<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549
                                    Form 10-Q

(Mark One)
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934

                         For the quarterly period ended
                                  June 30, 1998

Commission file No. 0-20870

                                       OR

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934

                     Security Associates International, Inc.
             (Exact name of Registrant as specified in its charter)

Delaware                                               87-0467198
(State or other jurisdiction of                      (I.R.S. Employer
incorporation or organization)                      Identification No.)


                 2101 South Arlington Heights Road, Suite 100,
                     Arlington Heights, Illinois 60005-4142
          (Address of principal executive office, including zip code)

                                 (847) 956-8650
              (Registrant's telephone number, including area code)

         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 [ ]

         As of August 11, 1998 the Registrant had outstanding 6,188,530 shares
of its $.001 par value Common Stock.(1)




---------------
(1) Does not include 174,565 shares which were awarded or paid for but for
which certificates have not yet been issued.


<PAGE>   2




                     Security Associates International, Inc.

                           Quarter Ended June 30, 1998



                                      INDEX


<TABLE>
<S>      <C>                                                                      <C>
Part I - FINANCIAL INFORMATION                                                    PAGE
                                                                                  ----

Item 1   Financial Statements.......................................................3

         Consolidated Balance Sheets as of June 30, 1998
         and December 31, 1997......................................................3

         Consolidated Statements of Operations for the six months
         ended June 30, 1998 and 1997...............................................4

         Consolidated Statements of Cash Flows for the six months
         ended June 30, 1998 and 1997...............................................5

         Notes to Financial Statements..............................................6

Item 2   Management's Discussion and Analysis of Financial Condition
         and Results of Operations..................................................7

Item 3   Quantitative and Qualitative Disclosures About Market Risk.................9


Part II - OTHER INFORMATION

Item 1   Legal Proceedings..........................................................9

Item 2   Changes in Securities and Use of Proceeds..................................9

Item 3   Defaults Upon Senior Securities...........................................10

Item 4   Submission of Matters to a Vote of Security Holders.......................10

Item 5   Other Information.........................................................11

Item 6   Exhibits and Reports on Form 8-K..........................................11


SIGNATURES                         ................................................12

</TABLE>



                                       2
<PAGE>   3


PART I - FINANCIAL INFORMATION
Item 1.  Financial Statements.


                     SECURITY ASSOCIATES INTERNATIONAL, INC.
                                AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>

                                                                         (unaudited)
           ASSETS                                                       JUNE 30, 1998   DECEMBER 31, 1997
<S>                                                                     <C>             <C>         
Current Assets:
Cash                                                                    $  1,019,373       $  5,521,633     
Accounts receivable, net                                                   3,134,126          2,626,717     
Notes receivable                                                                --               50,000     
Other current assets                                                         370,738            182,671     
                                                                                                            
                                                                        ------------       ------------     
           Total current assets                                            4,524,237          8,381,021     
                                                                        ------------       ------------     
                                                                                                            
FIXED ASSETS, net                                                       $  1,415,423       $    855,631     
                                                                                                            
Contract rights to monitor security systems, net                          13,600,180         13,908,478     
Goodwill                                                                  19,921,964         11,919,949     
Other assets, net                                                          1,019,739            943,624     
                                                                        ------------       ------------     
           Total other assets                                             34,541,883         26,772,051     
                                                                        ------------       ------------     
                                                                                                            
           TOTAL ASSETS                                                 $ 40,481,543       $ 36,008,703     
                                                                        ============       ============     
                                                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                                                        
CURRENT LIABILITIES:                                                                                        
Accounts payable                                                        $    728,490       $    676,162     
Current maturities of long - term notes payable                            1,340,985            897,453     
Accrued expenses                                                           2,501,490          2,135,658     
Unearned revenue                                                           3,318,398          3,046,926     
                                                                        ------------       ------------     
           Total current liabilities                                       7,889,363          6,756,199     
                                                                        ------------       ------------     
                                                                                                            
