First National AlarmCap Income Fund

First National AlarmCap Income Fund

December 20, 2010 18:04 ET

First National AlarmCap Income Fund Announces Sale of Assets

EDMONTON, ALBERTA--(Marketwire - Dec. 20, 2010) - First National AlarmCap Income Fund (TSX:FNA.UN) (the "Fund") is pleased to announce that it has entered into an agreement with Securex Master Limited Partnership ("SMLP") to sell its Securex division portfolio (the "Sale") for aggregage consideration of $10,505,000, which includes the transfer of 1,750,000 Class A Trust Units (the "Units") of the Fund from SMLP to the Fund, subject to a conventional working capital adjustment.

The divestiture of the Securex division is a key transaction designed to maximize the value of the Fund. It will enable the Fund to directly manage all of its assets rather than delegating management to a third party, which was the case with the Securex division portfolio. As a significant block of Units will be tendered as part of the consideration for the Sale, the Fund will have a widely held unitholder base which may better enable it to evaluate strategic alternatives in the future in order to maximize unitholder value.

The Fund will continue to operate its Microtec division and to seek growth both inside and outside of the province of Quebec.

The Sale is subject to regulatory approvals and FNA unitholder approval, along with other customary conditions.

The Fund is an unincorporated, open-ended, limited purpose trust and its Units are listed on the Toronto Stock Exchange. The Fund was established to acquire substantially all of the assets and shares of Microtec Enterprises Inc. and substantially all of the assets of Securex Master Limited Partnership. The Microtec division, based in Quebec, is one of the largest full service security alarm monitoring operations in Canada. Information about First National AlarmCap Income Fund can be found at or at

Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to the Sale, including statements regarding the terms and conditions of the Sale. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risks that the parties will not proceed with the Sale, that the ultimate terms of the Sale will differ from those that currently are contemplated, and that the Sale will not be successfully completed for any reason (including the failure to obtain the required approvals from unitholders and regulatory authorities). The statements in this news release are made as of the date of this release. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Corporation undertakes no obligation to update forward-looking statements except as may be required by applicable law.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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