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 DENVER, Dec. 8 /PRNewswire/ -- Initial stock certificates and warrants have been distributed to more than 4,700 shareholders by Alert Centre Inc., one of the nation's largest participants in home and business security alarm installation, service and monitoring. Equity holders in several predecessor limited partnerships exchanged their equity interests for Alert common stock and warrants in the reorganization procedure. More than 90 percent of Alert's shares are owned by these former limited partners.
 Alert, which emerged from Chapter 11 reorganization Aug. 6, 1993, has a new board of directors, new senior management, and a new strategic focus. The company's securities will be traded over the counter and management intends to apply for reporting privileges on NASDAQ. The company has filed a Form 10 registration of its common stock and warrants with the Securities and Exchange Commission.
 Raymond Gross, Alert's new president and chief executive officer, said the company's strategy calls for strengthening customer service, selectively acquiring customer accounts from existing and new Alert authorized dealers in regions where Alert has or may achieve high-volume account density, and building strong branch operations.
 Meanwhile, Alert expects to divest customer accounts in areas that do not fit strategically and where management perceives difficulty in providing cost-effective customer service.
 "This highly-fragmented industry has strong potential for growth," Gross pointed out, "but participants who expect to build a strong national presence must achieve profitability by leveraging a strong service and monitoring infrastructure to manage high-density account clusters in selected regions. We intend to proceed cautiously to dig deeper roots in markets that fit our strategy."
 The new Alert monitors approximately 177,000 accounts. Installation and maintenance services are provided by the headquarters operation in Denver, as well as through branch operations in major markets, such as Dallas, Atlanta, Houston and Miami. The company has approximately 700 employees.
 Gross previously served as president and general manager of Cellular One's northern Ohio telecommunications operations. Earlier, Gross held senior management positions at Automatic Data Processing and at Management Reports Inc., both data processing firms. Prior to that he was in the accounting profession, where his service included security alarm experience for Wells Fargo.
 Joining Gross in leading the new Alert is Brian E. Johnson, formerly of the consulting and investment banking firm of Barnes Johnson & Associates. Johnson has joined Alert Centre as executive vice president/chief financial officer, after working closely with the Alert official limited partners' committee in helping to effect Alert's reorganization. Johnson is widely experienced in negotiating the purchase and sale of security alarm companies and in industry corporate finance and strategic planning. An attorney and CPA, Johnson previously served as chief financial officer and director of two public companies, Presidio Oil Co. and Jones Spacelink Ltd.
 Strategic Initiatives
 Alert management is working on several fronts, President Gross reported to unearth and eliminate operational weaknesses, to identify short-term strategies, to strengthen operations and to develop long-term strategies for growth.
 Internal actions include:
 -- Restructuring customer service for faster response and alignment
 of functions to better support field operations;
 -- Identifying highly-qualified independent security alarm dealers
 who may augment Alert's deployment of field service;
 -- Divesting customer accounts in regions that do not offer the
 proper economies of scale because of field service
 inefficiencies and inadequate growth opportunities;
 -- Strengthening and expanding branch operations in areas where
 Alert is or can expect to gain a dominant market share.
 Alert's long-term growth plan contemplates a disciplined strategy of customer account purchases from independent dealers and strategic acquisitions of smaller security alarm companies in targeted markets, along with strengthening the sales/service functions of its major branch operations in already strong Alert markets.
 "Fiscally, we are now a company with a sound balance sheet. We expect much more predictable performance than the old Alert, based on the operational changes we have made and will continue to make," Gross stated. "This will position our company to productively leverage our state-of-the-art Denver-based monitoring center and our vital branch operations network."
 Third Quarter Results
 "The company's balance sheet at the completion of the abbreviated third quarter demonstrates that Alert is well positioned for growth as a public company," Gross said. The company had operating revenues totaling $9,365,000 for the two-month period ended Sept. 30, 1993 and showed earnings before interest, taxes, depreciation and amortization -- a commonly used measurement of performance in the security alarm industry -- of $2,921,000. Third quarter results and balance sheet data, both reflecting the fresh-start basis of reporting expressed in the Form 10, are:
 Results of Operations
 For the Two Months Ended Sept. 30, 1993
 (000s except per share data)
 Operating revenue: $9,365
 Operating expense: 6,444
 Earnings before interest, taxes,
 depreciation and amortization $2,921
 Depreciation and amortization (2,804)
 Income from operations $117
 Interest and other income (expense) (433)
 Reorganization expenses, net (68)
 Net loss ($384)
 Loss per common share, based
 on 9,776,152 shares outstanding
 as of Nov. 1, 1993 ($0.04)
 Condensed Balance Sheet Data:
 (in 000s)
 Fresh-Start Basis of Reporting
 As of 9/30/93
 Total assets $140,312
 Total liabilities $63,613
 Total equity $76,699
 For more complete information, copies of the Form 10 may be obtained by contacting Brian E. Johnson, executive vice president/chief financial officer at 303-488-7900/
 -0- 12/8/93 R
 /CONTACT: Brian Johnson of Alert Centre, 303-488-7613 or Robert Carter of Schenkein/Sherman Public Relations, 303-292-6655/

CO: Alert Centre Inc. ST: Colorado IN: SU: ERN

MC -- DV003 -- 2173 12/09/93 11:27 EST
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Publication:PR Newswire
Date:Dec 9, 1993

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