NOTES PAYABLE, net of current maturities                                  20,654,134         16,521,813     
Subordinated Debt                                                          5,500,000          5,500,000     
                                                                        ------------       ------------     
           Total liabilities                                            $  4,043,497       $ 28,778,012     
                                                                        ------------       ------------     
STOCKHOLDERS' EQUITY                                                                                        
Convertible preferred stock, $10.00 par value;                                                              
64,585 shares outstanding on June 30, 1998 and                                                              
December 31, 1997, respectively (liquidation value of $16,146,138                                           
at June 30, 1998 and December 31, 1997)                                      645,846            645,846     
12% redeemable preferred stock, $10.00 par value; 500,000 and 344,165                                       
shares outstanding on June 30, 1998 and December 31, 1997                  5,000,000          3,441,650     
Common stock, $.001 par value; 50,000,000 shares                                                            
authorized; 6,363,095 and 6,272,295 shares outstanding on                                                   
June 30, 1998 and December 31, 1997, respectively                              6,350              6,272     
Additional paid-in capital                                                15,696,108         14,564,311     
Retained deficit                                                         (14,910,258)       (11,427,388)    
                                                                                                            
                                                                        ------------       ------------     
                Total stockholders' equity                              $  6,438,046       $  7,230,691     
                                                                                                            
                                                                        ------------       ------------     
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                          $ 40,481,543       $ 36,008,703     
                                                                        ============       ============     
</TABLE>



       The accompanying notes are an integral part of these balance sheets



                                       3
<PAGE>   4

                     SECURITY ASSOCIATES INTERNATIONAL, INC.
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS


<TABLE>
<CAPTION>
                                                      (unaudited)          (unaudited)            (unaudited)        (unaudited)
                                                  THREE MONTHS ENDED    THREE MONTHS ENDED     SIX MONTHS ENDED      SIX MONTHS
                                                     JUNE 30, 1998        JUNE 30, 1997          JUNE 30, 1998      JUNE 30, 1997
<S>                                                <C>                  <C>                    <C>                  <C>
REVENUES:                                                                                                                       
Monitoring fees                                       $  4,415,987        $  2,507,648           $  8,546,070       $  4,677,820  
Membership fees and other                                   66,841              50,175                 83,247             78,097  
                                                      ------------        ------------           ------------       ------------  
          Total revenues                                 4,482,828           2,557,823              8,629,317          4,755,917  
                                                      ------------        ------------           ------------       ------------  
                                                                                                                                  
EXPENSES:                                                                                                                         
General, selling and administrative                      3,807,299           1,921,554              7,106,147          3,692,533  
Amortization and depreciation                            1,654,205             710,262              2,880,266          1,296,829  
Deferred compensation expense                              360,000                --                  720,000               --    
                                                      ------------        ------------           ------------       ------------  
          Total expenses                                 5,821,504           2,631,816             10,706,413          4,989,362  
                                                      ------------        ------------           ------------       ------------  
          Loss from operations                          (1,338,676)            (73,993)            (2,077,096)          (233,445) 
                                                                                                                 
Interest expense net                                       627,885             455,007              1,183,687            819,562  
                                                      ------------        ------------           ------------       ------------  
          Loss before taxes                             (1,966,561)           (529,000)            (3,260,783)        (1,053,007) 
                                                                                                                                  
PROVISION FOR INCOME TAXES                                    --                  --                     --                 --    
                                                      ------------        ------------           ------------       ------------  
          Net loss                                      (1,966,561)           (529,000)            (3,260,783)        (1,053,007) 
DIVIDENDS ACCRUED ON PREFERRED STOCK                       118,833             103,249                222,082            206,499  
                                                      ------------        ------------           ------------       ------------  
          Net loss available to common stockholders   $ (2,085,394)       $   (632,249)          $ (3,482,865)      $ (1,259,506) 
                                                      ============        ============           ============       ============  
NET LOSS PER SHARE                                    $      (0.33)       $      (0.16)          $      (0.55)      $      (0.31) 
                                                      ============        ============           ============       ============  
WEIGHTED AVERAGE NUMBER OF                                                                                                        
COMMON SHARES OUTSTANDING                                6,294,129           4,034,292              6,294,129          4,034,292  
                                                      ============        ============           ============       ============  
</TABLE>




         The accompanying notes are an integral part of these statements


                                       4
<PAGE>   5
                   SECURITY ASSOCIATES INTERNATIONAL, INC.
                               AND SUBSIDIARIES
                     CONSOLIDATED STATEMENT OF CASH FLOWS


