Essential Viewing Systems Corporate Overview

1. Essential Viewing SystemsCorporate Overview

2. AGENDA 1 BACKGROUND 2 MANAGEMENT TEAM 3 TARGET MARKETS AND BUSINESS MODEL 4 HARDWARE AND SOFTWARE PRODUCTS 5 ARCHITECTURE AND TECHNOLOGY 6 INTEGRATION WITH OTHER SYSTEMS 7 CASE STUDIES 8 UNIQUE BENEFITS 9 QUESTIONS Page 2

3. BACKGROUND ON ESSENTIAL VIEWING SYSTEMS Essential Viewing specialises in the development of software and hardware solutions which deliver high quality video over low bandwidth networks in real-time. • Technology is based on research work at the University of Strathclyde, Glasgow • Spin-out in July 1999 • Research and Development focus 1999 to 2005 • First commercial hardware products launched 2006 • Lockheed-Martin acquired stock in July 2008 • Current generation products launched March 2009 Page 3

4. BACKGROUND ON ESSENTIAL VIEWING SYSTEMS Network bandwidth is not often limited, and when combined with data-intensive live video Essential Viewing offers a compelling value proposition to Law Enforcement and Defence users. • There is a misconception that network bandwidth is unlimited • Whilst network bandwidth technologies are increasing – e.g. GPRS  HSDPA – this is not universal • The theoretical bandwidths are typically never available in real world scenarios • Video, by its very nature, is data intensive • Defence and Law Enforcement customers often have to operate where there is no secure fixed infrastructure to provide communications • Technology is driving sensor capabilities – higher definition camera • This drives the need for increased network bandwidth Page 4

5. TARGET MARKETS AND BUSINESS MODEL TARGET MARKETS Police and Law Enforcement • Focused on covert surveillance applications • Focus on Technical Support Units and Surveillance Teams Defence • Initial UK-focus with Special Forces customer base • Now expanding into US Defence with significant projects • Developing Canadian and Australia Defence opportunities Local Government • Early adopters in the UK proved business case • Applications include rapid-deployment CCTV and mobile CCTV Transport • UK Highways Agency customers and Local Authorities using the system • Applications for road monitoring, replacement to permanent CCTV systems and mobile applications Page 5

6. TARGET MARKETS AND BUSINESS MODEL SECONDARY MARKETS Utilities, Oil and Gas • Critical infrastructure monitoring and protection • UK exposure through EDF, the largest utilities provider in Europe • Similar requirements to police and Defence customers Mining • North American focus to date but projects in RSA, South America and Africa • Similar requirements to Defence customers • Significant market size Broadcasting • Pilot projects completed with BBC, ITN and CBS • Focus is on outside broadcasting – live and recorded – over mobile satellite systems such as Inmarsat Video Teleconferencing Systems • Existing customers in Defence, Law Enforcement and Government agencies -using the encoders for VTC applications Page 6

7. TARGET MARKETS AND BUSINESS MODEL CHANNEL PARTNERS AND SYSTEM INTEGRATORS Business Model • Business Model is to sell to end customers through Value Added Channel Partners and Systems Integrators • Allows coverage of international territories with the most appropriate partners • Partners can provide solutions based on COTS products, or integrate them into more bespoke offerings Page 7

8. TARGET MARKETS AND BUSINESS MODEL POLICE MARKET Police Customers • Many UK police Customers • Product sold through Channel Partners • EV provide direct support for larger organisations – e.g. SOCA, Met Police, SCDEA • Heavily deployed in regional CTU organisations • Sales also to US, Canada, Singapore, Pakistan and Australia police users Page 8

9. TARGET MARKETS AND BUSINESS MODEL DEFENCE MARKET Defence Market • Many UK Special Forces customers • Supplied via Tier 1 Prime Contractors – e.g. LM, Fujitsu and SAIC • Trickle down from UK SF to UK “Green Army” • Now focusing on US Defence – with partners and direct research-led engagements Page 9

10. TARGET MARKETS AND BUSINESS MODEL LOCAL GOVERNMENT Local Government Market • Key Channel Partner is Tyco with additional sales through RACAM Security • Applications include, semi-mobile CCTV systems for monitoring road junctions and roadworks • Mobile CCTV Vans • Control Room video distribution • EV/Tyco offering is significantly cheaper than traditional solutions • Significant growth opportunities in Middle East and Asia Page 10

11. HARDWARE AND SOFTWARE PRODUCTS C300 HARDWARE ENCODER Product Features • Commercial product • Analogue video input • Inbuilt cellular modem (GPRS/3G/HSDPA) – only requires SIM • Ethernet Port • RS-232, RS-422/RS-485 Serial Connections • Stereo Audio Input/Output • Alarm Input • Input Voltage – 9v to 36v DC • Temperature range -32oC to 60oC • Power Consumption – 5.5W (nominal), 1.5W (standby), 0.1W(sleep) • Size – L 195mm x W 148mm x D 37 mm Page 11

