IASG Integrated Alarm Services Grp (MM)

Integrated Alarm Services Group, Inc. (Nasdaq: IASG) today announced that the Special Committee of its Board of Directors voted unanimously to postpone consideration of an unsolicited proposal from ASG Security Group LLC pending the final results of an independent review of IASG's strategic options to enhance shareholder value. On May 17, 2006, ASG Security Group sent a letter to IASG's Special Committee inviting IASG to discuss the terms of a combination between ASG and IASG. As previously disclosed, IASG engaged Allen & Company ("Allen"), a nationally recognized investment bank, to assist IASG's Board of Directors in the analysis and implementation of strategic options to enhance shareholder value. Arlene Yocum, the chairperson of IASG's Special Committee, stated: "We believe that the interests of IASG's shareholders will be best served by allowing Allen & Co. to complete its strategic review and make its' final recommendation to the Special Committee. With that recommendation in hand, and not before, the Special Committee can then move forward. We view ASG's offer and its request for an exclusive negotiating period and `break-up fee' as an attempt to short cut the deliberate and thoughtful process we have put in place to obtain an advantage for ASG at the expense of IASG's shareholders." IASG does not intend to make any further announcements regarding its exploration of strategic options until the Special Committee has completed its review. About IASG Integrated Alarm Services Group provides total integrated solutions to independent security alarm dealers located throughout the United States to assist them in serving the residential and commercial security alarm market. IASG's services include alarm contract financing including the purchase of dealer alarm contracts for its own portfolio and providing loans to dealers collateralized by alarm contracts. IASG, with approximately 5,000 independent dealer relationships, is also the largest wholesale provider of alarm contract monitoring and servicing. For more information about IASG please visit our web site at http://www.iasg.us. This press release may contain statements, which are not historical facts and are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements contain projections of IASG's future results of operations, financial position or state other forward-looking information. In some cases you can identify these statements by forward looking words such as "anticipate," "believe," "could," "estimate," expect," "intend," "may," "should," "will" and "would" or similar words. You should not rely on forward-looking statements because IASG's actual results may differ materially from those indicated by these forward looking statements as a result of a number of important factors. These factors include, but are not limited to: general economic and business conditions; our business strategy for expanding our presence in our industry; anticipated trends in our financial condition and results of operation; the impact of competition and technology change; existing and regulations effecting our company and business, and other risks and uncertainties discussed under the heading "Risks Related to our Business" in IASG's Form 10-K report for the period ending December 31, 2005 as filed with the Securities and Exchange Commission on March 16, 2006, and other reports IASG files from time to time with the Securities and Exchange Commission. IASG does not intend to and undertakes no duty to update the information contained in this press release.