<TABLE>
<CAPTION>
                                                                  (unaudited)      (unaudited)
                                                               SIX MONTHS ENDED  SIX MONTHS ENDED
                                                                 JUNE 30, 1998    JUNE 30, 1997
<S>                                                              <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

               Net loss                                          (3,260,783)        $ (1,053,007)
Adjustments to reconcile net loss to net cash used                                               
            For operating activities-                                                            
               Amortization and depreciation                      2,880,266            1,296,829 
               Deferred compensation expense                        720,000                 --   
               Issuance of common stock for services                  7,598                 --   
               Changes in assets and liabilities-                                                
                  Accounts Receivables, net                        (260,246)            (153,139)
                  Other current assets                                4,057               20,772 
                  Other long - term assets                          (21,248)                --   
                  Accounts payable                                   19,766             (325,025)
                  Accrued expenses                                   42,760              560,109 
                  Unearned revenue                                  (13,415)               8,648 
                  Other current liabilities                            --                 (8,924)
                                                               ------------         ------------ 
                                                                                                 
                      Net cash provided by                                                       
                                 operating activities               118,755              346,263 
                                                               ------------         ------------ 
                                                                                                 
CASH FLOWS FROM INVESTING ACTIVITIES:                                                            
            Purchase of contract rights to monitor security                                      
               systems, net                                      (1,227,557)          (4,775,684)
            Purchase of fixed assets                               (300,425)            (258,799)
            Cash paid for acquisitions, net                      (8,694,081)                --   
                                                               ------------         ------------ 
                                                                                                 
                      Net cash used for investing                                                
                                 activities                     (10,222,063)          (5,034,483)
                                                               ------------         ------------ 
                                                                                                 
CASH FLOWS FROM FINANCING ACTIVITIES:                                                            
            Proceeds from issuance of capital stock               1,594,752              441,559 
            Dividends earned on preferred stock                    (222,082)            (206,499)
            Proceeds from notes receivable from stockholders         50,000               25,180 
            Payment of notes payable to related parties                --               (136,000)
            Proceeds from notes payable to related parties             --              4,450,000 
            Payment of notes payable                               (227,791)          (4,929,731)
            Proceeds from notes payable                           4,406,169            4,880,730 
                                                               ------------         ------------ 
                                                                                                 
                      Net cash provided by (used for)                                            
                                 financing activities             5,601,048            4,525,239 
                                                               ------------         ------------ 
                                                                                                 
INCREASE (DECREASE) IN CASH                                      (4,502,260)            (162,981)
CASH, beginning of the period                                     5,521,633              632,355 
                                                               ------------         ------------ 
                                                                                                 
CASH, end of period                                            $  1,019,373         $    469,374 
                                                               ============          ============
</TABLE>


         The accompanying notes are an integral part of these statements



                                       5
<PAGE>   6


                     SECURITY ASSOCIATES INTERNATIONAL, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                  JUNE 30, 1998



NOTE 1.  BASIS OF PRESENTATION:

         The accompanying financial statements have been prepared by the
Company, without audit, in accordance with generally accepted accounting
principles for interim financial information and in conjunction with the rules
and regulations of the Securities and Exchange Commission. Accordingly they do
not include all of the information and footnotes required by generally accepted
accounting principles for financial statements. In the opinion of management,
all adjustments (consisting only of normal recurring matters) considered
necessary for a fair presentation have been included.


         The results of operations for the six-month period ended June 30, 1998
are not necessarily indicative of the results that may be expected for the full
year. These financial statements should be read in conjunction with the
Company's financial statements and related notes in the Company's 1997 Annual
Report on Form 10-K filed with the Securities and Exchange Commission.


