Milestone XProtect™ Essential Brilliant Simplicity Product Presentation – Partners Version 1.2 June 9, 2010

Milestone Systems Confidential2 Outline  Introduction  Solution overview  What does Essential offer compared to Basis+?  Licensing and packages  Summary

Milestone Systems Confidential3 Milestone IP VMS Product Line XProtect Essential XProtect Professional XProtect Enterprise XProtect Corporate Size Functionality Milestone XProtect Open Platform 26 cameras64 cameras~250 cameras ∞ XProtect Essential is a brand new addition to Milestone’s IP video management software product line, designed for small businesses

Milestone Systems Confidential4 XProtect™ Essential 1.0 Brilliant Simplicity  Unbeatable value  Price per channel*: USD 49 / EUR 39 / DKK 299  Base license inclusive 2 channel licenses*: USD 99 / EUR 79 / DKK 599,-  Price example: (16 cameras incl. 1 yr. PMA)*: USD 929 / EUR 752 / DKK 5.649,-  Unbeatable price - capability ratio  Flexible licensing model allows users to seamlessly grow their system according to their needs  Seamless upgrade possibilities to other Milestone XProtect VMS products  All the essential video surveillance capabilities  Out-of-the-box IP video management software supporting up to 26 cameras  Offers everything needed by small business users; nothing more – nothing less  Support for Transact (Point of Sales – POS integration)  Easy to use  Offers the same user friendly interfaces as the more advanced products in the XProtect product line  Easy to use – intuitive to manage *) Manufacturer Suggested Retail Price. See price book for full pricing details

Milestone Systems Confidential5 Solution Overview Out-of-the-box IP video management software  All the essential video surveillance capabilities  Single server solution  Up to 26 cameras  Up to 5 concurrent users  Additional system features:  Video Motion Detection  Hotspot & Carousel  Integrated PTZ control: Manual, joystick control, presets  Megapixel, H.264, MJPEG, MPEG4, MxPEG  Supported on all current Windows versions, incl. Windows 7

Milestone Systems Confidential6 XProtect Smart Client 5.0 Ultimate usability  Single user interface for all daily operations  Control cameras, view live or playback video, and create evidence material instantly  Wide choice in view layouts with private and shared views  Sequence Explorer enables fast investigation  Adaptable user interface  Support for 20 languages

Milestone Systems Confidential7 Management Application Intuitive to manage  Intuitive GUI that provides a clear overview and easy access to configuration data, device settings, user definitions, etc.  System configuration wizards  Automated Device Discovery  Smart bulk configuration function  Adaptable application behavior  Export/import of system and user configuration data  Automatic system restore points

Milestone Systems Confidential8 What does Essential offer Compared to Basis+?  Supports up to 26 cameras and 5 concurrent users  Intuitive Management Application  XProtect Smart Client 5.0  Compelling price level and flexible licensing model  Base license + camera licenses instead of fixed packages, gives higher flexibility  Price level of XProtect Essential is as low as one third of the price of a equivalent XProtect Basis+ system!  Product Maintenance Agreement (PMA) Option

Milestone Systems Confidential9 Easy and Flexible Licensing Model Unbeatable value  Allows users to seamlessly grow their system according to their needs  Product Maintenance Agreement (PMA) options available  Trade-in program protects made investments when expanding to larger XProtect solutions XProtect™ Essential Base License Including 2 Camera Licenses Software License Code – SLC Camera License (DLK) Camera License (DLK) … … Camera License (DLK) Camera License (DLK) Camera License (DLK) Camera License (DLK) One XProtect Essential base license required per system Includes 2 Camera Licenses Managed by a Software License Code (SLC) One Camera License is required per additional connected camera Managed by Device License Keys (DLK)

Milestone Systems Confidential10 Milestone XProtect Essential 1.0 Designed for small businesses, XProtect Essential is a powerful out-of-the- box IP video management software with support for up to 26 cameras. Providing the optimal combination of advanced video surveillance capabilities and ease-of-use, XProtect Essential offers unbeatable value.

Milestone XProtect™ Essential Version 1.0