Security System Integrators/Installers to Account for Larger Share of Home Systems Sales

Parks Associates launches project to recruit qualified dealers to advance home system sales

For Immediate Release

Contact: Jenny Barrett, Chelsey Tyson
Parks Associates
972 -490 -1113
Email: jenny@parksassociates.com;
chelsey@parksassociates.com

Security System Integrators/Installers to Account for Larger Share of Home Systems Sales
Parks Associates launches project to recruit qualified dealers to advance home system sales

Dallas, Texas July 27, 2006 - The demand for installation services for control, audio, and home theater systems will drive growth in these product categories for security dealers, according to Advancing Home Systems via Security Channels, a new report from Parks Associates, in partnership with SDM Magazine.

Currently, 70% of dealer revenues from residential sales comes from traditional security systems and monitoring services, and only 30% is from advanced, non -traditional systems, a percentage Parks Associates predicts will increase over the next five years as these systems become more capable and affordable but also more complicated.

"Many security system dealers can capitalize on this emerging opportunity," said Bill Ablondi, director of home systems research at Parks Associates. "Demand for integrated home entertainment systems is substantial and building momentum as consumers learn about the lifestyle benefits such systems afford. One critical challenge to overcome is the current gap between supply and demand and the installation and setup services that are critical to getting these systems into the home."

The security channel is already selling and installing many more product categories than just alarm and related systems, according to Advancing Home Systems via Security Channels, and as homes add more devices, from entertainment PCs to Internet -connected gaming devices, they will look for ways to connect and control the various systems, making this domain potentially lucrative to security dealers.

"An attractive attribute of the security dealer channel is that their business model is designed to serve existing homes as well as new construction," Ablondi said. "Dealers reported that 47% of their security systems go into new construction and 53% into existing homes, and we all know that existing homes outnumber new homes by a ratio of 100:1."

Parks Associates, in partnership with SDM Magazine, has just completed the first of two surveys of the security systems and integration channel in the U.S. as a part of Parks Associates' Advancing Home Systems via Security Channels multiclient study. More than 400 integrators/installers participated in the research, which was conducted during the first two weeks of June. A total of 275 qualified dealers completed the entire survey.

Advancing Home Systems via Security Channels is preparing to enter its second phase, driven by clients to identify product categories that security/low -voltage dealers are equipped and interested in offering. The project will also develop recommendations for manufacturers on how to engage dealers to expand their channels and develop effective channel programs.

For additional information on Advancing Home Systems via Security Channels, visit http://www.parksassociates.com or contact 972 -490 -1113 or sales@parksassociates.com.

About Parks Associates: Parks Associates is a market research and consulting firm focused on all product and service segments that are "digital" or provide connectivity within the home. The company's expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.

Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start -ups through market reports, multiclient studies, consumer research, workshops, and custom -tailored client solutions. Parks Associates also hosts several fall events and co -hosts CONNECTIONS™ (in partnership with the Consumer Electronics Association) each year. www.parksassociates.com

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