1. Eighth Annual A&E Summit Mission Bay San Diego, CA

2. IP Video Market Trends Market Forecasts Market Forecasts Storage Storage VMS Trends VMS Trends Compression H.265 Compression H.265 Camera Technology Trends Camera Technology Trends Analytics Analytics VSAAS & Cloud Technology VSAAS & Cloud Technology Vicon Industries A&E SummitMarch 9-11, 20142

3. Market Forecast March 9-11, 2014Vicon Industries A&E Summit3

4. Market Drivers Continued cost reductions of hardware and software licenses Continued cost reductions of hardware and software licenses Easier to use Easier to use Mobility apps offered by most companies makes the video more accessible and useful Mobility apps offered by most companies makes the video more accessible and useful High quality video with reasonable retention makes it more useful High quality video with reasonable retention makes it more useful Expansion of different manufacturers has driven the speed of development, lowered costs to consumers and driven the market’s Expansion of different manufacturers has driven the speed of development, lowered costs to consumers and driven the market’s Video has proven to be a key element in many high-profile investigations. Video has proven to be a key element in many high-profile investigations. March 9-11, 2014Vicon Industries A&E Summit4

5. Camera Technology Trends “MEGA” “MEGA” –Currently, the primary MP cameras most companies offer range from 1.0MP to 5.0MP –Some firms offer “pro” series units that range up to 29MP –Market volume for MP cameras is the 1.3 MP Gives good image at good price point and storage use. Gives good image at good price point and storage use. March 9-11, 2014Vicon Industries A&E Summit5

6. Camera Technology Trends Panoramic Cameras Panoramic Cameras –Multi-imager stitched together $$$ –Single MP imager with Fisheye lens (DE warping) –Both types gaining more popularity (60% growth in this segment for 2014) PoE: PoE: –Almost all fixed cameras are PoE ready outdoor units support the heater with PoE as well outdoor units support the heater with PoE as well –PoE+ goes to 25.5 W –PoE ++ now being adopted for outdoor PTZ units with heater (requires injectors) March 9-11, 2014Vicon Industries A&E Summit6

7. 7 Offers significant file size reduction over H.264 Requires much more processing power (encoding & decoding) Consumer smart phone market primary driver (video content over mobile networks) Not all H.265 algorithms are equal Optimized for Multi-stream vs. 3D content

8. H.265 HEVC March 9-11, 2014Vicon Industries A&E Summit8

9. Evolution of NVR Options March 9-11, 2014Vicon Industries A&E Summit9 NVR w/ network switch (basic / stand alone) Linux embedded network appliance, tied to central VMS (cost effective, medium systems, some integration) Server class with thin client / browser interface (enterprise, highly integrated)

10. Cloud and VSAAS Two primary types Two primary types –Hosted: Everything including storage of video in the Cloud –Managed: local storage with remote management and monitoring. –These are RMR models (fees for resolution, storage retention and # of cams) Dedicated Cloud video companies Dedicated Cloud video companies –Eagle Eye, Smartvue, Eyecast, Stratocast March 9-11, 2014Vicon Industries A&E Summit10

11. Analytics Fractured market Fractured market –High-end analytics developers –In-camera basic capabilities (free) Previous market leader (Object Video) is now chasing licensing fees through litigation Previous market leader (Object Video) is now chasing licensing fees through litigation Primary use for high-end analytics is critical governmental applications Primary use for high-end analytics is critical governmental applications In next two years, basic analytics will be offered in most cameras. In next two years, basic analytics will be offered in most cameras. March 9-11, 2014Vicon Industries A&E Summit11