AlarmForce Posts Record Revenues and Profit in the Second Quarter

TORONTO, ONTARIO, Jun 10 (MARKET WIRE) --
AlarmForce Industries Inc. (TSX: AF), Canada's largest manufacturer and
installer of live two-way voice home alarms systems, is pleased to
announce results for the six months ended April 30, 2009:

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April 30, 2009 April 30, 2008 Change

(6 months ended) (6 months ended) (over same period)
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Revenue $ 16,749,576 $ 14,416,266 +16%

Income before
income taxes $ 2,524,803 $ 1,824,296 +38%

Net income $ 1,678,994 $ 1,203,802 +39%

Cash flow from
operations excluding
working capital $ 3,440,837 $ 2,120,657 +62%

EBITDA $ 4,372,000 $ 3,367,000 +30%

EBITDA/share $ 0.36 $ 0.28 +30%

EBITDA before marketing
expenses $ 9,028,000 $ 7,573,000 +19%

Basic & Diluted Net
income / share $ 0.14 $ 0.10 +40%
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(i) EBITDA (Earnings Before Interest, Income Taxes, Depreciation, and
Amortization) is a key measure in the security industry and should
not be interpreted as GAAP)

Mr. Matlin, President and CEO reported: "The first six months of our
2009 fiscal year saw AlarmForce continue to set new records for revenue
and net income, as the total subscriber base increased to 96,000
accounts. The net change in subscribers represents a 12% annualized
increase from the comparative 2008 figure."

Mr. Matlin added: "Revenue increased to $8,468,000 for the second
quarter, up by 16% from $7,317,000 a year ago. This was a record
quarterly increase bringing our total consolidated revenues for the six
months to $16.7 million, a 16% increase from a year ago. These increases
in revenue and earnings were achieved during a very difficult economic
climate and are in excess of the average for the security industry as a
whole which was an annual 6% increase in recurring monthly revenues. As a
result of the growth in the period, Income before taxes for the six
months increased by 38% and Net income increased by 39%."

"EBITDA increased from $3.4 million to $4.4 million for the six months, a
30% increase from the corresponding 2008 period. This measure includes
the effect of the marketing expenses which results in a charge to expense
during the period, thus reducing the operating income. Excluding
marketing expenses, EBITDA increased from $7.5 million to $9 million for
the six months, a 19% increase from the corresponding 2008 period."

"There were corresponding increases in recurring revenues and cash flows
and at the end of the period, the company's outstanding balance of debt
decreased by $150,000. On a net basis the company continues to remain
debt-free. Cash flows from operations in the six months amounted to $3.4
million before working capital adjustments, of which $1.9 million
resulted in net cash flows from operating activities after working
capital. The remaining cash resources from operations were reinvested in
new subscriber growth, working capital and enhancing shareholder value.
During the period we purchased 37,130 of our common shares for
cancellation under our stock buyback issuer bid, for a total
consideration of $144,540. The issuer bid expires in December 2009 and a
maximum number of 350,000 shares may be bought back under the issuer bid."

"AlarmCare subscriber accounts increased steadily during the period,
which added to overall subscriber growth. These accounts contribute
recurring monthly revenues from subscribers of personal emergency
response systems ("PERS"). Now in its second year, our PERS subscriber
base is at the stage where the current AlarmVoice base was when we
started twenty-one years ago. We expect PERS revenues to grow
significantly in the next few years, as a seamless extension of our
brand. Our wireless two-way voice communication is a natural fit for this
newest application for subscribers. In particular the retirement segment,
which is essentially the key market for AlarmCare, is expected to be one
of the fastest growing demographic segments in North America. The
exciting growth in our share of this market has already begun as we look
forward to potentially higher growth rates in the future."

Mr. Matlin closed by saying: "Although the deep financial downturn is
cause for caution for even the best managed companies, we see a future
that is very bright. Demographic trends continue to favour our growth
outlook. Companies that can innovate and bring technology that add value
for consumers are positioned to reap the biggest rewards. At the same
time, longer life expectancy, smaller households, and more second homes
for the baby boom generation approaching retirement age in the next
decade, are expected to result in increased demand for our brand of
subscriber services. As wireless devices become smarter and broadband
usage becomes more affordable, we are constantly monitoring trends and
opportunities to expand our brand into new applications and increased
recurring revenues."

AlarmForce is Canada's largest manufacturer and installer of two-way
voice home alarms systems and line-cut protection. The Company serves all
major markets in Canada and selected markets in the United States.

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

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