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Protection One, Inc.  Securities Litigation
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Protection One, Inc.  (NasdaqGM: PONE)  shareholder litigation in connection with
alleged unfair takeover offer

On April 26, 2010, Protection One, Inc. (“Protection One” or the “Company”)  
announced that it had agreed to sell the Company to private equity firm GTCR LLC
("GTCR"). Under the terms of the transaction, Protection One shareholders will
receive $15.50 in cash for each Protection One share of common stock they own for
a total transaction value of approximately $828 million, including the assumption of
debt.

For the quarter ending December 31, 2009, Protection One reported total revenue of
$90.344 million and net income of $22.965 million as compared to total revenue and
a net loss of $92.560 million and $122 thousand, respectively, for the prior quarter.
The investigation concerns whether the Protection One Board of Directors breached
their fiduciary duties to Protection One stockholders by failing to adequately shop the
Company before entering into this transaction and whether GTCR is underpaying for
Protection One shares, thus unlawfully harming Protection One stockholders.