UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                            ------------------------
                                    FORM 10-K

(Mark One)

[X]         ANNUAL  REPORT  PURSUANT  TO SECTION  13 OR 15(d) OF THE  SECURITIES
            EXCHANGE ACT OF 1934

            For the fiscal year ended December 31, 1999
                                       OR
[ ]         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
            EXCHANGE ACT OF 1934

            For the transition period from _______________  to  ________________

                           Commission file No. 1-4422
                           --------------------------
                                  ROLLINS, INC.
             (Exact name of registrant as specified in its charter)

              Delaware                          51-0068479
   (State or other jurisdiction of           (I.R.S. Employer
   incorporation or organization)           Identification No.)

                2170 Piedmont Road, N.E., Atlanta, Georgia 30324
               (Address of principal executive offices) (Zip Code)

       Registrant's telephone number, including area code: (404) 888-2000

           Securities registered pursuant to Section 12(b) of the Act:


          Title of each class         Name of each exchange on which registered
          -------------------         -----------------------------------------
      Common Stock, $1 Par Value             The New York Stock Exchange
                                              The Pacific Stock Exchange

        Securities registered pursuant to section 12(g) of the Act: None.

     Indicate  by check mark  whether the  Registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
Registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]

     Indicate by check mark if disclosure of delinquent  filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]

     The  aggregate  market  value  of  Rollins,   Inc.  Common  Stock  held  by
non-affiliates on February 29, 2000, was $220,694,369 based on the closing price
on the New York Stock Exchange on such date of $16 3/16 per share.

     Rollins,  Inc.  had  29,881,458  shares of Common Stock  outstanding  as of
February 29, 2000.

                       DOCUMENTS INCORPORATED BY REFERENCE

     Portions of Rollins,  Inc.'s Annual Report to Stockholders for the calendar
year ended December 31, 1999 are  incorporated by reference into Part I, Item 1,
Part II, Items 5-8, and Part IV, Item 14.

     Portions of the Proxy Statement for the 2000 Annual Meeting of Stockholders
of Rollins, Inc. are incorporated by reference into Part III, Items 10-13.


                                     PART I

Item 1. Business

(a) General development of business.

     There have been no significant  changes in the nature of business conducted
by the  Registrant  since  December 31, 1998.  During the year,  the  Registrant
completed  several  strategic  acquisitions  designed to  strengthen  its market
position. Details of acquisitions and the creation of the joint venture which is
discussed  at  (c)(1)(ii)  below and which are  included  on page 16 of the 1999
Annual Report to Stockholders are incorporated herein by reference.

(b) Financial information about industry segments.

     The  Registrant  has  only one  reportable  segment,  its pest and  termite
control  business.  Revenue,  operating profit and identifiable  assets for this
segment  included on pages 12 and 13 of the 1999 Annual  Report to  Stockholders
are incorporated herein by reference.

(c) Narrative description of business.

         (1)(i) The Registrant is a national  service company with  headquarters
located in Atlanta, Georgia, providing pest and termite control services to both
residential and commercial customers.

         Orkin Exterminating  Company,  Inc. (Orkin), a wholly-owned  subsidiary
founded  in  1901,  is one of the  world's  largest  pest  and  termite  control
companies.   It  provides   customized  services  from  over  400  locations  to
approximately  1.7  million  customers.  Orkin  serves  customers  in the United
States,  Canada,  and Mexico,  providing  essential  pest  control  services and
protection against termite damage,  rodents and insects to homes and businesses,
including hotels,  food service  establishments,  dairy farms and transportation
companies.

         (ii) In 1999 the Registrant and Johnson Wax Professional entered into a
joint venture, Acurid Retail Services,  L.L.C., created to sell and provide pest
elimination services to customers in the retail market. This joint venture was a
further market expansion of AcuridSM,  Orkin's premium brand of pest elimination
services for commercial customers, which was first introduced in 1998.

         (iii) The Registrant maintains  sufficient  quantities of chemicals and
other  supplies  on hand to  alleviate  any  potential  short-term  shortage  in
availability from its national network of suppliers.

