LAWRENCE, Kan., April 19 /PRNewswire-FirstCall/ -- Protection One, Inc. (BULLETIN BOARD: PONN) , one of the largest electronic security companies in the United States, announced today that its operating subsidiary, Protection One Alarm Monitoring, Inc. (the "Company"), has successfully completed the closing of a new senior secured credit facility from a syndicate of lenders led by Bear, Stearns & Co. Inc. and Lehman Brothers Inc. The new facility consists of a $25 million revolving credit facility and a $250 million term loan. The revolving credit facility matures in 2010 and the term loan matures in 2011, subject to earlier maturity if the Company's senior subordinated notes are not refinanced before July 2008. With the closing of this transaction, the Company's weighted average rate of interest on its total outstanding indebtedness of $360 million will decrease (subject to changes in LIBOR) to approximately 6.7% from 8.2%.

The new credit facility follows the Company's recent debt for equity exchange that, along with other transactions, reduced the Company's total outstanding debt by approximately $190 million.

Borrowings under the new term loan were used to fund the previously announced redemption of all of the Company's outstanding 7-3/8% Senior Notes due 2005 and to repay the credit facility provided by affiliates of Quadrangle Group LLC. The new revolving credit facility will be undrawn at closing and is available for letters of credit and general corporate purposes.

Commenting on the transaction, Richard Ginsburg, President and CEO, said, "We are very pleased that we were able to quickly follow our recent financial restructuring with the successful closing of this new credit facility. We believe the confidence our new lenders have put in Protection One is a testament to the appeal of our business model, which effectively balances growth and debt reduction."

Protection One, Inc. is one of the largest providers of security monitoring services in the United States. Including its Network Multifamily subsidiary, a leading security provider to the multifamily housing market, Protection One provides monitoring and related security services to more than one million residential and commercial customers. For more information about Protection One, visit http://www.protectionone.com/ .

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 may describe our future plans, objectives, expectations or goals. Such statements may address future events and conditions concerning customer retention, debt levels, debt service capacity, revenue stabilization and stabilization of our customer account base. Our actual results may differ materially from those discussed here as a result of numerous factors, including our significant debt obligations, net losses and competition. See our Annual Report on Form 10-K for the year ended December 31, 2004 for a further discussion of factors affecting our 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.

CONTACT: Media, Robin J. Lampe, +1-785-856-9350, or Investors, Darius G.
Nevin, +1-785-856-9368, both of Protection One

Web site: http://www.protectionone.com/