Protection One, Inc.

Re: Form 10-Q Report for the quarter ended September 30, 1999.

Gentlemen/Ladies:

This letter is written to meet the  requirements of Regulation S-K calling for a
letter from a  registrant's  independent  accountants  whenever there has been a
change in accounting principle or practice.

We have been  informed  that,  as of July 1, 1999,  Protection  One,  Inc.  (the
Company)  changed from the  straight-line  method of accounting  for  amortizing
customer  acquisition  costs for its North America and Europe  customer  account
pools to a declining balance (accelerated)  method.  According to the management
of the Company,  this change was made to more closely match future  amortization
cost with the estimated revenue stream from these assets.

A complete  coordinated set of financial and reporting standards for determining
the  preferability  of  accounting   principles  among  acceptable   alternative
principles  has not been  established  by the  accounting  profession.  Thus, we
cannot  make an  objective  determination  of whether  the change in  accounting
described in the preceding paragraph is to a preferable method. However, we have
reviewed the pertinent factors,  including those related to financial reporting,
in this particular case on a subjective  basis,  and our opinion stated below is
based on our determination made in this manner.

We are of the opinion that the Company's change in method of accounting is to an
acceptable  alternative  method of  accounting,  which,  based upon the  reasons
stated for the change and our discussions with you, is also preferable under the
circumstances  in this  particular  case. In arriving at this  opinion,  we have
relied on the business judgment and business planning of your management.

We have not audited the  application of this change to the financial  statements
of any period subsequent to December 31, 1998. Further, we have not examined and
do not express any opinion with  respect to your  financial  statements  for the
three and nine months ended September 30, 1999.

Very truly yours,

ARTHUR ANDERSEN LLP