COMARCO, Inc. : COMARCO REPORTS FISCAL 2013 FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS

COMARCO REPORTS FISCAL 2013 FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS

LAKE FOREST, Calif., April 30, 2013- Comarco, Inc. (OTC: CMRO.PK),today announced its financial results for the fourth fiscal quarter and full fiscal year ended January 31, 2013.The Company also filed its Annual Report on Form 10-K for fiscal year 2013 with the Securities and Exchange Commission today.

Revenue for the fourth quarter of fiscal 2013 was $1.3 million compared to $0.9 million for the fourth quarter of fiscal 2012. For the quarter, the Company reported a net loss of $2.8 million, or $0.37 per share, which compares to a net loss of $1.4 million, or $(0.18) per share, for the fourth quarter of the prior fiscal year. The net loss for the fourth quarter of fiscal 2013 included combined non-cash expenses of $1.6 million related to the valuation of the warrants issued in conjunction with our former bridge loan which was repaid subsequent to our fiscal year end with combined proceeds received from a previously announced secured loan agreement and stock purchase agreement.

For year ended January 31, 2013, revenue totaled $6.3 million compared with $8.1 million for the prior fiscal year. The net loss for the fiscal year ended January 31, 2013 was $5.6 million, or $(0.74) per share, compared with a net loss of $5.3 million, or $(0.72) per share, for the prior fiscal year. The fiscal 2013 net loss was significantly and positively impacted in the amount of $1.4 million by the previously announced settlement with a former supplier and negatively impacted in the amount of $2.5 million by the valuation of the warrants. Additionally, the year to date net loss includes increased engineering and support expenses of $0.5 million, compared to prior fiscal year. The increase in engineering and support expenses are related principally to increased legal expenses associated with our ongoing litigation in the amount of $0.9 million offset by reductions in personnel and related expenses of $0.3 million as well as reduced rent expense of $0.1 million.

About Comarco

Based in Lake Forest, Calif., Comarco develops technologies and products for the charging of portable battery powered devices. Our products are aimed at the mobile user and charge a multitude of devices ranging from laptop computers, tablets, mobile phones, smart phones as well as many other devices. Our extensive portfolio of 46 U.S. patents and a number of foreign patents is the result of years of research and development programs to provide charging solutions for portable electronic devices to original equipment manufacturers and retail outlets. Comarco continues to develop new technologies and expand its patent portfolio, and has commenced efforts to enhance shareholder value through the monetization of this significant corporate asset. The Company's Web sites can be found at www.comarco.com and www.chargesource.com.

Company Contacts
Tom Lanni	Alisha Charlton
President and CEO	Vice President and CAO
Comarco, Inc.	Comarco, Inc.
[phone]	[phone]
[e-mail]	[e-mail]

COMARCO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

	Three Months Ended January 31, (Unaudited)				Year Ended January 31, (A)
	2013		2012		2013		2012
Revenue	$ 1,320		$ 941		$ 6,338		$ 8,069
Cost of revenue1	1,478		1,329		4,150		8,261
	(158)		(388)		2,188		(192)
Selling, general and administrative expenses	458		512		2,761		3,140
Engineering and support expenses	550		460		2,435		1,931
	1,008		972		5,196		5,071
Operating loss	(1,166)		(1,360)		(3,008)		(5,263)
Interest expense, net	(909)		--		(1,481)		(62)
Loss due to change in fair value of derivative liabilities	(712)		--		(1,101)		--
Other income, net	--		4		--		38
Loss from continuing operations before income taxes	(2,787)		(1,356)		(5,590)		(5,287)
Income tax expense	--		--		2		2
Net loss from continuing operations	(2,787)		(1,356)		(5,592)		(5,289)
Loss from discontinued operations, net of income taxes	--		--		--		(21)
Net loss	$ (2,787)		$ (1,356)		$ (5,592)		$ (5,310)
Basic and diluted loss per share:
Loss from continuing operations	$ (0.37)		$ (0.18)		$ (0.74)		$ (0.72)
Loss from discontinued operations	--		--		--		--
Net loss	$ (0.37)		$ (0.18)		$ (0.74)		$ (0.72)
Weighted average common shares outstanding:
Basic	7,626		7,388		7,545		7,365
Diluted	7,626		7,388		7,545		7,365
Common shares outstanding	7,635		7,388		7,635		7,388

(A) Derived from the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2013, which was filed with the Securities and Exchange Commission on April 30, 2013.

1The cost of revenue for the year ended January 31, 2013 includes a supplier settlement of $1.4 million of previously incurred and accrued product and freight costs.

COMARCO, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

	January 31,		January 31,
	2013(A)		2012 (A)
ASSETS
Current Assets:
Cash and cash equivalents	$ 104		$ 908
Accounts receivable due from customers, net	1,307		934
Accounts receivable due from suppliers, net	1,132		673
Inventory, net	466		1,131
Other current assets	--		63
Total current assets	3,009		3,709
Property and equipment, net	120		126
Restricted cash	82		92
	$ 3,211		$ 3,927
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Accounts payable	$ 3,688		$ 3,912
Accrued liabilities	1,789		1,315
Loan payable, net of discount	2,000		--
Derivative liabilities	2,466		--
Total current liabilities	9,943		5,227
Deferred rent	42		41
Total liabilities	9,985		5,268
Stockholders' deficit	(6,774)		(1,341)
	$ 3,211		$ 3,927

(A)Derived from the audited consolidated financial statements included in the Company's Annual report on Form 10-K for the fiscal year ended January 31, 2013, which was filed with the Securities and Exchange Commission on April 30, 2013.