1. Introducing A Genuine Turnkey Digital Signage Solution for the SMB Market Vernon R. Slack Office: 801 623 8252 vernonslack@aopen.com

2. TODAYS AGENDA  What is a Genuine Turnkey Digital Signage Solution?  A brief Market Update  How do we address the Customer’s Pain Points?  Current Market Constraints  The Optimal Digital Signage Solution for the SMB Market  The Solution Ecosystem  The ‘Services’ Overview  What is our Solution Methodology?  What’s our Value Proposition?  Who is your Solution Support Team?  What does your collateral look like?

3.  Offers the customer strategic consulting services to help plan, select, evaluate and deploy the optimal digital signage solution  Includes all of the required hardware, software and infrastructure to meet the customer’s business and communications requirements over the life of the network  Is easy to use, highly reliable and scalable built around a certified software stack and commercial grade components to meet the special needs of unattended systems  Seamlessly integrates components, software and infrastructure with existing systems to insure minimal disruption to the customer's business continuity  Offers a suite of cost effective ‘Managed Services’ for Help Desk support, remote monitoring & repair, mobile & social engagement services and viewer analytics  Delivers to the audience relevant and timely digital media  Provides the customer with a single point of contact during the planning, evaluation and deployment phases and a single service provider over the life of the network through strategic partnerships A Genuine Turnkey Digital Signage Solution …

4. A Brief Digital Signage Market Update

5. US Digital Signage Market Update  There were 1,250,000 digital display systems installed in the US at the end of 2010; a 25% unit growth over 2009  Over 50% were in the SMB Market  The ‘average’ Digital Signage Network is 75 to 100 displays  62% of the 2010 shipments were networked  300,000+ Displays in Retail & 100,000+ Workplace Communications Displays  425,000+ Ad Network Displays with 2010 Ad Revenue of $2.1 Billion on 200 Ad Networks  Still a very fragmented market

6. Point of Transit Three Types of Digital Signage Networks Point of Wait Point of Sale

7. Three Digital Signage Business Models Merchandising/Ad- Supported Networks Retailers, restaurants, hotels, Digital Out of Home (DOOH) Advertising Networks Malls, airports, train stations, doctor’s waiting rooms, clinics, Information - Entertainment Networks Schools, workplaces, Return on Investment Increase Sales and Lower Costs Enhanced Customer Experience Return on Investment Advertising Revenue Return on Objectives Better informed audience, more efficient communications,

8. The Six Businesses of Digital Signage ( US Total Available Market) $1,4500M Technology $150M Deployment $2,150M Operations $2,500M Digital Content Production $2,100M Ad Networks New Market Measurement The 2010 Total Available US SMB Market - $3.1 Billion

9. The Market Constraints  The market is extremely fragmented and the supply chain is overly complex  There is little experience among users and vendors on how to plan, select, evaluate, deploy and operate digital signage networks … for every 12 digital signage projects announced, only 1 is ever fully deployed  There is little capability among users to cost effectively produce timely and relevant digital media  2010 Average CAPEX at $3,720 per system is down 50% from 2005 (hardware, software & installation) … but the ‘Total Cost of Ownership’ is only down 15% from 2005 at $5,900/system ($16.15/day)

10. The Overly Complex Supply Chain Digital Signage Project Mounting Hardware Content Management Software Deployment Services Aggregators Displays Outdoor LCD Displays Large LEDs TVs Ultra Thin Displays Display Tiles Video Walls System Integrators Managed Services Content Services For Ad Networks PC Players Commodity PCs Commercial PCs Work- stations Outdoor Enclosures Standard Mounts Custom Enclosures Player Imaging Hardware Configuration Servers Work- stations Industry Standard Servers Display Installation Video Cabling Fixtures/ Enclosures Kitting/ Distribution SaaS Premise- based Networked Streaming Players Picture Frames Standalone MPEG Players Non-PC Players Distributors & VARs Network Services Video/ Flash Templates Data Feeds Brand Strategy Reporting/ Analytics Schedule Mgt. Network Monitoring Application Hosting Onsite Service/ Repair Internet ISP Satellite WiMax Cellular Corp. Enterprise Network Agencies Ad Creative

11. Services - 80% of the ‘Total Cost Of Ownership’ $1,740 3 Year Amortization $1,240 $2,030 CAPEX 1 $3,720 Total Cost of Ownership = $5,900 per system per annum 1 30” display systems to video walls (excludes <30” displays and LED systems)

12. 1.Content Management SaaS  Meets the functional requirements of each targeted vertical market  Easy to use media management, playlist scheduling and placement  Supports digital media from standard graphic packages - Photoshop, Illustrator, Flash, Adobe After Effects, MS PowerPoint, Quark,  Triggers media from inputs such as viewer proximity and Anonymous Viewer Analytics  Local input and control of a predefined area to present content relevant to the location  Easily integrated with existing systems (PLU pricing, inventory, etc.) 2.Remote Managed Services  Help Desk support  Hardware, software & network monitoring for remote problem detection  Remote hardware and software repair using Intel’s vPro  Software upgrades and changes to system’s configuration  Optional ad placement and playlist delivery services 3.Digital Content Managed Services  Media production automation using our ‘Media Mapping’ methodology  Integration with external data sources & feeds  On-going creative services, digital media repurposing & Flash Template development  Local digital media creation capability with centrally controlled processes to drive re-use What Services Are Offered?

