eVerge™ Sales Review

EVX Digital Series Introduction Current Market Opportunity Digital Voice Only? Benefits to our Users EVX Overview Packing and Price Positioning Recap Q&A The goal of this training is not only to cover the new radio but address how this product enhances your business. New radios are launched by manufacturers regularly. The VX-450 put enhanced features and quality within reach of our budget sensitive customers. We are alone in that space. We continue this with digital, providing products that stand alone in the market and that creates opportunity. In a post narrowbanding world, we need to collectively find new ways to grow and this is a great way. Imagine being able to talk to competitive accounts with a product they can’t offer. Imagine moving customers into a technology previously unavailable to them. Imagine giving your customers a high quality feature rich digital radio that fits their budget. That time is now.

Current Market 1,149,386 Current Commercial/ Mid Tier annual Analog Sales 6,734,485 The goal of this training is not only to cover the new radio but address how this product enhances your business. New radios are launched by manufacturers regularly. The VX-450 put enhanced features and quality within reach of our budget sensitive customers. We are alone in that space. We continue this with digital, providing products that stand alone in the market and that creates opportunity. In a post narrowbanding world, we need to collectively find new ways to grow and this is a great way. Imagine being able to talk to competitive accounts with a product they can’t offer. Imagine moving customers into a technology previously unavailable to them. Imagine giving your customers a high quality feature rich digital radio that fits their budget. That time is now. Current Commercial/ Mid Tier install base There are 0% digital radios represented in these numbers

Why Aren’t They Buying Digital Adversity to Change Analog radios will always be around I’ve always used XYZ radio and I will keep purchasing that brand Not Within Reach Previously proposed systems outside of their budget Great radio and features but cannot justify cost difference Don’t Need Digital Analog gets the job done I like the quality and benefits but they are not necessary Migration Path Unknown/ Misunderstood I can’t just replace all of my radios and make the change to digital Digital and analog will not work together Adversity to Change Remember when digital radios first came to market? Customers had trouble understanding why they needed to change. Through training and demonstrations of the audio quality and benefits, the dealer channel created a need for this superior technology. Shortfalls early on included new technology to not only end users but dealers too. This learning curve has already taken place and will be easier this time around. Change happens when the cost of not changing becomes greater than the cost of change. How do we create the need for change? The two-way radio market will eventually be 100% digital. Change is inevitable. If you want digital radios today, change will have to take place since your current radio provider has no solution like the one I have for you. Cellular / Television are other examples. Not Within Reach Many of our customers have seen digital. Until today, it has not been priced within their budgets and forgotten about. New technology typically starts at higher price points and moves downward over time. We’ve seen this throughout our radio careers. Customers have been exposed to a professional tier digital radio solution and too expensive. Now it’s being offered in the commercial tier. Think computers way back when. Sure they were great and had value but no way I could afford one. Now just about anyone can have this technology. Don’t Need Digital Customers in this tier use predominantly PTT communications and analog works. Spending more money on digital seems unnecessary. You may not require digital today, but we can start putting Digital capable radios into your fleet for future migration The market is going to digital technology. This is the future, start planning now. The lack of need in this tier is driven by the lack of funding. If they really needed digital and it’s feature sets, it’s been available for 5 years… Migration Path Unknown/ Misunderstood Customers under the impression that a switch to digital communications means fork lifting the system. Or when approached, a customer will say “digital? Oh no, that’s way too expensive” A misunderstanding we will address. We can move a few radios at a time or all at once. With a mix mode repeater both analog and digital communications can take place seamlessly.

Opportunity Need Reach New Customers Post Narrowbanding Environment Users are asking for a digital solution Out of reach for our Commercial tier customers Reach New Customers Vertex Standard only manufacturer with this solution Product that allows you to start conversation previously unavailable Post Narrowbanding Environment Concerns over market shrinkage in 2013 Seeking strategy to continue growth despite reduced spend Stand Alone in the Market No such product available in competitive portfolios Clear path for our channel to take market share and grow Opportunity is created out of need. Our customers have heard of digital, however it has not been within reach for a number of reasons. The impact of narrowbanding in 2013 is yet to be seen and there are concerns. It’s important that we all take a look at ways we can continue to grow despite fluctuations in market spend. Vertex Standard is providing a tool that creates an opportunity to increase your visibility to users and increase your target base. Because we are the only ones with such a product our radio will give you the opportunity to reach customers that have historically been “locked” into another manufacturer.

