CEO Letter to Mace Stockholders
June 2011
Dear Mace Stockholders:
Thank you for your continued support throughout this past year as the Mace team worked to resolve
several challenging issues. The management team is focused on re-financing the company, indentifying
strategic business opportunities, and continuing cost containment programs. We are committed to
creating long-term shareholder value.
The economy continues to be challenging. We are meeting the challenge by divesting our remaining noncore and under-performing assets while working to reinvest in key acquisitions that will increase our
revenues and leverage the Mace brand. We have also expanded our marketing efforts for our existing
products.
I hope you can join us on July 14, 2011 for our Annual Stockholders Meeting to be held in New York City
at 11:00 AM at the New York Athletic Club.
Overview of 2010:
• Mace settled its arbitration dispute with its former CEO for an agreed upon amount of $4.6
million. With this settlement, all legal actions between the former CEO and Company have
been dismissed and mutual releases became effective.
• Mace joined the OTCQB™ exchange on September 30, 2010 operated by OTC Markets, Inc.
OTCQB™ designates securities of OTC traded companies that are registered and fully
reporting with the Securities and Exchange Commission.
• Mace Security Products, Inc. launched MaceView™, a new line of security surveillance and
recording equipment value-engineered for its small business and home security customers,
and MacePro™, a new line of equipment designed to meet professional security needs and
demands.
• Mace CSSS (“Mace CS”) located in Anaheim, CA received the prestigious “CSAA Five
Diamond Certification.” According to CSAA, “fewer than 100 central stations out of 2,700
nationwide have achieved this honor.” The certification signifies that 100% of Mace CS
operators have achieved proficiency and certification by passing the CSAA Central Station OnLine Operator Training Course.
• Mace completed the sale of five of its Texas car washes in 2010 and the first quarter of 2011
for total net proceeds of approximately $2.4 million, net of closing costs and after paying down
existing debt of approximately $1.6 million. These five sales reduced the number of owned or
leased car washes to three, one of which is currently under an agreement of sale.
• Mace resolved its environmental law violations with the state of Vermont by agreeing to pay a
fine of $100,000. The plea agreement of a Mace subsidiary was accepted by the court in May
2011, as proposed.
• Mace completed the sale of its non-core business, Linkstar Corporation, the e-commerce
division of its digital media marketing operation, generating net proceeds of approximately $1.1
million.Looking ahead:
• We completed our first planned expansion of our Central Monitoring Station (Mace CS) located
in Anaheim, CA, with the March 2011 acquisition of The Command Center Inc. based in
Corona, CA. This acquisition was an important component of our future goal of making further
investments in the recurring monthly revenue (“RMR”) central monitoring station business.
• With the announcement of our soon to be launched MaceBuddi GPS tracker/locator/panic
button, we are expanding our products division by offering new products that have RMR
potential, through leveraging our state-of-the-art central monitoring station with personal safety
products.
• In 2011, with the anticipated funding from our planned rights offering, we will recapitalize the
Company, allowing us to focus on additional central monitoring station acquisitions, increasing
marketing efforts for our Personal Defense division, and introducing security products that
enhance our central station offerings. The Mace brand is uniquely positioned in the personal
safety industry and future marketing campaigns will focus on reinforcing the valuable Mace
brand name as a recognized security products leader for consumers.
We at Mace appreciate your loyalty and support. We look forward to a brighter future as we execute our
business strategies.
Dennis Raefield
CEO
Mace Security International, Inc.