13. 4.Mobile and Social Engagement Services  Near Field Communication (NFC)  Mobile e-wallet and QSR Codes for transactional business  Facebook connection for mobile latent conversations  Coupon downloads for immediate and future discounts 5.Viewer Analytics and Customer Engagement Services  Digital content Proof-of-Play data collection and analysis  Anonymous Video Analytics (AVA) data synchronized with Proof-of-Play data  Interactive usage data analysis for audience engagement measurement (touchscreen, mobile device, NFC,)  Sales by product promotion from the retailers POS and/or Trade Promotion Management systems 6.Digital Signage Consulting Services  Requirements Discovery Module – Identify the client’s optimal usage model, business and communications goals and digital media requirements  Qualification Module – How to cost effectively address the client’s key Business, Marketing and Communications goals  Strategic Media ‘Blueprint’ Module – A roadmap for relevant and cost effective media production  Evaluation & Production Deployment Modules - Program Management support What Services Are Offered?

14.  Retail  Regional Grocery, Convenience, Specialty, Apparel, Home Centers, Card/Gift/Novelty, Auto Aftermarket, Sporting Goods, General Merchandising, Home Furnishing, Office Products,  Financial  Regional Banks, Credit Unions,  Internal Communications  Corporate Campuses, Hospitals, Back Office  Restaurants (Menu Boards)  QSR & Casual Dining (privately owned or franchises)  Hospitality  Hotels (privately owned or franchises), Casino’s What Vertical Markets will be Served?

15. SMB Bundled Solutions Vukunet  PC Media Player  No Cost Content Manager  Very basic functionality SuperSign  Basic Content Management functionality plus newsfeeds from CNN  3 year agreement with PC Player + 47” Display + SaaS: $149/mo iCompel  Player appliance with software included  Controlled with a server  Advanced Player (Core2): $2,995 Scala QuickStart  HP PC Media Player: $1,120  47” LCD Monitor  SaaS: $45/mo Our Genuine Turnkey Solution’s ‘Total Cost of Ownership’ is a third lower than the leading Digital Signage Bundled Solutions

16.  AOpen America – The largest supplier of commercial PC media players in North America  AOpen’s ‘Open Services’ – Contracts with the customer for the required ‘Managed Services’ – Offers Content Management SaaS, Remote Monitoring & Repair, Automated Media Production, Mobile/Social Engagement, Audience Analytics and Strategic Consulting Services  Content Management ISV’s – ‘Best of Breed’ Content Management software for each of the 5 vertical markets  Certified System Builders – Build AOpen PC media players configured to meet customer’s specific hardware requirements and imaged with the software stack needed to insure seamless integration  Partners – ‘The single point of contact for the prospect’ for coordinating the planning, evaluation and deployment a Turnkey Digital Signage Network … Open Services does all the rest over the life of the network Our Solution Ecosystem

17. Client Digital Displays & Other Hardware Turnkey Solution Deployment Model Partners Hardware Distributors Ingram Micro, Avnet, Arrow, Bluestar, … AOpen America AOpen Imaged PC Players Certified Reseller’s System Builders Seneca, Micro Industries, M&A Technology, … Site Surveys & Hardware Installation AOpen PC Media Player Commissioning Sprint Intel

18. What’s the Value Proposition?

19.  Using our ‘Remote Managed Services’ reduces operational labor costs at least 60% and maintenance costs by 75%  Customers are able to display relevant and timely high-impact digital media using our automated ‘Media Production Services’ at 40% to 70% lower than the industry average  Our ‘Consulting Services’ will reduce the time required to plan, evaluate and deploy a digital signage solution by up to 50%  Our Turnkey Solution with ‘Managed Services’ significantly improves overall ROI by reducing the ‘Total Cost of Ownership’ at least 33% saving $2,000 per system per annum These savings recover all the CAPEX in 22 months The Customer Value Proposition

20.  CLOSE DEALS FASTER - Accelerates the decision process by simplifying the planning, selection, evaluate and deployment  WIN MORE DEALS – The only Genuine ‘Turnkey Digital Signage Solution’ available for the SMB market with a simplified ‘Sales Engagement Model’  MAKE HIGHER GROSS MARGINS – Focuses on the Total Cost of Ownership which shifts the customer away from obsessing over finding the ‘lowest cost’ hardware/software solution  CREATE A HIGH MARGIN RECURRING REVENUE STREAM – Creates recurring commissions for YOU from all contracted consulting and ‘Managed Services’ over the life of each digital signage network What’s In It for YOU?

22. QUESTIONS? Call Vernon Slack 801 623 8252