TORONTO, July 4 /CNW/ - The economic downturn we believe has affected a significant portion of our end user customer base. The major impact of lessening in demand is reflected in sales at most Club Warehouse locations, and we understand that small business owners are being extra cautious, resulting in the postponement of discretionary purchases. LOREX's Club business is significant, therefore any major reduction in volume impacts the Company.

We are and have been progressively introducing new product categories to a widening customer base. Today, LOREX products are available in more than 9,000 locations throughout North America. It is our expectation that our next generation of products will address the current market downturn, as we are offering excellent security solutions at economical price levels. Our mission is to deliver the best security solution, without compromising quality.

LOREX, over the past two years, has successfully introduced next generation technology, simultaneously refreshed our inventory while expanding our customer base, and restructured our overhead. As well, we have contracted with new lenders.

As the Company was recuperating from historical issues, generating sales growth and realizing profitability, we at LOREX believed that we would be profitable in the current quarter and for 2008. As events have evolved and revenues are currently below expectation, we do not expect to generate a profit in this current quarter. Our business model is solid, and we are confident that revenues will once again improve as we introduce exciting product additions. Our overall business with customers in sectors other than warehouse Clubs is growing, and we expect to attain a larger market share.

The Company is concentrating on introducing market driven value security solutions, digital wireless technology and most importantly, addressing marketing programs to assure customer awareness of LOREX and the new technologies that are now available both for business and consumer markets.

Significant initiatives required to propel the Company's revenue growth are in place. We do, as previously advised, continue to review financing initiatives in order to provide additional liquidity.

About LOREX Technology Inc.:

LOREX Technology Inc. (TSX: LOX) global brands empower consumers and professionals with leading-edge security video solutions delivering advanced technology and innovative performance.

Certain information included in this news release contains "forward-looking statements" within the meaning of applicable securities laws. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including, without limitation, statements regarding financial and business prospects and financial outlook and statements with respect to the next generation of products and expansion of the Company's customer base are forward-looking statements. These statements are based on management's current expectations and involve certain risks and uncertainties. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Actual results may vary materially from management's expectations and projections and thus readers should not place undue reliance on forward-looking statements. Certain factors that can affect the Company's ability to achieve projected results are described in the Company's filings with the Canadian securities regulators available on www.sedar.com.

The TSX has not reviewed and does not accept responsibility for the

adequacy or accuracy of this release.

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