         (iv) Other than the  Orkin(R),  PCO Services,  Inc.(R),  Acurid Retail
Services,  L.L.C.(R)  trademarks  and the  AcuridSM  service  mark,  which are
material to the  Registrant,  governmental  licenses,  patents,  trademarks  and
franchises are of minor importance to the Registrant's service operations. Local
licenses  and permits are  required in order for the  Registrant  to conduct its
pest  and  termite  control  services  in  certain  localities.  In  view of the
widespread  operations of the Registrant's service operations,  the failure of a
few local  governments to license a facility  would not have a material  adverse
effect on the results of operations of the Registrant.

         (v) The business of the  Registrant is affected by the seasonal  nature
of the  Registrant's  pest and termite control  services.  The  metamorphosis of
termites in the spring and summer (the  occurrence of which is determined by the
timing of the change in seasons) has historically resulted in an increase in the
revenue  and income of the  Registrant's  pest and  termite  control  operations
during such period.

         (vi) The  Registrant  maintains a  sufficient  level of  materials  and
supplies to fulfill its servicing needs.

         (vii) The Registrant and its  subsidiaries  do not have a material part
of their business that is dependent  upon a single  customer or a few customers,
the  loss  of  which  would  have  a  material  effect  on the  business  of the
Registrant.

                                       2


         (viii) The dollar amount of service  contracts and backlog orders as of
the end of the  Registrant's  1999 and 1998  calendar  years  was  approximately
$17,750,960  and  $14,231,000,  respectively.  Backlog  services  and orders are
usually provided within the month following the month of receipt,  except in the
area of prepaid pest control where services are usually  provided  within twelve
months of receipt.

         (ix) The Registrant and its subsidiaries do not have a material portion
of their business that may be subject to renegotiation of profits or termination
of contracts at the election of a governmental entity.

         (x)  The  Registrant   believes  that  Orkin  competes  favorably  with
competitors as one of the world's largest pest and termite control companies.

         The  principal  methods of  competition  in the  Registrant's  pest and
termite control  business are service and  guarantees,  including the money-back
guarantee on pest and termite  control,  and the termite  retreatment and damage
repair guarantee to qualified homeowners.

         (xi) Expenditures by the Registrant on research  activities relating to
the development of new products or services are not significant. Some of the new
and improved service methods and products are researched, developed and produced
by unaffiliated universities and companies. Also, a portion of these methods and
products are produced to the specifications provided by the Registrant.

         (xii) Other than the impact on the Registrant of the 1997 provision for
termite  contracts which was  established to address the abnormal  occurrence of
termite claims, and the related cost to more frequently  reapply materials,  the
capital  expenditures,  earnings and competitive  position of the Registrant and
its subsidiaries are not materially  affected by compliance with federal,  state
and local provisions which have been enacted or adopted regulating the discharge
of materials into the  environment,  or otherwise  relating to the protection of
the environment.

         (xiii) The number of persons  employed  by the  Registrant  and its
subsidiaries  as of February  29, 2000 was  approximately 9,350.

(d) Financial  information  about foreign and domestic  operations  and export
sales.

         The Registrant  and its  subsidiaries  do not have foreign  operations
which are  material to their  business in terms of revenue,  income  (loss) from
continuing operations, or assets.

Item 2. Properties.

         The Registrant's  administrative  headquarters  and central  warehouse,
both of which are owned by the  Registrant,  are located at 2170 Piedmont  Road,
N.E.,  Atlanta,  Georgia 30324.  The Registrant  owns or leases several  hundred
branch offices and operating facilities used in its business. None of the branch
offices,  individually  considered,  represents a materially  important physical
property of the Registrant. The facilities are suitable and adequate to meet the
current and reasonably anticipated future needs of the Registrant.

Item 3. Legal Proceedings.

     One of the Registrant's subsidiaries, Orkin Exterminating Company, Inc., is
a named  defendant  in Helen  Cutler  and  Mary  Lewin  v.  Orkin  Exterminating
Company.,  Inc. et al. pending in the District Court of Houston County, Alabama.
The  plaintiffs in the above  mentioned case filed suit in March of 1996 and are
seeking  monetary  damages and injunctive  relief for alleged breach of contract
arising out of alleged missed or inadequate reinspections. The attorneys for the
plaintiffs  contend  that the case is suitable  for a class action and the court
has ruled  that the  plaintiffs  would be  permitted  to  pursue a class  action
lawsuit  against Orkin.  The Company  believes this case to be without merit and
intends to defend itself vigorously at trial. At this time, the final outcome of
the litigation  cannot be determined.  However,  it is the opinion of Management
that the  ultimate  resolution  of this action will not have a material  adverse
effect on the Company's financial position, results of operations or liquidity.

