Financial Information

AlarmForce ANNOUNCES RECORD Q2 RESULTS

TORONTO-Ontario- June 14, 2006- Joel Matlin, President and CEO is pleased to announce second quarter results for AlarmForce Industries Inc. for the six months ended April 30, 2006:

FINANCIAL HIGHLIGHTS

(* 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 said: “At the end of the second quarter our home alarm subscriber account base increased to 61,700 subscribers. At that account size, our home security system company is one of the top alarm companies in North America and furthermore, we have achieved extraordinary growth in the subscriber base with virtually no net debt outstanding. Our model generates new subscriber installations organically and as a result we have been able to add accounts unencumbered by borrowing.”

“Our recurring monitoring revenues continued to increase to a record-setting level from the comparative six-month period of the previous year. Total Revenue for the six months increased to over $10 million, up 22% from the first six months of 2005. Income before taxes increased to $1.3 million, up 75%, while net income increased to $827,000, up 62%. As expected, the growth in subscribers has continued to increase profitability as operating efficiency increases from economies of scale and cost management. Total Revenue consists primarily of recurring monthly revenue from subscribers.”

“EBITDA increased to $ 2,408,000, up by 17% and Cash flows from total operating activities increased to $1,520,000, up by 18% for the six month period. On a quarterly basis, the company’sperformance continues to demonstrate consistent increases with Total Revenue for the six months ended April 30, 2006 of $5,055,000, up 19% from the same quarter a year ago, and cash flows from operating activities of $1,450,000, up by 45%. Diluted net income per share for the quarter was $0.05, up from $0.02 a year ago, resulting in six month diluted net income per share of $0.07, up from $0.04.”

Mr. Matlin added: “SDM Magazine published its annual ranking of the top security companies in North America last month which is one of the barometers that we can use to compare our performance against other companies in the same industry. The alarm industry continues to be very fragmented with thousands of independent companies across North America. We are happy to observe that, had Canadian companies been included, AlarmForce would have been high up in the rankings. Our subscriber base would rank in the top ten companies by residential accounts, and our new subscribers would rank in the top five by residential installation volume.”

“In our industry, account values are normally based on multiples of monthly recurring revenues, with a premium for larger account bases. As a result, the value per subscriber account of the few larger companies in the industry, including AlarmForce, is relatively higher. In addition to the size of the account base, there are certain key drivers that incrementally add to our subscriber account value, namely AlarmForce’s brand recognition, record-setting growth and operating margins, and client loyalty, all of which have differentiated the company consistently from year to year.”

AlarmForce Industries Inc. is Canada’s largest manufacturer and installer of two-way voice home alarm systems and line-cut protection with offices serving all major markets in Canada and strategically selected markets in the United States.