AlarmForce Industries Inc.
TSX : AF

AlarmForce Industries Inc.

July 30, 2015 16:09 ET

AlarmForce to Partner With Camera Manufacturer to Bring Cutting-Edge Technology to Its Home Video Surveillance Product

TORONTO, ONTARIO--(Marketwired - July 30, 2015) - AlarmForce Industries ("AlarmForce") (TSX:AF) today announced that it has entered into discussions with certain camera manufacturers specializing in security and home automation. The out-sourced partnership is intended to bring advancements in technology to AlarmForce's VideoRelay. By partnering with speciality manufacturers, AlarmForce intends to address its current and future customers' needs to provide state-of-the-art protection for their homes.

In addition to preserving the important features that customers rely on, including alert notifications, live streaming and archiving video, AlarmForce will be enhancing night vision capabilities and its mobile smartphone application. Choosing to partner with third parties for the development of new camera technology will enable AlarmForce to bring new features and product enhancements to the market more quickly and cost effectively.

As a result of this decision, AlarmForce will be writing down approximately $1.3MM reflecting its current capitalized investment in the development of a new proprietary camera. The write down is expected to be recorded in the quarter ending July 31, 2015. While this non-cash write down will impact earnings during the quarter, it is not expected to negatively affect ongoing operations or financial performance.

"Our decision to partner with an external manufacturer is part of our longer term strategy and commitment to bring cutting-edge technology to our customers with best-in-class video surveillance," said Graham Badun, President and CEO of AlarmForce Industries Inc. "AlarmForce is focused on expanding our market share with product innovations and enhanced customer service."

In addition to changing its approach to developing new video surveillance features, AlarmForce Management is completing a detailed review of the business which may have the potential for additional non-cash write-downs in the future. Also, as a result of the change in leadership that occurred during the Quarter, AlarmForce has incurred higher than normal one time G&A expenses (severance, executive search costs etc.) that are non-recurring and will be reflected in our Q3 earnings release in September.

About AlarmForce

AlarmForce provides security alarm monitoring, personal emergency response monitoring, video surveillance and related services to residential and commercial subscribers throughout Canada and the United States. More information about AlarmForce's products and services can be found at alarmforce.com.

This press release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information contained or referred to in this press release includes, but may not be limited to, AlarmForce's future enhancement and development of products, AlarmForce's proposed write down and possible other write downs of assets or investments (and the timing thereof) and other actions which may impact financial performance.

Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, the inability of AlarmForce to reach an agreement with one or more specialty manufacturers, the inability of specialty manufacturers to meet the demands and requirements of AlarmForce, the actual amount of the proposed write down being different than the estimated amount, a change in AlarmForce's decision to complete the proposed write down, as well as certain other risks set out in AlarmForce's public documents, including its annual information form dated January 27, 2015, filed under AlarmForce's profile on SEDAR at www.sedar.com.

The forward-looking information in this press release reflects the current expectations, assumptions and/or beliefs of AlarmForce based on information currently available to AlarmForce. In connection with the forward-looking information contained in this press release, AlarmForce has made assumptions about: AlarmForce's business, the economy and AlarmForce's industry in general. AlarmForce has also assumed that no significant events occur outside of AlarmForce's normal course of business. Although AlarmForce believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, AlarmForce disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.

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