                                       3


         Additionally,  in the normal  course of business,  the  Registrant is a
defendant in a number of lawsuits which allege that plaintiffs have been damaged
as a result of the rendering of services by Registrant  personnel and equipment.
The  Registrant  is  actively  contesting  these  actions.  It is the opinion of
Management  that the outcome of these  actions will not have a material  adverse
effect  on  the  Registrant's  financial  position,  results  of  operations  or
liquidity.

Item 3.A. Forward-Looking Statements.

         This  Annual  Report  contains  forward-looking  statements  within the
meaning  of  the  Private  Securities   Litigation  Reform  Act  of  1995.  Such
forward-looking  statements include statements  regarding the expected impact of
the outcome of  litigation  arising in the  ordinary  course of business and the
outcome of the Helen  Cutler and Mary  Lewin v.  Orkin  Exterminating  Company.,
Inc., et al. ("Cutler") litigation on the Company's financial condition, results
of operations and liquidity;  the Company's potential for recurring revenue; and
the Company's  projected  2000  performance.  The actual  results of the Company
could differ materially from those indicated by the  forward-looking  statements
because of various risks and uncertainties  including,  without limitation,  the
possibility of a court ruling against the Company in litigation or in the Cutler
litigation;  general  economic  conditions;  market  risk;  changes in  industry
practices  or  technologies;  the  degree of success  of the  Company's  termite
process  reforms and pest control selling and treatment  methods;  the Company's
ability  to  identify  potential  acquisitions;   climate  and  weather  trends;
competitive  factors  and pricing  practices;  the failure of the Company or its
major  suppliers or customers to  adequately  address the Year 2000  programming
issue;  potential  increases in labor costs;  and changes in various  government
laws and regulations,  including environmental regulations. All of the foregoing
risks and uncertainties are beyond the ability of the Company to control, and in
many cases the Company  cannot  predict the risks and  uncertainties  that could
cause its  actual  results to differ  materially  from  those  indicated  by the
forward-looking statements.

Item 4. Submission of Matters to a Vote of Security Holders.

         There were no matters  submitted to a vote of security  holders through
the solicitation of proxies or otherwise, during the fourth quarter of 1999.

Item 4.A. Executive Officers of the Registrant.

         Each of the  executive  officers of the  Registrant  was elected by the
Board of Directors to serve until the Board of  Directors'  meeting  immediately
following the next annual meeting of  stockholders  or until his earlier removal
by the Board of  Directors or his  resignation.  The  following  table lists the
executive   officers  of  the  Registrant  and  their  ages,  offices  with  the
Registrant,  and the dates  from  which  they have  continually  served in their
present offices with the Registrant.



                                                                                                Date First Elected to
Name                                      Age             Office With Registrant                   Present Office
- ----                                      ---    ------------------------------------------     ----------------------
                                                                                               
R. Randall Rollins (1)..................   68    Chairman of the Board and Chief Executive              10/22/91
                                                 Officer
Gary W. Rollins (1).....................   55    President and Chief Operating Officer                   1/24/84
Harry J. Cynkus (2).....................   50    Chief Financial Officer and Treasurer                   5/28/98
Michael W..  Knottek (3)................   55    Vice President and Secretary                            5/28/98
- --------------------------


(1)      R. Randall Rollins and Gary W. Rollins are brothers.

(2)      Harry J. Cynkus  joined the  Registrant in April 1998 and, in May 1998,
         was elected Chief Financial  Officer and Treasurer.  From 1996 to 1998,
         Mr. Cynkus served as Chief Financial Officer of Mayer Electric Company,
         a $300 million wholesaler of electrical supplies. From 1994 to 1996, he
         served  as

                                       4


         Vice  President  -  Information  Systems  for  Brach & Brock
         Confections,  the  acquirer of Brock Candy  Company,  where Mr.  Cynkus
         served as Vice  President - Finance and Chief  Financial  Officer  from
         1992 to 1994.  From 1989 to 1992, he served as Vice President - Finance
         of  Initial  USA,  a  division  of an  international  support  services
         company. Mr. Cynkus is a Certified Public Accountant.

