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ZAGG Reports Third Quarter Financial Results
[November 14, 2007]

ZAGG Reports Third Quarter Financial Results

SALT LAKE CITY --(Business Wire)-- ZAGG Incorporated (OTCBB:ZAGG) a leading provider of protective coverings and accessories for consumer electronics today reported earnings for the three and nine month period ended September 30, 2007.

The Company reported net revenue of $1,437,408 and net loss of ($733,428), or ($0.04) per share, for the quarter ended September 30, 2007. In comparison, third quarter 2006 net revenue was $816,022 and net income of $15,556, or $0.00 per share. Third quarter net revenue increased $704,214, or 76%, from the same quarter last year, primarily due to strong demand for the Company's invisibleSHIELD(TM) product line.

The net loss of ($733,428) includes non-cash expenses related to charges for the issuance of common stock to employees and key vendors prior to the adoption of the Company's ESOP plan. Net of these charges, net income would be $66,572.

Robert G. Pedersen II, ZAGG president & CEO stated, "The third quarter is a glimpse of the kind of growth we plan to experience for many quarters to come, and I'm excited to be involved in such a fast moving company." He added, "We are now well poised to be able to manage this continued growth with a very solid infrastructure and are well positioned for a strong Q4 and fiscal 2008."

About ZAGG Inc:

ZAGG Inc designs, markets and sells protective coverings for consumer electronic and hand-held devices under the brand name invisibleSHIELD(TM), primarily in the United States and Europe. The patent-pending invisibleSHIELD(TM) is a protective, high-tech film covering, designed for iPods, laptops, cell phones, PDAs, watch faces, gaming devices, digital cameras, and other items. Currently, ZAGG offers over 1,500 designs with a lifetime replacement warranty through online channels, resellers, college bookstores, Mac stores and mall kiosks. Since inception, ZAGG has sold over 500,000 invisibleSHIELDs worldwide. The company plans to increase its product lines to offer electronic accessories, including an exclusive line for iPod, and an expanded array of invisibleSHIELD(TM) products for other industries. For more information please visit the company's web sites at and

ZAGG's full catalog of over 1,500 invisibleSHIELD designs, the RockStic(TM) speaker system, and line of iPod accessories is available on the primary website at

Special Note Regarding Forward Looking Statements:

Statements contained in this release regarding our expectations concerning the fourth quarter, and any other statements that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All such statements are based upon information available to us as of November 14, 2007; and we disclaim any intention or obligation to update any such statements. Actual results could differ materially from current expectations. Factors that could cause or contribute to such differences include losses of key personnel; lower than anticipated sales of our products; unexpected technical, manufacturing, or supply issues with our products; supply shortages impacting our suppliers; any inability to maintain a competitive cost structure; competition; any inability to maintain stringent quality assurance standards and customer satisfaction; difficulties in identifying and completing strategic opportunities to grow our business; intellectual property disputes; adverse final judgments in litigation; general economic and/or industry-specific conditions including significant changes in the landscape of our products' demand, pricing, or competition; and the other risks and uncertainties identified in the reports filed from time to time by ZAGG with the U.S. Securities and Exchange Commission, including ZAGG's most recent Annual Report on Form 10-KSB and Quarterly Reports on Form 10-QSB.

             ZAGG Incorporated
      Condensed Consolidated Statement of Operations
           Three Months Ended     Nine Months Ended
         Sep 30, 2007 Sep 30, 2006 Sep 30, 2007 Sep 30, 2006
         ------------ ------------ ------------ ------------
Revenues      $ 1,437,408 $  816,022 $ 3,034,714 $ 1,978,533
Cost of revenues   (299,027)  (193,153)  (689,858)  (537,375)
         ------------ ------------ ------------ ------------
  Gross profit   1,138,381   622,869  2,344,856  1,441,158
 Selling, general
 administrative   834,927   450,175  1,873,712  1,121,539
 expense related
 to stock
 issuance      800,000      -   800,000      -
 Advertising and
 marketing      227,624   108,388   467,410   269,689
 Legal and
 accounting      25,795    30,050   248,240    34,937
         ------------ ------------ ------------ ------------
  Total expenses  1,888,346   588,613  3,389,362  1,426,165
Total other income
(expense), net     16,771   (18,700)   (5,243)   (11,740)
Net (loss) income
before benefit
(provision) for
income taxes     (733,194)   15,556  (1,049,749)    3,253
Income tax
(expense) benefit    (234)      -    (2,544)   13,464
         ------------ ------------ ------------ ------------
Net (loss) income   (733,428)   15,556  (1,052,293)   16,717
Basic and diluted
net loss per
common share   $   (0.04) $   0.00 $   (0.07) $   (0.00)
         ============ ============ ============ ============
Weighted average
shares outstanding 17,631,495  10,000,000  16,131,123  10,033,333
         ------------ ------------ ------------ ------------

        Condensed Consolidated Balance Sheets
                        As of    As of
                      Sep 30, 2007 Dec 31, 2006
                      ------------ ------------
Current assets                 $3,118,876  $ 791,320
Long-term assets                 359,216   235,933
                      ------------ ------------
Total assets                  $3,478,092  $1,027,253
Current liabilities              $ 517,765  $ 870,793
Long-term liabilities               12,365    12,087
Stockholders' equity              2,947,962   144,373
                      ------------ ------------
Total liabilities and stockholders' equity   $3,478,092  $1,027,253

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