remotemdx8k092808ex10-1.htm


    
      

      

    

    
      RemoteMDx
Separates from Operations Its Volu-Sol

      Subsidiary
as it Continues to Grow Its Offender

      Tracking
Business

      


      


      SANDY,
UT--(MARKET WIRE) — December 9, 2008 – RemoteMDx, Inc.  (OTC
BB:RMDX.OB),  a national leader in delivering patented monitoring and
integrated GPS/Cellular/RF tracking systems, which observe and track offenders
no matter where they may be, announced that on September 29, 2008, the Company
had effected the separation of the business and assets of its former subsidiary
corporation, Volu-Sol Reagents Corporation ("Volu-Sol"). As a result of steps
taken to date to accomplish the separation, the Company presently holds a
minority interest equivalent to approximately 16% of the issued and outstanding
common stock of Volu-Sol.

      


      The
separation is part of the Company's continuing efforts to focus on its core
business model of tracking, monitoring and case managing criminal offenders, and
to improve operational cash flow, overall profitability and concerted research
and development initiatives.  Over the course of approximately 12
months, the Company has taken steps to divest itself of and to separate from
Volu-Sol, its medical stain and reagents operating
division.  Strategically, both entities are now free to pursue
independent business models and unique development paths.

      


      "RemoteMDx
is focused upon the deployment and expansion of its offender management solution
that is experiencing good growth. Volu-Sol, on the other hand, is focused on
medical diagnostics and creating products that help manage the lives of the
elderly.  As RemoteMDx's management, we feel that the Company's focus
and resources must be singly centered around the growth of its offender tracking
solutions.  Through this separation both entities will better be able
to focus on success," said John Hastings, president of RemoteMDx.

      


      Since its
deployment in August 2008, over 1,900 of the Company’s new TrackerPAL II devices
have been shipped. The Company estimates that as a direct result of these
shipments, the annualized revenues from 13 of the Company’s top 25 accounts will
increase by approximately $1,800,000.  In addition, the Company has
added 30 new agencies, counties or jurisdictions as customers over the past 90
days, which the Company estimates will result in annualized incremental revenues
of approximately $4,000,000.

       

      About
RemoteMDx

       

      RemoteMDx,
through its SecureAlert subsidiary, delivers patented monitoring systems that
observe and track offenders no matter where they may be -- in their car, home or
office. SecureAlert can intervene in real-time with direct voice communication
when an offender is in violation of probation or parole, such as sex offenders
who are prohibited from entering school areas, parks, etc. Highly trained case
managers monitor the offender's activities 24/7 through satellite mapping and
computer systems. The SecureAlert programs allow convicted criminals to re-enter
society by keeping them accountable 24 hours a day, every day, while reducing
the burdens and costs carried by the criminal justice system. To learn more
about RemoteMDx, visit www.remotemdx.com.

       


      
        
           


        

        
           


          
            

          

        

        
           


        

      

       

      Safe
Harbor Statement

       

      This
press release contains forward-looking statements within the meaning of Section
27A of the Securities Act and Section 21E of the Securities Exchange Act,
including future growth and earnings opportunities of the Company. Examples of
forward-looking statements in this release include references to the results of
operations during future periods, the success of implementing future phases of
the company's business plan, and the launch of new products. Actual results
could differ materially from those projected in these forward-looking
statements, which involve a number of risks and uncertainties, including the
Company's ability to retain and to promptly satisfy current backorders and other
economic, competitive, governmental, technological, regulatory, manufacturing
and marketing risks associated with the Company's business and financial plans.
The contents of this release should be considered in conjunction with the risk
factors, warnings, and cautionary statements that are contained in the Company's
most recent filings with the Securities and Exchange Commission.

       

      Non-GAAP
Financial Measures

       

      To
supplement our reporting of operating results, we use non-GAAP financial
measures (such as “annualized revenues” and “annualized incremental revenues”)
which we believe are helpful in understanding our past financial performance and
our future results. Our non-GAAP financial measures are not meant to be
considered in isolation or as a substitute for comparable GAAP measures, and
should be read only in conjunction with our consolidated financial statements
prepared in accordance with GAAP. Our management regularly uses our supplemental
non-GAAP financial measures internally to understand, manage and evaluate our
business and make operating decisions. These non-GAAP measures are among the
primary factors management uses in planning for and forecasting future
periods.

       

       

      SecureAlert,
TrackerPAL(TM) and Offender Monitoring Center are trademarks of SecureAlert.
RemoteMDx is a trademark of RemoteMDx, Inc.

       

      


      Contact:

            

           Investor/Media
Relations

           866-451-6141

           ir@remotemdx.com