GE Capital Sells Stake in SAFE Security, Prominent Northern California-Based Alarm Company, to Rustic Canyon/Fontis Partners

* Reuters is not responsible for the content in this press release.

Mon Apr 20, 2009 11:00am EDT

- Bank of America Provides Funding for Purchase; 
Transaction Unlocks Growth Potential -


SAN RAMON, Calif.--(Business Wire)--
GE Capital, one of four major units of General Electric Company (NYSE: GE), has
sold its entire stake in SAFE Security®, one of the nation`s largest security
alarm companies, to Los Angeles-based private equity firm Rustic Canyon/Fontis
Partners, LP. 

As part of the transaction, Bank of America has provided a $25 million senior
credit facility. Rustic Canyon/Fontis Partners has invested an undisclosed
amount of new equity capital in SAFE Security and has assumed a majority
ownership position. SAFE Security`s founder and CEO, Paul Sargenti, also will
retain a significant ownership interest. 

"This transaction marks a new beginning for SAFE Security, one that will build
upon a solid foundation, unleash the company`s growth potential and provide us
with an ability to offer an even wider array of quality products and services to
our customers nationwide," said Sargenti, who founded the company in 1988. "By
enhancing our financial flexibility, SAFE Security will be in an excellent
position to execute on its long-term growth plan, which includes geographic
expansion and strategic acquisitions." 

"We are excited to be collaborating with Paul and his experienced and highly
motivated management team," added Gabrielle E. Greene, general partner of Rustic
Canyon/Fontis Partners. "We believe the injection of our resources and expertise
will help to uniquely position SAFE Security for growth." 

SAFE Security is among the largest security alarm companies in the United
States, with operations in 44 states. It is involved in purchasing, financing
and servicing residential and commercial security alarm monitoring contracts, as
well as installing alarm systems. 

The company has built a sound reputation for offering reliable, state-of-the-art
security equipment, superior customer service and the most robust, secure
monitoring technology available. With a core focus on "protecting lives and
property," SAFE Security has streamlined its organization to operate more
efficiently, while providing increased value to its customers. Recent
initiatives have included software upgrades throughout the enterprise,
consolidation of monitoring stations, an improved service infrastructure and a
broadened installation capacity. 

Particularly with the economic downturn, Sargenti said security alarm systems
are an important line of defense for residences and businesses looking for
increased protection. Additionally, he noted that having a security system
typically provides for a property insurance premium discount, that, in turn,
often covers the cost of monitoring. 

Salt Lake City-based investment bank Seare Marriott & Co. served as financial
advisor on the transaction. Managing Director Gregory Seare said, "This is an
important milestone for SAFE Security and the team at RC Fontis. It is
particularly gratifying to have advised on this transaction during the current
economic environment. Its completion demonstrates the strength of SAFE Security
and its solid core customer base." 

Bank of America Senior Vice President, and Senior Client Manager David Stang
said, "Bank of America is pleased to have played an important role in this
transaction. We are confident in the growth potential of SAFE Security and its
strong management team." 

About Rustic Canyon/Fontis Partners

Rustic Canyon/Fontis Partners, LP is a Los Angeles-based private equity fund,
investing principally in companies in the Southwest with sales between $10
million and $100 million. For more information, visit the company`s website at
www.rcfontis.com. 

About SAFE Security®

SAFE Security® (Security Alarm Financing Enterprise, L.P.), headquartered in San
Ramon, Calif., is one of the nation`s leading security alarm companies engaged
in the business of purchasing, financing and servicing residential and
commercial security alarm monitoring contracts. SAFE Security actively markets
and installs alarm systems and monitoring to homeowners across the nation in
addition to growing a robust dealer account acquisition program. For more
information, visit the company`s website at www.safesecurity.com. 





PondelWilkinson Inc.
Rob Whetstone/Ron Neal
310-279-5980
rwhetstone@pondel.com
rneal@pondel.com

Copyright Business Wire 2009

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