June , 1999

To Whom It May Concern:

Your business is important to us! As you can imagine with the Year 2000 rapidly approaching we are receiving a large number of Y2K status requests daily. In order to ensure our ability to serve you in the new millennium, the Detection Systems/Radionics organization has taken a proactive position to ensure its compliance with Year 2000 issues. We are committed to ensuring that all of our products and services are Year 2000 compliant so that we may continue with an uninterrupted supply of products and services at the turn of the century.

The following summary provides information intended to answer any questions regarding the status of our business systems and products.

Year 2000. The Company has appointed a team to assess the impact of the year 2000 on its information systems, products, and business. This team includes two members of senior management and is led by the Vice President of Operations. To ensure year 2000 compliance, the Company has established specific categories to be reviewed:

Products. The Company places a high priority on ensuring its products are year 2000 ready. The Company has completed its review of all products that are manufactured domestically and at its China manufacturing facility as well as products purchased for resale by its domestic businesses. The Company believes these products to be year 2000 compatible. The Company is completing its assessment of year 2000 compatibility of products manufactured and purchased for resale at its other foreign subsidiaries. The Company does not expect significant issues with year 2000 readiness of products sold by its foreign subsidiaries as products sold by the Company generally do not use date information for calculations or comparisons.

Manufacturing. Some of the tools and equipment (hardware and software) used to develop and manufacture the Company's products are date-sensitive. The Company believes that the date-sensitive tools and equipment used by it to manufacture products are now year 2000 compatible. As a result the Company does not expect significant interruption to its manufacturing capabilities because of the failure of tools and/or equipment.

Non-Manufacturing Business Applications. The Company is in the process of fixing and testing all non-manufacturing business applications such as core financial information and reporting systems, procurement, human resources/payroll, factory applications, customer service systems, and revenue systems, and does not expect any significant year 2000 problems in this area.

The Company's domestic business information systems required upgrades and enhancements to be made year 2000 compatible. These upgrades have been made and are currently being tested. All necessary upgrades to other information technology infrastructure have been identified and remediation is in process. Testing of year 2000 upgrades is expected to be completed prior to the year 2000.

Most of the Company's non-US subsidiaries' information systems will require various degrees of upgrade or replacement to be capable of handling year 2000 issues (excluding the Hong Kong subsidiary, which utilizes the Company's domestic information system). The Company has purchased a new enterprise resource planning system capable of handling the year 2000 that is currently being implemented at its foreign subsidiaries. This implementation is expected to be complete at all locations prior to December 31, 1999. The Company expects to be capable of handling the year 2000 at all locations without significant interruption to business activity.

Facilities and Infrastructure. The Company has evaluated its facilities and infrastructure (health, safety and environment systems, buildings, security/alarms/doors, desktop computers, and networks) to ensure they are year 2000 compatible. Upgrades are being implemented where needed and the Company does not expect significant interruption to its operations because of year 2000 problems with its facilities and infrastructure.

Logistics. Of importance to the Company for year 2000 is the readiness of suppliers and the products the Company procures from suppliers as well as customers and service providers. The Company has a comprehensive program to identify and obtain year 2000 information from its critical suppliers, customers and service providers. The program includes awareness letters, questionnaires, and a review of year 2000 web-sites. The Company has mailed a questionnaire to substantially all suppliers, customers and service providers regarding year 2000 readiness. Responses are currently being received and evaluated and no significant issues have been noted as of the date of this report. If a supplier, customer or service provider is of concern regarding year 2000 readiness, the Company will develop contingency plans to minimize the year 2000 risk.

