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Act with confidence. [ [Nasdaq: GLOI ] ] August 2008 August 2008

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Page 1: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

Act with confidence.[[Nasdaq: GLOI]] August 2008August 2008

Page 2: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

Business Overview

Page 3: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

Investment Highlights

• Reputable and resourceful management and advisory boards

• Experienced senior management team and professionals

• Large and growing market opportunity

• Comprehensive offering of risk mitigation solutions

• High profile contract wins driving organic growth

• On track to achieve EBITDAS breakeven in Q2 and positive EPS in Q4

Opportunity to create sector-defining brand

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Page 4: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

Corporate Description

Act with confidence.2

Integrated provider of risk mitigation and management services to governments, FORTUNE 1000, high net worth/high profile individualsBecame public: 2005

Headquarters: New York, NY

Number of Employees: 523 full-time, 123 part-time

2007 Revenue: $87.1M

2008E Revenue: $105-115M

Page 5: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

The Large and Growing Market Opportunity

Greater focus on natural disasters and emergency preparedness

Increased regulatory complexity and litigation

Need for full service provider

We believe GlobalOptions has the right business model and organization to seize the market opportunity1Source: FEMA 2Source: Insurance Information Institute 3Source: Coalition Against Insurance Fraud

Greater awareness of market inefficiencies created by fraud

Act with confidence.

• Hurricane Katrina, 9/11

• 52 major disasters in the U.S. in 20061

• Public disaster assistance averaging $2.6 billion annually since 19981

• Insurance fraud more than

$100 billion annually2

• Overall consumer impact of approximately $900 per U.S.

family3

• Severe civil and criminal penalties for companies, officers and directors

• Need for expert management regarding USA Patriot Act, Federal Information Security Act, Gramm-Leach-Bliley Act, Health Insurance Portability and Accountability Act, Sarbanes-Oxley Act, etc.

• Niche providers not equipped to meet full range of client needs

• Several traditional leaders have been acquired or evolved their business model

• Shift by organizations to proactive risk mitigation strategies and procedures

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Page 6: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

Foundation for Growth

June 2005: GlobalOptions Group, Inc. became a public company through reverse merger transactionAugust 2005: Acquired CBRFoundation acquisition for Fraud & SIU Services unit

March 2006: Acquired JLWASole business in Preparedness Services unit

May 2006: Acquired SafirRosettiFoundation acquisition for Security Consulting & Investigations unit

May 2006: Acquired SecureSourceAugmenting Fraud & SIU Services unit

August 2006: Acquired Hyperion RiskProvides additional investigative services to Fraud & SIU Services unit

February 2007: Acquired Bode TechnologyProvides forensic DNA analysis, proprietary DNA collection products and related research services; significantly expands Security Consulting & Investigations unit

February 2007: Acquired FACTICONExpands Fraud & SIU Services expertise in insurance, legal, business and financial industries

September 2007: Nasdaq ListingOctober 2007: Completed $20 million equity raise and capital restructuring

January 2007: Acquired On Line Consulting ServicesAdds security and communications systems expertise to Security Consulting & Investigations unit

6/05 8/05 3/06 5/06 5/06 8/06 1/07 2/07 2/07 97/07 10/07 04/08

4

April 2008: Strategic Business Alliance with First AdvantageAcquired First Advantage’s Investigational Services

Page 7: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

Management Team

Dr. Harvey W. SchillerChairman, CEO• Chairman, CEO YankeeNets• President, Turner Sports• Brigadier General, US Air Force (Ret.)

