Financial News
Boomerang Tracking Reports First Quarter 2005 Results

Boomerang Tracking Inc.
Press Release
Sylvain Dunn
9/10/2004
Quarterly Review and Financial Highlights with an Interim MD&A; can be found at this link, while the complete financials can be found at this link.


FIRST QUARTER HIGHLIGHTS:
· REVENUES UP 11% TO $7.36 MILLION
· SERVICE CONTRACT REVENUES OF $4.97 MILLION
· NET EARNINGS AT $0.94 MILLION


Boomerang Tracking Inc. (TSX: BMG), the Canadian leader in stolen asset recovery, announced today its results for the first quarter ended July 31, 2004.

For this period, net earnings were at $0.94 million ($0.04 per share), compared with net earnings of $0.69 million ($0.03 per share) for the same period last year. Net earnings were at 12.8% of revenues, compared to 10.5% for the same period last year. In the present quarter, the Company achieved revenues of $7.36 million, an increase of 11% compared with revenues of $6.61 million for the same period last year.

Revenues from service contracts jumped by 28% to a record $4.97 million during the first quarter of fiscal 2005, from $3.88 million for the same period last year. New activations of Boomerang units were 9,066 units in the first quarter, compared to 11,516 units for the same quarter of the previous fiscal year. The amount of units sold was 9,316 in the first quarter, compared to 12,277 for the same quarter of the previous fiscal year. During the same period, the sale of high-end vehicles experienced a similar drop across Canada. In addition, 2,900 Boomerang devices were transferred to new vehicles during this period, compared to over 3,900 for the same period last year. The Company continued its progression in Ontario with close to 1,100 new activations this past quarter.

Stock Market Activity

As announced on August 17, 2004, LoJack Corporation (NASDAQ: LOJN), the premier global marketer of wireless security and location products entered into a definitive agreement to acquire Boomerang Tracking Inc. for CAD $2.95 per share payable, at the option of the shareholder, in cash or in a combination of cash, LoJack stock or securities exchangeable into LoJack stock.

The proposed acquisition is expected to close in the fall of 2004 and is subject to customary closing conditions, as well as approvals by two-thirds of the Boomerang Tracking shareholders and the Superior Court of Quebec, appropriate regulatory and other authorities, and compliance with the Canadian Business Corporations Act.

Numbers That Speak Volumes

As of July 31, 2004, the Boomerang Tracking System has been instrumental in the recovery of approximately 3,600 vehicles and other valuable assets, including incidental recoveries, representing a total value of over $188 million. These impressive results have earned the Company the support of national insurers and the law enforcement community, who recognize the benefits of the Company’s tracking devices.
Boomerang Tracking Inc. markets and distributes the Boomerang® tracking devices, proprietary products using technology patented by the Company. The Boomerang, Boomerang2™ and GSM-based units are the central devices in a system that uses the wireless networks of major regional telecommunications companies for tracking stolen assets. The Boomerang Tracking System is capable of locating stolen automobiles, heavy equipment and valuable assets. As a result of its success, the Company has received the endorsement of members of the insurance industry. The Boomerang devices are available and installed through a network of authorized dealers in Quebec and Ontario. The Company's head office, research and development centre and manufacturing facilities are located in Montreal, Quebec, with regional facilities located in Mississauga, Ontario. Boomerang is a registered trademark and Boomerang2 is a trademark of Boomerang Tracking Inc. Boomerang Tracking Inc. is a wholly owned subsidiary of LoJack Corporation (NASDAQ:LOJN).