RURAL/METRO REPORTS STRONG THIRD QUARTER REVENUE

AND OPERATING PERFORMANCE

Company Announces $7 Million Unscheduled Debt Payment

SCOTTSDALE, Ariz. (May 16, 2005) – Rural/Metro Corporation (Nasdaq/SC: RURL), a leading provider of medical transportation and private fire protection services, today announced financial results for its fiscal 2005 third quarter ended March 31, 2005.

Net revenue for the fiscal 2005 third quarter increased 8.2% to $145.2 million, compared to $134.3 million in the prior year’s third quarter. Net revenue for the nine months ended March 31, 2005 increased 6.4% to $418.9 million, compared to $393.8 million for the same period a year ago. Fiscal 2005 third-quarter and year-to-date revenue growth primarily reflects a combination of an increase in the number of medical transports and higher billing rates in both the company’s medical transportation and fire protection businesses.

For the fiscal 2005 third quarter, the company reported a loss of $3.0 million, or a loss of $0.13 per diluted share, compared to net income of $2.2 million, or $0.00 per diluted share for the prior year’s third quarter. Third-quarter fiscal 2005 results include a loss on the early extinguishment of debt of $8.2 million, which represents an after-tax loss of $0.32 per diluted share. This loss is comprised of a non-cash write-offs of $5.6 million in debt issuance costs and $0.1 million in unamortized discounts, as well as $2.5 million related to cash redemption premiums.

Net income for the fiscal 2005 nine-month period was $4.5 million, or $0.19 per diluted share, compared to net income of $4.9 million, or $0.04 per diluted share for the same period a year ago. Fiscal 2005 nine-month results include a loss on the early extinguishment of debt of $8.2 million, which represents an after-tax loss of $0.32 per diluted share. The loss per share for the fiscal 2004 period included the impact of allocating net income to the company’s former Series B and Series C preferred stock, as well as a related accretion charge.

Rural/Metro today also announced that it made a $7.0 million unscheduled payment to reduce the principal balance of its Term Loan B from $135.0 million to $128.0 million. The company anticipates a resulting interest savings of approximately $350,000 per year.

Jack Brucker, President and Chief Executive Officer, said, "We are pleased with our ongoing efforts to extend our presence in high-growth service areas and generate solid and consistent revenue growth. At the same time, we are deriving benefits from ongoing improved operating efficiencies that provide greater flexibility to selectively enter new markets. Each of these factors enable us to make progress toward our goal to improve the company's long-term liquidity through debt reduction."

Medical Transportation and Related Services: Same-service-area medical transportation revenue increased 7.3% for the third quarter ended March 31, 2005 and 5.5% year-to-date compared to the same prior year periods. Net revenue in this segment for the fiscal 2005 third quarter increased 7.9% to $125.1 million, compared to $115.9 million in the prior year’s third quarter. For the nine months ended March 31, 2005, net revenue increased 5.9% to $358.5 million, compared to $338.4 million for the prior year period. The company attributed the growth in the segment to higher transport volume and increases in rates.

Fire and Other: Fire and other revenue for the fiscal 2005 third quarter increased 9.7% to $20.1 million, compared to $18.4 million in 2004. For the nine months ended March 31, 2005, fire and other revenue increased 9.0% to $60.5 million, compared to $55.4 million for the prior year nine-month period. Revenue growth in the fire and other segment primarily reflects general rate increases and an increase in the number of new fire subscription customers.

During the third quarter, the company refinanced its former amended credit facility and senior notes. The company entered into a new senior secured credit facility, consisting of a $135.0 million Term Loan B due 2011; a $20.0 million, undrawn revolving credit facility due 2010; and a $35.0 million letter of credit facility due 2011. Concurrently, the company issued $125.0 million of 9.875% senior subordinated notes due 2015 and the company issued $93.5 million aggregate principal amount at maturity (gross proceeds of $50.2 million) of 12.75% senior discount notes due 2016.

Mr. Brucker continued, "With improved cash flows and an improving balance sheet, we have established a solid foundation to capitalize on the growing demand for our services and we believe our long-term business prospects are positive. Our new debt structure provides greater strength and flexibility to expand our operations in existing service areas and select new markets that are consistent with our strategic growth objectives."

For the third quarter ended March 31, 2005, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $6.9 million, compared to $12.3 million for the prior-year comparable period. Third-quarter fiscal 2005 EBITDA includes the $8.2 million loss on early extinguishment of debt.

For the nine months ended March 31, 2005, EBITDA was $35.5 million, compared to $36.7 million for the same period a year ago. Fiscal 2005 nine-month EBITDA includes the $8.2 million loss on early extinguishment of debt.

The company regards EBITDA, which is widely used by analysts, investors, creditors, and other interested parties, as relevant and useful information. The company provides this information to permit additional analysis of its ability to meet future debt service, capital expenditures, and working capital requirements. Additionally, the company’s management uses this information to evaluate the performance of its operating units. EBITDA is not intended to represent cash provided by operating activities as defined by generally accepted accounting principles, and it should not be considered as an indicator of operating performance or an alternative to cash provided by operating activities as a measure of liquidity. The company has provided a reconciliation of net income to EBITDA in the attached tables.

The company’s key operating metrics continued to trend positively in the fiscal 2005 third quarter. Medical transport volume grew 5.0% to 279,312 transports, compared to 266,064 in last year’s third quarter. Additionally, net/net EMS average patient charge ("net/net EMS APC") grew 5.8%, or $18 per transport, to $330 compared to $312 for the third quarter of 2004. The company considers net/net EMS APC its best approximation of cash collected per transport. For the fiscal 2005 third quarter, average quarterly days sales outstanding ("DSO") dropped to 43 days compared to 45 days in the prior year’s third quarter.

Mr. Brucker continued, "We are committed to building on the positive momentum we have created in these and other key performance areas and we continue to focus on high-quality, low-risk growth in existing and select new markets while further enhancing our operational efficiencies and billing effectiveness."

Following is a summary of certain of the company’s key operating statistics. Medical transports and net/net EMS APC statistics have been adjusted to eliminate discontinued operations for all periods presented:

(1) Medical transports from continuing operations are defined as actual emergency and non-emergency medical transports, excluding those under fixed-fee arrangements.

(2) Net/net EMS APC is defined as gross medical transport revenue minus provisions for Medicare, Medicaid and other third-party payers, and doubtful accounts, divided by emergency and non-emergency transports from continuing operations. For purposes of this calculation, revenue and transports related to fixed-fee arrangements are excluded.

(3) DSO is defined as average accounts receivable divided by consolidated net revenue per day, as calculated on a quarter-to-date basis.