Lifeline Systems to Acquire Emergency Response Systems Businesses of March Networks Corporation.

Business Editors/Health/Medical Writers

FRAMINGHAM, Mass. and OTTAWA--(BUSINESS WIRE)--June 2, 2003

Transaction Will Consolidate Operations, Products and Customer Lists of Two Leading Companies in the Senior Living Market in U.S. and Canada

Lifeline Systems, Inc. (NASDAQ: LIFE), the leading provider of personal and emergency response services in the United States and Canada, today announced that it has signed an agreement in principle to acquire in a cash transaction the assets of the Emergency Response Systems business unit of March Networks Corporation, a privately held developer of broadband IP applications and delivery platforms. The proposed acquisition, which includes the Emergency Response Systems and Outreach Personal Emergency Response Services of March Networks, is subject to the satisfactory negotiation of final terms and approval by the boards of directors of both companies. The transaction is expected to close in June 2003 and to include an earn-out provision.

"This acquisition will consolidate the operations, products and customer lists of two of the leading companies in the still highly fragmented Senior Living market in the U.S. and Canada," said Ron Feinstein, president and chief executive officer of Lifeline Systems. "With this Senior Living product line and the capability to support national accounts through its nationwide direct sales and service force, this acquisition, while not expected to have a material impact on Lifeline's business for fiscal 2003, will allow the Company to accelerate its penetration of this market."

"As March Networks increases its focus on developing high-value broadband IP applications that integrate video, voice and data, we have been looking for a strategic partner to acquire our emergency response systems business," said Terry Matthews, chairman and chief executive officer of March Networks. "With Lifeline Systems, we have found a leading operator with a strong commitment to customer service who will be responsive to the well-established March Networks ERS user community."

About March Networks Corporation

March Networks Corporation develops, manufactures and distributes innovative broadband IP applications and delivery platforms. The company's integrated solutions enable businesses to improve operational efficiencies and generate new revenues with enhanced multimedia communication services that leverage the worldwide growth and always-on, interactive capabilities of broadband networks. Through premier distribution channels and strategic partnerships March Networks currently serves the financial, retail, healthcare, transportation, facilities and government markets with high value business solutions. The company is headquartered in Ottawa, Ontario and operates offices around the world. For more information, please visit www.marchnetworks.com.

About Lifeline Systems, Inc.

Lifeline Systems, Inc. (NASDAQ: LIFE) is the leading provider of personal response and emergency response services in the United States and Canada, currently serving approximately 370,000 subscribers from response centers in Massachusetts, Ontario and Quebec. The Company is committed to providing reassurance and peace of mind to people who live alone and are faced with isolation and loneliness, as well as the need for emergency response from homes and senior living communities throughout the U.S. and Canada. Lifeline does this with dedicated and well-trained people, advanced technology and a national support structure. For more information visit www.lifelinesys.com.

Safe Harbor Language

This news release may contain forward-looking statements relating to the future performance of Lifeline Systems, Inc. Forward-looking statements, specifically those concerning the Company's anticipated acquisition of the Emergency Response Systems and Outreach Personal Emergency Response Systems of March Networks Corporation, are subject to certain risks and uncertainties, and actual results may differ materially from expectations. These risks and uncertainties include the risk that the acquisition will not be consummated or, if consummated, that the acquired business will not perform as anticipated, the risk that the integration of the acquired business will require more management and other resources than originally planned, and other risk factors detailed from time to time in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K, Forms 10-Q, and other filings and releases.