James Lee WittCEO, Preparedness Services• Director of FEMA• CEO James Lee Witt Associates• Director, Arkansas Office of Emergency Services

Jeffrey O. NyweideCFO, EVP Corporate Development• Technology entrepreneur and VC• Director, Pres, COO DatawareTechnologies

Halsey FischerCEO, Fraud & SIU Services• President, CEO CBR• SVP, Pinkerton Consulting & Investigations

Thomas P. OndeckPresident, International Strategies• Partner, Manatt, Phelps & Phillips, LLP • Partner, Baker & McKenzie

Howard SafirCEO, Security Consulting & Investigations• Chairman, CEO SafirRosetti• Vice Chairman, IPSA International• New York City Police and Fire Commissioners

Act with confidence.5

Page 8: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

Comprehensive Provider of Risk Mitigation Services

Halsey FischerJames Lee Witt Howard Safir Tom Ondeck

Dr. Harvey W. Schiller, Chairman, CEOJeffrey O. Nyweide, CFO, EVP Corporate Development

Integrated solutions provider

Act with confidence.6

Page 9: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

Preparedness Services

Develops and implements crisis management and emergency response plans for governments, corporations and individuals

• Business continuity plans

• Emergency exercises and training programs

• Post-disaster crisis communications assistance

• Preparedness, response and recovery services

• Strategic advisory services

• Threat and impact assessmentsManagement:James Lee Witt

Headquarters:Washington D.C.

Employees:88 full-time, 12 part-time

Comprised of the followingacquired company:James Lee Witt Associates

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Page 10: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

Fraud & SIU Services

Provides investigative surveillance, anti-fraud solutions and business intelligence services to the insurance industry, law firms and multinational organizations

• Anti-fraud training• Background investigations• Corporate investigations for liability• Fraud reporting• Insurance claims investigations• On-scene accident investigations• Regulatory compliance• Surveillance

Proprietary GlobalTrak™ Enterprise Management technology

Management:Halsey Fischer

Headquarters:Nashville

OfficesOrlando, Sacramento, Anaheim, Philadelphia, Chicago, Dallas, Detroit

Employees:248 full-time, 98 part-time

Comprised of the followingacquired company:• Confidential Business

Resources (CBR)• Hyperion Risk• FACTICON• SecureSource

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Page 11: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

Security Consulting & Investigations

Delivers specialized security and investigative services to governments, corporations and individuals

• Anti-terrorism training• Business intelligence• Executive protection• Facilities and IT security (design, implementation, management)

• Forensic DNA analysis and casework• Independent monitoring and regulatory

compliance• IT and accounting forensics• Litigation support

Management:Howard Safir

Headquarters:New York City

OfficesBoston, Washington, D.C.,Chicago, Dallas, Los Angeles, San Francisco

Employees:175 full-time, 11 part-time

Comprised of the followingacquired company:• SafirRosetti• Bode Technology • On Line Consulting

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Page 12: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

International Strategies

Provides multidisciplinary, international security, risk management and business solutions to foreign and domestic governments, corporations and individuals

• Corporate governance compliance• Crisis management• Emerging market services• Facilities security• Global business intelligence• Investigations and litigation support• Personal protection

Management:Tom Ondeck

Headquarters:Washington D.C.

Employees:9 full-time, 2 part-time

Original Core Business

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Page 13: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

Leveraging Proprietary Technology

Bode Technology

A leader in forensic DNA analysis, proprietaryDNA collection products, crime scene investigation tools and research services used by law enforcement agencies, federaland state governments, crime labs anddisaster management organizationsthroughout the world

• Bode’s forensic DNA experts have assisted in identifying victims of the attack on the World Trade Center, the war in Bosnia, victims of the tsunami in Thailand and the remains of U.S. soldiers dating back to the Vietnam War

• Bode’s use of Touch DNA was cited by the Boulder District Attorney’s office as key to its decision to exonerate family members in the death of JonBenetRamsey. Using Touch DNA, Bode identified a third sample of unexplained third-party DNA that was found on the clothing of the victim.

