Financial Information

AlarmForce Revenue reaching $4 million in First Quarter

Joel Matlin, President and CEO, is pleased to announce results for the first quarter ended January 31, 2005.

	January 31, 2005 (3 months ended)	January 31, 2004 (3 months ended)	Change (Over same period)
	$	$
Revenue	3,998,821	3,417,422	+17%
Income before income taxes	786,984	599,020	+31%
Net income	436,039	436,039	+26%
Cash flow from Operations	1,311,025	1,763,896	-26%
EBITDA	2,064,711	1,623,485	+27%
EBITDA/share	0.178	0.166	+7%
Cash flow/share	0.113	0.180	-37%
Basic Net income/share	0.037	0.035	+6%
Diluted net income /share	0.036	0.033	+6%

(* 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 that: "Our monitored account base during this quarter grew to over 50,000 subscribers, thanks to strong organic account growth from our nationwide marketing programs. Recurring monitoring revenues and EBITDA continued to post increases from the comparative three-month period of the previous year."

"Revenues for the quarter increased to $3,998,000, up 17% from the corresponding quarter in 2004, while EBITDA increased to $2,065,000, up by 27%. Income before taxes increased by 31% while net income increased by 26%, after reflecting a higher effective tax rate than a year ago. The per-share income decreased as a result of the two share issuances in 2004, which increased the denominator representing the weighted average total shares outstanding for the quarter."

"While cash flows from total operating activities decreased 26% from a year ago, this was due to changes in our working capital accounts, which represent a non-recurring item and which we expect will be offset over future quarters. Excluding the changes in working capital, operating cash flow increased from $1,573,000 to $2,007,000, a 28% increase, in line with EBITDA and more reflective of the trend in our growth."

Mr. Matlin added that: "Despite the expanding subscriber base and double-digit growth in recurring revenues, our administrative and selling expenses decreased from a year ago by 5%. With our growth in account creation at a record level and expanding brand recognition, we expect to achieve record-breaking results once again in 2005."

"We are expanding into the US, having selected North Carolina as the first market. The State granted AlarmForce a business operating license last month, and we are actively building the AlarmForce brand of two-way voice interactive technology in this market, which boasts a population of 8.4 million, or approximately 25% of the population of Canada. Notably, a large proportion in this market, namely 70%, is made up of homeowners, making it an attractive target market for AlarmForce. We look forward to reporting the progress of our US expansion in future quarters."

AlarmForce is Canada's largest manufacturer and installer of two-way voice home alarms systems, serving all major markets in Canada and selected markets in the US.

For further information, contact:
Investors Relations Dept.
Tel: 416-445-2001 ext#225
Fax: 416-445-9381
E-mail: investor@AlarmForce.com