Lorex announces improved second quarter 2009 earnings



    TORONTO, May 14 /CNW/ - LOREX Technology Inc. ("LOREX") (TSX: LOX)
announces results(*) for the three and six months ended March 31, 2009.
    Highlights of the three and six month operating results are as follows:

    
    (Thousands of US $)
    -------------------------------------------------------------------------
                                   Three months ended       Six months ended
                                        March 31                March 31
                                ---------------------------------------------
                                    2009        2008        2009        2008

    -------------------------------------------------------------------------
    Revenue                       11,590      12,625      22,216      26,380
    -------------------------------------------------------------------------
    Earnings before interest,
     taxes, amortization(*)          387         434         483       1,288
    -------------------------------------------------------------------------
    Earnings                         157          19          13         151
    -------------------------------------------------------------------------
    Earnings per common share
     (basic and diluted)           $0.01       $0.00       $0.00       $0.01
    -------------------------------------------------------------------------
    Weighted average number
     of shares outstanding    26,954,083  26,954,083  26,954,083  26,954,083
    -------------------------------------------------------------------------

    (*) Audited financial information is available at www.sedar.com.

    (xx)EBITDA is not a measure of performance under Canadian GAAP. EBITDA
        should not be considered in isolation or as a substitute for Net
        Earnings nor as a measure of operating performance or profitability.
    

    Commenting on the results for the three and six months ending March 31st,
Chairman and CEO Henry Schnurbach stated, "Notwithstanding the challenging
environment, we have not compromised technology advancement opportunities and
we are benefitting with revenue growth on a trailing basis, at a higher gross
margin and lower cost infrastructure compared to the prior year.
    We believe that our strategy to target small business has been a key
factor for our success. LOREX security solutions are available in over 9,000
retail locations throughout North America. We are optimistic that revenues
should increase in the third quarter as compared to the second quarter of the
2009 fiscal year as promotional opportunities and new product introductions
enhance sales activity.
    The Company was in compliance with its amended second quarter lender
covenants and is required as a condition of the amended loan agreement to
increase the Company's capital by a minimum of USD $1 million by June 30,
2009. Going concern remains a risk factor until the Company complies with the
lender's requirement of increased capital."

    
    Q2 '09 CONFERENCE CALL

    LOREX will be holding a conference call for investors and analysts to
discuss the financial results at 12 PM ET on Friday, May 15, 2009.

        Please dial 1-800-587-1893 to access the call.

    For those unable to participate in the conference call at the scheduled
time, a replay of the conference call will be available beginning on Friday,
May 15, 2009 at 2:00 PM ET until Friday, May 22, 2009 at 11:59 PM ET:

        Replay Access No.: 416-640-1917
        Passcode: 21306469 followed by the number sign.

        Replay Access No.: 1-877-289-8525
        Passcode: 21306469 followed by the number sign.
    

    About LOREX Technology Inc.:

    LOREX Technology Inc. ('LOREX') (TSX:LOX) provides businesses and
consumers with leading edge video surveillance security solutions and sells
its products through distinct market channels under the LOREX and Digimerge
brands. The LOREX brand, which caters to both small business and consumer
markets, is available in over 9,000 retail locations across North America and
the U.K. and has an established market presence online selling through major
e-tailers and through its in-house webstore. The Digimerge division
distributes its products through major distributors in both North America and
Europe. Both groups concentrate on the sale of wired, wireless and IP security
surveillance equipment including cameras, digital video recorders and
all-in-one systems.
    LOREX subsidiaries include; LOREX Canada Inc., Digimerge Technologies
Inc., LOREX Corporation and Strategic Vista Corporation Limited, Hong Kong.

    
    The TSX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this release.
    

    Certain information included in this news release contains statements
that are forward-looking, such as statements relating to anticipated future
revenues of the Company and the success of product offerings. Such
forward-looking information involves important risks and uncertainties that
could significantly affect anticipated results in the future, and,
accordingly, such results may differ materially from those expressed in any
forward-looking statements made by or on behalf of the Company. Full financial
statements along with Management's Discussion an Analysis can be obtained from
SEDAR at www.sedar.com





For further information:

For further information: Jordan Schwartz, Chief Financial Officer, LOREX
Technology Inc., Phone: (905) 946-8589 ext 168, jordan.schwartz@lorexcorp.com,
www.lorextechnology.com

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LOREX Technology Inc.

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