Essential Viewing Systems Corporate Overview 1

1 2 3 4 5 6 7 8 9 AGENDA BACKGROUND MANAGEMENT TEAM TARGET MARKETS AND BUSINESS MODEL 4 HARDWARE AND SOFTWARE PRODUCTS 5 ARCHITECTURE AND TECHNOLOGY 6 INTEGRATION WITH OTHER SYSTEMS 7 CASE STUDIES 8 UNIQUE BENEFITS 9 QUESTIONS Page  2

BACKGROUND ON ESSENTIAL VIEWING SYSTEMS Essential Viewing specialises in the development of software and hardware solutions which deliver high quality video over low bandwidth networks in real-time. Technology is based on research work at the University of Strathclyde, Glasgow Spin-out in July 1999 Research and Development focus 1999 to 2005 First commercial hardware products launched 2006 Lockheed-Martin acquired stock in July 2008 Current generation products launched March 2009 Page  3

BACKGROUND ON ESSENTIAL VIEWING SYSTEMS Network bandwidth is not often limited, and when combined with data-intensive live video Essential Viewing offers a compelling value proposition to Law Enforcement and Defence users. There is a misconception that network bandwidth is unlimited Whilst network bandwidth technologies are increasing – e.g. GPRS  HSDPA – this is not universal The theoretical bandwidths are typically never available in real world scenarios Video, by its very nature, is data intensive Defence and Law Enforcement customers often have to operate where there is no secure fixed infrastructure to provide communications Technology is driving sensor capabilities – higher definition camera This drives the need for increased network bandwidth Page  4

TARGET MARKETS AND BUSINESS MODEL Police and Law Enforcement Focused on covert surveillance applications Focus on Technical Support Units and Surveillance Teams Defence Initial UK-focus with Special Forces customer base Now expanding into US Defence with significant projects Developing Canadian and Australia Defence opportunities Local Government Early adopters in the UK proved business case Applications include rapid-deployment CCTV and mobile CCTV Transport UK Highways Agency customers and Local Authorities using the system Applications for road monitoring, replacement to permanent CCTV systems and mobile applications Page  5

TARGET MARKETS AND BUSINESS MODEL SECONDARY MARKETS Utilities, Oil and Gas Critical infrastructure monitoring and protection UK exposure through EDF, the largest utilities provider in Europe Similar requirements to police and Defence customers Mining North American focus to date but projects in RSA, South America and Africa Similar requirements to Defence customers Significant market size Broadcasting Pilot projects completed with BBC, ITN and CBS Focus is on outside broadcasting – live and recorded – over mobile satellite systems such as Inmarsat Video Teleconferencing Systems Existing customers in Defence, Law Enforcement and Government agencies -using the encoders for VTC applications Page  6

TARGET MARKETS AND BUSINESS MODEL CHANNEL PARTNERS AND SYSTEM INTEGRATORS Business Model Business Model is to sell to end customers through Value Added Channel Partners and Systems Integrators Allows coverage of international territories with the most appropriate partners Partners can provide solutions based on COTS products, or integrate them into more bespoke offerings Page  7

TARGET MARKETS AND BUSINESS MODEL POLICE MARKET Police Customers Many UK police Customers Product sold through Channel Partners EV provide direct support for larger organisations – e.g. SOCA, Met Police, SCDEA Heavily deployed in regional CTU organisations Sales also to US, Canada, Singapore, Pakistan and Australia police users Page  8

TARGET MARKETS AND BUSINESS MODEL DEFENCE MARKET Defence Market Many UK Special Forces customers Supplied via Tier 1 Prime Contractors – e.g. LM, Fujitsu and SAIC Trickle down from UK SF to UK “Green Army” Now focusing on US Defence – with partners and direct research-led engagements Page  9

TARGET MARKETS AND BUSINESS MODEL LOCAL GOVERNMENT Local Government Market Key Channel Partner is Tyco with additional sales through RACAM Security Applications include, semi-mobile CCTV systems for monitoring road junctions and roadworks Mobile CCTV Vans Control Room video distribution EV/Tyco offering is significantly cheaper than traditional solutions Significant growth opportunities in Middle East and Asia Page  10

HARDWARE AND SOFTWARE PRODUCTS C300 HARDWARE ENCODER Product Features Commercial product Analogue video input Inbuilt cellular modem (GPRS/3G/HSDPA) – only requires SIM Ethernet Port RS-232, RS-422/RS-485 Serial Connections Stereo Audio Input/Output Alarm Input Input Voltage – 9v to 36v DC Temperature range -32oC to 60oC Power Consumption – 5.5W (nominal), 1.5W (standby), 0.1W(sleep) Size – L 195mm x W 148mm x D 37 mm Page  11

HARDWARE AND SOFTWARE PRODUCTS R300 HARDWARE ENCODER Product Features Defence focused product – IP67 rated and 2m drop test Analogue video input Inbuilt cellular modem (GPRS/3G/HSDPA) – only requires SIM Ethernet Port RS-232 Synchronous Serial and RS-422/RS-485 Serial Connections Stereo Audio Input/Output Alarm Input Input Voltage – 9v to 36v DC Temperature range -32oC to 70oC Power Consumption – 5.5W (nominal), 1.5W (standby), 0.1W(sleep) Size – L 210mm x W 190mm x D 75 mm Page  12

