Rural/Metro Issues Reminder to Stockholders on Transactions That May Impact IRS Section 3... ( SCOTTSDALE Ariz. July 8 /- Rural/...)

Rural/Metro Issues Reminder to Stockholders on Transactions That May Impact IRS Section 382 Outcome

Date:7/8/2008

SCOTTSDALE, Ariz., July 8 /PRNewswire-FirstCall/ -- Rural/Metro Corporation (Nasdaq: RURL) issued another reminder today for current and potential holders of 5% or more of the Company's common stock in relation to its ongoing analysis of the impact of change-in-ownership rules under Section 382 of the U.S. Internal Revenue Code ("Section 382").

In general, Section 382 limits the use of a corporation's net operating losses and certain other tax benefits following a change in ownership of the corporation. Section 382 rules governing when a change in ownership occurs are complex and subject to interpretation; however, a change in ownership generally occurs when there has been a cumulative change in the stock ownership of the corporation held by 5% stockholders of more than 50 percentage points over an applicable three-year period.

To the extent the Company has not experienced a change in ownership, subsequent changes in the stock ownership of the Company could result in a change in ownership that would trigger the limitations of Section 382. If the Company were to experience a change in ownership under Section 382, the Company may be limited in its ability to fully utilize its net operating loss tax assets to offset future taxable income.

The Company recognizes that investment decisions are within the discretion of each investor; however, along with the other risk factors set forth in the Company's most recent Form 10-K and other public filings, the Company advises investors to consider the potential negative impact of Section 382 on the Company that can arise from any of the following trading transactions (either alone or in combination):

-- Any transfer of common stock by a 5% stockholder.

-- Any transfer
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