1. Vicon Digital Video CCTV Evolution This information is confidential and is not to be provided to any third party without Vicon Industries Inc. prior written consent.

2. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Before ViconNet  Just 10 years ago, analog video dominated the CCTV industry  IP or network based CCTV solutions just started to appear  Growing popularity of video conferencing systems and the growing Internet market were major influences

3. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Vicon Digital Transition  With the clear direction the technology was taking, a strategic decision was made to develop a digital CCTV line. –Vicon defines a project to develop its digital video line

4. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. ViconNet is Born  One of the first digital CCTV platforms to launch, ViconNet’s focus was on: –DVR hardware –Recording performance –Network readiness –Solid software-based video engine  The theme of DVRs those days was Hard drive based VCR…

5. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. ViconNet version 2  2 nd generation of the software was a clean and stable version of both hardware and software  A software video client for PC was added that took advantage of the networking capabilities offered by PC- based hardware  Development of IP cameras and NVRs starting

6. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. IP cameras and NVRs  IP cameras and NVRs started to appear  Vicon develops 3 IP cameras based on the same hardware and software running on the DVRs and PCs  The concept of hybrid DVR is introduced and the PC client is given recording capabilities

7. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Trends – 2002-2004  Industry still looking at DVRs as digital VCR  Beginning to see some interest in IP cameras and NVRs  Industry is divided between the traditional hardware companies and software-centric ones

8. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. ViconNet version 3  Released in 2005  Enterprise system solution  Language configuration tools  Full IP cameras and NVR support  Graphical maps added for navigation Theme: Enterprise, VMS, Hybrid

9. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. System Offered Up to Today  ViconNet is a software platform running the NVRs, Workstations and DVRs and is embedded in the encoders and IP cameras  All software packages are offered electronically to install on customer hardware  Pre-installed hardware is offered as a fully certified solution that has been tested to ensure absolute performance

10. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent.

11. Vicon Certified Hardware Options NVRs and workstations: Rack-mount and tower chassis Internal hard drives or RAID interface Pre-pack with Internal RAID DVR Multiple frame rate options Internal hard drives or RAID interface DVR-as-encoder option IP edge devices PTZ and fixed IP cameras Embedded encoders Full compatibility with the PC software

12. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. System Topology

13. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. 5 th Generation Released a Year Ago  Complying with industry push towards “open platform” –Open Platform –Analytics Integration –Improved display offerings –Integration with 3 rd party software –New IP Cameras and Encoders including Megapixel –Advanced compression algorithms support

14. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Open Platform  What is open platform? –The ability to accept many to any IP-based video into the video management system –Allow 3 rd party cameras to be used in the Video Management software  Specific for ViconNet –Keep supporting our own “build for security” cameras –Support all cameras on same Graphical User Interface (both PC and DVR)

15. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. One GUI Fits All

16. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Open Platform “Issues”  Every camera comes with a different set of supported functions  Cameras update frequently and the video system must keep up with those  Every single VMS has its own list of supported cameras and functions; not everyone supports everything

17. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. The Licensing Dilemma  All the software platforms in the industry charge licenses for the various edge devices  Vicon does NOT charge for its own IP edge devices EVER!  3 rd party cameras do require a One-Time connection fee

18. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Analytics Integration  Video Analytics has been going in and out of focus for a few years –Major “over-selling” by manufacturers –Complex design and deployment –Relatively high rate of false alarms  These factors hurt analytics market penetration  New solutions in shape of offline search tools are being offered –Much simpler to design and implementation –No as sensitive to false detections –Eliminates the need to set the rules in advance

19. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Demo VI-Search

20. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. New IP Cameras and Encoders  Develop and support more IP cameras and new encoders: –Higher resolution (Megapixel range) –Higher FPS –Based on future DSP families –Comply with future standard (Onvif, PSIA) This is an support process parallel to the transition into IP-based systems

21. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Stop and Think Where is it all going?

22. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. DVRs  Looking at the entire industry, there remains a significant demand for DVRs –Maintenance of existing DVR-based systems –Legacy infrastructure –Overall cost savings  If the DVRs are hybrid, they bridge a gap to IP-based systems

23. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Kollectors Strike and Force  Give the DVR a facelift  Update old DVRs to next generation Encoder-DVR –lower profile (1 and 3 rack unit) –Lower power –Hybrid recording of local and IP cameras including Megapixel cameras –Option for no hard drive (solid state) to use as an encoder  H.264 ready  Supported by the platform’s NVRs

24. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Packaging  Kollector Strike is full DVR hardware in a 1U chassis  Kollector Force hardware in a 3U chassis offers full back panel easier wiring  Force has 1 VGA and 1 DVI/HDMI display  An internal RAID version is offered with removable drives in RAID 5

25. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Pictures Strike and Force

26. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Integration Interface  With terms like PSIM replacing the old VMS and CAC, we need to be able to accept external events into the video system  Any system event can be tied into the video system to provide CCTV images  Integration method needs to take advantage of the network and provide tools to make it simple

27. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Now Selling ViconNet 5.6b  ViconNet 5.6b is an update patch –Support new Kollectors Strike and Force –Event management system –Support for I-Onyx 970 licensing –Support motion detection from 3 rd party cameras –SMS integration client improvement

28. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Event Management  New system built into ViconNet  Uses an SQL database for event storage  Allows receiving events from external systems over TCP/IP communication  Includes full tool-kit for event filtering, classifying, storage and search  Ties ViconNet video with “any” event

29. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Event Management Uses  The event management system can be used in any situation where ViconNet video can complement an external system  ViconNet offers an open source XML driver that can be used by others to send events  Drivers can be developed by Vicon for a specific system (non-generic)  External system event data is sent to ViconNet, which stores it with relevant video and processes it

30. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Current Interfaces  ViconNet 5.6 offers two interfaces through the event management system –Integration with Inex / Zamir license plate recognition system –Integration with Hirsch access control systems  In Proccess –Interface to Code Blue –Interface to AMAG –Interface to fence protection system

31. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Motion Detection  In the ViconNet based IP cameras Vicon offers sophisticated VMD as well as the fastest smart search in the industry  Support of motion detection for 3 rd party cameras is a feature that is being added according to each camera’s SDK  Additional support for this feature and others is part of the road map

32. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. SMS Integration  The Vicon platform also supports the Vicon SMS access control system –Added support for new cameras –Integration tools enhancements –Installation package improvements

33. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Version 5.6b Licensing  Version 5.6 is considered a patch for ViconNet 5.x and will not require re-license from any former 5.x version  Version 5.6 will work on old and new devices (KE / KP / KL Strike and Force)  All DVRs will now show as Kollector and will be fully hybrid like the Kollector Elite was

34. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. ViconNet 6.0  Version 6 is scheduled for Spring 2010: –Archive wizard and player –Web browser viewer application –H.264 compression in DVRs –Improved Virtual Matrix Decoder (H.264, HD) –New video encoder (H.264 real time) –Email on CFN (failure) event –Events-based video segment lock

35. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Archive Wizard and Player  Simple wizard for archive creation  Step by step procedure  Multiple options for the resulting file –Auto-play yes / no –Authenticate yes / no –Auto-login yes/ no  Simple player for playback

36. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent.

37. Web Browser  Unique web browser viewer software  Self loading by browser (no installation, not even ActiveX)  Based on Microsoft Silver light  View and control any camera  Allow remote connectivity over the Internet from “any” browser  Support non-Microsoft browsers  Support mobile device browser

38. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. H.264 Compression in DVRs  In Kollector Strike and Force  Becoming the standard compression  Requires faster DSP as well as stronger PC for the same number of channels to be displayed  Offers savings on bandwidth and storage in many situation  V6 will support both ViconNet and H.264 compression  H.264 requires much stronger computing power

39. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. H.264 is Here  H.264 compression is also known as: –MPEG-4 AVC –MPEG-4 Part 10  Main development objective was to get a high quality image in a lower bit rate then MPEG-2  Actually ended up as a family of standards as other layers were added

40. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. H.264 Profiles  Since the original standard release, many different profiles have been created on top of the standard: –Constrained Baseline Profile (CBP) –Baseline Profile (BP) –Main Profile (MP) –Extended Profile (XP) –High Profile (HiP) –High 10 Profile (Hi10P) –High 4:2:2 Profile (Hi422P) –High 4:4:4 Predictive Profile (Hi444PP) –High Stereo Profile –High 10 Intra Profile –High 4:2:2 Intra Profile –High 4:4:4 Intra Profile –CAVLC 4:4:4 Intra Profile –Scalable Baseline Profile –Scalable High Profile –Scalable High Intra Profile

41. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Published Estimated Savings  The original design was to allow cutting bit rate to half of MPEG-4  Actual results reported average to: –3-4 times lower then MPEG-4 –7-10 times lower then MJPEG –2-3 times lower then ViconNet  This assumes average motion over time

42. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Important to Know  Everything that is said about H.264 expected bandwidth and storage savings assumes one big assumption….. AT THE SAME VISUAL PICTURE QUALITY

43. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Estimated Challenges  H.264 compression, and even the different profiles, produce different bit rate in different cameras (threshold levels and sensitivity)  The major use of H.264 so far was in broadcast where bandwidth is not an issue and still needs to be refined for CCTV  Decoding (from bits to display) is much more processor intensive and requires stronger PC / display hardware

44. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Development Choices  Vicon uses TI (Texas Instruments) DSPs and their recommended H.264 codec; these have been optimized to work together  ViconNet uses standard video decoder (software) and supports standard H.264  Vicon adapts its sold hardware to maximize compatibility and optimize processing

45. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Improved Video Decoder  Development of a PC-based video decoder instead of a DSP-based  VGA and DVI/HDMI output (no BNC)  Support H.264 and HD images (including 16:9 format)  More pictures on every output  Development flexibility (PC platform)  In V6, we still offer KRX-3 decoders for the legacy systems

46. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent.  Basic standalone configuration:  One monitor running VMC application  Map GUI can run on another monitor  Additional monitors used for multiple video displays  Cameras can be called up into any of the monitors using the GUI / keypad / PLC

47. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent.  Local display configuration:  One monitor running VMC application + local video  Map GUI can run on another monitor  Additional monitors used for multiple video displays  Cameras can be called up into any of the monitors using the GUI / keypad / PLC

48. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent.  PCRX decoder only configuration:  No VMC or map GUI running locally  Unit must be controlled by VMC (somewhere on the network)  All monitors used for multiple video display  Cameras can be called up into any of the monitors

49. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent.

50. Product Packaging  This product requires very specific software and hardware to run properly  Vicon will offer hardware with different monitor out options (2, 4, 6)  Like any other product, the PCRX will also be offered as a software package

51. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. New Video Encoder  4-channel real-time H.264 only encoder  D1 on every channel  Newer and faster DSP chip (TI future family)  Competitive price-per-channel

52. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Macro on CFN Event  Added functionality allows running a macro when a CFN event is generated  Macro is mostly for email notification but can be display or preset  This solves the need for email notification when site is down or has recording error

53. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Video Segment Lock  Allows the system to protect event related video from being overwritten by system FIFO  Creates a separate database that will store the video segment around an alarm event before being FIFO  Video will remain in main DB until FIFO and then move to the “vault”

54. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Road Map

55. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. ViconNet 7.0  Version 7 is the major version 2011 –Map enhancements!!!!!! –IT compliance enhancements Multicast DVRs Active directory SNMP –Auto-archiving of video

56. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Map Enhancements  Map centric application –PTZ control from maps –Video on maps –Alarm indication on map icons –Camera position indication –Absolute position feedback from dome

57. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. IT Compliance Enhancements  Allow the transmission of video in Multicast mode for lower bandwidth networks from the ViconNet devices (software already done)  Support existing standard network formats as well as new TCP/IP standards (IPV6)  Integrate with Microsoft Active Directory for user management

58. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Auto Archiving of Video  Allow automatic archives of video from the ViconNet system FIFO database to a permanent storage location  Support archive on schedule

59. This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent. Compatibility  Versions 4, 5 and 6 are compatible in their core functionality  Taking advantage of new features requires updating the software  The ability to carry this compatibility into version 7 is still not clear  Thoughts?