UBS Investment Bank advised Stanley and USBX Advisory Services advised ISR Solutions on this transaction. Together with the previously-announced proposed Security Group acquisition, this move accelerates Stanley Security Solutions towards its goal of building the first global network of total access and security solutions with a direct-to-end user delivery system.<?xml:namespace prefix = o ns = “urn:schemas-microsoft-com:office:office” />

“Our direct business model creates a unique value proposition for our end-user customers, and that is what distinguishes us from the competition,” said Justin Boswell, President of Stanley Security Solutions.

“ISR brings a strong, experienced management team. It fits well with our strategy of expanding direct sales and service operations to more effectively serve our customers.

“This acquisition strengthens the presence we will gain with the proposed Security Group acquisition in a very important vertical market, the <?xml:namespace prefix = st1 ns = “urn:schemas-microsoft-com:office:smarttags” />U.S. federal government. The ISR transaction provides an important entry into the Homeland Security sector, which we will continue to focus upon and where we anticipate substantial future growth.”

“I am very excited about the opportunities that becoming part of Stanley Security Solutions will provide to our employees, customers, suppliers and teaming partners. The expanded footprint will give ISR a much stronger presence throughout the United States,” said Joseph Costa, President and Chief Executive Officer of ISR Solutions.

Mr. Costa will join the Stanley Security Solutions leadership team, focusing on the electronic security integration business.

Annualized 2004 ISR revenues of approximately $40 million represent about a 6% increase in Stanley Security Solutions’ total revenue base. The acquisition is expected to be nominally accretive to earnings in 2005.

Mr. Boswell continued, “We are raising the standard in this industry. We believe customers will reward those suppliers who combine customized solutions with consistent and coordinated service across their global enterprise. Stanley is committed to being that partner for our customers.”

John Lundgren, Chairman and Chief Executive Officer of The Stanley Works commented: “We recently announced the disposition of our less strategic consumer home decor business. The ISR Solutions acquisition, together with the previously-announced Security Group and Cal-Dor acquisitions, are expected to replace approximately two-thirds of the revenues and most and eventually all of the lost earnings from the home decor business sale. These moves continue the shift of our portfolio toward favored markets with higher inherent growth and profitability.”

“Upon successful completion of the Security Group acquisition, we would expect our Security Solutions growth platform to account for approximately 25% of the company’s revenues in 2005. And as we recently indicated, we expect our acquisition activity to continue in 2005.”