Q2 Financial Summary:

    * For the second quarter of 2009 revenues were $21.8 million, an    increase of $0.7 million or 3.5% over the same quarter of the    prior year.  On a year to date basis, revenues for the first half    of 2009 were $46.4 million, an increase of $2.9 million or 6.5%    over the first half of 2008.   * Gross margin decreased to 62.9% in the second quarter of 2009,    compared to 64.5% in the second quarter of 2008.  Sequentially,    gross margins improved from 59.5% primarily due to a more favorable    change in sales mix to higher margin ECDs from lower margin    cartridges.   * Research and development expenses of $4.4 million increased by    $1.4 million, or 45.4%, in the second quarter of 2009 compared to    the same period in 2008. This was driven by intensive development    efforts on multiple new products including the TASER(r) X3(tm),    TASER(r) AXON(tm), EVIDENCE.COM(tm) and TASER(r) XREP(tm).   * Non-GAAP income from operations for the second quarter of 2009,    which excludes stock-based compensation charges, depreciation and    amortization and litigation judgment expense, was $0.7 million    compared to $1.9 million for the second quarter of 2008. GAAP loss    from operations was $(1.5) million for the second quarter of 2009    compared to $(4.3) million for the same period in the prior year.   * Net loss and diluted loss per share for the second quarter of 2009    were $(0.7) million and $(0.01), respectively.   * The Company generated $8.2 million in cash from operating    activities in the first half of 2009 with ending cash and cash    equivalents of $52.8 million and zero debt. 

Significant events in the second quarter of 2009 include the following:

    1. On June 30, 2009 the Company announced the availability of the     self-contained wireless TASER XREP shotgun rounds, as well as the     commercial launch of the TASER(r) X12 Less-Lethal Shotgun (LLS)     by Mossberg(r).  The XREP is a wireless ECD capable of delivering     the proven TASER Neuro Muscular Incapacitation effect to a maximum     range of 100 feet.   2. International sales represented 17% of total net sales for the     second quarter, compared to 12% in the second quarter of 2008 and     37% in the first quarter of 2009.  Significant shipments during     the second quarter included follow-on orders for TASER(r) X26(tm)     ECDs and cartridges to the UK, Australia and Korea.   3. Seven (7) product liability suits were dismissed during the     quarter, representing at the end of the quarter a total of     ninety-one (91) wrongful death or injury suits that have been     dismissed or judgment entered in favor of the Company.   4. A new medical study conducted by the Hennepin County Medical     Center in Minneapolis, Minnesota demonstrated that TASER devices     have minimal physiological effect on humans in simulated arrest     scenarios.  The study, "Cataecholamines in Simulated Arrest     Scenarios, was presented at the Australasia College of Emergency     Medicine (ACEM) Winter Symposium 2009 in Darwin, Australia. 

"These are exciting times for TASER International," said Rick Smith, CEO of TASER International. "We are seeing the results of our heavy investments in research and development begin to transform the company from a product company to a full solutions provider. The integrated solution set of our TASER(r) devices, our new AXON on-officer Tactical Computer audio/video system, and EVIDENCE.COM digital evidence storage and collaboration solution are positioning the company for a new phase of growth potential."

"We are now shipping the XREP wireless projectile, and we expect to begin shipments of the exciting new X3 in the third quarter. The X3 is our first multi-shot hand-held ECD and presents the opportunity for an upgrade cycle with our existing installed base, as well as appealing to new customers who may not have purchased previously due to the single shot limitations of prior technology. These four major product launches (X3, XREP, AXON and EVIDENCE.COM) could be transformative for the company as we move into the future," said Smith.

More details concerning these new products are provided in the keynote address delivered by Rick and Tom Smith on July 27 at the annual TASER conference held in Fountain Hills, AZ. The keynote address can be seen at: www.TASER.com or www.TASERX3.com.

The Company will host its second quarter 2009 earnings conference call on Wednesday, July 29, 2009 at 11:00 a.m. ET. The conference call is available via web cast and can be accessed on the "Investor Relations" page at www.TASER.com. To access the teleconference, please dial: 1-866-713-8565 or 1-617-597-5324. The pass code is 99668225 for both numbers.

Non-GAAP Measures

To supplement the Company's Statements of Operations presented in accordance with GAAP, we use non-GAAP measures of certain components of financial performance, specifically non-GAAP income from operations. In order for our investors to be better able to compare our current results with those of previous periods, we have shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation, depreciation and amortization. We use these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of our "recurring core business operating results," meaning our operating performance excluding non-cash charges, such as stock-based compensation, depreciation and amortization and other discrete charges that are infrequent in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance and liquidity.

About TASER International, Inc. (TASR):

TASER International's products protect life, providing advanced Electronic Control Devices for use in the law enforcement, medical, military, corrections, professional security, and personal protection markets. TASER(r) devices use proprietary technology to incapacitate dangerous, combative, or high-risk subjects who pose a risk to law enforcement officers, innocent citizens, or themselves in a manner that is generally recognized as a safer alternative to other uses of force.