12. HARDWARE AND SOFTWARE PRODUCTS R300 HARDWARE ENCODER Product Features • Defence focused product – IP67 rated and 2m drop test • Analogue video input • Inbuilt cellular modem (GPRS/3G/HSDPA) – only requires SIM • Ethernet Port • RS-232 Synchronous Serial and RS-422/RS-485 Serial Connections Stereo Audio Input/Output • Alarm Input • Input Voltage – 9v to 36v DC • Temperature range -32oC to 70oC • Power Consumption – 5.5W (nominal), 1.5W (standby), 0.1W(sleep) • Size – L 210mm x W 190mm x D 75 mm Page 12

13. HARDWARE AND SOFTWARE PRODUCTS C200 HARDWARE ENCODER Product Features • Commercial product – aimed at satellite based applications • Analogue video input • Ethernet Port • RS-232, RS-422/RS-485 Serial Connections • Stereo Audio Input/Output • Alarm Input • Input Voltage – 9v to 36v DC • Temperature range -32oC to 60oC • Power Consumption – 5.5W (nominal), 1.5W (standby), 0.1W(sleep) • Size – L 195mm x W 148mm x D 37 mm Page 13

14. HARDWARE AND SOFTWARE PRODUCTS TVI SERVER SOFTWARE PRODUCT Product Features • Java software based application • Licensed product scalable cost for 3+ encoders • Central point of connection for encoders and viewers • Authentication database for users and encoders • Must be deployed with a fixed IP address OR domain name • Some Channel Partners operate as a hosted service for customers • Security customers typically operate and manage their own TVI Server Page 14

15. HARDWARE AND SOFTWARE PRODUCTS TVI MANAGER SOFTWARE Product Features • Java based application • Used to manage the system • Non-chargeable product Page 15

16. HARDWARE AND SOFTWARE PRODUCTS CONTROL CENTRE SOFTWARE APPLICATION Control Centre Application • Main application to view video streams • Windows-based client • Fully featured viewing application – multi-server, multi-encoder views Page 16

17. HARDWARE AND SOFTWARE PRODUCTS TVI VIEWER APPLICATIONS Handheld Viewing Applications • Windows Mobile client available • iPhone/iPad/iPod Touch client available • Blackberry and Android viewing clients in development Page 17

18. ARCHITECTURE AND TECHNOLOGY Page 18

19. ARCHITECTURE AND TECHNOLOGY Page 19

20. Case Study Rapid deployment camera • Local Government customer in London • Rapid deployment system with Essential Viewing codec included • Video transmitted over cellular network at up to 250kbps uplink • Remote control of the camera to allow operator to view all around camera area Page 20

21. Case Study Trial for Transport for London • Trial on London Buses to stream live video over cellular networks • Video transmitted over cellular network at up to 60kbps uplink • Each bus has up to 16 cameras • Integrated Essential Viewing codec into on-board DVR • Successful 4 day trial Page 21

22. Case study Video over non-IP Defence radio • Harris military field radios • Non-IP channel • Half-duplex links • Low channel capacity – 16kbps • Two modes of operation – push and pull Page 22

23. High Resolution Download Page 23

24. UNIQUE BENEFITS Live Video Monitoring • Camera PTZ requires low latency if targets are to be tracked • High latency means a target is out of the field of view before the operator can steer the camera • When panning a high frame rate is required • A low frame rate gives no sense of target motion • A low frame rate results in camera overshoot • Visual quality must be sufficient to allow for target identification during a pan Page 24

25. UNIQUE BENEFITS Network Congestion • IP Networks behave in a similar manner to roads when heavily loaded • Saturation results in a shock wave • Packets are delayed or lost • Effective capacity or bandwidth drops • Journey time or latency increases • Channel saturation must be avoided • Both packet size and packet frequency must be tightly controlled • MPEG does not allow for control over both packet size and packet frequency • Latency is bad over low bandwidth Page 25

26. UNIQUE BENEFITS Limitations of MPEG-based Systems • Video coding and channel are divorced • Assumes coding bandwidth is a small fraction of the actual channel capacity • Packet size and frequency will vary • Packet size increases with scene motion • Designed to hit an average bandwidth • Frames dropped if bandwidth exceeded • Quality can degrade to the point of being useless if frame rate is forced high • Congestion and hence performance gets worse as channel capacity goes down Page 26

27. UNIQUE BENEFITS Video Server Audio QoS QoS Video Stream Stream Data • Communications channel is NOT de-coupled from the video encoding process • Quality of Service control metric ensures video coding matches channel capacity on real-time basis to keep latency low • Encoder multiplexes different types of data – video, audio and data (PTZ, GPS, etc) - into a single IP stream where the video bandwidth adjusts to accommodate audio and data • Precise control over IP packet frequency and packet size reduces “stress” on wireless networks avoiding congestion Page 27

28. UNIQUE BENEFITS EV performs better than MPEG/H.264 Page 28

29. ? ? ? Questions Page 29

30. Thank you Page 30