The Company estimates that its aggregate costs for year 2000 activities from 1997 through 2000 will be approximately $750,000. External costs incurred through March 31, 1999 were approximately $560,000 and primarily related to computer hardware and software. It is anticipated that the remaining year 2000 costs will relate to computer software, computer hardware and consulting fees. The Company does not separately track internal costs relating to the year 2000, and they are not included in the Company's estimate of year 2000 costs. These costs do not include estimates for potential litigation, which at the present time is not viewed as a significant risk. The Company reviews and updates data for costs incurred and forecasted costs each quarter. These costs are based on management's estimates, which were determined based on assumptions of future events, some within the Company's control, but some outside the Company's control.

Products. A list of our more popular products and information about Year 2000 readiness is provided below. Due to the extensive line of current and past products offered by the company, it is not possible to list every product variant produced. Peripheral products, such as keypads, do not contain clock or date sensitive functions that would be impacted by the Year 2000. These functions, if available, are contained in the Control / Communicator panel itself.

Motion and Fire Sensors -- These products do not contain date function of any kind and are not affected. Some products, including those with motion monitor, have internal time counters for diagnostics based on elapsed time. This information is not viewable. No time data is output or communicated external to the product.

WDSRP ( Windows ® Detection Systems Remote Programming) Software -- WDSRP is compliant at version 1.11r10 and above. WDSRP uses the Microsoft Windows® clock for date and time tracking. This requires a Year 2000 compliant computer. We advise the users of PC controlled systems (like WDSRP) to check their PC for Year 2000 compliance. Please contact Microsoft for operating system questions, and your PC manufacturer (e.g., Compaq, Dell, IBM, etc.) for further hardware-related information. If you have a version of WDSRP prior to 1.11r10, contact us for a free upgrade.

DSRP (CP7000) (Detection Systems DOS based Remote Programming) Software -- DSRP is compliant at all released versions. This product runs on top of DOS and retrieves its time and date information from DOS, not from the computers clock chip. We advise the users of PC controlled systems (like DSRP) to check their PC for Year 2000 compliance. There are software utilities available that can automatically test this. Please contact your PC manufacturer (e.g., Compaq, Dell, IBM, etc.) for further information.

Control Communicators DS7100, DS7090, DS7090I all revisions -- This series of panels has a day and a week counter. It is only capable of displaying the time and day of week. Based on our internal testing, we anticipate the date change to the Year 2000 should not affect these products.

Control Communicators: DS7060, DS7080 all revisions -- These products use a 24-hour clock and month/day/year calendar to determine communication test times, schedule automatic events and to store events in memory. The date stored in the event log includes month and day. The correct year (00) is displayed at the keypad when the year changes from 1999 to 2000. See WDSRP for information on how this is displayed at the Central Station. The date and time of transmitted events are established at the time of receipt by the receiver and are not a function of the transmitter time and date. Based on our internal testing, we anticipate the date change to the Year 2000 should not affect these products.

Control Communicators: DS7400, DS7400xi all revisions -- These products use a 24-hour clock and month/day/year calendar to determine communication test times, schedule automatic events and to store events in memory. The date stored in the event log includes month, day and year. The correct year (00) is displayed at the keypad and printed on the local printer when the year changes from 1999 to 2000. See WDSRP for information on how this is displayed at the Central Station. The date and time of transmitted events are established at the time of receipt by the receiver and are not a function of the transmitter time and date. Based on our internal testing, we anticipate the date change to the Year 2000 should not affect these products.

Security Escort System -- Times and dates are stored in the Windows® time format, which is a 32-bit count of the number of seconds since January 1, 1970. At no place in the system is the year stored or computed separately. The year is always displayed as four digits. The BORLAND C++ compiler version 5.02 libraries compute all date and time calculations based on the Windows® time variables. Borland has stated that these libraries are fully Year 2000 compliant. Based on our internal testing, we anticipate the date change to the Year 2000 should not affect these products.

Note: The names Alpha II and Omegalarm are Radionics, Inc. brand names. Please use the product model number to locate information on these items.

