1. Strictly private and confidential www.arecontvision.com

2. What is H.264 What is H.264? – MPEG4 (Part 10) Why was it developed? – A joint effort to deliver HDTV resolutions though existing cabling and satellite bandwidth restrictions… 720p, 1080i www.arecontvision.com

3. Strictly private and confidential www.arecontvision.com How it works Explain MJPEG first – Just like taking pictures with your digital still camera, just a video frame rates Conditional Refresh – Create image that shows if Object A moves from location 1 to 2, the delta is only thing changed

4. Strictly private and confidential Limitations H.264 was limited to two specific resolutions – 720p (0.9MP) – 1080i / 1080p (2.1MP) Limitation: – LOTS of processing power – Complex algorithms – Something to drive it www.arecontvision.com

5. The Arecont Advantage Our proprietary implementation targeted unconventional H.264 formats that are simply not available in the form of a purchasable IP core or a chipset -- the conventional formats are those developed for common HDTV products, like camcorders, and are 1080p and similar. However our solution supports all current AV camera formats and frame rates, including 1600x1200 @24fps, 1920x1200 @20fps, 2040x1530 @15 fps, 2560x1600 @15 fps, 2596x1944 @12fps, as well as all arbitrarily cropped formats up to 2596x1944. The cost of the purchasable h264 solutions is prohibitively high relative to the cost structure of AV cameras. We were able to select a narrow subset of h264 options out of the entire scope of all available options offered by the h264 standard that allowed us to optimize performance vs. cost. The frame rate of most (except very few) purchasable solutions was simply not sufficient for AV cameras' speed. We have developed two proprietary signal pre-processing techniques to support the max. frame rate in AV cameras. The produced h264 stream is fully compliant with the standard, and is decodable by all compliant h264 decoders. We have added a proprietary pre-encoding (pre- h264) nonlinear temporal filter to maximize the h264 compression to compensate for the relatively narrow subset of h264 options limited by the cost.

6. www.arecontvision.com Supported network protocols: RTSP and TFTP in H.264 mode; HTTP and TFTP in MJPEG mode. Our h264 solution supports up to 8 multiple independent h264 streams from the same camera at different frame rates and different image formats and/or resolution. Support of both H.264 compression and MJPEG compression at full resolution and real- time video frame rates, including switching compression standards on a frame-by-frame basis. Real Time Streaming Protocol (RTSP) for compatibility with Apple QuickTime or Windows Media Player Support of multi-streaming in both H.264 mode and in MJPEG mode: up to eight clients with different video stream parameters. Technical details of the on-camera H.264 encoder: – Fully compliant H.264 / MPEG4 (Part 10) encoder, baseline profile; – Optional bitrate control to maintain constant bandwidth and storage load; – Up to 25x reduction of network bandwidth and storage requirements relative to MJPEG (typical: 10x reduction);

7. www.arecontvision.com Jump to MegaPixel B/W Color VGA MegaPixel Analog EIA Analog NTSC/ PAL IP Standard Resolution IP High Definition Resolution Jump To Megapixel Mega Pixel Offers – High Definition – Dramatic forensic improvements over analog & IP VGA – Near Cost of name brand Analog & IP VGA

8. www.arecontvision.com H.264 provides – Better Bandwidth Efficiency – Better Storage Utilization H.264 (MPEG4 Part 10) compression standard Dual standard support: simultaneous streaming of H.264 and MJPEG Bit rate control to maintain desired bandwidth and storage size Unique proprietary implementation of H.264 does not decrease full frame rates or image quality Multi-streaming: up to 8 non-identical concurrent streams (different frame rate, resolution, quality) Simultaneous streaming of full FOV and multiple ROI for forensic zooming Real Time Streaming Protocol (RTSP) allows for compatibility with media players such as Apple QuickTime, VLC and others World’s first full line of H.264 megapixel cameras ranging from 1.3 to 5 megapixels and maintaining real-time video frame rates H.264 (MPEG4 Part 10)