Costar Technologies, Inc. Annual Meeting November 2012

1. Costar Technologies, Inc.Annual MeetingNovember 2012

2. Cautionary Statement Regarding Forward Looking Statements This document contains forward-looking statements that involve risks and uncertainties, as well as assumptions, that if they never materialize or prove incorrect, could cause the results of the Company to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements generally are identified by the words “expects,” “anticipates,” “believes,” “intends,” “estimates,” “should,” “would,” “strategy,” “plan” and similar expressions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The risks, uncertainties and assumptions include developments in the marketplace for our products, competition, related products and services and general economic conditions, as well as other risks and uncertainties. Accordingly, we cannot give assurance that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company.

3. 2011 Review

4. Costar Technologies, Inc. • Weak Economic Conditions • Office Relocation in April 2011 • New Banking Relationship • First Profitable Year

5. 2010/2011 Financial Results

6. Costar Technologies, Inc. 2011Continuing Operations 2010 Variance Year 2011 Revenues $ 17.34 M Gross Margin $ 4.200 M GM % 24.2 % Operating Expenses $ 4.156 M Oper Exp % 24.0 % Operating Income $ 0. 044 M Int/Inc/Taxes $0. 119 M Net Income/Loss $0.163 M $ 12.66 M $ 3.368 M 26.6 % $ 4.051M 32.0 % ($0. 683 M) ($ 0.125 M) ($0.808 M) 37.0 % 24.7 % 2.6 % 106 % 195 % 120 %

7. Costar Technologies, Inc. * Located in Coppell Texas * Established in 1989 as an OEM supplier for video components to large manufacturers such as Pelco, Ademco and Diamond Electronics. * In 2002, Costar began actively marketing to integrators as a complete CCTV solutions provider.

8. Costar Technologies, Inc. Open Office Open Office Video Training Room Video Training Room

9. Costar Technologies, Inc. DVR Assembly Room Hardware Assembly/Software Camera Assembly Room Hardware Assembly Tech Support Room Live Hardware/Software

10. Costar Technologies, Inc. Clean Room Board Level Camera Assembly Camera Assembly Room

11. Costar Technologies, Inc. • Same day shipping • High volume build and configure line • Pre-ship software configuration capabilities • Custom kit configurations built to order

12. Productivity

13. Costar Technologies, Inc. Revenue per Employee Productivity Comparisons2009201020112012e2013e $795K $729K $694K $688K $712K What Are Some Industry Productivity Comparisons?

14. Costar Technologies, Inc. 2009Industry Productivity Comparisons Tyco $162K per employee UTC $263K per employeeHoneywell $285K per employee Fortune 500 $300K per employee W.W. Grainger $380K per employee Graybar $450K per employeeGE $565K per employee Security Industry Competitors– 2009 Hoovers.com

15. Costar Technologies, Inc. 2012 Productivity Changes • New Network Products Increased • Technical Support • New Network Products Have • Higher Margins • Reduced Revenue per Employee • Increased Gross Profit per • Salary Dollar

16. Costar Technologies, Inc.

17. Costar Technologies, Inc.

18. Costar Technologies, Inc. Our Position in the Security Market

19. Costar Technologies, Inc. 2011 Top 50 Worldwide Security Companies • March Networks #19 $92.1M • Napco #26 $57.8M • Vicon #34 $48.7M • Milestone #39 $41.1M • Avigilon #46 $32.8M • Win4Net#50$24.7M • Costar Video N/A $17.3M • Mace N/A $12.0Me Source: Asmag.com Global Security Website

20. Costar Technologies, Inc. Costar* Vicon** Mace** GVI*** Targeted Accounts Dealer A&E Firms Dealer Mail Order Distribution International Gross Profit % 29.4 % 33.4 % 39.8 % 35.8 % 25.4 % 55.1 % 26.8 % SG&A % 43.9 % * YTD 2012 Without Imaging Division & Retailer 1Q Purchase Source: Company Estimates ** Second Quarter 2012 Sources: www.vicon-security.com and www.mace.com *** 2010 Estimates GVI Filed Bankruptcy

21. Costar Technologies, Inc. Security Market

22. Security Market Channels Manufacturer Distribution National Dealer Small DealerIntegrator End User

23. Costar Technologies, Inc. Our Strategy

24. Costar Technologies, Inc. Step One: Targeted Accounts 2011-2012 * Sielox Dealers * Canadian Distributors * Large Dealers * IT Integrators Step Two: Targeted Accounts 2012-2013 * Distribution With Inside Rep Step Three: Targeted Accounts 2013-2014 * Distribution With Territory Rep

25. Security Market Channels Manufacturer Step One Large DealerIntegrator Cost Effective7-12 % SG&A Inside Sales/Travel Step One Distribution TargetedAccounts Cost Effective7-12% SG&A Sales/Travel National Dealer Small DealerIntegrator End User

26. Security Market Channels Manufacturer Step One Large DealerIntegrator Step Two & Step Three Cost Effective7-12 % SG&A Inside Sales/Travel Cost Effective15-18% SG&A Sales Rep/Travel Step One Distribution Targeted Accounts Cost Effective7-12% SG&A Inside Sales/Travel National Dealer Small DealerIntegrator Expensive: 30% SG&A Requires Outside Salesmen/Advertising End User

27. Sales Gap Target Company Growth 15%

28. IP Camera Market IP Video Market Penetration In USA 15 – 20% IP Video Market Penetration In Europe 30 – 35% Source: Internal, based on IPVM IP Video Market estimates that IP camera revenue is approximately 30% of the total camera revenue

29. Typical New Product Sales Market Maturity Market Acceptance Revenues Initial Market Time

30. iNEX Network Products iNEX Network Video Recorder, Next 5 years iNEX Easy to use Interface will transition customers from analog to Digital over the next 5 years Wide Area Network Legacy Analog

31. iNEX Network Products