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US Army Orders 2,500 Stun Guns From Taser; Shares Gain

DOW JONES NEWSWIRES

Taser International Inc. (TASR) said the U.S. Army made an initial order for 2,500 of its electronic control devices and related accessories.

Shares in the electric-shock weapons company were up 2.7% at $4.53 premarket. The stock, which hit a five-year low late last November, was down 16% for 2009 through Monday.

The order for Taser X26 models, which will go to the Army's Garrison Rock Island Arsenal, will ship in the current quarter. The company didn't disclose financial terms of the sale.

Last month, Taser--which sells guns not only to police and military but also to individuals --reported it swung to a loss in the third quarter because of higher research and development expenses, which it said would return to more normal levels in the current quarter. Its adjusted operating income fell sharply although revenue rose slightly. The company is transitioning to become a full- solutions provider rather than a simple products firm.

The company describes its X26 as its premier law-enforcement electronic control device. Its two small darts deploy a maximum length of 35 feet and transmits a five-second electric shock to disable the target.

-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@ dowjones.com

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