Quarterly Review and Financial Highlights: Boomerang


MONTREAL, Quebec, September 20, 2002 – Boomerang Tracking Inc. (TSX: BMG), the Canadian leader in stolen asset recovery, today announced record first quarter revenues for the three-month period ended July 31, 2002.

For the first quarter ended July 31, 2002, the Company recorded revenues of over $5.04 million, representing an increase of 24% compared to revenues of approximately $4.07 million for the same period last year. First quarter net earnings were $0.53 million ($0.024 per share) versus net earnings of $0.59 million ($0.027 per share) for the same period last year. This was attributable to the Company�s continued investment in substantially key areas such as research and development, human resources, marketing initiatives and internal infrastructures during the period. Revenues from service contracts increased by 56% to $2.86 million during the first quarter of fiscal 2003 from $1.84 million during the same period last year. New activations of Boomerang units in the first quarter rose by 3% to 12,089 units from 11,763 units in the first quarter of the previous fiscal year.

�During this first quarter of fiscal 2003, the Company realized record new activations for a three-month period. Revenues from service contracts hit an all-time high of $2.86 million for the first quarter, representing a 56% increase over the preceding year for the same period. The Company continued to build on strategic initiatives set forth in the preceding quarters while remaining focused on maintaining and developing strong ties with key strategic alliances. In recognition of Boomerang Tracking�s growing leadership position in the Canadian marketplace and strong profitable growth in its sector, Boomerang Tracking was ranked as a finalist in Deloitte & Touche�s 2002 Canadian Technology Fast 50 awards program�, said Peter Lashchuk, President and CEO of the Company.

As previously reported, the Company successfully deployed J.D. Edwards, a modular, integrated, web-enabled application on July 2, 2002. During a short period of time, the Company has already realized the benefits of this newly implemented system through streamlined processes. A second phase is underway in preparation for the company�s intended launch into the United States. The Company anticipates this phase to be completed by the end of this calendar year.

Additional Support in Quebec

In May 2002, the Company appointed Jean Lalonde, a former police chief, as Director of Security. Mr. Lalonde�s mandate is to develop and establish both internal and external security measures at Boomerang Tracking including but not limited to privacy and security of both corporate facilities and sensitive information. He is also responsible to build and strengthen relationships with various law enforcement authorities and streamline communications between Boomerang Tracking and police forces across Canada.

In this first quarter of fiscal 2003, the Company received further support from law-enforcement agencies through an initiative spearheaded by the Service de Police de la Ville de Montr�al (SPVM) entitled �Project Lock-Up�. This campaign aimed at educating the public on crime-reduction � vehicle theft in particular � introduced the Boomerang Tracking System as one of the solutions to vehicle theft.

This program commenced on the island of Montreal in January 2001 and was subsequently launched megacity-wide in June 2002.

Progress in Ontario

During this last quarter, the Company realized greater support from new car dealers, with the introduction of the Company�s recovery technology to consumers of new passenger vehicles at the point of purchase. With the continued increase in new car sales, this channel of distribution has provided the Company with expediency in educating potential consumers about the Boomerang and Boomerang2� tracking devices in this market as well as increased penetration. Further inroads with the insurance industry and in new vertical markets such as the trucking industry have also been realized during this quarter.

Development in the United States

With the GSM-based Boomerang device in its final stages of development, the Company is preparing the foundation for eventual deployment in the United States. As part of initial preparation stages to ready Boomerang Tracking for launch in this market, the Company has engaged the services of a public relations firm.

Boomerang Tracking Inc. assembles, markets and distributes the Boomerang Tracking System, a proprietary product using technology patented by the Company. The Boomerang Tracking System is the central device in a cellular-based asset tracking system utilizing the wireless systems of major regional telecommunications companies. The Boomerang Tracking System is capable of locating stolen automobiles, heavy equipment and valuable objects. The Company’s proven recovery record has received endorsement by members of the insurance industry.

The Boomerang Tracking System is installed through a network of authorized dealers located throughout the provinces of Quebec, Ontario and British Columbia. The Company’s head office, research and development, production and corporate installation facilities are located in Montreal, Quebec. Boomerang is a registered trademark of Boomerang Tracking Inc. The shares of Boomerang Tracking Inc. trade on The Toronto Stock Exchange under the symbol BMG.

More details are available