(3)      Michael W. Knottek joined the Registrant in June 1997 as Vice President
         and, in addition, was elected Secretary in May 1998. From 1992 to 1997,
         Mr.  Knottek  held a variety of  executive  management  positions  with
         National Linen Service,  including Senior Vice President of Finance and
         Administration  and Chief Financial  Officer.  Prior to 1992, he held a
         variety  of senior  positions  with  Initial  USA,  finally  serving as
         President from 1991 to 1992.

                                     PART II

Item 5. Market for Registrant's Common Equity and Related Stockholder Matters.

     Information regarding dividends, stock prices and number of stockholders on
page 8 of the 1999 Annual Report to Stockholders,  and the principal  markets on
which the  Registrant's  Common  Stock is  traded on page 21 of the 1999  Annual
Report to Stockholders, is incorporated herein by reference.

Item 6. Selected Financial Data.

     Selected Financial Data on the inside front cover of the 1999 Annual Report
to Stockholders is incorporated herein by reference.

Item 7. Management's Discussion and Analysis of Financial Condition and Results
        of Operations.

     Management's  Discussion and Analysis included on pages 9 through 11 of the
1999 Annual Report to Stockholders is incorporated herein by reference.

Item 7.A. Quantitative and Qualitative Disclosures about Market Risk.

     The  information  under the caption  "Market Risk" included in Management's
Discussion and Analysis on page 10 of the 1999 Annual Report to  Stockholders is
incorporated herein by reference.

Item 8. Financial Statements and Supplementary Data.

     The consolidated  financial  statements of the Registrant,  the Independent
Public Accountants' Report and the financial statement schedule  incorporated by
reference in this report are shown on the accompanying Index to the Consolidated
Financial Statements and Schedule.

     Quarterly   Information  is  on  page  8  of  the  1999  Annual  Report
incorporated herein by reference.

Item 9. Changes in and Disagreements With Accountants on Accounting and
        Financial Disclosure.

     There  have  been  no  changes  in or  disagreements  with  accountants  on
accounting and financial disclosure.

                                    PART III

Item 10. Directors and Executive Officers of the Registrant.

     The information under the caption "Election of Directors" included on pages
4 and 5 of the Proxy Statement for the Annual Meeting of Stockholders to be held
April 25,  2000 is  incorporated  herein by  reference.  Additional  information
concerning  executive  officers  is  included  in Part I, Item 4.A. of this Form
10-K.

                                       5


Item 11. Executive Compensation.

     The  information  under the caption  "Executive  Compensation"  included on
pages 9 through 10 of the Proxy Statement for the Annual Meeting of Stockholders
to be held April 25, 2000 is incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management.

     The  information  under the  captions  "Capital  Stock"  and  "Election  of
Directors" included on pages 2 through 3 and pages 4 through 5, respectively, of
the Proxy  Statement for the Annual Meeting of Stockholders to be held April 25,
2000 is incorporated herein by reference.

Item 13. Certain Relationships and Related Transactions.

     The information under the caption  "Compensation  Committee  Interlocks and
Insider Participation"  included on page 8 of the Proxy Statement for the Annual
Meeting of  Stockholders  to be held April 25,  2000 is  incorporated  herein by
reference.

                                     PART IV

Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K.

         (a) Consolidated Financial Statements, Financial Statement Schedule and
             Exhibits.

             1.  Consolidated  financial  statements  listed in the accompanying
                 Index to  Consolidated  Financial  Statements  and Schedule are
                 filed as part of this report.

             2.  The financial  statement  schedule  listed in the  accompanying
                 Index to  Consolidated  Financial  Statements  and  Schedule is
                 filed as part of this report.

             3.   Exhibits  listed in the  accompanying  Index to  Exhibits  are
                  filed as part of this report.  The following such exhibits are
                  management contracts or compensatory plans or arrangements:

                      (10)(a)Rollins,  Inc. 1984 Employee  Incentive  Stock
                             Option Plan is incorporated herein by reference to
                             Exhibit  10 as filed  with  its Form  10-K for the
                             year ended December 31, 1996.

