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July 31, July 31,

2009 2008 Change

(9 months (9 months (over same

ended) ended) period)

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Revenue $25,277,000 $21,993,000 15%

Net income $ 3,099,000 $ 1,758,000 76%

Cash flow from operations $ 4,617,000 $ 4,169,000 11%

EBITDA $ 7,476,000 $ 4,949,000 51%

EBITDA before marketing expenses $14,401,000 $11,209,000 28%

Basic & Diluted Net

Income / Share $ 0.26 $ 0.15 73%

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(x) EBITDA (Earnings Before Interest, Income Taxes, Depreciation, and

Amortization) is a key measure in the security industry and should

not be interpreted as a GAAP measure.

Joel Matlin, President and CEO, said "We are pleased to report results for our third quarter in which the company's revenue increased to $8,528,000, higher by 13% than the comparative quarter of 2008. Nine month Revenues increased to $25.3 million, a 15% increase over 2008, and Net Income increased by 76% to $3.1 million. The AlarmForce subscriber base increased to 98,700 accounts, reflecting an annual growth of 13%."

"Profitable growth is a key objective for us and the consistent growth in subscribers and revenues resulted in an earnings per share increase of 73% for the nine months. The increases in both recurring revenues and net income in the third quarter represent a continuous trend in the company's successful subscriber growth. Despite a deep financial downturn, AlarmForce was able to achieve all-time record numbers, thanks to our growth model of creating home-grown subscribers rather than purchasing subscriber accounts. The organic growth model benefits us through a much lower cost to create new accounts, higher operating margins, and leverages our scalable central monitoring and manufacturing capabilities. Reflecting the significant positive effect of both double-digit growth and increased efficiencies through economies of scale, Income before income taxes increased to $4.6 million in the nine-month period, which represents an annualized increase of 73%."

"For the nine months, net cash flows from operating activities increased by 11% to $4.6 million.