Market Demands HOW RADIOS CURRENTLY USED TODAY Largest opportunity exists to sell low-cost digital for voice-only use. By 2015, estimates indicate two-way radios will still be used predominantly for Basic voice by 43%; Advanced voice by 20%; Trunking by 20% Applications by 17%. Extensive studies have been done to understand how our customers use two-way radio. By 2015 43% of our users will still operate two-way radio for voice communications only. While the market will change it’s important to note that the largest group of two-way radio users will still be voice. Current Usage

Messaging to Create Urgency: Convincing Users To Try Digital Good Enough is No Longer Good Enough ANALOG CHALLENGES DIGITAL CAPABILITIES CUSTOMER BENEFITS CALL QUALITY Inconsistent performance Intermittent transmission Missed calls Random chatter Static Interference Background noise Distorted voice Optimized voice transmit Digital applies error correction to eliminate noise and static to only deliver the intended voice message to be heard crisp and clear AMBE+2™ vocoder used for best-in-class clarity at various signal strengths. Reliable communications Hear what is said from farther range Hear and be heard – crisply and clearly Stop repeating messages – increase efficiency Keep focused – eliminate distractions Reduce missed calls PRIVACY No control over who hears what is said on a channel. Real privacy -- digital encoding and scrambling makes it harder for others to listen in on a frequency. Call management – digital radios each have a unique ID, enabling users to be able to select who they need to call without disturbing others. Control who hears you Maintain security Only hear what’s intended for you. Place a call to one person instead of entire group Know who calls you BATTERY Poor battery life performance Operate up to 40% longer because of TDMA protocol Radio lasts throughout a long day Less batteries required on the job Able to use batteries longer with fewer charges required Comfortable to wear Internal Use Only

The Digital Migration Existing Customer Base Future Customer Base Operate voice only Limited feature set used Budget conscience Future Customer Base Operate voice only in digital Limited feature set used on digital platform Change Added digital benefits Migration solution or slow and fast movers Increased efficiency Enhanced capability If current digital offerings have not penetrated this market, the question is why. Our existing customer base is not going to make drastic changes in their two-way radio usage in the move to digital communications. The opportunity that exists is in the superior voice quality, increased efficiency, and enhanced battery life not available in analog. These benefits have not previously out-weighed the significant increase in cost to other manufacturers. Points: A customer who is not using trunking today with VX-354’s is not going to move to trunking due to digital. If an end-user had to have GPS, or advanced fleet management before, the solution is available in other lines. Why use VX-450’s today? A hotel in desparate need of HotSos has had that solution available for years and not purchased. Why use VX-350’s today?

EVX Series Digital Product Line Release 2.0 May 2013 Release 1.0 Jan/Feb 2013 EVX-534 EVX-539 EVX-5400 EVX-531 EVX-5300 We’ve taken all of the feature sets in the VX-450 series radio and added digital capability. Keep in mind the Vertex Standard 3 Year Warranty and IP57 rating on portables.

EVX Series : What Vertex Standard Delivers Digital Replacement for the Analog Commercial/Mid Tier Form Factor and Feature Comparison: VX-450 series Feature Positioning: (Digital Benefits vs. Analog) Audio Quality Inherent Digital Privacy Clearer Audio over entire Range Extended Battery Life Durability/Ruggedness Call Management Control Customers buying analog radios now have a Digital solution that fits their budget. We’ve taken all of the feature sets in the VX-450 series radio and added digital capability. Keep in mind the Vertex Standard 3 Year Warranty and IP57 rating on portables. EVX Series

EVX Series Analog Features Emergency Lone Worker ARTS/ARTS II™ Voice Inversion Channel Announce I.S. Rating in Final Development Analog Signaling MDC1200 2 Tone/5 Tone Stun/Kill/Revive Embedded VOX Radio Check Scan Priority Dual Watch Talk Around Follow-me Scan We’ve taken all of the feature sets in the VX-450 series radio and added digital capability. Keep in mind the Vertex Standard 3 Year Warranty and IP57 rating on portables.

EVX Series Digital Features Emergency With Voice to follow Escalert Tone Lone Worker Basic & Enhanced Privacy Private Call/Group Call Inhibit Companding via CE VOX (Voice operated transmit) Digital Signaling Radio Check Radio Enable/Disable Remote Monitor PTT-ID Encode (Decode – Disp only) Scan Mixed Mode (both Digital/Analog) Priority Dual Watch Talk Around We’ve taken all of the feature sets in the VX-450 series radio and added digital capability. Keep in mind the Vertex Standard 3 Year Warranty and IP57 rating on portables.