                      (10)(b)Rollins, Inc. 1994 Employee Stock Incentive Plan.

                      (10)(c)Rollins,  Inc. 1998 Employee  Stock  Incentive
                             Plan  is  incorporated   herein  by  reference  to
                             Exhibit A of the March 24,  1998  Proxy  Statement
                             for the  Annual  Meeting of  Stockholders  held on
                             April 28, 1998.

         (b) Reports on Form 8-K.

             No reports on Form 8-K were filed or were required to be filed
             during the fourth quarter of calendar year 1999.

         (c) Exhibits (inclusive of item 3 above):

                      (2)(a) Asset Purchase Agreement by and between Orkin
                             Exterminating Company, Inc. and PRISM Integrated
                             Sanitation  Management,  Inc. is  incorporated  by
                             reference to Exhibit (2) as filed with its Form
                             10-Q filed on August 16, 1999.

                         (b) Stock Purchase  Agreement as of September 30, 1999,
                             by and among Orkin Canada, Inc., Orkin Expansion,
                             Inc., S.C.Johnson Commercial Markets, Inc., and
                             S.C. Johnson Professional, Inc.

                                       6


                         (c) Asset Purchase Agreement as of October 19, 1999 by
                             and between Orkin Exterminating Company, Inc., Redd
                             Pest Control Company, Inc., and Richard L. Redd.

                         (d) First Amendment to Asset Purchase Agreement dated
                             as of  December  1,  1999,  by and  among  Orkin
                             Exterminating Company, Inc., Redd Pest Control
                             Company, Inc. and Richard L. Redd.

                         (e) Asset  Purchase  Agreement,  dated as of October 1,
                             1997, by and among  Rollins,  Ameritech  Monitoring
                             Services,   Inc.  and  Ameritech   Corporation   is
                             incorporated  herein by reference to Exhibit 2.1 as
                             filed  with  its  Form  8-K  Current  Report  filed
                             October 16, 1997.

                      (3)(i) Restated Certificate of Incorporation of Rollins,
                             Inc. is incorporated herein by reference to Exhibit
                             (3)(i) as filed with its Form 10-K for the year
                             ended December 31, 1997.

                        (ii) By-laws of Rollins,  Inc. are  incorporated  herein
                             by reference to Exhibit (3) (ii) as filed with its
                             Form 10-Q for the quarterly  period ended March 31,
                             1999.

                      (4)    Form of Common Stock Certificate of Rollins, Inc.
                             is incorporated herein by reference to Exhibit (4)
                             as filed with its Form 10-K for the year ended
                             December 31, 1998.

                      (10)(a)Rollins,  Inc.  1984 Employee  Incentive  Stock
                             Option Plan is incorporated  herein by reference to
                             Exhibit (10) as filed with its Form 10-K for the
                             year ended December 31, 1996.

                      (10)(b)Rollins, Inc. 1994 Employee Stock Incentive Plan.

                      (10)(c)Rollins,  Inc.  1998 Employee  Stock  Incentive
                             Plan is incorporated herein by reference to Exhibit
                             A of the March 24,  1998  Proxy  Statement  for the
                             Annual  Meeting of  Stockholders  held on April 28,
                             1998.

                      (13)   Portions  of the  Annual  Report  to  Stockholders
                             for the year ended December 31, 1999 which  are
                             specifically incorporated herein by reference.

                      (21)   Subsidiaries of Registrant.

                      (23)   Consent of Independent Public Accountants.

                      (24)   Powers of Attorney for Directors.

                      (27)(a)Financial Data Schedule (For Commission Use Only).

                      (27)(b)Restated Financial Data Schedule (For Commission
                             Use Only).

                                       7



                                   SIGNATURES

     Pursuant  to the  requirements  of  Section  13 or 15(d) of the  Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                                      ROLLINS, INC.

                                      By:   /s/ R. RANDALL ROLLINS
                                            ---------------------------
                                            R. Randall Rollins
                                            Chairman of the Board of Directors
                                            (Principal Executive Officer)
                                      Date: March 15, 2000

     Pursuant to the  requirements of the Securities  Exchange Act of 1934, this
report  has  been  signed  below  by the  following  persons  on  behalf  of the
Registrant and in the capacities and on the dates indicated.



