Welcome to Axcess Internationals Webinar Unattended Inventory, Location Identification and Theft Prevention through Automated Physical Asset Identification Tuesday, November 11 Panelist: Allan Griebenow

Traditional IT Asset Mgmt Concept -$ Source: IAITAM

Micro-Wireless Tagging 2.8 ins 0.26 ins 1.2 ins - Real-time location tracking and control - Reliable and proven to stop theft - Small, low cost and easy to attach tags - $10 per tag, avg. <$.75 per mo. total - Aesthetic infrastructure of readers - Standalone software or integrated - Link assets to owners (custodians)

What Kind of Information is Provided? - Current and past location(s) with dwell times and graphic display - Browser-based user customized display - Alarm screen with automatic alerting to events - Detailed custom reports

Why Is It Needed? 1-4% of IT assets are always missing – Search time can be hours per misplaced asset – 94% of IT assets are never recovered once lost Lost data is a C-level problem – Includes loss of intellectual property, personal privacy info – Costs include the asset, software, data, legal fines, bad press, etc. – Avg. number of insider theft incidents is 6 per year Legal implications of data loss continue to grow – State notification laws generating big costs to companies – Federal laws require asset control therefore loss prevention Sources: Gartner Groups Information Security Maturity Model – 2008,, Ponemon Institutes 2006 Annual Survey: Cost of a Data Breach, and InformationWeek.comwww.privacyrights.org/ar/chrondatabreaches.org

6 All Data are at Risk What kinds of intellectual property create the greatest risk to your organization if lost or stolen? Why Its Needed (Contd)

Encryption, mirroring, and asset recovery solutions are not enough as they cant locate assets or prevent loss An automated asset control system exists and has been proven to automate physical IT asset management – Automatic real-time inventory – Finds internal misplacements on-demand – Stops thefts at the door – Automatically assigns accountability to owner – Immediate ROI Sources: Gartner Groups Information Security Maturity Model – 2008,, Ponemon Institutes 2006 Annual Survey: Cost of a Data Breach, and InformationWeek.comwww.privacyrights.org/ar/chrondatabreaches.org

Real-Time Asset Mgmt Using Wireless Property Tags Manage Requests Acquire Assets Receive Assets (Re)-Deploy Assets Move Add Change Retire Assets Asset Disposal IT Asset Repository Inventory Database Middleware, Database, Software, or Direct I/O Pick to Light

9 Passive versus Active Systems for Tracking Passive RFID (e.g. WALMART) Micro-Wireless or Active RFID - No battery/autonomous power - Short range applications - For controlled environments - Lowest cost tags, costly infrastructure - Intrusive infrastructure - No automated tracking - Battery on-board - Can be a hybrid, active plus passive - Highly reliable automatic ID - Higher cost tags, Lower cost I/F - Flexible, hidden infrastructure Powered Tags (e.g. Micro-Wireless) are needed for automatic tracking

10 The case for active RFID Active tags open up a whole new world of wireless possibilities Remember the old Hallmark slogan, "when you care enough to send the very best"? When it comes to RFID, there may be a similar message in the offing. RFID is a generic term that refers to more than just the cheap tags that companies slap onto pallets to comply with retailers' edicts. In actuality, there are many types of RFID systems. Wal-Mart requires passive RFID tags. But the "very best" for your company's needs may be active RFID tags and the infrastructure that supports them. Passive tags are not powered, so they have a range of just a few feet. A reader must "wake them up," at which point they transmit the little bit of data that they hold. The orientation of a passive tag must be just right or the reader won't find it. Passive tags also have difficulty sending data through liquids or metal. Active tags, on the other hand, can have a range of as far as 300 feet, are battery-powered, and can either transmit constantly or be activated by an actuator.

How Does it Work? Network Receiver Security System Asset Mgmt Software 2.8 ins 0.26 ins 1.2 ins Small, low cost wireless property tags are placed on the assets which send MicroWireless signals locally up to 100 feet to palm-sized receivers in the enterprise. Tags beacon at intervals for automatic accounting and are triggered at doors to automatically check for authority to be removed from the premises. Custodian badges are linked electronically to provide automatic checks. Received signals are sent to both the security system and the management system. Integration into legacy enterprise systems is easily accommodated.

The Dot TM Chip Makes the Solution Unique The AXCESS Enterprise Dot TM is an Application Specific Integrated Circuit (ASIC) chip uniquely designed with a software defined wireless transmitter for communicating to multiple systems. It is the worlds smallest, most powerful battery-powered wireless computer. When implemented on a wireless module platform such as a property tag, its as powerful as the first PDAs, communicates at wideband speeds, stores 3 pages of text, and has a battery which lasts 3-5 years. It costs $10 per asset tag and the whole system amortized averages around $.75 per asset per month for a typical ROI of 6 months because the system is fully automated (e.g. no manual involvement). Passive RFID tags require manual, hand-held readers or large portal infrastructures and are not reliable enough to be automatically read at a perimeter entry or exit to prevent theft. Dot MicroWireless property tags come in various Form factors designed to fit the specific needs of the customer.

