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AlarmForce Industries Inc.: AlarmForce Posts Record Revenue Increase for 2008

TORONTO, ONTARIO--(Marketwire - Jan. 27, 2009) - AlarmForce Industries Inc. (TSX:AF) -

TSX Listed - Joel Matlin, President and CEO is pleased to announce annual results for the year ended October 31, 2008.

 2008 2007 Change
 (year ended) (year ended) (year over year)
 $ $
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Revenue 29,942,000 25,136,000 +19%
Gross profit 23,346,000 20,005,000 +17%
Operating cash flow 6,812,000 2,737,000 +149%
Subscriber base 91,000 79,000 +15%
EBITDA(i) 7,218,000 4,917,000 +47%
Income before taxes 3,885,000 2,105,000 +85%
Net income 2,610,000 1,280,000 +104%

Net income per share 0.22 0.11 +100%
Diluted Net income per share 0.22 0.11 +100%
Debt per subscriber(ii) 16 22


(i) Earnings before interest, taxes, depreciation and amortization as
 reconciled in management's discussion and analysis of annual results.
(ii) Debt consists of building loan and revolving term loans.

Joel Matlin announced that AlarmForce Industries Inc. closed its fiscal year with record annual installations of 20,700 new subscribers for the year ended October 31, 2008. Mr. Matlin said, "Revenues in 2008 increased to approximately $30 million, which represents a record annual increase of $4.8 million or 19% from 2007, while our earnings per share increased from 11 cents per share to 22 cents per share in 2008, making it the most successful year for AlarmForce in our 20 years of business. The total number of AlarmForce subscribers increased by 15% to 91,000 accounts at the end of the fiscal year. As a result of the growth in subscribers and monthly recurring revenues, our EBITDA increased to $7.2 million, up by 47%, while net income increased by 104% to $2.6 million.

Mr. Matlin went on to add: "We are particularly gratified with the results in 2008 during which, as we all know, a steep financial crisis in the US began to spread to the rest of the globe. In our US market, which stretches across the three States of North Carolina, Ohio and Georgia, we continued to expand our subscriber base, despite the financial turmoil. We are optimistic that the subscriber base will continue to increase, at a lower cost per new account relative to the industry average as our monthly subscriber revenues are expected to grow without adding to debt. I believe that this bodes very well for the share price in the long run, given that companies in the security industry are typically valued as a multiple of recurring revenue."

Mr. Matlin ended by saying: "We thank our investors and employees who have supported us in building the best known brand and value proposition for our clients. We look forward to strong subscriber account expansion in the next few years, despite a softening economy in which leveraged peers are facing difficulty sustaining their businesses. I believe that, given our track record, the foreseeable future promises well for AlarmForce."

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