SPY, Inc. (the "Company") today announced the appointment of Mr. Michael Marckx, the Company's Chief Executive Officer, to the Company's Board of Directors, effective immediately. Mr. Marckx will not serve on any of the Board committees. A copy of the press release announcing Mr. Marckx's appointment is attached to this Current Report on Form 8-K as Exhibit 99.1.

Mr. Marckx has served as Chief Executive Officer of the Company since December 15, 2011. He joined the Company in February 2011 as its Vice President of Marketing and was promoted to President on April 12, 2011. Since 2001, Mr. Marckx has served on the board of directors of Surfrider Foundation, a non-profit foundation, serving as Chairman since 2009. From 2004 until 2011, Mr. Marckx was the Vice President of Global Marketing/Entertainment of Globe International, which manufactures and markets apparel, footwear and boardsports hardgoods. From 2001 until 2004, Mr. Marckx was the Vice President, International Marketing/Creative Director at Ocean Pacific, which manufacturers and markets beach apparel. From 2000 until 2001, Mr. Marckx was the Vice President, Marketing/Entertainment at Broadband Interactive Group. Mr. Marckx holds a B.S. in economics from the University of California, Irvine.

There are no arrangements or understandings pursuant to which Mr. Marckx was appointed as a director, and, other than Mr. Marckx's position and compensation received from his service as the Company's Chief Executive Officer, there are no related party transactions between the Company and Mr. Marckx that would require disclosure under Item 404(a) of Regulation S-K.

See Exhibit Index.