Executive Message

A Note From the President

Welcome to the first edition of our new shareholder newsletter. We look forward to using this regularly as a means of providing you with the latest news and insight pertaining to your investment in RemoteMDx (RMDX.OB)

To kick things off on a very positive note, we recently held our annual shareholder meeting and shared some of our major accomplishments as a company during the past year. I am pleased to say that our TrackerPAL offender monitoring solution is on the ground and running. We currently have 13,000 purchase orders for the TrackerPAL device and have begun deploying units around the country.

Of these initial orders, our goal is to have 3,500 units deployed by September of this year. Additionally, we have set a goal to sell and deploy a total of 20,000 TrackerPAL units by the end of 2006. At a per unit cost of $8 per day, this puts us on track to have a run rate of $58 million of annualized, recurring revenue by the end of 2006.

The TrackerPAL solution is by far the best device on the market, and these initial 20,000 units represent merely the tip of the iceberg. Our talented sales team travels around the country regularly, meeting with decision-makers and showcasing our impressive technology. And because the number of criminals keeps increasing, the market opportunity for the TrackerPAL device continues to grow.

As a company we are at the cusp of some great accomplishments and great opportunities, which we look forward to sharing with our shareholders. We appreciate your continued support and look forward to many more years of success and growth.

Best regards,

James Dalton
President, RemoteMDx

 

Company News

RemoteMDx Releases New Sex Offender DVD

In an effort to raise awareness of the nation’s growing sex offender tracking problem and RemoteMDx’s own tracking solutions, we are pleased to announce that we have recently released a new TrackerPAL informational video. The new DVD dramatizes the TrackerPAL device’s ability to protect our communities from the thousands of sex offenders living among us. The video demonstrates the use and enforcement of inclusion and exclusion zones, the real-time GPS tracking ability, as well as the rapid response of police in the case of a violation. “This new video powerfully enforces the need for a solution like the TrackerPAL,” says Randy Olshen, president of RemoteMDx subsidiary SecureAlert. “While the TrackerPAL is not perfect, it is the most technologically advanced tracking device available and not only helps ease the burden of parole officers but also provides substantial peace of mind for the rest of us.” The DVD has been distributed to select shareholders in addition to the media and is available online at www.remotemdx.com. Copies can be requested by contacting us at 801-908-5132.

13,000 TrackerPALs Ordered; Devices Deployed in Ten States

Our SecureAlert division recently began its march toward dominating the offender monitoring industry by receiving purchase orders for 13,000 cutting-edge
TrackerPAL offender monitoring devices. The value of these initial orders amounts to nearly $38 million dollars in annualized, recurring revenue. In addition, initial deployments of TrackerPAL devices have begun in ten states: Georgia, South Carolina, North Carolina, Pennsylvania, Kansas, Utah, Nevada, California, Montana and Texas. These states are among the first to begin deploying the TrackerPAL solution. “We have been extremely pleased with the TrackerPAL technology to date and have have already placed orders for more units,” said Howard Allsup, President of Global Tracking Services. “We have received an overwhelming response to the TrackerPAL, especially in Texas, due to its reliability, accuracy, integration of two-way voice communication, location pinpointing and advanced software; all of which is crucial to providing real-time, offender monitoring 24 hours a day, 7 days a week, 365 days a year.”

In 2003, the U.S. prison population totaled nearly 6.9 million offenders, up from 2.2 million offenders in 1982. This more than 300 percent increase during a 20-year period meant that by 2003, 3.2 percent of the adult population, or roughly one of every 32 adults in the U.S., was in the U.S. corrections system. These orders and first installations represent the initial steps toward achieving our goal of having a TrackerPAL unit on the ankle of every offender on parole or probation in the United States.

$2 Million Revolving Line of Credit

On July 5, 2006 RemoteMDx closed a $2 million revolving line of credit with Citizen’s National Bank of Macomb, Illinois that is expandable to up to $10 million. Under terms of the agreement, Citizen’s has agreed to issue a $2 million promissory note to RemoteMDx, a note which can be expanded to up to $10 million provided that certain conditions are met by RemoteMDx. (NOTE: Additional details about the information included in this article were disclosed in the company’s 8-K filing with the SEC dated June 9, 2006.)

 

Sales Department Grows Outward and Upward

RemoteMDx’s Vice President of Sales, Bryan Dalton has two goals for his sales team: Grow the business and provide unparalleled customer support. In order to achieve these two goals and keep up with the demand for the TrackerPAL solution, Dalton has set up an inside and an outside sales team.

“We know the TrackerPAL is the best solution on the market, so selling it isn’t going to be a problem; we need to plan for growth,” Dalton says. “However, the second side of our one-two punch is that we deliver top-notch customer support — a service the industry has lacked, until now.”

Christopher Anderson leads the inside sales team. In addition to following up on and qualifying sales leads, Anderson’s team is responsible for ensuring customers’ needs are met.

“My inside sales team is really the grease between the gears,” Anderson says.

“It’s all about helping the sales process flow smoothly for our customers. In the end, this benefits everyone.”

Currently, client responsibilities of the inside sales team members are divided up by time zones. According to Anderson, this will shift to geographic areas as the client base and the inside sales team grows.

Heading up the outside sales team is SharLyn Hodson. According to Hodson, the outside team consists of the “heavy hitters” of the sales department and the face of the organization.

“Our teams complement each other,” Hodson says. “There aren’t enough hours in the day for one team to handle all aspects of sales. Dividing the responsibilities is the best way for us to sell the TrackerPAL while making sure we retain our clients.”

In order to keep up with the pace of the company, both departments are expanding. In the next month, Anderson’s inside sales team will grow by 50 percent and Hodson’s outside sales team is planning on growing by 66 percent.

“The goal is always to add clients, but we also know that retaining clients is one of the main ways that a business grows.” Dalton says.

150 W. Civic Center Dr.
Ste. 400
Sandy, UT 84070

Phone: 1-866-451-6141
Fax: 1-801-451-6281