Starin Distributing web cast Converge560/590, XAP-Converge Pro Product Positioning Complete audio systems for AV and conferencing

Agenda A.Markets 1.End users (verticals) B.Client Types – Current & New 1.Resellers – who are they and how to get them i.The message – Better product ii.The message – Better margins C.The Professional Installed Market

Markets – End users  Corporate  Meeting Rooms  Boardrooms  Training Rooms

Applications  Government  Courts  Emergency Operation Centers  Military

Applications  Education  Distant Learn  Medical  OR suites

Client Types Resellers and influencer for Professional Products  You already have existing dealers  AV Integrators  System Designers and Engineers  Pro Sound Contractors  System Designers and Engineers  How do I find them?  Infocomm  NSCA  BICSI  Internet  Other key Influencer  Independent AV Consultants  AV consultants  Acoustic Consultants  Electrical Engineering Firms  Multi-Discipline Engineering Firms  End Users  New construction – Dodge Report  Expansion  Architects

Professional Products Converge 560/590

Competitive pricing analysis: Converge 560/590 vs. Polycom Vortex 2241/2280 ClearOne Converge 560 Polycom Vortex EF2241 ClearOne Converge 590 Polycom Vortex EF2280 Converge MSRP including controller $3099$3499 Polycom MSRP without controller $3995$4615 Converge price advantage $896 less$1116 less Add-ons necessary to build Vortex up to equivalent Converge functionality Vortex Ethernet interface $375 Vortex telephone interface (needed for 2280) $995 10W amplifier to power speakers (needed for 2280) $50 Controller (basic Polycom VTX-1000) $1299 Total comparative system prices $3099$5669$3499$7334 Converge price advantage $2570 less$3835 less

Professional Products XAP/PSR1212  XAP 800: The most popular high-end audio conferencing system in the industry  XAP TH2: Complements XAP 800 with telephone interface capabilities  XAP 400: Combines the power of XAP 800 with built-in telephone interface and 10 Watt amplifier  XAP NET: Advanced control interface for access from a remote location  PSR1212: Power and performance for local room audio

Professional Products Coming this Fall - The Converge Pro

Industry Leader and Innovator +The industry's first product to use Distributed Audio Echo Cancellation in an audio conferencing system. +The industry's first conference phone to provide wireless conferencing. +The industry's first product to bridge the wide price/performance gap that existed between plug-and-play tabletop conferencing phones and professionally-installed audio conferencing systems. +As a market leader, we are focused on developing technologies that drive adoption of conferencing products across a diverse customer base, improving ease of use across all products and maximizing the convergence of voice, data, and video to enrich the audio experience for users of conferencing products

The message  Performance - The following features and benefits are unique and help differentiate us and provide customers with much better features, benefits and performance.  Advanced Digital Automatic mixing that prevents false activation of microphones. This provides greater clarity by:  Reducing pickup of noise  Reducing pickup of reverberation  Reducing Echo  More Processing power – Better sound quality and can be used in more sophisticated applications.  All features and function are always available  More Echo Cancellation References  More Expansion Bus channels with low latency  Fixed architecture for rapid setup and configuration

 Support -  Field Sales Engineers – Seven Regions  Training – Regionally – We bring it to you. -Comments from Customers -“Out of the last 50 manufacturers who have visited and attempted to impart wisdom, the ClearOne training was among the top one or two.”  In Office Training – We bring it to you.  Consultant Training– Lunch and Learn  Product Training – On line  Technical Support -Comments from Customers "Your technical support is the model that everyone should use." —Henry Hovses, Sander and Associates -"I keep using your products because you are always there and always help." —Greg Albert, Duocom Canada RSMs – Seven Regions

Awards +ClearOne's dedication to product innovation has been recognized through numerous industry awards touting the superior performance, functionality, ease of use and reliability of our products. + Product Line Strategy Award Frost & Sullivan — 2006

Installed Audio Systems with Conferencing The ability to show superiority required RAV Converge 560/590 Polycom Vortex ClearOne XAP – Converge Pro BIAMP Audia Price Sensitivity between: Clearone Polycom Biamp Price Sensitivity between: Clearone Biamp ClearOne Space Requires explanation of ClearOne’s Superiority

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