Pelco News Release - March 26, 2004

For Immediate Release

Pelco to Expand Clovis Headquarters

Pelco, the world’s leading producer of video security systems, announced today that it will be substantially expanding its Clovis, California World Headquarters operations with the construction of another new building and the creation of at least 500 additional jobs. Company officials attribute this expansion to increasing worldwide product demand, and to the continuing introduction of new, technically advanced products. Construction of the new 144,000 square foot facility - designated as Building Seven - will begin later this year with completion scheduled for early next year. With this addition, Pelco’s Clovis operations will expand to over 550,000 square feet of buildings spread over nearly forty acres.

Already the Central Valley’s largest manufacturing employer, Pelco’s 1,600 person workforce will increase to over 2,100 by the end of 2005. The newly created jobs will cover a complete range from production workers to professional and management positions. A new day care center for employees’ children will also be added as part of this project. All of Pelco’s manufacturing operations are located in Clovis. Commenting on the growth plans, Pelco’s Manufacturing Vice President Tim Glines stated, "Continuing, heavy investments in leading-edge manufacturing technologies, coupled with our outstanding, productive workforce, allow our Clovis made products to effectively compete anywhere in the world. ‘Made in USA’ is an unshakable part of our culture." The company has access to an additional twenty-five acres in the Clovis Industrial Park for future growth.

Increasing demand for Pelco products is particularly strong in international markets where the company has recently opened numerous customer support offices, Distribution Centers, and designated service centers. The company’s sharply expanding international presence has led to Pelco products increasingly being chosen for major, high profile projects such as the 2004 Summer Olympic Games in Athens, Greece. International Vice President Jim Brannan stated, "We are ‘franchising’ the company’s enormously successful USA business model to every corner of the Globe - as fast as we can."

Pelco officials further noted that the company’s ongoing success is being continuously fueled by a steady flow of advanced new digital and network based video products. In recent years, Pelco’s Engineering/Research and Development Group has increased to over 225 people; and in 2003 a 40,000 square foot dedicated Product Development Center was opened. Executive Vice President Carrie Migliore commented, "We have assembled the most talented, powerful product development group ever seen in this industry. Staying ahead of the technology curve is the best, possible long term insurance for Pelco and our customers."

Commenting on the growth plans and the fact that Pelco has just received its tenth consecutive PSA Superstar Award - the most prestigious customer satisfaction award in the security industry - Pelco CEO David L. McDonald said, "We are obviously pleased at our continuing growth and success which, I feel, we owe to our truly exceptional employees who, every day, surprise our customers with an unexpected level of service and support." Regarding the industry’s ever-changing competitive landscape, McDonald further stated, "There have been so many acquisitions, divestitures, mergers, and name changes with our major competitors that it’s hard to even keep track of. It seems the entrepreneurial culture which made the original companies successful in the first place, is now being lost in the shuffle. By contrast, we have had the same management, mission, location and private ownership for the past seventeen years. I think customers see us as the one, rock-solid supplier they can always count on."