BellSouth and Protection One Form Alliance to Offer Security Systems and Services.

Business Editors

ATLANTA, Ga. & CULVER CITY, Calif.--(BUSINESS WIRE)--March 7, 2001

BellSouth Corp. (NYSE:BLS) and Protection One, Inc. (NYSE:POI):

Companies Agree to Market Full Line of Home and Commercial Security

Services; Services Available in North Carolina and Georgia

Immediately, With 10 BellSouth Markets Expected to be Included by

Year-End 2001

BellSouth Corp. (NYSE:BLS) and Protection One, Inc. (NYSE:POI) today announced they have entered into an agreement that involves the two nationally recognized leaders in their respective industries offering a full line of security systems and services under the name BellSouth Security Systems from Protection One.

As part of the agreement, BellSouth will offer its customers the opportunity to purchase a security system and related services through BellSouth Security Systems from Protection One at the same time Protection One directly markets the systems and services to consumers. Home or business owners will be able to choose from a basic to fully featured security system with many options. Pricing will start at $199 for a basic residential system. In addition, the companies will explore the offering of certain wiring, network broadband and other services to security system customers and others.

The agreement with Protection One is not BellSouth's first entry into the security market. Recently, BellSouth concluded a successful market trial serving thousands of home and commercial consumers in Georgia and North Carolina with security services.

"Our market trial demonstrated to us that customers look to BellSouth for vital services, and security is just a logical extension of that. As a result of our trial, we are excited about deepening our commitment to this line of business," said Pam Jones, Vice President, Strategy and Marketing, BellSouth Consumer Services. "This agreement with Protection One will allow us to offer our customers a relationship with a superior security services provider that is worthy of the trust and reliability our customers expect from BellSouth," Jones continued.

Annette Beck, President and Chief Executive Officer of Protection One, said: "This is a strategic and exciting relationship, as well as a tremendous opportunity for our customers, companies and shareholders, in that it combines our experience and state-of-the-art security services with BellSouth's product innovation and development and familiar, trusted name. We also recognize that today's home or business owners, as well as commercial developers and builders, require access to many services that provide peace of mind and convenience. Companies partnering to provide a variety of services offer a unique opportunity to individuals and families. We believe our partnering with BellSouth is a significant stride in that direction."

The companies will launch BellSouth Security Systems from Protection One initially in Atlanta, Charlotte, N.C., Raleigh, N.C., and Greensboro, N.C., this month, followed by other markets in the Southeast, with a total of 10 markets expected to be included by year-end 2001. The companies also intend to evaluate the product offerings and customers' needs as the agreement progresses. Plans are to eventually expand the alliance throughout major areas in BellSouth's nine-state market region. A definitive agreement is expected to be signed between the companies by early in the next quarter.

About BellSouth Corporation

BellSouth Corporation is a Fortune 100 communications services company headquartered in Atlanta, GA, serving more than 44 million customers in the United States and 16 other countries.

Consistently recognized for customer satisfaction, BellSouth provides a full array of broadband data and e-commerce solutions to business customers, including Web hosting and other Internet services. In the residential market, BellSouth offers DSL high-speed Internet access, advanced voice features and other services. BellSouth also provides online and directory advertising services, including BellSouth(R) Real Pages.com.

About Protection One

Protection One is one of the leading commercial and residential security services providers in the United States, providing monitoring and related security services to approximately 1.4 million residential and commercial subscribers in North America, and is a leading security provider to the multifamily housing market through Network Multifamily.

Protection One's Forward-Looking Statements: Certain matters discussed in this news release are "forward-looking statements." The Private Securities Litigation Reform Act of 1995 has established that these statements qualify for safe harbors from liability. Forward-looking statements may include words or phrases, such as "we believe," "we anticipate," "we expect" or words of similar meaning. Forward-looking statements describe our future plans, objectives, expectations or goals. Such statements address future events and conditions concerning capital expenditures, earnings, litigation, possible corporate restructurings, mergers, acquisitions, dispositions, liquidity and capital resources, interest rates, and our ability to enter new markets successfully. Our actual results may differ materially from those discussed here. See the company's amended 1999 Annual Report on Form 10-K, amended Forms 10-Q for the quarterly periods in 2000, and current reports on Form 8-K for further discussion of factors affecting the company's performance. Protection One disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this news release.