Alex. Brown and Montgomery Securities initiate coverage of Sensormatic with a "buy" rating on the shares.

DEERFIELD BEACH, Fla.--(BUSINESS WIRE)--May 30, 1995--Sensormatic Electronics Corp. (SRM/NYSE) today reported that Alex. Brown & Sons Inc. and Montgomery Securities have initiated coverage of Sensormatic. Both firms have rated the company's shares a "buy."

Highlights of Alex. Brown's recommendation are:

- "Sensormatic is the dominant worldwide supplier of retail security systems, and a leader in the broader category of industrial security."

- "We consider the current situation a valuation anomaly...With a lingering short position of over 2.5 million shares rumors are frequently manufactured and fed to investors to put pressure on the stock, periodically creating extraordinary buying opportunities." (italics added.)

- "Sensormatic is the worldwide leader with excellent international exposure...Sensormatic derives nearly 55% of sales outside of the U.S....Sensormatic's broad product portfolio is a strategic advantage as it expands globally..."

- "Sensormatic's dominance worldwide and sound growth strategies in EAS (electronic article surveillance), Commercial and Industrial and emerging markets strongly support a 20% plus long-term growth rate."

Highlights of Montgomery's recommendation are:

- "Demand for Sensormatic's products is growing rapidly as a result of the still-low penetration rates among target customers, the proven and significant reductions in shrinkage and increases in profits from utilizing Sensormatic's security systems and the competitive advantage of the company's products."

- "Our model suggests the potential for Sensormatic to achieve compound annual growth of 25% in revenues over the next few years."

- "We strongly believe Sensormatic will continue to consolidate its position as the loss-prevention systems supplier of choice for the majority of...subsegments (within the hard-good retailing industries) because of its technological advantages, superior source labeling characteristics and early dominance in other hard-good retailing subsegments, including DIY home centers, warehouse clubs, discount chains and video rental chains."

- "Sensormatic is in a strong financial position."

Ronald G. Asaf, Sensormatic president and CEO, commented, "We are gratified by the increasing investor recognition of Sensormatic's leadership position in the electronic security industry and the Company's growth potential across a range of products, industry segments and geographical markets."

Sensormatic Electronics Corp., the world leader in electronic security and the Official Electronic Security Supplier for the 1996 Olympic Games in Atlanta, is a fully integrated supplier of electronic security systems to retail, commercial and industrial markets. The company's electronic article surveillance (EAS), closed circuit television (CCTV) and exception monitoring systems are used by both soft goods and hard goods retailers to deter shoplifting and internal theft. Sensormatic's CCTV, access control and electronic asset protection (EAP) security systems are used by retail, commercial and industrial customers to protect assets, information and people. All of the company's products are marketed by an extensive worldwide sales and service organization complemented by a broad distribution network.

CONTACT: Sensormatic Electronics Corp., Deerfield Beach

Michael Pardue, 305/420-2000

or

Fleishman-Hillard, New York 

Kathleen Grant, 212/265-9150