AlarmForce Posts Record Revenue Increase for 2007

TORONTO, ONTARIO, Jan 22 (MARKET WIRE) --
AlarmForce Industries Inc. (TSX: AF) -

Joel Matlin, President and CEO is pleased to announce annual results for
the year ended October 31, 2007.

2007 2006 Change
(year ended) (year ended) (year over year)
$ $
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Revenue 25,136,000 20,965,000 20%
Gross profit 20,006,000 16,459,000 22%
Gross profit/Revenue % 80% 79%
Subscriber base 79,200 66,300 20%
EBITDA(a) 4,748,000 5,217,000 -9%
Income before taxes 2,105,000 2,510,000 -16%
Net income 1,280,000 1,492,000 -14%

Net income per share 0.11 0.12 -8%
Diluted Net income per share 0.11 0.12 -8%

(a) Earnings before interest, taxes, depreciation and amortization as
reconciled to GAAP earnings in management's discussion and analysis
of annual results

Announcing the annual results for 2007, Mr. Matlin said: " Revenues in
2007 surpassed the $25 million mark, which represents a record annual
increase of $4,171,000 from the preceding year, up 20%. The AlarmForce
subscriber base increased to over 79,000 monitored accounts, up by 20%
which is the largest net increase in our account size ever recorded. We
realized economies of scale and higher gross profit margins, and as a
result Gross Profit increased by 22% to $20,006,000, representing 80% of
Revenue in 2007."

"In 2007, we added 18,000 new accounts, the highest figure in the 19 year
history of the company. Our budgeted marketing expenses increased from
the 2006 level by over $3 million, including expenses in both Canada and
the US. In both market segments, subscriber growth was record-setting.
The impact of the higher marketing program expenses, which are charged
against income in the period, is reflected in the decrease in operating
bottom line results. The increase in expenses was somewhat offset by the
20% annual growth rate and higher gross margins, as a result Income
before Taxes decreased by $405,000 and Net Income decreased by $212,000
relative to 2006. Against the increase in marketing expenses in 2007 of
over $3 million, the Company's EBITDA decreased to $4,748,000 in 2007
from $5,217,000 in 2006. Excluding the marketing expenses, EBITDA
increased to $14,111,000, up by 24% from 2006. This is an important and
key factor given that our marketing expenses are discretionary as well as
a driver of growth in recurring revenue."

"Looking ahead, the convergence of several market trends and industry
factors are creating attractive opportunities to propel the company to
new heights. We have achieved a significant position in major centres in
Canada and in the three US States, in which our brand has gained a
critical mass providing traction to sustain growth from our existing
subscriber base. As a result, we expect to grow in 2008 with a much lower
operational drag than that in prior years, which reflected the startup of
new markets in the US. In addition, social and demographic trends as well
as technology-driven innovation in product development promise to provide
opportunities for new incremental revenues in the existing markets.

Mr. Matlin concluded by saying: "We have solidified the foundation for
our subscriber base expansion program for the next five years, which
promises to be the most exciting period to come. The two most salient
trends reflected in our report this year are consistently strong revenue
growth on the one hand, and an expanded marketing budget on the other.
Our track record has continually proven the effectiveness of AlarmForce's
marketing model in directly generating new subscriber growth and we
expect that the subscriber base will continue to grow and revenues and
cash flows will continue to increase."

AlarmForce Industries Inc. is Canada's largest manufacturer and installer
of two-way voice homes alarm systems and line-cut protection with offices
across Canada and in the United States.

Contacts:
AlarmForce Industries Inc.
Investor Relations Dept.
(416) 445-2001 ext#225
(416) 445-9381 (FAX)
Email: investor@alarmforce.com

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