NOTE 2. STATEMENTS OF CASH FLOWS

         The supplemental schedule of noncash activities for the six months
ended June 30, 1998 and 1997 includes the following:


<TABLE>
<CAPTION>
                                                                1998         1997
                                                             ----------   ----------
<S>                                                          <C>          <C>       
Supplemental schedule of cash flow information-
         Cash paid during the period for interest            $  883,687   $  445,207
Supplemental schedule of noncash activities-
         Purchase of acquisitions for notes payable                --      1,053,000
         Purchase of acquisitions with stock                    367,875         --
         Purchase of contract rights with notes                 314,643      629,217
         Purchase of contract rights with deferred revenue      141,514      326,307
</TABLE>



NOTE 3. ACQUISITIONS

         During the second quarter, the Company acquired two third party central
monitoring stations, Fire Protection Service Corporation d/b/a Mountain Alarm
and Texas Security Central, Inc. for $1,042,750, and $6,846,000 respectively.
The Company acquired Reliance Protection Services, Ltd. in July for $1,400,000.
The acquisitions were financed through a combination of equity and borrowings
under the Company's existing line of credit and were accounted for using the
purchase method for financial reporting purposes.




                                       6
<PAGE>   7

NOTE 4.  NET LOSS PER SHARE

         Basic earnings per share are calculated using the weighted average
number of shares outstanding during each period. Stock options, warrants and
Convertible Preferred Stock have not been included in the calculation of net
loss per share as their effect would be antidilutive.


NOTE 5.  WARRANTS

         The Company granted 35,000 warrants to purchase common stock to a
director and a company controlled by the director. These warrants have an
exercise price of $6.00 per share and expire in 2001. Had compensation costs for
the warrants been determined based on the fair value at their grant date
consistent with the method of FASB Statement No. 123 ("SFAS 123"), the Company's
net income for the first six months would have been reduced by $88,200. The loss
per share would have increased by $.02 per share to $ .57 per share.

NOTE 6.  STOCK ISSUED

         The Company sold 155,835 shares of $10 par value redeemable preferred
stock for $1,558,350 to TJS partners in June 1998. Additionally options to
purchase 22,500 shares of common stock were exercised by two shareholders. The
Company received $35,000 as a result of these options being exercised.



       Item 2.     Management's Discussion and Analysis of Financial Condition
                   and Results of Operations.

         Certain statements contained in this Quarterly Report that are not
historical facts constitute "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. In addition, when used in the Quarterly Report the
words "anticipates," "intends," "seeks," "believes," "estimates," and "expects"
and similar expressions as they relate to the Company or its management are
intended to identify such forward-looking statements. Such statements are
subject to a number of risks and uncertainties. The Company's actual results,
performance or achievements could differ materially from the results expressed
in, or implied by, these forward-looking statements. Factors that could cause or
contribute to such differences include, but are not limited to, general industry
and economic conditions, crime rates, costs of capital, costs of acquiring
central stations and monitoring accounts and governmental regulations effecting
the alarm industry. The Company undertakes no obligation to revise these
forward-looking statements to reflect any future events or circumstances.


                                       7
<PAGE>   8


RESULTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1998 AND 1997

         For the six months ended June 30, 1998, revenues of the Company were
$8,629,317 compared to $4,755,917 for the same period of the prior year. This
represents an increase of $3,873,400 or 81.44%. The increase is primarily a
result of acquisitions of central stations and an increase of over 10,000
subscribers in the Company's owned Account portfolio over the last twelve
months.

         General, selling and administrative expenses for the six months ended
June 30, 1998, increased by $3,413,614 or 92.45% over the same period in the
prior year. The increase was primarily caused by increases in salary and related
expenses attributable to the expansion of central station operations and the
Company hiring additional personnel to manage the Company's rapid growth.

         The increase of $1,583,437 in amortization and depreciation expenses is
related to the increase in contract rights purchased and the increased
amortization of goodwill due to acquisitions completed over the previous twelve
months. The net attrition rate related to contract rights purchased has remained
constant at approximately 8% in both periods.

         Deferred compensation expense of $720,000 for the six months ended June
30, 1998, represents management's estimate of deferred compensation expense
assuming the maximum awards that can be earned in 1998.

         Interest expense increased from $819,562 to $1,183,687 between periods
as the Company increased its debt level by over $5,000,000 to finance central
station acquisitions and the purchase of Accounts.

LIQUIDITY AND CAPITAL RESOURCES

         The Company finances its operations and growth from a combination of
borrowings under the Company's credit facilities and sales of stock. The
Company's principal uses of cash are the acquisition of subscriber Account
portfolios and acquisition of central monitoring stations. The Company acquired
four central stations during the six months ended June 30, 1998. Another central
station located in the Chicago area was purchased in July for $1,400,000. These
acquisitions were financed through a combination of equity and borrowings under
the Company's existing line of credit. The Company has $8.7 million remaining on
its existing line of credit available for future acquisitions. The Company is
currently evaluating additional sources of funding in order to provide the
capital needed to execute its long-term strategy. Financial covenants on the
existing line of credit were modified to provide the Company more favorable
availability of credit on a current basis. The Company anticipates purchasing
subscriber Accounts totaling approximately $4,000,000 by September 1998.

