses, we will be positioned to compete with the leaders of the automatic traffic enforcement services within a relatively short time."

About BREKFORD

Brekford Corp. is a homeland security technology service provider of fully integrated vehicle upfitting and installation services, rugged computer and video technology and automated traffic safety solutions geared towards mission critical operations. For more than a decade we have provided services to branches of the U.S. military, various federal entities and numerous security and public safety agencies throughout the United States. We provide these agencies with an end-to-end suite of mobile communications, information technology, vehicle upfitting services, and automated traffic photo enforcement solutions that are designed to streamline procurement processes and offer maximum functionality to their day-to-day operations.

Brekford is a one-stop shop for vehicle upfitting, cutting edge technology and installation services. We provide ruggedized mobile computers and video systems, bumper-to-bumper vehicle modification products and services for homeland security, law enforcement, fire and emergency vehicles. The Brekford 360 Degree approach provides our customers with a one-stop upfitting, cutting edge technology and installation service.