ISC WEST • April 2-4, 2014 • VENETIAN RESORT HOTEL CASINO • LAS VEGAS, NV • WWW.ISCWEST.COM

US Security Industry:Brief Update

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Source: Frost and Sullivan Physical Security Industry Presentation

North American Security

Market Forecast and Trends

Analyzing the Size, Structure, and Trends of the Industry

VENETIAN RESORT HOTEL CASINO • LAS VEGAS, NV

ISC West 2014 - April 2-4, 2014

US EconomyISC West 2014 - April 2-4, 2014

VENETIAN RESORT HOTEL CASINO • LAS VEGAS, NV

Industry HighlightsIndustry Highlights

o Current channels continue to evolve to meet changing customer demands

There will always be new entrants to the market, but there will also be new opportunities creating other new opportunities within the market

o Technology is being leveraged; primarily to reduce cost and add revenue

New revenue is being created through the use of the Internet

o Recurring revenue development is still the golden goose driving the market

The continued addition of new recurring revenue will not only allow for more financial stability, but will also continue to attract investors and drive acquisitions

o Security specifiers, consultants and engineers will drive the growth

ISC West 2014 - April 2-4, 2014

VENETIAN RESORT HOTEL CASINO • LAS VEGAS, NV

Key Industry Themes

ISC West 2014 - April 2-4, 2014

VENETIAN RESORT HOTEL CASINO • LAS VEGAS, NV

How does it go to market?

Security Industry Buying Chain:

ISC West 2014 - April 2-4, 2014

VENETIAN RESORT HOTEL CASINO • LAS VEGAS, NV

U.S. Security Industry: Growth Potential

• Security industry is quickly evolving with mass consolidation and demand driven by new regulations

• Traditional physical security is migrating into the Network/IT/Cloud space• Fastest growing products are predicted to be in

• Network/IT/Cloud based Security• Biometrics• Sensors• National Defense• Remote Video Monitoring• PERS• Video Surveillance (networked video)

• Fastest growing segments• Airports• Education• Railway• Government• Healthcare• Utilities and City Surveillance

ISC West 2014 - April 2-4, 2014

VENETIAN RESORT HOTEL CASINO • LAS VEGAS, NV

Source: Frost and Sullivan Physical Security Industry Presentation

ISC West 2013 - April 10-12, 2013VENETIAN RESORT HOTEL CASINO • LAS VEGAS, NV

ISC West 2014 - April 2-4, 2014

The ISC Portfolio of Events

1. ISC East November 20 – 21, 2013 New York, NY

2. ISC Brazil March 19 - 24, 2014 Sao Paulo, Brazil

3. ISC West April 2 – 4, 2014 Las Vegas, NV

4. Expo Seguridad Mexico powered by ISC April 8 – 10, 2014 Mexico City, Mexico

5. One2One by ISC Februrary 24 – 25, 2014 June 22 – 24, 2014 Pheonix, AZ