IASG Integrated Alarm Services Grp (MM)

Integrated Alarm Services Group, Inc. (NASDAQ: IASG) today announced the sale of selective assets to Mountain Acquisition Company, LLC for a total consideration of $7.3 million. Included in the assets sold are alarm contracts in Colorado, Idaho and Utah with recurring monthly revenue (RMR) of $212,200 and other assets of approximately $224,000. The purchase price for the alarm contract assets was $7.1 million representing a RMR purchase multiple of 34.7 (pre deferred revenue). Consideration paid was in the form of cash and a promissory note in the amount of $6.5 million bearing interest at a rate of 12 percent and due December 31, 2006. All monitoring and billing will continue with IASG until the note is paid. The other assets sold included inventory, vehicles and deposits. Commenting on the transaction, Charles May IASG CEO said "The transaction is positive for IASG shareholders, our customers and employees. The accounts are in service areas which do not fit in our desired profile. The sale of these accounts will provide a positive gain to IASG in 2006 not including the gain on sale which will be deferred until certain criteria are met. As a part of restructuring our retail division we are analyzing all of the accounts we have on a region by region basis to determine our costs to service, cancellation rates and whether they fit with our profile for profitable low attrition customers. We anticipate more sales of accounts which do not meet our profile as well as additional purchases of accounts that are representative of our desired profile." About IASG Integrated Alarm Services Group provides total integrated solutions to independent security alarm dealers located throughout the United States to assist them in serving the residential and commercial security alarm market. IASG's services include alarm contract financing including the purchase of dealer alarm contracts for its own portfolio and providing loans to dealers collateralized by alarm contracts. IASG, with approximately 5,000 independent dealer relationships, is also the largest wholesale provider of alarm contract monitoring and servicing. For more information about IASG please visit our web site at http://www.iasg.us. This press release may contain statements, which are not historical facts and are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements contain projections of IASG's future results of operations, financial position or state other forward-looking information. In some cases you can identify these statements by forward looking words such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "should", "will", and "would" or similar words. You should not rely on forward-looking statements because IASG's actual results may differ materially from those indicated by these forward looking statements as a result of a number of important factors. These factors include, but are not limited to: general economic and business conditions; our business strategy for expanding our presence in our industry; anticipated trends in our financial condition and results of operation; the impact of competition and technology change; existing and regulations effecting our company and business, and other risks and uncertainties discussed under the heading "Risks Related to our Business" in IASG's Form 10-K report for the period ending December 31, 2005 as filed with the Securities and Exchange Commission on March 16, 2006, and other reports IASG files from time to time with the Securities and Exchange Commission. IASG does not intend to and undertakes no duty to update the information contained in this press release.