NAPCO Security Technologies (NSSC) Ships First Quantities of Its New Starlink 2, Two-Way GSM Alarm System Communicator

NAPCO Security Technologies, Inc., (NASDAQ: NSSC), one of the world’s leading suppliers of high performance electronic security equipment for over 30 years, has shipped Starlink 2, its innovative, two-way GSM alarm system communicator that replaces hardwire dial up phone lines by transmitting GPRS burglar/fire/medical emergency signals to alarm central stations. Starlink 2 marks the launch of NAPCO’s second potentially significant recurring revenue product line. It is priced at $99.95 to installers and provides a $5.00 to $8.00 recurring monthly service fee to NAPCO.

NAPCO believes the potential addressable market includes a hundred thousand plus new alarm systems produced each year, five million plus current alarm systems it has out in the field that can be upgraded to the new Starlink 2 system, and tens of millions of competing alarm systems that could also be upgraded to Starlink 2.

NAPCO expects many factors to drive demand to upgrade. Approximately one-third of all households do not have dial-up phone lines and would need Starlink 2 to communicate to the central station. Homes with VoIP lines which block alarm signals also need Starlink 2. In addition, Starlink 2 provides added security to vulnerable homes that have dial-up phone lines, maintaining communications even if burglars cut outside cables in an effort to bypass existing alarm systems.

Starlink 2 also offers dealers easy installation which is fully 2 way uploadable and downloadable, so security dealers can program or reprogram the installed NAPCO alarm systems without visiting the premise. The Starlink 2 also provides the central station with information on the location of the burglar on a premise as well as the location of a fire. Additionally, alarm central stations do not have to install any special equipment to receive the StarLink 2 signals.

Richard Soloway, Chairman and CEO of NAPCO Security Technologies commented, “NAPCO is committed to selling products like Starlink 2 that will improve security while adding predictable revenue, expanding our margins and driving top line growth. As we increase our revenue by gaining new customers, selling deeper into existing channels and launching new products like Starlink 2 today, we multiply gains to the bottom line due to fixed costs and leverage that exist in our business. We are excited about the market potential for upgrading existing security systems as well as for new installations. Current alarm systems that depend on dial up phone lines unfortunately have exposure to tampering and VoIP line caused interference. Starlink 2 addresses both of these issues as well as adding an impressive array of new features for the security professional.”

About NAPCO Security Technologies, Inc.

NAPCO Security Technologies, Inc. is one of the world’s leading manufacturers of technologically advanced electronic security equipment including intrusion and fire alarm systems, access control and door locking systems. The Company consists of NAPCO plus three wholly-owned subsidiaries: Alarm Lock, Continental Instruments, and Marks USA. The products are installed by security professionals worldwide in commercial, industrial, institutional, residential and government applications. NAPCO products have earned a reputation for technical excellence, reliability and innovation, poising the Company for growth in the rapidly expanding electronic security market, a multi-billion dollar market.

For additional information on NAPCO, please visit the Company’s web site at www.napcosecurity.com.

This press release contains forward-looking statements that involve numerous risks and uncertainties. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including those set forth in the Company’s filings with the Securities and Exchange Commission.