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Rural/Metro, San Diego Sign Contract

Rural/Metro Corporation, a leading national provider of ambulance and private fire protection services, announced today that it has finalized a new contract to continue as the City of San Diego's exclusive provider of emergency ambulance services through June 2013.

Michael DiMino, President and Chief Executive Officer, said, "We are very pleased that the City of San Diego has once again selected Rural/Metro as its trusted, exclusive provider of emergency medical ambulance services in this growing, high-performance 911 system.

"We are tremendously proud of the excellent services we have provided in 14 years as the City's EMS partner, and our dedicated work force of emergency professionals will continue to deliver the highest quality services as we move forward under the new agreement."

The two-year agreement begins July 1, 2011 and is expected to generate annualized net revenue of approximately $55 million.

The contract reflects the City's new service delivery model, which involves the City no longer being an equity partner in a joint venture with Rural/Metro. Instead, the Company has entered into a definitive agreement to acquire the City's interest in San Diego Medical Services Enterprise L.L.C. (SDMSE) for $5.5 million, following a vote last week by the San Diego City Council authorizing the sale. Upon completion of the purchase, which is scheduled to occur on June 30, 2011, Rural/Metro will own 100% of the interest in the former joint venture and will retain all operating assets and contracts currently served by SDMSE.

Rural/Metro and the City continue to work toward a resolution of matters raised in a City Auditor's report issued on April 25, 2011 regarding Rural/Metro's role in SDMSE. To facilitate a timely process, Rural/Metro and the City are working with the assistance of a neutral mediator and third-party auditor.



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