Next Generation Physical Security System Infrared Applications Inc. USA Subsidiary HarmAlarm Trading Co. Ltd. Hong Kong Private Co.

HarmAlarm Concept Us Patent No. 7,738,008 Issued June 2010

HarmAlarm Retro-Fit

HarmAlarm Complex Scene

High Security Threat Application

Extend the Perimeter

New Markets

Agriculture

Green Applications

Small Plane Security

Aircraft Perimeter Security

Behavioral Security Multiple target behavioral traits –People size targets at specific locations –Multiple people (crowd recognition) –Loitering –Stalking (relationship between two targets) –Lying in wait –Peeping Tom –Unattended child (swimming pool/pond) –Unattended animals –Man down recognition –Fire or catastrophic events –Vehicles, time, location, operation etc. –People counting, entrance/exist matching –RFID image matching, people, goods, or equipment

Business Model Licensing US Patent –Specific markets –Quarterly royalty usage fee Joint Ventures, specific markets –Leveraged opportunities –Specific markets, minority ownership License OEM with HarmAlarm Features –High volume opportunities, future growth

HarmAlarm 5 year Sales Estimate Market SegmentMarket sizeMarket Share Total Home Security20 million6% 3,500,000 Small Factories/warehouses5 million5% 2,000,000 Large Factories/Storage1 million2.5% 500,000 Green Market 200,0002.5% 50,000 Farms 2 million2.5% 1,000,000 High Value 24/7 facilities % 150,000 Public Facilities, parking lots 1 million2.7% 400,000 Total7.6 million R&D Costs$ 25 million Unit cost (average)S1,000/each Lease Program costs$7.6 Billion Monthly Unit income$47.78/unit Repair & Refurbishment$63 million Monthly Gross income414 Million (start of 6 th year)