EVX Series 2.0 Release EVX-534/539 and EVX-5400 512 Channels / Limited and Full Keypad Models Display – 8 Character Alphanumeric Text Message Encode/Decode Preprogrammed Canned / Direct Entry Messages Unit-to-Unit or Repeater Mode Transmission ARTS II in Digital Group Coordination and Range Management Voice Inversion Encryption Unit to Unit Private Calling via Keypad Option Board Enhancements Creating Developers Source Document Intrinsically Safe Option – First Mid-Tier IS Models (EVX-351)

EVX Series Package Configurations Portable Standard Configuration Portable Transceiver FNB-V133LI 1380 Li-ion Battery (2300 mAh available) Universal Charger Antenna (VX-450 Series Compatible) Std/Bulk Shipping, Optional Customer Programming Mobile Standard Configuration Mobile Transceiver MH-67A8J Microphone Optional Customer Programming Accessories Common with VX-450 & VX-4500/4600 Series

Target Analog Radio Models for Digital Conversion This chart represents the radio portfolio that we will penetrate with a digital offering. Kenwood, Icom, and Vertex Standard all have radios in the analog space represented. Vertex Standard is the only manufacturer that will offer a digital radio in this space. Our goal is to reach into competitive accounts with a product not available to the customer through Kenwood or Icom. Vertex Standard is only radio manufacturer with a Digital radio in this tier

Competitive Price Positioning Digital Motorola XPR-4550 Kenwood NX-700/800 Motorola XPR-4350 Hytera MD-78X Motorola XPR-6550 Kenwood NX-210 Hytera PD-78X Motorola XPR-3500 Hytera PD-70X Kenwood NX-200/300 Motorola XPR-3300 $600+ Features $500+ $400+ Price $350+ No digital offering in this space $300+ Vertex Standard EVX-5400 Vertex Standard EVX-5300 Vertex Standard EVX-539 Vertex Standard EVX-534 Vertex Standard EVX-531 Digital Portables Digital Mobiles

Competitive Price Positioning Analog Motorola PR400 Vertex Standard EVX-539 Motorola CP200 Vertex Standard VX-459 Vertex Standard EVX-534 Vertex Standard VX-454 Vertex Standard EVX-531 Kenwood TK-2360/3360 Icom F3031/F4031 Kenwood TK-2312/3312 Hytera TC-780 Vertex Standard VX-451 Motorola CP-185 Vertex Standard VX-354 Icom F011/F021 Kenwood TK-2302/3302 Vertex Standard VX-351 Vertex Standard VX-231 Hytera TC-600 Hytera TC-500 Motorola CM300 Vertex Standard EVX-5400 Motorola CM200 Vertex Standard VX-4600 Vertex Standard EVX-5300 Vertex Standard VX-4500 Kenwood TK-7360/8360 Hytera TM-800 Kenwood TK-7302/8302 Vertex Standard VX-2200 Vertex Standard VX-2100 Kenwood TK-7102/8102 $300+ Price Features $200+ No digital offering in commercial/mid tier analog space $100+ Analog Portables Analog Mobiles

Recap Need Reach New Customers Post Narrowbanding Environment Stand Alone in the Market Adversity to Change Not Within Reach Don’t Need Digital Migration Path Unknown/ Misunderstood Need – There is a clear need for this product in this space Reach New Customers – We can touch new customers previously unavailable to us. Post Narrowbanding Environment – Growth in market share key strategy in 2013 Stand Alone in the Market – No one else has this product available Adversity to Change – Customers may not want to change, but we can show them benefits to make change within budget Not Within Reach – Right price product for users interested in digital who face economic challenges Don’t Need Digital – Analog gets the job done. Benefits at economical pricing will create the demand Migration Path Unknown/ Misunderstood – We have an opportunity to explain how it works and why users can make the change

Q&A Does EVX talk to TRBO? Are there plans to do SiteConnect? Can EVX Trunk? Will the repeater do Dynamic Mixmode? Is EVX built by VS or MSI? Are there demo units available? Why TDMA vs. FDMA digital? Does EVX talk to TRBO? – Yes. Both TRBO and EVX are build to DMR standards and will talk analog/digital conventional Are there plans to do SiteConnect? – Yes. Future plans do include SiteConnect for the EVX series radios. Can EVX Trunk? No. EVX radios are not capable of trunking or Capacity Plus Will the repeater do Dynamic Mixmode? - Yes. In march of 2013 Dynamic Mix-mode will be available. Is EVX built by VS or MSI? - The EVX series radio was developed engineered and manufactured by VS in our factories. Are there demo units available? - Yes, a demo purchase program will be available Why TDMA vs. FDMA digital? – TDMA is the protocol for DMR standards and has been adopted by worldwide governing bodies. There are more TDMA radios in use than any other protocol. Kenwood has recently announced plans to build radios to DMR standards.

EVX Promotion Buy 6 get 1 FREE EVX-531 Feb. 21st to March 7th, 2013 Simple enough!

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