Taser International discusses role of Master Instructor Training Board

September 22, 2005
Taser International via PRNewswire

SCOTTSDALE, Ariz., Sept 22, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- TASER International, Inc. (Nasdaq: TASR), a market leader in advanced electronic control devices released the following statement relating to the compensation of consultants to the Company including its Master Instructor Training Board:

The company was advised that the Arizona Republic, a Gannet Newspaper, intends to run a negative story regarding the fact that during the period from 2000 through 2003, the Company granted stock options to 11 persons who were not employees or directors of TASER International. The 11 persons included our medical director, a non-employee salesperson, two individuals who provided legal services to the Company, a police officer who designed a holster for the Company's product, and six members of our Master Instructor Training Board. In total, the 11 individuals received stock options on 27,671 shares of TASER International stock. The stock options had a strike price equal to the Company's share price on the date of issue and as such did not have any "in the money value" at the time of grant.

The Master Instructor Training Board was created to oversee and advise the Company in relation to law enforcement training programs and included four active duty police officers, one retired police officer and a representative from the aviation industry.

The participants were chosen as respected experts in police and security training. It should be noted that none of the board members were in a position to approve product purchases AND every one of their agencies had already purchased and deployed TASER devices prior to their joining our advisory training board.

The company addressed the issue of these stock options on CNBC's Kudlow and Cramer and released generic information to the New York Times and other media in the first quarter of 2005. The company did not release individual names at that time out of respect for the privacy of the consultants involved. However, the Arizona Republic was able to gain access to previously private court records and intends to release the information regardless of individuals' privacy rights. Accordingly, TASER International has elected to issue this clarifying information to help ensure a more accurate representation of the facts.

According to an industry survey from advisory consulting experts at BoardSeat.com -- a consulting group in the area of creating and compensating advisory boards, TASER International followed an industry standard that over 70% of start up ventures use to compensate advisors -- stock options. Stock options have been and continue to be important compensation tools for start up ventures that have limited cash resources -- a description that certainly fit TASER International during the time period in question. The following information is from BoardSeat.com:

Regarding the purpose of advisory boards: "An advisory board is a group
of industry executives and professionals that is appointed by a company
for the purpose of offering advice and support on a wide range of issues
that are relevant to the organization."

Regarding Compensation: "Advisors should be paid for their time. The
optimum method of payment in many cases is with stock options or
warrants."

Regarding Amount of Compensation: "As companies mature and become larger
they tend to pay a smaller percentage of equity to their advisory board
members. Companies that had raised less than $10 million pay their
advisors, on average, 0.043% per annum... Companies that had raised more
than $50 million pay their advisors, on average, 0.013% per annum."

Regarding the compensation of the TASER Training Board, the members received stock options on an aggregate total of 5,500 shares. This equates to an average of options on 917 shares of TASER stock per member of the training board. The fully diluted share count of TASER International at the end of 2002 was over 4.7 million shares. Hence, the average total of 306 shares per year represented 0.0065% of company equity. This is far below the per annum averages reported for similar venture capital backed companies in the boardSeat.com report.

As you can see from above, we strongly believe our Training Board is consistent with industry standards for similar advisory boards created by the majority of surveyed venture backed companies, albeit our compensation was far lower.

Regarding the officer who received stock options in lieu of cash for the purchase of a holster design, an officer in Victoria Canada received options on 775 shares of stock in May, 2001. Because the options were granted at the market price, the options had no value to the officer at the time of grant. He sold his options in 2003.

"I am personally incensed that the Arizona Republic plans to target TASER International with yet another biased report, alleging misconduct where none exists," said Rick Smith, CEO of TASER International. "Advisory boards are a prevalent and valuable resource in the business world, and their compensation predominantly includes stock options as is well documented in the area of startup ventures. The officers on our board were involved in training operations at their respective departments -- not the purchasing departments. They followed all relevant conflict-of-interest regulations at their departments and the grant of stock options did not violate TASER's Code of Ethics nor industry norms. The advisory board was established specifically to provide un-biased industry guidance in developing our training programs. It is an insult to these individuals and the law enforcement sector in general to insinuate these officers sold-out their ethics by helping us to develop better training and better equipment. It is especially insulting when the amounts in question amount to options on average of a few hundred shares of stock per year."

"I look forward with great interest to the Arizona Republic's story on this topic, especially in light of the history of biased and misleading reporting that have become the topic of litigation between TASER International and Gannet," concluded Mr. Smith.

About TASER International, Inc.

TASER International, Inc. provides advanced electronic control devices for use in the law enforcement, military, private security and personal defense markets. TASER devices use proprietary technology to safely incapacitate dangerous, combative or high-risk subjects who pose a risk to law enforcement officers, innocent citizens or themselves. TASER technology saves lives every day, and the use of TASER devices dramatically reduces injury rates for officers and suspects. For more information on TASER life-saving technology, please call TASER International at (800) 978-2737 or visit our website at www.TASER.com.

Note to Investors

This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of the 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. The forward-looking information is based upon current information and expectations regarding TASER International. These estimates and statements speak only as of the date on which they are made, are not guarantees of future performance, and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results could materially differ from what is expressed, implied, or forecasted in such forward-looking statements.

TASER International assumes no obligation to update the information contained in this press release. TASER International's future results may be impacted by risks associated with rapid technological change, new product introductions, new technological developments and implementations, execution issues associated with new technology, ramping manufacturing production to meet demand, litigation including lawsuits resulting from alleged product related injuries, media publicity concerning allegations of deaths occurring after use of the TASER device and the negative impact this could have on sales, product quality, implementation of manufacturing automation, potential fluctuations in quarterly operating results, adjustments to these amounts which may be reflected in our 10Q filing, competition, financial and budgetary constraints of prospects and customers, international order delays, dependence upon sole and limited source suppliers, negative reports concerning TASER device uses, governmental inquiries and investigations, medical and safety studies, fluctuations in component pricing, government regulations, variation among law enforcement agencies with their TASER product experience, TASER device tests and reports, dependence upon key employees, and our ability to retain employees. TASER International's future results may also be impacted by other risk factors listed from time to time in its SEC filings, including, but not limited to, the Company's Form 10-QSBs and its Annual Report on Form 10-KSB.

The statements made herein are independent statements of TASER International. The inclusion of any third parties does not represent an endorsement of any TASER International products or services by any such third parties.

Visit the company's web-site at www.TASER.com for facts and video.

SOURCE TASER International, Inc.

Steve Tuttle, Vice President of Communications of TASER International, Inc.,
Media ONLY Hotline, +1-480-444-4000