Control Communicators: 2000 Series, D2071, D2071A, D2071AC, D3012, DACT, D4112, D6112, D7112, DS9471, DS9471C (2000 Series includes D2012, D2112, D2212, D2412) -- These products use a 24-hour clock to determine daily communication test time and do not have any date or year specific programming. The date and time of transmitted events are established at the time of receipt by the receiver and are not a function of the transmitter. Based on our internal testing, we anticipate the date change to the Year 2000 should not affect these products.

Control Communicators: D8112, D8124 Series -- These products use a 24-hour clock and month/day calendar to determine communication test times, schedule automatic events and to store events in memory. The date stored in the event log is "Julian" and only refers to the month and day (not the year). While the D8112 has no specific Year 2000 issue, it will not (nor has it ever) automatically support the Leap Month rollover. The user can continue to manually reset the date on March 1 at the Command Center. See RAM (below) for information on how the memory log is displayed at the Central Station. The date and time of transmitted events are established at the time of receipt by the receiver and are not a function of the transmitter. Based on our internal testing, we anticipate the date change to the Year 2000 should not affect these products.

Press "Command 45". Enter the new time using 24-hour (Military) data entry. E.g. 1:30 PM = 13:30. Allowable entry range is from 00:01 to 23:59. 24:00 is not an allowable entry.

Press "Command 46". The current Day or MM/DD will display.

Month / Date displays will show (e.g. APR 23). Enter the full Month / Date desired using the number value for the desired month (e.g. 0429) and press the "Command" key to set. Display will now return to its normal operating mode.

Control Communicators: D4000/D8000, D4012/D4013, D8012/D8013 -- These products do not have an internal clock function. A clock module D190 Test Timer was available, but it simply counted 24-hour test time intervals. The date and time of transmitted events are established at the time of receipt by the receiver and are not a function of the transmitter. Based on our internal testing, we anticipate the date change to the Year 2000 should not affect these products.

Control Communicators: 7000/9000 Series (includes D7212, D7212B/B1, D7412, D9112, D9112B/B1, D9124, D9412) -- These products use a 24-hour clock and month/day/year calendar to determine communication test times, schedule automatic events and to store events in memory. The date stored in the event log includes month, day and year. The correct year (00) is displayed at the command center and printed on the local printer when the year changes from 1999 to 2000. See RAM (below) for information on how this is displayed at the Central Station. The date and time of transmitted events are established at the time of receipt by the receiver and are not a function of the transmitter time and date. Based on our internal testing, we anticipate the date change to the Year 2000 should not affect these products.

D7024, DS9400 Fire Control -- Uses a 24-hour clock and month/day/year calendar to determine communication test times and to store events in memory. The date stored in the event log includes month, day and year. The correct year (00) is displayed when the year changes from 1999 to 2000. The date and time of transmitted events are established at the time of receipt by the receiver and are not a function of the transmitter time and date. Based on our internal testing, we anticipate the date change to the Year 2000 should not affect these products.

D8024 D9024 and D10004 Analog Fire Control -- Based on our internal testing, we anticipate the date change to the Year 2000 should not affect these products.

D9124 Addressable Fire Control-- Uses a 24-hour clock and month/day/year calendar to determine communication test times, schedule automatic events and to store events in memory. The date stored in the event log includes month, day and year. The correct year (00) is displayed at the command center and printed on the local printer when the year changes from 1999 to 2000. See RAM (below) for information on how this is displayed at the Central Station. The date and time of transmitted events are established at the time of receipt by the receiver and are not a function of the transmitter time and date. Based on our internal testing, we anticipate the date change to the Year 2000 should not affect these products.

Programmers: D5000, D5010, D5050, D5100 and D5200 -- These products contain no date specific information or programming and contain no clock or time storage. Some of the products that these programmers support do contain date specific information (such as the date of a holiday) but these are stored in month/day or "Julian" day format only and do not contain any year or leap year specific information. Based on our internal testing, we anticipate the date change to the Year 2000 should not affect these products.

