INTEGRATED ALARM SERVICES GROUP, INC.

INTEGRATED ALARM SERVICES GROUP, INC.

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Company Overview
Integrated Alarm Services Group, Inc. is an American-based company engaged in the provision of monitoring, financing, and business support services to independent security alarm dealers. The company has its registered office in Albany, New York.
Integrated Alarm Services Group provides services to security alarm dealers in both the residential and commercial security alarm markets. It monitors alarm systems on behalf of security alarm dealers and for its own accounts. The alarm monitoring services are provided through two redundant alarm monitoring centers located in New Jersey and California. The company also provides financing for security alarm dealers in the form of loans or alarm monitoring contract purchases.
Integrated Alarm Services Group also provides billing, collection and marketing services, as well as access to equipment discount programs. The company principally conducts its business operations within the United States.
In April 2007, Protection One, Inc. and Integrated Alarm Services Group announced the closing of their merger.
Business Summary
Integrated Alarm Services Group, Inc. (IASG) is a provider of monitoring, financing and business support services to independent security alarm dealers (Dealers) in the United States. IASG offers its services to Dealers in both the residential and commercial security alarm markets. The major categories of services the Company provides include monitoring, financing and business support services. IASG monitors alarm systems on behalf of Dealers and for its own accounts. IASG’s alarm monitoring services are provided through two redundant alarm monitoring centers located in New Jersey and California. The Company provides financing for Dealers in the form of loans or alarm monitoring contract purchases. For some of its Dealers, IASG provide billing, collection and marketing services, as well as access to equipment discount programs. In April 2007, Protection One, Inc. and IASG announced the closing of their merger, pursuant to which IASG will merge with a subsidiary of Protection One, Inc.
Description and history
Integrated Alarm Services Group, Inc. (IASG) is a provider of monitoring, financing and business support services to independent security alarm dealers (Dealers) in the United States. IASG offers its services to Dealers in both the residential and commercial security alarm markets. The major categories of services the Company provides include monitoring, financing and business support services. IASG monitors alarm systems on behalf of Dealers who do not have monitoring facilities and for its own accounts. The Company monitors approximately 620,000 alarm systems on behalf of approximately 4,000 independent Dealers. IASG’s alarm monitoring services are provided through two redundant alarm monitoring centers located in New Jersey and California. The Company provides financing for Dealers in the form of loans or alarm monitoring contract purchases. As of December 31, 2006, it owned and monitored a portfolio of approximately 145,000 retail alarm monitoring contract equivalents. For some of its Dealers, IASG provide billing, collection and marketing services, as well as access to equipment discount programs. In April 2007, Protection One, Inc. and IASG announced the closing of their merger, pursuant to which IASG will merge with a subsidiary of Protection One, Inc.

Alarm Monitoring Contract Acquisition and Financing Services

When providing financing to Dealers, the Company obtains a security interest in the underlying alarm monitoring contracts. The payment terms are generally between 36 and 72 months. With respect to purchased alarm monitoring contracts, IASG typically acquires them from the Dealers that originally sold and installed the security alarm systems giving rise to the alarm monitoring contracts. Generally, Dealers that sell or borrow against their alarm monitoring contracts do so, on either a flow or bulk basis. The Company typically requires Dealers to replace any cancelled alarm monitoring contracts and lost revenues for the first year after it purchases an alarm monitoring contract. In addition to the alarm monitoring contract acquisition and finance process, IASG generally requires that Dealers use the Company to monitor all of their alarm monitoring contracts, not just those that have been acquired or financed.

Monitoring Services

IASG provides monitoring to Dealers on alarm monitoring contracts that they have entered into with an end user. Dealers typically pay the Company a fixed monthly monitoring fee for each account that it monitors on their behalf. The charges are billed to the Dealer on a monthly, quarterly, semi-annual or annual basis in accordance with the contract agreement. As of December 31, 2006, IASG monitored approximately 765,000 end user accounts. Generally, when an alarm is activated, a signal is sent from the alarm system through a phone line, radio transmitter or wireless service to a receiver located at one of the Company’s two monitoring facilities. This signal is immediately routed through IASG’s automated system and an operator personally handles each call. When the operator receives the alarm condition, his or her computer will simultaneously display a series of instructions on how to handle the alarm. These instructions are prepared by the Dealer and the end user in advance and are customized to the particular logistics of the geographic area as well as the individual needs of the end user.

In certain instances, the operator will call a phone number specified by the end user and ask for a code word. If the operator is unable to contact the end user or an incorrect code word is given, the operator will dispatch the appropriate authority to the scene of the alarm. In the instance of a fire alarm, the operator is typically instructed to dispatch emergency vehicles without making an attempt to contact the end user. In any event, after dispatching the appropriate authority, the operator will then call any other individuals specified in the end user’s instructions and will provide notice to the Dealer servicing the end user of the event. The Dealer can then provide follow-up support with the local end user. In a typical week, IASG’s operators respond to approximately 68,000 priority alarm activations.

The Company owns and operates two redundant alarm monitoring centers located in Manasquan, New Jersey, and Irvine, California, and are linked via advanced software that creates a real time queuing process. IASG also owns and operates a monitoring center in St. Paul, Minnesota. All of the Company’s alarm monitoring centers are Underwriters Laboratories listed. Alarm monitoring offerings vary widely with the specific needs of the end user and encompass several types of monitored alarms, including burglary, hold-up, panic, fire, two-way voice communication, industrial process control, medical emergency and environmental alert. IASG monitors all of these alarm types from its existing monitoring call centers. The alarm monitoring centers are also capable of supporting a range of add-on services, such as remote video monitoring, network intrusion detection, cellular transmission, private radio access, personal emergency response systems and global positioning system (GPS) monitoring and emergency dispatch services using GPS technology.

Other Products and Services

The Company offers billing and collection services, and sells equipment, including motion detectors, sensors, cameras and closed circuit televisions without monitoring to certain commercial customers. IASG sells bundled arrangements to its commercial and residential customers, which consist of equipment, installation services and ongoing monitoring services, generally under 3- to 5-year contracted terms. The Company also provides its Dealers with access to discounts on equipment.

Business Line
Engaged in the provision of monitoring, financing, and business support services to independent security alarm dealers
Subsidiary

Advisor
PRICEWATERHOUSECOOPERS LLP
IPO date
7/23/2003
US SIC Code
7382
Company Address
3rd Floor
99, Pine Street
City province or state postal code
12207, ALBANY, NY
Phone: +1 518 426 1515
Fax: +1 518 449 4894
Country address: UNITED STATES OF AMERICA
Website url: www.iasg.us