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MULTIMEDIA TO EXPAND SECURITY ALARM BUSINESS

TO BUSINESS:
 MULTIMEDIA TO EXPAND SECURITY ALARM BUSINESS
 GREENVILLE, S.C., Aug. 11 /PRNewswire/ -- Multimedia, Inc. (NASDAQ-NMS: MMEDC) will enter into an expansion program to increase the number of homes served by its security alarm business to approximately 125,000 by the end of 1993. The Company currently serves approximately 32,000 security accounts. Multimedia Security is headquartered in Wichita, Kan. and is operated by Multimedia Cablevision.
 Chairman and Chief Executive Officer Walter E. Bartlett said, "During the past ten years Multimedia Cablevision has built a successful security alarm business. Revenues and cash flow from Multimedia Security have increased significantly. Based on a decade of operating experience and extensive market research, our Company believes the demand for home security services will accelerate dramatically. By launching an expansion program now, Multimedia will be positioned to take advantage of an excellent opportunity for increased profit and growth."
 Multimedia entered the security alarm business in 1982 as an ancillary revenue stream for the Cablevision division. Starting with 350 accounts in Wichita, the business grew to 4,000 accounts, and Multimedia Security Service became the largest security company in that city. The state-of-the-art central monitoring station in Wichita was expanded and a limited acquisition program launched in 1990.
 Discussing the expansion program, President of Multimedia Cablevision Don Sbarra said, "Home security has many financial and customer service attributes similar to the cable business. It offers a steady and predictable cash flow stream, and installation and customer servie? aspects are similar. We view the security industry today as an attractive growth area."
 Many factors contribute to the attractiveness of the business at this time. Some of them are:
 -- Affordable installation costs for middle income Americans (our
 targeted market).
 -- Economies of scale driven by technological changes which make
 it possible to monitor the entire country from one location.
 -- Low penetration of U.S. households.
 -- Rising crime rate.
 Multimedia's market studies indicata?t because of the national crime rate, gang violence and drug abuse, the public is turning to monitored home security systems for protection. Industry projections reflect more than ten million American homes will add security systems by the end of the decade. The Company anticipates this expansion will provide a stable source of growth and enhance shareholder value.
 Multimedia, Inc. is a diversified media communications company headquartered in Greenville, S.C., which publishes 12 daily and 49 non-daily newspapers, owns and operates five television and eight radio stations, a film and video production company, operates more than 100 cable television franchises in four states, and produces and syndicates quality television programming, including the Donahue and Sally Jessy Raphael shows.
 -0- 8/11/92
 /CONTACT: Elizabeth S. Mills, Vice President-Corporate Communications, Multimedia, Inc., 803-298-4393 or 803-298-4389/
 (MMEDC) CO: Multimedia, Inc.; Multimedia Cablevision; Multimedia Security
 Service ST: South Carolina, Kansas IN: TLS SU:


JM -- CH004 -- 8887 08/11/92 10:33 EDT
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Publication:PR Newswire
Date:Aug 11, 1992
Words:475
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