GlobalTrak™ Technology

Proprietary enterprise solution that provides fullyintegrated case management support from inceptionto resolution through to archiving

• Full suite of case management capabilities

• Evidence processing and management including audio and video surveillance files

• Internal management of client companies, contacts, status reports

• Manage assignments, evidence, investigative time, investigative reports

• Dashboards by function/topic

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Page 14: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

Our Growth Strategy

Our goal is to build the risk mitigation industry’smost comprehensive solutions offering through abalance of organic growth and acquisitions

• Leverage our relationships and expertise

• Integrate and cross-sell solutions

• Selectively acquire companies

• Develop new risk mitigation solutions

• Expand internationally

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Page 15: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

Recent Wins

• 5-year contract with York Insurance Group valued at up to $10 million• 2-year $750,000 contract with West Coast Property & Casualty Insurance Carrier• 3-year contract with leading workers comp provider valued at up to $3 million• Multi-year contracts worth $6 million with 2 major East Coast Property & Casualty Insurance Carriers• 2 Federal contracts totaling $2.5 million to conduct DNA research• Contract with State of Maryland to Enhance Emergency Management • 3-year contract with the State of Louisiana • 90-Day contract to help Oregon with Storm Recovery • Contract with Marathon Petroleum to provide security consulting services• $1.12 million in contracts from 6 N. J. Counties• 3-year contract with Gallagher-Bassett to provide investigative services• Contract to provide strategic advisory services to Purple Tree Technologies• Contract with Port Authority of N.Y. and N.J.• 1-year contract with U.S. Virgin Islands Office of Homeland Security (VIOHS)• 3-year contract with Southern Eagle Insurance Company • 2-year contract with State of Iowa to provide disaster management services for recent flooding

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Page 16: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

Financial Summary

Page 17: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

Our Growth Strategy

Disciplined approach to identify, acquire, integrate and scale

Ent

erpr

ise

Val

ue Pro

fitab

ility

Time

Phase I:Initial Acquisitions• Acquire platform of small

companies to create a $100M + revenue base

Phase II:Expansion/ Acquisitions• Acquire add-ons that enhance

service offerings• Achieve synergies between

acquired companies

Phase III:Market Leader• Recurring, global, diversified revenue

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Page 18: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

Business Model Overview

• High level of repeatable revenue

• Strong visibility from long-term contracts

• Business integration accelerates EBITDA growth– Cross-selling– Back-office synergies– Full in-house services– Organic growth

• Driving towards profitability in 2008

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Page 19: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

Manageable Investment Risk

• Capital to fund growth plans– Net proceeds of $18.2 million

from October 2007 secondary offering

– $20 million line of credit with Silicon Valley Bank

• Simplified capital structure

• Industry consolidation– Reed Elsevier acquired

ChoicePoint for an enterprise value of $4 billion, or 4x revenue

• Acquired The Bode Technology Group for $12.5 million in 2007– Transaction multiple of 1x

2006 revenue of $12.2 million

Limited Financial Risk External Upsides

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GlobalOptions Currently Trades at ~0.3 x 2008 Revenue

Page 20: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

Revenue Growth

($ millions)

$25.0

$20.0

$15.0

$10.0

$5.0

0

12/05 03/06 06/06 09/06 12/06 03/07 06/07 09/07 12/07 03/08 06/08

Quarter Ended

$22.5$21.4

$17.3

$21.0

$17.4

$6.2$4.3

$21.6

17

$21.7 $21.5

$26.2

Page 21: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

Target Operating Model

Revenues

Gross profit

SG&A

Operating EBITDA

Net income

Target Operating Model (range)1

100%

45 – 50%

35 – 39%

10 – 15%

5 – 10%

�(1) The target operating model is for illustrative purposes only, and is not intended to be a projection of future financial performance.

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Page 22: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

Capitalization Table

Common stock

Series A&B convertible preferred stock

Warrants

Series C&D convertible preferred stock

Series D common stock equivalents

Stock options

Restricted stock units

Total

10,023,454

3,692,746

680,617

368,475

19

14,765,292*

*As of June 30, 2008

Page 23: Business Overview - library.corporate-ir.netlibrary.corporate-ir.net/library/19/192/192766/items/304316/... · • Technology entrepreneur and VC • Director, Pres, COO Dataware

Investment Highlights

• Reputable and resourceful management and advisory boards

• Experienced senior management team and professionals

• Large and growing market opportunity

• Comprehensive offering of risk mitigation solutions

• Demonstrated success with strategic acquisitions

• Driving towards profitability

Opportunity to create sector-defining brand

20