Comarco Inc., ANAHEIM

Nature of Business: Provides military engineering services, facilities management (such as airports) and manufactures cellular-based products, including emergency roadside call boxes.

Employees: 1,400 Orange County: 44

Stock Designation: Listed on NASDAQ “Comrco” Ticker Symbol: “CMRO”

Friday’s Stock Close: $4.75 One-Week Change: None

Analyst review: “As governments get budget-crunched and turn to private enterprise to get some of the operational expenses off their budgets, Comarco will be one of the leading companies to benefit from privatization. Their win rate on contracts, by the way, is phenomenal. Right now, they have three things going for them: excellent cash flow, earnings visibility and the trend toward privatization; you can add a fourth, cellular play--they are the company that makes the call boxes along the freeways. Their backlog is so long, it gives you comfort that they will be producing revenues in the future. I would say Comarco will be growing at 15% a year for the next five years. This is a stock for middle-of-the-road to conservative investors.”

--Mark Matheson, director of research

Cruttenden & Co., Newport Beach

4 1/2-YEAR SUMMARY: REVENUES VS. PROFITS

Fiscal year ending Jan. 31 Jan. 31 Jan. 31 Jan. 31 2 Qtrs. 1988 1989 1990 1991 1992 Net Revenue $76.0 $88.7 $81.4 $72.7 $37.2 Net Profit (Loss) ($12.9) $6.1 $1.4 $1.7 $1.2

Corporate Outlook: “Comarco has established a reputation as one of the pioneers in government facilities management and is poised to capitalize on emerging trends toward privatization, as federal state and local governments seek ways to alleviate increasing budget pressures. At the same time, our professional services support for the U.S. military should continue to be the foundation of our company.”

Don M. Bailey, president/CEO

RETURN ON STOCKHOLDER INVESTMENT: 4 1/2-YEAR SUMMARY

Fiscal year ending Jan. 31 Jan. 31 Jan. 31 Jan. 31 1988 1989 1990 1991 52-Week High $10.25 $4.25 $4.25 $3.63 52-Week Low $2.00 $1.88 $2.75 $1.63 Price per Share $4.00 $3.38 $3.13 $2.38 Net Earnings (Loss) Per Share ($4.45) $1.42 $0.30 $0.38 Price to Earnings Ratio N/A 2:1 10:1 6:1 Average Return to Investor N/A 160% 27% 24%

Fiscal year ending 2 Qtrs. 1992 52-Week High $6.00 52-Week Low $2.38 Price per Share $4.50 Net Earnings (Loss) Per Share $0.22 Price to Earnings Ratio 14:1 Average Return to Investor 13%

For information, call or write Comarco Inc.: 160 S. Old Springs Road, Anaheim, Calif. 92808-1299. (714) 282-3800

Source: Comarco Inc.; Newport Securities