HARDWARE AND SOFTWARE PRODUCTS C200 HARDWARE ENCODER Product Features Commercial product – aimed at satellite based applications Analogue video input Ethernet Port RS-232, RS-422/RS-485 Serial Connections Stereo Audio Input/Output Alarm Input Input Voltage – 9v to 36v DC Temperature range -32oC to 60oC Power Consumption – 5.5W (nominal), 1.5W (standby), 0.1W(sleep) Size – L 195mm x W 148mm x D 37 mm Page  13

HARDWARE AND SOFTWARE PRODUCTS TVI SERVER SOFTWARE PRODUCT Product Features Java software based application Licensed product scalable cost for 3+ encoders Central point of connection for encoders and viewers Authentication database for users and encoders Must be deployed with a fixed IP address OR domain name Some Channel Partners operate as a hosted service for customers Security customers typically operate and manage their own TVI Server Page  14

HARDWARE AND SOFTWARE PRODUCTS TVI MANAGER SOFTWARE Product Features Java based application Used to manage the system Non-chargeable product Page  15

HARDWARE AND SOFTWARE PRODUCTS CONTROL CENTRE SOFTWARE APPLICATION Control Centre Application Main application to view video streams Windows-based client Fully featured viewing application – multi-server, multi-encoder views Page  16

HARDWARE AND SOFTWARE PRODUCTS TVI VIEWER APPLICATIONS Handheld Viewing Applications Windows Mobile client available iPhone/iPad/iPod Touch client available Blackberry and Android viewing clients in development Page  17

ARCHITECTURE AND TECHNOLOGY Page  18

ARCHITECTURE AND TECHNOLOGY Page  19

Rapid deployment camera Case Study Rapid deployment camera Local Government customer in London Rapid deployment system with Essential Viewing codec included Video transmitted over cellular network at up to 250kbps uplink Remote control of the camera to allow operator to view all around camera area Page  20

Trial for Transport for London Case Study Trial for Transport for London Trial on London Buses to stream live video over cellular networks Video transmitted over cellular network at up to 60kbps uplink Each bus has up to 16 cameras Integrated Essential Viewing codec into on-board DVR Successful 4 day trial Page  21

Video over non-IP Defence radio Case study Video over non-IP Defence radio Harris military field radios Non-IP channel Half-duplex links Low channel capacity – 16kbps Two modes of operation – push and pull Page  22

High Resolution Download Page  23

UNIQUE BENEFITS Live Video Monitoring Camera PTZ requires low latency if targets are to be tracked High latency means a target is out of the field of view before the operator can steer the camera When panning a high frame rate is required A low frame rate gives no sense of target motion A low frame rate results in camera overshoot Visual quality must be sufficient to allow for target identification during a pan Page  24

UNIQUE BENEFITS Network Congestion IP Networks behave in a similar manner to roads when heavily loaded Saturation results in a shock wave Packets are delayed or lost Effective capacity or bandwidth drops Journey time or latency increases Channel saturation must be avoided Both packet size and packet frequency must be tightly controlled MPEG does not allow for control over both packet size and packet frequency Latency is bad over low bandwidth Page  25

Limitations of MPEG-based Systems UNIQUE BENEFITS Limitations of MPEG-based Systems Video coding and channel are divorced Assumes coding bandwidth is a small fraction of the actual channel capacity Packet size and frequency will vary Packet size increases with scene motion Designed to hit an average bandwidth Frames dropped if bandwidth exceeded Quality can degrade to the point of being useless if frame rate is forced high Congestion and hence performance gets worse as channel capacity goes down Page  26

UNIQUE BENEFITS Audio Video Server QoS QoS Video Stream Stream Data Communications channel is NOT de-coupled from the video encoding process Quality of Service control metric ensures video coding matches channel capacity on real-time basis to keep latency low Encoder multiplexes different types of data – video, audio and data (PTZ, GPS, etc) - into a single IP stream where the video bandwidth adjusts to accommodate audio and data Precise control over IP packet frequency and packet size reduces “stress” on wireless networks avoiding congestion The EV technology is not just a video codec. It is the whole architecture including the protocols used to package and send the video. The performance of the links between the server and encoder and the server and each viewer is constantly monitored. This allows the server to determine the actual channel bandwidth available on each link and to instruct the encoder to modify the video bandwidth accordingly. The aim is to minimise latency which means not saturating the communication links. Providing for the coding of audio and for the inclusion of meta-data, the encoder generates a single combined stream which minimises the frequency and variability of IP packets – critical to avoid stressing and then disconnect on cellular networks. Page  27

EV performs better than MPEG/H.264 UNIQUE BENEFITS EV performs better than MPEG/H.264 Page  28

? ? ? Questions Page  29

Thank you Page  30