         The Company issued 155,835 shares of $10 par value redeemable preferred
stock to TJS Partners for $1,558,350 in June 1998. See- Note 6 of Item 1.

         The Company is executing its strategy to attract new dealers to its
third party central station monitoring facilities. The Company intends to issue
shares of common stock and warrants throughout the remainder of the year
consistent with its S-1 registration statement, which was declared effective in
April 1998. The number of shares 



                                       8
<PAGE>   9

of common stock and warrants to be issued can not be estimated at this time, but
may not exceed a combination of 2,000,000 shares and warrants. To date, the
Company has increased its monitored account base by approximately 5,000 Accounts
as a result of this program. There are an additional 20,000 Accounts owned by
dealers who have agreed in principle to move their monitoring business to the
Company.

         The Company is in the process of upgrading its central station alarm
monitoring, financial, billing and administrative systems to ensure that all
computer systems are ready to process the Year 2000 date change without
disruption. The Company is confident that most of its systems already satisfy
Year 2000 requirements and expects that all internal systems will be in full
compliance prior to January 1, 2000. The total cost of this upgrade is expected
to range from $1,500,000 to $2,000,000. The Company's Board of Directors has
approved the necessary capital expenditures in 1998 and 1999 to complete the
program.

         In addition to verifying its internal compliance, the Company will
formally survey outside vendors whose systems pose a significant Year 2000 risk.
These companies include the principal telephone companies serving the Company's
central station command centers, central station software vendors, telephone
hardware and software vendors, financial institutions and payroll companies.
Vendors with material Year 2000 compliance issues will be replaced. The target
date for completing all upgrades and vendor reviews is June 30, 1999.

INFLATION

         Management does not believe that inflation had a significant impact on
the Company's results of operations for the periods presented.


        Item 3. Quantitative and Qualitative Disclosure About Market Risk.

         The Company currently does not invest excess funds in derivative
financial instruments or other market rate sensitive instruments for the purpose
of managing its foreign currency exchange rate risk or for any other purpose.


PART II - OTHER INFORMATION


        Item 1. Legal Proceedings.

         See Legal Proceedings as included in the Company's Registration
Statement on Form S-1, Registration No. 33-49897, as declared effective April
22, 1998.


        Item 2. Changes in Securities and Use of  Proceeds.

         See Use of Proceeds and Recent Sales of Unregistered Securities as
included in the Company's Registration Statement on Form S-1, Registration No.
33-49897, as declared effective April 22, 1998.





                                       9
<PAGE>   10

         In addition to those listed above, since April 1, 1998, the Company has
issued the following securities that were not registered under the Securities
Act of 1933, as amended (the "Securities Act"):

         On June 1, 1998 the Company sold 155,835 shares of $10 par value
redeemable preferred stock for $1,558,350 to TJS partners.

         On June 1, 1998 options to purchase 22,500 shares of common stock were
exercised by two stockholders. The Company received $35,000 as a result of these
options being exercised.

         Additionally on May 8, 1998 Company issued 54,000 shares of common
stock as partial consideration in connection with the purchase of the monitoring
business of Fire Protection Services Corporation D/B/A Mountain Alarm.  These
shares were registered.

         Item 3.       Defaults Upon Senior Securities.

None.


