DALLAS — Monitronics International, Inc., a leading national provider of security alarm monitoring services, today announced its financial results for the fourth quarter and fiscal year ended June 30, 2005.

Fourth Quarter Results
Total revenues were $42.1 million in the three months ended June 30, 2005 compared to $39.0 million for the three months ended June 30, 2004, which was an increase of $3.1 million, or 8%.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) were $29.4 million for the three months ended June 30, 2005 compared to $28.0 million for the three months ended June 30, 2004, which was an increase of $1.4 million, or 5%.

The Company reported a net loss of $16.5 million in fiscal year 2005 compared to breakeven for fiscal 2004. The loss in fiscal 2005 was primarily due to the Company recording a $15.2 million valuation allowance against its deferred tax asset. The valuation allowance was established in accordance with Financial Accounting Standard Board Statement No. 109, Accounting for Income Taxes, as a result of experiencing a cumulative loss before income taxes for the three-year period ending June 30, 2005 and concluding that it was more likely than not that the deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which temporary differences become deductible.

FY2005 Results

Total revenues were $165.5 million in fiscal year 2005 compared to $150.3 million in fiscal year 2004, which was an increase of $15.2 million, or 10%.

EBITDA was $115.6 million in fiscal year 2005 compared to $107.8 million in fiscal year 2004, which was an increase of $7.8 million, or 7%.

Net loss was $19.2 million in fiscal year 2005 compared to net loss of $4.7 million in fiscal year 2004, which was an increase of $14.5 million. The loss in fiscal 2005 was primarily due to the Company recording a $15.2 million valuation allowance against our deferred tax asset. The valuation allowance was established in accordance with Financial Accounting Standard Board Statement No. 109, Accounting for Income Taxes, as a result of experiencing a cumulative loss before income taxes for the three-year period ending June 30, 2005 and concluding that it was more likely than not that the deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which temporary differences become deductible.

Operations Perspective

James R. Hull, Chief Executive Officer of Monitronics commented, “This year we have reported a slight increase in the 12-month attrition rate to 13.3% as a reaction to a change in the renewal policy and we expected that change to be temporary as we cancelled a specific, small number of accounts ahead of schedule.” Mr. Hull continued, “It appears now that the change was temporary. We continue to make progress reducing attrition as the trailing three-month annualized attrition rate has decreased from a peak of 15.4% for the three months ended December 31, 2004 to an annualized attrition rate of 12.2% for the three months ended June 30, 2005.”

EBITDA represents a non-GAAP (Generally Accepted Accounting Principles) financial measure. EBITDA is a key performance measure used in the security alarm monitoring industry and is one of the financial measures, subject to adjustments, by which our covenants are calculated under the agreements governing our debt obligations. EBITDA does not represent cash flow from operations as defined by GAAP, should not be construed as an alternative to net income, and is indicative neither of our operating performance nor of cash flows available to fund all of our cash needs. A table reconciling this measure to the appropriate GAAP measure is included in this press release.