Next Generation Physical Security System

Infrared Applications Inc.USA Subsidiary

HarmAlarm Trading Co. Ltd.Hong Kong Private Co.

HarmAlarm Concept Us Patent No. 7,738,008 Issued June 2010

HarmAlarmTM

I-6

Connectivity: Commercial Wireless, Fiber-optics, MMW/MW, LAN, or Land Lines

`

Remote Alarm

Surveillance Area

Mainframe

First Responder

Secure ZoneCommon Principle

HarmAlarm Retro-Fit

SA #2

Door

Factory Security

SA #1

Self ProtectionSecurity Box

Alarm Zone

3D Security Zone

HarmAlarm I-6

SA #1, 2-D detection

3-D detection

Alarm Sounded

HarmAlarm Complex Scene

SA #2

Secure

Secure

Door

Factory Security

SA #1

Self ProtectionSecurity Box

Alarm Zone

3D Security Zone

HarmAlarm I-6

High Security Threat Application

HarmAlarmTM

I-6

Local AreaWireless Net

Command Center

Guard/location

Surveillance Area

Employee/location

Employee/location

Unauthorized Entry

Food Mart

Storage Tanks

Cracking

Office & Admin Bld.

Maintenance Shop

Warehouse

Towers

24/7 Security

Alert & Location

Cellphone Display

Alarm Detection

Alert

Extend the Perimeter

HarmAlarmTM

I-6

CommercialWireless Net

`

Security Menu

Set Up

Remote Alarm

IR Data

IR Data

Surveillance Area

Home Security

New Markets

HarmAlarmTM

I-6

CommercialWireless Net

Mainframe`

User/Guard

Security MenuSet Up

Surveillance Area

170,000 sqft

Cell-phone Display

Construction Site

Mobile Set up

HarmAlarmTM

I-6

CommercialWireless Net

`

Security Menu

Set Up

Remote Alarm

IR Data

Surveillance Area

Barn

Mainframe

IR Data

Farm Security

Agriculture

Green Applications

Small Plane Security

Aircraft Perimeter Security

Behavioral Security

Multiple target behavioral traits– People size targets at specific locations– Multiple people (crowd recognition)– Loitering– Stalking (relationship between two targets)– Lying in wait– Peeping Tom– Unattended child (swimming pool/pond)– Unattended animals– Man down recognition– Fire or catastrophic events– Vehicles, time, location, operation etc.– People counting, entrance/exist matching– RFID image matching, people, goods, or equipment

Business Model

• Licensing US Patent– Specific markets– Quarterly royalty usage fee

• Joint Ventures, specific markets– Leveraged opportunities– Specific markets, minority ownership

• License OEM with HarmAlarm Features– High volume opportunities, future growth

HarmAlarm 5 year Sales EstimateMarket Segment Market size Market Share Total

Home Security 20 million 6% 3,500,000

Small Factories/warehouses 5 million 5% 2,000,000

Large Factories/Storage 1 million 2.5% 500,000

Green Market 200,000 2.5% 50,000

Farms 2 million 2.5% 1,000,000

High Value 24/7 facilities 100.000 15% 150,000

Public Facilities, parking lots 1 million 2.7% 400,000

Total 7.6 million

R&D Costs $ 25 million

Unit cost (average) S1,000/each

Lease Program costs $7.6 Billion

Monthly Unit income $47.78/unit

Repair & Refurbishment $63 million

Monthly Gross income 414 Million (start of 6th year)