First National Alarmcap Income Fund Takes Steps Toward Maximizing Unitholder Value



    CALGARY, June 20 /CNW/ - Mr. Leonard Sudermann, President and Chief
Executive Officer of First National AlarmCap GP Inc. ("AlarmCap"), announced
today that the board of trustees (the "Board") of First National AlarmCap
Income Fund (the "Fund") has taken several definitive steps to maximize
Unitholder value. These steps include the following:

    
      (i)    As previously announced, the Board has formed a Special
             Committee, consisting of George Fink (Chairman), Adrien Pouliot
             and Timothy Whyte, to review and move forward with strategic
             alternatives to maximize value for all the Unitholders. The
             Special Committee has now retained the services of financial
             advisor J.F. Mackie & Company Ltd.;

      (ii)   Upon the recommendation of the Special Committee the Board has
             decided to temporarily suspend, the declaration of monthly cash
             distributions while the Special Committee pursues its mandate to
             maximize value for all Unitholders. The cash distributions not
             paid to Unitholders will be applied to reduce senior debt in
             order to move AlarmCap into compliance with its debt to EBITDA
             ratio covenant. The previously announced distributions for the
             month of May will be paid on June 30, 2007 to the holders of
             record on May 31, 2007. Distributions are expected to be
             reinstated prior to year-end;

      (iii)  The Special Committee, with the assistance of their advisors,
             will proceed with a process to solicit interest from potential
             partners or purchasers with a view to a merger, acquisition
             strategic alliance or a recapitalization of AlarmCap to continue
             previously announced restructuring initiatives and to pursue
             organic growth or acquisition possibilities. The Special
             Committee encourages any inquiries of interest to be directed
             towards J.F. Mackie & Company Ltd. through either Phil Hodge,
             Managing Director (at phil@jfmackie.com or 403-218-6396) or
             Rob Knowles, Vice President (at rob.knowles@jfmackie.com or
             403-218-6382); and
    

    As previously disclosed, AlarmCap has closed a sale/leaseback of its
building in St-Augustin on April 24, 2007 and has applied the net proceeds of
the sale of $2,813,000 against the term loan on April 30, 2007. The Special
Committee's decision to suspend distributions will also further strengthen
AlarmCap's balance sheet as it is expected that this decision will improve
working capital and reduce senior bank indebtedness by approximately $450,000
per month. As a result, interest costs are expected to drop by a total of 95
basis points or approximately $33,000 monthly by year-end on the senior debt.
The distribution suspension combined with the improvements in key performance
benchmarks such as EBITDA, attrition, subscriber replacement costs and payout
ratios over the past several months position AlarmCap well for maximizing
shareholder value.

    Forward-Looking Statements

    Certain statements in this news release may contain forward-looking
statements, which reflect management's expectations regarding the future
growth, results of operations, performance and business prospects, and
opportunities of the Fund. Such forward-looking statements reflect
management's current beliefs and are based on information currently available
to us. Forward-looking statements involve significant risks and uncertainties.
A number of factors could cause actual results to differ materially from
results discussed in the forward-looking statements.

    About First National AlarmCap Income Fund

    The Fund is an unincorporated, open-ended, limited purpose trust and its
Class A trust units are listed on the Toronto Stock Exchange under the ticker
symbol "FNA.UN". The Fund was established to acquire substantially all of the
assets and shares of Microtec Enterprises Inc. ("Microtec") and substantially
all the assets of Securex Master Limited Partnership ("Securex"). Microtec,
founded in 1989 in Quebec City, Quebec, is one of the largest residential
security monitoring companies in Canada. Securex, founded in 1994 in Calgary,
Alberta, is an alternative credit provider to dealers offering bundled
financial, billing / back office and monitoring services to independent
dealers throughout Canada.





For further information:

For further information: Mr. Leonard Sudermann, President and Chief
Executive Officer, First National AlarmCap Income Fund, (403) 299-2299,
len@alarmcap.ca

Organization Profile

FIRST NATIONAL ALARMCAP INCOME FUND

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