Financial Information

AlarmForce Announces Record Earnings Growth of 71% in Third Quarter

TORONTO-Ontario- September 13, 2006- TSX – Trading symbol - AF

AlarmForce, Canada’s largest manufacturer and installer of live two-way voice home alarms systems, is pleased to announce results for the nine months ended July 31, 2006, in which the company’s revenue, net income and subscriber account base reached record levels:

FINANCIAL HIGHLIGHTS

	July 31, 2006 (9 months ended)	July 31, 2005 (9 months ended)	Change (Over same period)
Revenue	$15,420,000	$12,525,000	+ 23%
Cash flow from operating activities	$2,572,000	$2,023,000	+27%
Income before taxes	$1,671,000	$974,000	+ 72%
Net income	$1,051,000	$614,000	+ 71%
EBITDA*	$3,407,000	$2,685,000	+ 27%
Diluted net income/share	$0.09	$0.05	+ 80%
Subscriber base	64,000	54,000	+ 19%

(* EBITDA (Earnings Before Interest, Income Taxes, Depreciation, and Amortization) is a key measure in the security industry and should not be interpreted as GAAP)

Joel Matlin, President and CEO, said that, “The Company’s recurring revenues from monitored subscriber accounts continued to record increases in the third quarter, powering a 71% increase in net income. The base of AlarmForce subscribers increased to 64,000 accounts. Nine-month revenues increased to $15,420,000, up by 23% from the corresponding nine months of 2005. EBITDA increased to $3,407,000, up by 27%. Income before taxes increased by 72% while net income increased by 71%.”

“Cash flows from total operating activities increased to $2,572,000, up by 27% as a result of the record performance. Out of the operating cash flows, $534,000 was applied to debt repayments during the period, and as at the end of the third quarter we continued to operate with zero net financial debt.”

Mr. Matlin went on to add: “The Company has recently relocated the Toronto Head Office from formerly leased space to our new building on 675 Garyray Drive in Weston. The new location will provide expanded space necessary to serve the company’s growing subscriber base in Canada and the U.S., and will continue to house the AlarmForce central monitoring station and the company’s manufacturing facilities in the same location. We are pleased to have completed our relocation smoothly and with minimum disruption due to having planned this move well in advance. The company’s strong growth and continued expansion in subscribers made it economical and imperative for the company to acquire suitable space with enhanced functionality. This puts the company on a strong foundation and assures stability for growth into the foreseeable future.”

Mr. Matlin ended by saying: “We are on track to surpassing the previous record for organic account growth through the balance of the 2006 fiscal year. We expect monthly recurring revenues, cash flows and subscriber accounts to continue to grow strongly in 2006 and subsequent years.”

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

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