Why Is This The Best System Choice? Best frequency for tag read distance and reliability = automation Patented tag circuitry for long battery/tag life Low overhead signal enables small, lowest cost tags Tags activate at pinpoint locations and give direction of travel Only comprehensive system platform with: – Regular beacon for inventory, plus – On-demand activation for location, plus – Pinpoint activation for perimeter security and door control, plus – Sensing capabilities Flexible, multiple application options on same platform – Personnel and assets, and sensors (e.g. temperature) Smallest battery-based asset tag optimized for IT assets Functionally link persons with assets Full system including tags, activators, readers, middleware, software Easy interfaces to legacy security and enterprise networks

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The Dot TM is in the News

16 Compliance Regulations & Mandates Sarbanes-Oxley (Section 404 re: business controls) Health Insurance Portability and Accountability Act of 1996 (HIPAA) Fair and Accurate Credit Transaction Act of 2003 (FACTA) Financial Services Act of 1999 NYSE-listed companies Codes of Conduct requires accountability Gramm-Leach-Bliley Act (GLBA): legislation created for financial institutions to better protect consumers sensitive and business transaction information.

Axcess International's RFID System Successful in Stopping University Laptop and Identity Thefts DALLAS, July Axcess International Inc., a leading provider of Dual-Active Radio Frequency Identification (RFID) and Real Time Location Systems (RTLS) solutions, and IDZ RFID Mexico, one of the most active RFID consulting and integration service providers in Latin America, today announced the successful implementation of its asset management system at Universidad Regiomontana, a premier Mexican academic institution. The University deployed Axcess' ActiveTag RFID physical computer asset protection solution in January 2006 with the goal of reversing asset theft and enhancing personnel tracking. Prior to implementation the university suffered a rate of percent in laptop thefts on a regular basis; following the use of the system, the thefts have been reduced to zero. "The Axcess system has provided our institution with a simple and powerful solution to help us address the issue of laptop theft," said Francisco Javier Hernandez of Universidad Regiomontana. "Since our deployment of Axcess' Active RFID System we have virtually eliminated the theft of employee laptops on our campus and can say with confidence that our students' and our employees' personal information is safe." 17 Patented System Proven to Stop Thefts

18 Simple ROI Math Assumptions: Avg. value of asset and data lost = $7k ea. Avg. 2.5% probability of loss/yr. or $175 ea/yr System cost = <$1/asset/month, <$12/year Payback period < 1 month

Summarizing the Proper Course of Action Manual asset control is uneconomical, unmanageable – System solution is needed The published stats make the loss problem foreseeable – Action must be taken to avoid liability The solution must be automated and labor independent as insiders are part of the problem The solution must include asset theft prevention – Not asset recovery (e.g. Lojack-type or software trace) – Data protection (e.g. encryption) is not enough – Data mirroring is not enough The solution should include accountability

Tag ActivatorDiscreet Antenna Network Receiver (TCP/IP) What Infrastructure is Required? Microsoft Compatible Software Patented Control Point Activation Antennas FlexBarRoad Loop Plate Ceiling Tags beacon their transmissions on intervals, and are awakened on-demand when they reach key control points throughout the building and at the entry and exits. Tag activator electronics and antennas are designed to be invisible so as not to impact the infrastructure adversely. Tags transmit MicroWireless signals to the hidden receivers placed strategically around the building. Receivers connect to the network via or Ethernet cable, and also directly to the security system if desired. Stand alone software or the integration into legacy software provides application flexibility. Stand alone software is available in desktop or an enterprise class version with a web browser user interface.

21 What are the Design Considerations? The receivers are laid out for logical coverage similar to a Wi-Fi network design. Activators are laid out To establish logical control zones such as a computer room, executive suite, or manufacturing area. Entry/exit doorways define the perimeter for protecting against unauthorized asset departure.

Screens and Data Customized to Your Needs Assets which attempt to leave but are not authorized create an exception-based alarm. The alarm can trigger a regular security alarm and response, and also wireless messages to others who need to know. Rules for alarms are tailored to each customers needs. Alarms can be treated based on their severity. Typical tag data Includes a log, filtered alarms, the detail behind the tag (e.g. serial number and custodian), and its location.

What Components are Required? Flex Switchplate Bar Road Loop Ceiling Tag ActivatorNetwork (TCP/IP) Receiver Software/HardwareTag Types and Antenna Personnel Asset Asset Wedge Fob Harsh Environ Universal Sensor - Design Service - Installation - S/W Integration (option)

24 Reference: VA Multi-Floor Implementation 5 Floor Fed. Government Bldg 70 Control Zones 1720 assets tagged Complete software solution 100% AXCESS International Solution Installed by Vector Networks Features: Facility perimeter protection for laptops Daily automated inventory of assets Tracking of all authorized assets exiting

Real-Time Asset Mgmt Using Wireless Property Tags Manage Requests Acquire Assets Receive Assets (Re)-Deploy Assets Move Add Change Retire Assets Asset Disposal IT Asset Repository Inventory Database Middleware, Database, Software, or Direct I/O Pick to Light

System Capabilities Summary - Automatic asset tracking - Real-time inventory - Auto entry-exit management - Dynamic location map - Auto custodian assignment - Automatic reconciliation - Exception alert management - Security and legal compliance The Era of Things Talking

27 Conclusion Automated asset control system is here today Cost effective Proven reliable Easy to implement Also prevents loss Stand alone system or integrated as an option Fits into an overall asset management plan

Best Practice System White Paper

Resources requests to Trish Dillman at – Presentation – ROI White Paper – ROI calculator (MS Excel) – Active RFID Asset Management White Paper Call Axcess Intl sales at