RAM (Remote Account Manager) -- These products use the time set from the computer operating system (either DOS, Windows® or Windows95®). Since most panels do not send year data for logged events RAM II calculates years by using the year in the RAM computer. For "Julian" dates less than the "current day" it assumes the current year and events with "Julian" dates higher than the "current day" are assumed to be from the prior year. RAM III and IV do not record years in logged history. Events are recorded with dd/mm in the order received. Based on our internal testing, we anticipate the date change to the Year 2000 should not affect these products. We advise the users of PC controlled systems (like RAM) to check their PC for Year 2000 compliance. There are software utilities available that can automatically test this. Please contact your PC manufacturer (e.g., Compaq, Dell, IBM, etc.) for further information.

Easikey® / Easikey® 1000 -- These products use a 24 hour clock and day of week schedule to control access. They do not use dates for any type of holiday control or other processing. Based on our internal testing, we anticipate the date change to the Year 2000 should not affect these products.

Readykey® -- These systems consist of both hardware and software components. Readykey® hardware consists of K2000 series (K2000AM and K2000N) door controllers or K1100/K2100 series door controllers. All K1100, K2100 series controls (version 2.00 and higher) are Year 2000 compliant. All K2000AM (version 1024 and higher) and K2000N (version 1014 and higher) series controls are also Year 2000 compliant. Based on our internal testing, we anticipate the date change to the Year 2000 should not affect these products. For K2000 series and K1100/K2100 series door controllers before the versions mentioned above, upgrade Eproms are available. Order model number K2099-AM, K2099-N or K2199 accordingly.

Readykey® software consists of DOS (K6000-AM, K6000-MS) and Windows® (K6100) based versions. Readykey for Windows® software V2.0 or higher should not be affected by the change to the Year 2000. For Readykey® DOS based software or Readykey for Windows® software versions lower than 2.0, update software is available by contacting Radionics ReadykeyÒ support group at (800) 538-5807. Order model number K6010-AM, K6010-MS for the K6000 upgrade or K6100-D for the K6000 upgrade.

We advise the users of PC controlled systems (like Readykey®) to check their PC for Year 2000 compliance. There are software utilities available that can automatically test this. Please contact your PC manufacturer (e.g., Compaq, Dell, IBM, etc.) for further information.

Warning: The cycling of the Year 2000 date on a live Readykey® system can corrupt your event database. Do not attempt to perform this by yourself. Contact your Readykey® dealer for assistance.

SAFECOM ST1000 Central Station Receiver Software --The change to the Year 2000 should not affect the ST1000 Central Station Receiver Software or any other Safecom® peripheral products.

SAFECOM SC9001 UL Listed Computer System -- The CompaqÒ 386 PC ships as part of the SC9001 UL Listed Central Station system contains a non-compliant Year 2000 BIOS. After the Year 2000 roll over occurs, the PC's time and date MUST be manually reset at least once, even if the date appears to be correct! If power is not applied during the Year 2000 roll over, the system clock resets to January 4, 1980. This can be manually reset to the Year 2000 for continued normal operation. Note: Dates must be entered in a 4 digit format i.e. 01/01/2000. We advise the users of all PC controlled systems (like SAFECOM®) to check their PC for Year 2000 compliance. There are software utilities available that can automatically test this. Please contact your PC manufacturer (e.g., Compaq, Dell, IBM, etc.) for further information.

FastLink Long Range Radio -- C6571 / C6571S, C6572 / C6572S, C6573S -- These products contain a local clock and date function used for on site viewing and marking locally buffered history events. Date and time are not transmitted external to the device. Upon complete power fail, all time, date and history buffer information is lost. The year will initially default to 01/01/96. When power is re-applied the clock and date will need to be reset at the front panel of the device. The year will be displayed in two digit format only, (e.g., 99, 00, 01) and will roll correctly for the Year 2000.

Sincerely,

George E. Behlke

Vice President, Operations

Rev. V