By:   /s/ R. RANDALL ROLLINS                    By:   /s/ HARRY J. CYNKUS
      ---------------------------                     ------------------------
      R. Randall Rollins                              Harry J. Cynkus
      Chairman of the Board of Directors              Chief Financial Officer
      (Principal Executive Officer)                   and Treasurer
                                                      (Principal Financial and
                                                       Accounting Officer)
Date: March 15, 2000                            Date: March 15, 2000

     The Directors of Rollins,  Inc. (listed below) executed a power of attorney
appointing Gary W. Rollins their  attorney-in-fact,  empowering him to sign this
report on their behalf.

                  Wilton Looney, Director
                  John W. Rollins, Director
                  Henry B. Tippie, Director
                  James B. Williams, Director
                  Bill J. Dismuke, Director


/s/ GARY W. ROLLINS
- ------------------------
Gary W. Rollins
As Attorney-in-Fact & Director
March 15, 2000

                                       8


                         ROLLINS, INC. AND SUBSIDIARIES
             INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULE
                                    (Item 14)

CONSOLIDATED FINANCIAL STATEMENTS OF ROLLINS, INC. AND SUBSIDIARIES:

     The Registrant's 1999 Annual Report to Stockholders,  portions of which are
filed with this Form  10-K,  contains  on pages 12  through 20 the  consolidated
financial  statements for the years ended  December 31, 1999,  1998 and 1997 and
the report of Arthur Andersen LLP on the consolidated  financial  statements for
the years then ended. These consolidated  financial statements and the report of
Arthur  Andersen LLP are  incorporated  herein by  reference.  The  consolidated
financial statements include the following:

                                                                Annual Report
(1) Consolidated Financial Statements                              Page(s)
                                                                -------------
Consolidated Statements of Financial Position
  as of December 31, 1999 and 1998...........................        12

Consolidated Statements of Income for each of
  the three years in the period ended
  December 31, 1999..........................................        13

Consolidated Statements of Earnings Retained
  for each of the three years in the period
  ended December 31, 1999....................................        13

Consolidated Statements of Cash Flows for each
  of the three years in the period ended
  December 31, 1999..........................................        14

Notes to Consolidated Financial Statements...................     15-19

Report of Independent Public Accountants on
  Consolidated Financial Statements..........................        20

Report of Independent Public Accountants on Financial Statement
  Schedule, Page 10 of this Form 10-K.

(2) Financial Statement Schedules

    Schedule II - Valuation and Qualifying  Accounts,  Page 11 of this Form
10-K.

    Schedules  not  listed  above have been  omitted as either not  applicable,
immaterial  or  disclosed  in the  Consolidated  Financial  Statements  or notes
thereto.

                                       9




    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS ON FINANCIAL STATEMENT SCHEDULE

To the Directors and the Stockholders of Rollins, Inc.:

     We have audited,  in accordance with generally accepted auditing standards,
the Consolidated Financial Statements included in Rollins,  Inc.'s annual report
to stockholders incorporated by reference in this Form 10-K, and have issued our
report  thereon dated February 16, 2000. Our audits were made for the purpose of
forming an opinion on those  statements taken as a whole. The schedule listed in
Item 14 of this Form 10-K is the responsibility of the Company's  management and
is  presented  for  purposes  of  complying  with the  Securities  and  Exchange
Commission's  rules  and is not part of the  basic  financial  statements.  This
schedule has been subjected to the auditing  procedures applied in the audits of
the  basic  financial  statements  and,  in our  opinion,  fairly  states in all
material  respects  the  financial  data  required  to be set forth  therein  in
relation to the basic financial statements taken as a whole.

