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Opening Remarks This information is confidential and is not to be provided to any third party without Vicon Industries Inc. prior written consent. Discuss how these technologies are used in different system designs to create solutions Provide an update on Vicon and other security technologies Meeting Goals and Objectives Analyze the continued technology changes and their effect on the industry Build a better understanding of your needs and the needs of your customers This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Agenda Review This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Discussion Topics This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Demand and Sales Trends IP vs. Analog Vicon's Camera Sales Profile Megapixel Cameras 8% IP Cameras 18% Analog Cameras 74% Analog Cameras IP Cameras Megapixel Cameras This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. IP Video Market Drivers Future: IP Standards Analytics Network knowledge and competency Reductions in Storage cost Megapixel Cameras This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Megapixel Technology One of the most influential drivers in the IP video segment. Specialized companies have spearheaded the development and marketing – Larger camera manufactures are catching up 1.3MP is main volume with 2MP, 3MP & 5MP becoming more common in applications – Higher MP cameras are in the market Driving up the need for external storage Lighting condition limitations now improving with intro of Auto Iris CCD megapixel products This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Storage & Networking Increased resolution and demand for high frame rates is driving the need for more complex storage solutions. – ISCSI RAID Arrays – Internal RAID formats – Centralized SAS storage Constant increase in drive density is dramatically reducing storage cost – Now reviewing 2 TB drives Typical cost of 1 TB drive now under $250.00 These reductions have affected IP video as well as DVR costs Lower cost of storage coupled with an increase in installer knowledge of networking has made IP video more cost effective This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Video Content Analysis Analytics – The analytics market still has not grown to the size projected some years back – Total worldwide Analytics market estimated at about $40M – Growth has been hampered by: • Complexity of the technology (setup and false alarms) • Lack of proper expectations • Cost per channel – Market for Analytics is still mainly in defense sectors. Small portion of analytics are used in commercial applications – Transfer of the Analytics to edge (camera) is still a driving factor in IP video camera deployment This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Open Platform & Standards What is an “Open Platform”? – In the video world, it’s a management platform that capable of interfacing cameras from multiple manufacturers • Beneficial since it does not lock the use into one hardware (camera) source – Issues today • No Standards: – Problems occur when interfaces change – Development from manufacturer to manufacturer is different • No consistency with feature support among different manufactured cameras This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Standards… ONVIF™: (Open Network Video Interface Forum) – Global standard for the interface of network video products – The ONVIF specification will ensure interoperability between network video products regardless of manufacturer. The cornerstones of ONVIF are: • Standardization of communication between network video devices • Interoperability between network video products regardless of manufacturer • Open to all companies and organizations – The ONVIF specification defines a common protocol for the exchange of information between network video devices including automatic device discovery, video streaming and intelligence metadata. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Operational Use of Systems PSIM (Physical Security Management Systems) – Roughly defined as a combination of different system technologies brought together to operate as a cohesive solution. – Video, Access, Fire, Intrusion, Emergency Communication – ORSUS, Vidsys, Proximex, Intergraph are more “Situational Awareness” software providers – These solutions typically are very expensive and are used mostly in the Military/Government markets – A well integrated system can provide most of the capabilities without the cost? This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent.