DON’T WAIT FOR THE SUNSETTO PROTECT YOUR RMRJoin us for this important webinar on the rapidly changing world of communications in the security industry. Learn how to protect your RMR by converting your alarm communications technology to private wireless mesh radio before feeling the impact of obsoleting technologies.

Wednesday | February 4, 2015

WEBINAR

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PANELISTS

Bill Kieckhafer Cliff ThompsonPresident & COO Regional Sales Manager

North Central US/Canada

bkieckhafer@aes-intellinet.com cthompson@aes-intellinet.com

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AGENDA

• Introductions• AES Corporation at a Glance• Alarm Communication Technologies Overview• Value Proposition vs. Sole Path Cellular• AES Technology vs. Other Fire Alarm Communications• How Mesh Radio Technology Works• AES Product Offerings• Industry Standards• The AES-IntelliNet® Competitive Advantage• Summary• Q&A

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AES CORPORATION AT A GLANCE

• Established in 1974• Privately Held• Corporate Headquarters located in Peabody, MA• Leading manufacturer of private wireless alarm

communications equipment• AES holds the seminal patents on AES-IntelliNet®

wireless mesh radio technology • AES-IntelliNet systems are deployed in over a half

million locations worldwide

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ALARM COMMUNICATIONS TECHNOLOGIES OVERVIEW

• Plain Old Telephone System (POTS) failingWho knows what’s digital or analog anymore?

• AlarmNet-A discontinued• Advanced Mobile Phone System (AMPS)

In 2008, the FCC established sunset clause for AMPS Cellular Networks having a significant impact on the alarm monitoring industry

• 2G Cellular will sunset…and sunsetWill sunset in December 2016 at the latest

• 3G/4G Cellular

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THE RAPIDLY CHANGING WORLD OF COMMUNICATIONS

Plain Old Telephone System (POTS)• According to the Wall Street Journal

report dated 3/19/2014, 2 out of 5 residences relied on wireless communications not POTS

• NFPA-72 Code Compliance for Fire• Toll Free Service Connectivity Issues

Copper to fiber conversions are currently an ongoing issue for signal transmission and call completion

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“Not picking an alternative communication technology to POTS isn’t an option because dealers are going to lose and have been losing them for some time now. You need to change. You need to move off of this one. This isn’t something you just let the younger kids do. You either need to move and do something different or sell your company to somebody that will.”

~Bob McVeighSecurity Solutions

SD&I, October 2013

THE RAPIDLY CHANGING WORLD OF COMMUNICATIONS

Advanced Mobile Phone System (AMPS)• How long ago does 2008 seem?• How painful was that transition for your company?• What was the cost for those upgrades (appointment

setting, truck rolls, unit cost, etc.)?• Who paid?• Who stayed?

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THE RAPIDLY CHANGING WORLD OF COMMUNICATIONS

2G/3G/4G…(5G slated for release in 2020)• What did we all learn from the 2008 AMPS

conversion debacle? • Did your company have a strategy and have one now?• Are you ready to go through it again?

TechniciansOperatorsEquipment Availability

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Insanity: doing the same thing over and over again and expecting different results.

~Albert Einstein

WHO’S REALLY IN CHARGE?

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What is your company doing? When is it too late?

Public or Private

Make a Decision to Go Private vs. Facing the Risks of Public Communications for AlarmsCan your company afford to keep giving away RMR or continue spending time allocating resources to replace sunsetting technologies?• Phone companies enable communications, but

compete for the same RMR• Recurring monthly charges from communication

transport providers consume profits• Inability to directly control communications

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VALUE PROPOSITION

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Individual Account Impact 7788F with 7795 3G/4G Sole Path 7788F with 7795 3G/4G Sole Path 7788F with 7795 3G/4G Sole Path

Primary UL Communicator Primary UL Communicator Primary UL CommunicatorEquipment $569.00 $289.00 $0.00 $0.00 $569.00 $289.00Service Activation $0.00 $20.00 $0.00 $0.00 $0.00 $20.00Monthly Service Cost $0.00 $204.00 $0.00 $204.00 $0.00 $408.00

TOTAL $569.00 $513.00 $0.00 $204.00 $569.00 $717.00

Advantage 3G/4G (56)$ AES 204$ AES 148$ per account per account per account

Impact on Dealer's Bottom LineAnnual cost of service

50 accounts 10,200$ reduced profit to dealer TelGuard 289.00$ 500 accounts 102,000$ reduced profit to dealer DSC 262.50$

1000 accounts 204,000$ reduced profit to dealer Honeywell iPGSM 4G 457.00$ 2000 accounts 408,000$ reduced profit to dealer Honeywell iGSMCFP 4G 294.00$

YEAR 1 YEAR 2 24 Month Totals

Competitive Pricing - Sole Path

AES-IntelliNet ADVANTAGES vs. GSM - COMMERCIAL FIRE ALARM COMMUNICATIONS• Zero risk of technology sunset vs. certain risk of technology sunset • Highest RMR profit potential – no third party fees • Do the math – over $500K bottom line impact ANNUALLY @ 2,500 accounts

Fire Alarm Communications vs. Sole Path Cellular

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AES-IntelliNet® DigitalDialer

Sole PathCellular

Developed strictly for use as alarm communications

Yes No No

Shares technology with texting, video viewing, music

No Yes Yes

Requires two means of transmission No Yes No

Requires third party service fees – User No Yes No

Requires third party service fees – Dealer No No Yes

Certainty of network technology sunset

0% 100% 100%

Certainty of increased cost for service

0% 100% 100%

Requires use of non-industry owned network

No Yes Yes

COMPARING FIRE ALARM COMMUNICATION OPTIONS

HOW MESH RADIO TECHNOLOGY WORKS

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TIPS FOR BUILDING A LONG-RANGE WIRELESS PRIVATE MESH COMMUNICATIONS NETWORK

Improve Deployment with Proper PlanningAES Corporation’s AES-IntelliStart program provides comprehensive installation and operational training for network deployment onsite with support every step of the way.

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TIPS FOR BUILDING A LONG-RANGE WIRELESS PRIVATE MESH COMMUNICATIONS NETWORK

Go With Company Branded Network & Bundled Service• Brand the communications network that the

company RMR depends on• Bundle services to compete in your market to

provide broader service offerings and create stickier relationships

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TIPS FOR BUILDING A LONG-RANGE WIRELESS PRIVATE MESH COMMUNICATIONS NETWORK

Generate Communications Revenue• Become the communications service provider• Calculate local communication costs• Determine a strategy to entice conversions• Your company-owned AES-IntelliNet® private

one-way radio network is the first option for critical event communications

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TIPS FOR BUILDING A LONG-RANGE WIRELESS PRIVATE MESH COMMUNICATIONS NETWORK

Take Advantage of Cross-Selling Opportunities With AES-IntelliNet®• Leverage relationships throughout your marketplace• Use your company brand to convert new

monitoring and technology opportunities with your AES-IntelliNet network:

Get your sticker on the doorCapture test and inspection revenueSprinkler service

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TIPS FOR BUILDING A LONG-RANGE WIRELESS PRIVATE MESH COMMUNICATIONS NETWORK

Stay the Course• Be committed and understand the value in “not

having to go back”• All commercial locations are a target for your

company monitoring service• Eliminate phone lines and offer a guarantee of service

to stay within the customer operating budget

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TOOLS FOR BUILDING A LONG-RANGE WIRELESS PRIVATE MESH COMMUNICATIONS NETWORK

Use Tools Available for Success• 7245 AES-Network Connectivity Tool (NCT)

• 7275 AES-Network Management System (NMS)

• 7041 AES Handheld Programmer

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AES PRODUCT OFFERINGS• Subscribers / CPE

Burglary 7058Fire 7788/7744 (UL/ULC listed and NFPA compliant)

• AccessoriesBurglary 7094 AES-IntelliProFire 7794 AES-IntelliProInteractive 7659

• Central Station ReceiversAES-MultiNet 7705i (UL/ULC listed)IP Link 7170 (UL/ULC listed)

• New AES-Network Management System (NMS) 7275

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INDUSTRY STANDARDS• AES-IntelliNet® meets the following

compliance standards:– NFPA 72 Compliant (in code since 1985)– UL Standard 864, Edition 9– UL Standard 1610– UL Standard 2017– UL Standard 609– UL Standard 827– UL Standard 681– UL Standard 365

• For more detailed information, please visit our Fire Marshal Resources page on the company website:http://www.aes-intellinet.com/products/fire/fire-marshal-resources/

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THE AES-INTELLINET® ADVANTAGE

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High RMRand Low

Total Cost of Ownership (TCO)Scalability and Reach

Non-sunsettingTechnology

Highly Reliable, Fast Communications

Owner-operated and controlled

private wirelessmesh networks

TURN AES-INTELLINET® INTO YOUR COMPETITIVE EDGE

AES is the industry’s only provider of long-range private mesh radio alarm communications technology that is completely controlled by AES-IntelliNet network owners and operators. By partnering with AES and leveraging our 40 years of security expertise, you can successfully expand your business with world-class life safety, property and asset protection communication services.

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PROVEN MESH TECHNOLOGY

Case StudiesAES-IntelliNet® networks stood the test of time and held up against the elements through hurricanes and wildfires when traditional emergency communication networks failed:• 2012 Hurricane Sandy• 2008 New England and upstate NY ice storms• 2007 California Wildfires• 2005 Hurricane Katrina

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PROVEN MESH TECHNOLOGY

Customer Testimonials

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“We were able to sustain our connection during and after Hurricane Sandy with 99% of our customer base and our system never went down. We only lost one radio due to an excessive amount of days without AC power at the location from the storm.”

~Eliot BarryB&H Security

“We don’t depend on anyone else or pay anyone fees for the use of the AES network. It’s ours and we, alone, are accountable for it. AES-IntelliNet® enables better RMR than anything on the market.”

~Jeff KahnWayne Alarm Systems

DON’T WAIT FOR THE SUNSET TO PROTECT YOUR RMR

Summary• Please contact your AES Specialist to get started with

your customized conversion plan today:sales@aes-corp.com or (800) 237-6387

• Follow us on : @CorpAES• Like us on :

facebook.com/CorpAES

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Q&A

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THANK YOU!

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