                                                     /S/ ARTHUR ANDERSEN LLP
                                                     -----------------------
                                                     ARTHUR ANDERSEN LLP

Atlanta, Georgia
February 16, 2000

                                       10


                         ROLLINS, INC. AND SUBSIDIARIES
                SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (1)
              FOR THE YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
                            (In thousands of dollars)




                                                                         Additions
                                                            ----------------------------------
                                              Balance at       Charged to       Charged to                            Balance at
                                               Beginning        Costs and         Other                                End of
Description                                    of Period        Expenses        Accounts(2)      Deductions (3)         Period
- -----------                                   ----------       ----------       -----------      --------------       ----------
                                                                                                           
Year ended December 31, 1999
  Allowance for doubtful accounts...........     $ 5,347         $ 6,551          $   434              $ 7,403            $ 4,929
                                                 -------         -------          -------              -------            -------
Year ended December 31, 1998
  Allowance for doubtful accounts...........     $ 9,326         $ 4,502          $     -              $ 8,481            $ 5,347
                                                 -------         -------          -------              -------            -------
Year ended December 31, 1997
  Allowance for doubtful accounts...........     $ 4,457         $14,531          $     -              $ 9,662            $ 9,326
                                                 -------         -------          -------              -------            -------
- -----------


NOTE:  (1) The above schedule is prepared reflecting the divestitures of the
           Registrant's RPS business segment and Orkin's Plantscaping and Lawn
           Care divisions.  1997 has been restated.

       (2) Charged to Other Accounts represents beginning balances of allowances
           for doubtful accounts of acquired companies.

       (3) Deductions represent the write-off of uncollectible receivables, net
           of recoveries.

                                       11


                         ROLLINS, INC. AND SUBSIDIARIES
                                INDEX TO EXHIBITS



         Exhibit
          Number
         -------
         (2)(a)  Asset Purchase Agreement by and between Orkin Exterminating
                 Company, Inc. and PRISM Integrated Sanitation  Management, Inc.
                 is incorporated by reference to Exhibit (2) as filed with its
                 Form 10-Q filed on August 16, 1999.

            (b)  Stock Purchase Agreement as of September 30, 1999, by and among
                 Orkin Canada, Inc., Orkin Expansion, Inc., S.C. Johnson
                 Commercial Markets, Inc., and S.C. Johnson Professional, Inc.

            (c)  Asset Purchase Agreement as of October 19, 1999 by and between
                 Orkin Exterminating Company, Inc., Redd Pest Control Company,
                 Inc., and Richard L. Redd.

            (d)  First Amendment to Asset Purchase Agreement dated as of
                 December 1, 1999, by and among Orkin Exterminating Company,
                 Inc., Redd Pest Control Company, Inc. and Richard L. Redd.

            (e)  Asset  Purchase  Agreement,  dated as of October 1, 1997, by
                 and among  Rollins,  Ameritech  Monitoring Services, Inc. and
                 Ameritech Corporation is incorporated  herein by reference to
                 Exhibit 2.1 as filed  with  its Form 8-K Current Report filed
                 October 16, 1997.

         (3)(i)  Restated Certificate of Incorporation of Rollins, Inc. is
                 incorporated  herein by reference to  Exhibit (3)(i) as filed
                 with its Form 10-K for the year ended December 31, 1997.

            (ii) By-laws of Rollins, Inc.are incorporated herein by reference to
                 Exhibit 3 (ii) as filed with its Form 10-Q for the quarterly
                 period ended March 31, 1999.

         (4)     Form of Common Stock Certificate of Rollins,  Inc. is
                 incorporated  herein by reference to Exhibit (4) as filed with
                 its Form 10-K for the year ended December 31, 1998.

         (10)(a) Rollins, Inc. 1984 Employee Incentive Stock Option Plan is
                 incorporated  herein by reference to Exhibit 10 as filed with
                 its Form 10-K for the year ended December 31, 1996.

         (10)(b) Rollins, Inc. 1994 Employee Stock Incentive Plan.

         (10)(c) Rollins, Inc. 1998 Employee Stock Incentive Plan is
                 incorporated herein by reference to Exhibit A of the March 24,
                 1998 Proxy Statement for the Annual Meeting of Stockholders
                 held on April 28, 1998.

         (13)    Portions of the Annual Report to Stockholders for the year
                 ended December 31, 1999 which are specifically incorporated
                 herein by reference.

         (21)    Subsidiaries of Registrant.

         (23)    Consent of Independent Public Accountants.

         (24)    Powers of Attorney for Directors.

         (27)(a) Financial Data Schedule (For Commission Use Only).

         (27)(b) Restated Financial Data Schedule (For Commission Use Only).

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