AlarmForce Announces Record Third Quarter Revenue and Earnings

    TORONTO, Sept. 10 /CNW/ - TSX - Trading symbol - AF - AlarmForce
Industries Inc., Canada's largest manufacturer and installer of live two-way
voice home alarm systems, is pleased to announce results for the nine months
ended July 31, 2008:


                                       July 31,       July 31,
                                          2008           2007         Change
                                     (9 months      (9 months     (over same
                                         ended)         ended)        period)
                                  -------------  -------------  -------------

    Revenue                       $ 21,993,000   $ 18,473,000             19%
    Income before income taxes    $  2,663,000   $  1,463,000             82%
    Net income                    $  1,758,000   $    921,000             91%

    Cash flow from operations     $  4,169,000   $  2,226,000             87%

    EBITDA                        $  4,949,000   $  3,417,000             45%

    EBITDA before marketing
     expenses                     $ 11,209,000   $ 10,324,000              9%

    Basic Net income / share      $       0.15   $       0.08             88%
    Diluted Net income / share    $       0.15   $       0.08             88%

    (*) EBITDA (Earnings Before Interest, Income Taxes, Depreciation, and
        Amortization) is a key measure in the security industry and should
        not be interpreted as GAAP)

    Joel Matlin, President and CEO, said "We are pleased to report results
for our third quarter in which the company's revenue increased to $7,577,000.
This brings our total revenue for the nine months to approximately
$22 million, a record for the company in our 20-year history. Revenues
increased by 3.5 million, which is a 19% increase over 2007. Having achieved
increases in monthly recurring revenues and cash flows from subscriber
accounts, we closed with approximately 87,500 subscriber accounts at July 31,
2008. The increase in subscribers reflects an annual growth of 17%."
    Mr. Matlin went on to add "Income before income taxes increased to
$2.6 million in the nine-month period, which represents an annualized increase
of 82%. The subscriber growth which resulted in record-setting revenues for
the current period partly contributed to this increase. In addition, income
increased as a result of a decrease in marketing expenditure of approximately
$647,000 during the current period. The company's advertising expenditure,
which is a significant component of expenses, is driven by market opportunity
and prudent management of cash resources amongst selected advertising
channels. As is our customary practice, the results of our operations are
presented in terms of EBITDA as well as GAAP earnings in order to provide more
insight into the numbers. EBITDA before marketing expenditures increased by 9%
to $11.2 million, while EBITDA after deducting marketing expenditures
increased by 45% to $4.9 million for the nine months.
    "The company installed just over 15,000 new systems during the nine
months, a 15% increase compared with 13,100 for the comparative period last
year. As investors know, our subscriber growth is driven by advertising
programs as well as referrals from existing subscribers. Despite the
unpredictability seen in the current period in the general economy and the
challenges facing consumers, AlarmForce continues to boast lower attrition
rates and lower account creation costs than most of our competitors, attesting
to the resilience of our business model."
    Mr. Matlin ended saying that "We are optimistic in our outlook for the
future and look forward to continued marketing success and record-setting
results. We think that our brand is exceptionally well positioned for the
future. We aim to give the strongest value proposition to the consumer and in
the process, we expect continuing increases in monthly recurring revenues,
cash flows and subscriber accounts in the foreseeable future."

    AlarmForce Industries Inc. is Canada's largest manufacturer and installer
of two-way voice home alarm systems and line-cut protection with offices
serving all major markets in Canada and strategically selected markets in the
United States, with a base of 87,500 subscriber accounts.

For further information:

For further information: Investors Relations Dept., Tel: (416) 445-2001
ext. 225, Fax: (416) 445-9381, E-mail:

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