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

         At its Annual Meeting of Stockholders held on May 19, 1998, the Company
presented to the stockholders the re-election of James S. Brannen, Ronald I.
Davis, Douglas Oberlander, Thomas J. Salvatore and Michael B. Jones as
Directors, all of whom were re-elected with 10,186,783 shares voted for each and
4,100 shares withheld for each. The Company also presented to the stockholders
the following matters to be voted upon: 1) Ratification of the appointment of
Arthur Andersen LLP as the Company's independent public accountant for the 1998
fiscal year; 2) Increase the number of authorized shares of preferred stock from
500,000 shares to 1,000,000 shares; and 3) Amend the Certificate of Rights,
Preferences and Limitations for the Company's Redeemable Preferred Stock, to
increase the "new equity thresholds" that trigger a) the Company's obligation to
pay accrued dividends; b) the Company's right to redeem the Redeemable Preferred
Stock; and c) the right of the holders of the Redeemable Preferred Stock to
convert the Redeemable Preferred Stock into shares of the Company's Common
Stock. A total of 12,568,673 shares were eligible to vote on each matter
presented at the Annual



                                       10
<PAGE>   11


Meeting all of which were approved by the following votes of the stockholders:


<TABLE>
<CAPTION>
                                                                                   Number of Shares
                                                                                                            Broker
                                                                   For         Against      Abstain       Non Votes 
                                                                   ---         -------      -------       --------- 
<S>                                                              <C>           <C>          <C>           <C>    
1)       Ratification of the appointment of
         Arthur Andersen LLP as the
         Company's independent public
         accountant for the 1998 fiscal year ...............   10,137,907       47,367        5,600          --

2)       Increase the number of authorized
         shares of preferred stock from
         500,000 shares to 1,000,000 shares.................    9,273,854      107,566        9,500       799,963

3)       Amend the Certificate of Rights,
         Preferences and Limitations for the
         Company's Redeemable Preferred Stock,
         to increase the "new equity thresholds"............    9,267,144      112,476       11,300       799,963
</TABLE>


         Item 5.       Other Information.

         Acquisition of Reliance Protective Services, Ltd.

         On July 17, 1998, the Company purchased all of the outstanding capital
stock of Reliance Protective Services, Ltd., an Illinois corporation
("Reliance") from Joseph Cunningham, Kirk Cunningham and Karen Nudelman, who
were unaffiliated with SAI and were the sole stockholders of Reliance.

         The purchase price, which was based primarily on the recurring monthly
revenue of Reliance and arrived at by arm's length negotiations between the
parties, was $1,400,000, which was paid in cash at closing. The purchase price
was financed by drawing on SAI's existing credit facility with FINOVA Capital
Corporation.  The acquisition will be accounted for under the purchase method
for financial reporting purposes.

         Reliance is a third-party alarm monitoring company serving
approximately 11,000 alarm monitoring subscribers and approximately 100
independent alarm dealers from a central monitoring station located in
Schaumburg, Illinois.

         Item 6.  Exhibits and Reports on Form 8-K.

(a)      Exhibits

         (27)  Financial Data Schedule

         (99)  Company's Registration Statement on Form S-1, Registration No. 
               33-49897, as declared effective April 22, 1998.

(b)      Reports on Form 8-K.


                                       11
<PAGE>   12

         The Company filed a Current Report on Form 8-K on July 2, 1998 dated
May 8, 1998, which reported the acquisition of all of the outstanding capital
stock of Texas Security Central, Inc. ("TSC") on June 17, 1998. The purchase
price was $6,846,000 million which was paid in cash at closing. The report did
not include the financial statements on the date of filing (the financial
statements will be included in an Amendment to a Current Report on Form 8-K/A
which will be filed as soon as practicable), but did include the Stock Purchase
Agreement between the Company and The Willis Tate, Jr. Charitable Remainder
Unitrust for Southern Methodist University and Ray Hooker, TSC's sole
stockholders. The Current Report also disclosed the acquisition of the
monitoring business of Fire Protection Services Corporation D/B/A Mountain Alarm
on May 8, 1998 ("Mountain"). The purchase price for Mountain was $944,875,
$674,875 of which was paid in cash at closing with the remainder of the purchase
price paid in the form of 54,000 shares of SAI's Common Stock. The report did
not include the financial statements for Mountain as none were required pursuant
to Commission regulations.





                                   SIGNATURES

         Pursuant to the requirements 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.

                     Security Associates International, Inc.


Date:    August 14, 1998                    By: /s/ James S. Brannen
                                               ---------------------------------
                                               James S. Brannen
                                               President and
                                               Chief Executive Officer

Date:    August 14, 1998                    By: /s/ Daniel S. Zittnan
                                               ---------------------------------
                                               Daniel S. Zittnan
                                               Chief Financial Officer




                                       12