Financial Information

Commitment to Excellence

Since inception in 1988, AlarmForce has worked diligently with a dedication to excellence. Demonstrating a proven track record in the alarm industry, the name AlarmForce has become synonymous with outstanding products and exceptional customer service. This is not something that we at AlarmForce take lightly. It is a philosophy from which we work, allowing us to attain and sustain high standards as a result of our unwavering and unceasing commitment.

The Company’s distinctive approach to home security has been to build user-friendly, technologically- advanced products that are affordable to everyone. We continually canvass our existing clients through customer surveys and incorporate their feedback into our product development and operations. As the leading developer, manufacturer and installer of monitored two-way voice burglar alarm systems and telephone line-cut back-up technology, our products and services are the foundation of our success.

Alarmvoice, the company’s two-way voice alarm system, provides interactive communication with the AlarmForce Central Station operators in the event of a burglary or emergency. While most of our customers are residential users, the system is equally beneficial for offices and small businesses and has been used successfully to thwart employee hostage takings and convenience store hold-ups.

AlarmPlus, another innovative product, was developed in response to the growing problem of telephone line tampering. While most alarm systems send emergency signals over telephone lines, burglars have increasingly been disabling these lines in order to interrupt transmission of an alarm system’s signal. AlarmPlus does not require an operating phone line but transmits a wireless signal to our central monitoring station if the alarm is triggered.

The Company’s impressive growth has been in no small part due to the commitment, diligence and hard work of the members of the AlarmForce team. A large percentage of our employees are in direct contact with our clients. Our sales team, installers, central monitoring station operators and customer care representatives are selected and trained to serve our clients with an accommodating and competent approach. The quality and performance of our staff at every level is key and we train our employees at our AlarmForce head office training center and through ongoing skills improvement programs. Consequently, when new offices are opened, well-qualified personnel are able to make sure that the company’s commitment to customer service excellence is extended to each new location.

Until this year, we have built our presence across Canada, expanding annually from province to province. Our strong position in the Canadian residential market reflects our unstinting desire for growth. The strength in AlarmForce’s core market of Canada has supported the development of business in new markets in the United States. Now, our ambition of becoming a presence in the American market is becoming a reality. We continue to grow volumes in North Carolina and our projected move into Ohio in 2006 is right on course. This is an exciting time. We are dedicated to these developments and expansion.

A key component to our ongoing success is our commitment to branding excellence. Across Canada, the name AlarmForce is synonymous with two-way voice security. Strong marketing campaigns throughout the year target major Canadian and North Carolina population centers using radio and television, supported by local print campaigns. We are also extending our brand name through targeted internet sponsored marketing.

The Company continues to push ahead using brand images that not only meet the security needs of the consumer but also impart the feeling of well being that AlarmForce’s easy to use technologically-advanced system provides.