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Investor PresentationAugust 2008
February 2007 Investor Presentation
This material contains statements that are not statements of historical fact, but instead are forward-
looking statements. All forward-looking statements involve risks and uncertainties that could cause
actual results to differ materially from those in the forward-looking statements. Such factors include,
but are not limited to, the company’s ability to market existing and new products, ability to access
capital for expansion, and changes from anticipated levels of sales, future national or regional
economic and competitive conditions, changes in relationships with customers, dependence on our
relationship with our primary supplier and other factors detailed from time to time in the Company's
filings with the United States Securities and Exchange Commission and other regulatory authorities.
The company undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise. This presentation
is based upon information available to the public, as well as other information from sources
which management believes to be reliable, but is not guaranteed by GVSS as being accurate
nor does it purport to be complete. Opinions expressed herein are those of manage-
ment as of the date of this presentation and are subject to change without notice.
Safe Harbor StatementSafe Harbor Statement
Investment Opportunity
• Successful Turnaround Led by Experienced Team
• Six Straight Profitable Quarters
• Currently trades at less than 7X Earnings
• We are Samsung Electronics Security Business in the Americas
• Working with Samsung to Double Market Share over the Next 3 Years
• Security “Pure Play”
• New Management Team and Board
• Eliminated Loss-Making Activities
• Set Appropriate Expense Levels and Implemented Controls
• Focused on Key Working Capital Items
• Strengthened Samsung Strategic Partnership and Contract
• New $15M Credit Facility Established with Wells Fargo Business Credit
Successful Turnaround
$2.6 million$2.6 million
Six Straight Profitable Quarters Q1 2007 – Q2 2008
Net Income 2007Net Income 2007
Steven E. Walin, CEO/Chairman – Former president of GE Security Enterprise Solutions; former Senior VP for the security systems division of Siemens Building Technologies; former President / COO of Security Technologies Group (STG)
Joseph Restivo, COO/CFO – Former VP of North American Services and Business Development for Siemens Building
Technologies. President/COO of Casi-Rusco
Michael Capulli, Sr. VP North American Sales – 26 years of experience in security sales; was VP of Sales for Tri-Ed Inc.; recently was Director of Global Accounts for Tyco Safety Products.
Fernando Tomasiello, Sr. VP International Sales – Eight years of experience in the
security industry; was Director of Sales for South America for Global Options International Inc.; from
1998 to 2000, was VP of Sales for International Security Experts Systems.
Duncan Havlin, VP Product Management – 11 years of experience in the security industry;
former Vertical Marketing Manager for GE Security.
Esra Pope, VP Marketing – 7 years of experience in the security industry; former leader of
project integration for Military and Government security sales in Turkey.
Experienced Management
A team with a track record of successful growth and
investor wins in the security industry!
GVSS
4x4x
10x10x
A Successful Track Record
Access Control
Strategic Acquisitions
Strategic Partner: Samsung Electronics
• The World’s Largest and Leading Electronics and IT Company
• #1 Consumer Electronics Brand Worldwide
• Annual Sales over $100 Billion US
• Operates in over 100 Countries
• Wants to be #1 in Security Electronics
2
1
Source: Korea Herald BusinessWeek21
Strategic Partner: Samsung Electronics
+ +=
• Samsung and GVI Branded Video Security Surveillance Systems
• Sell Through Distributors, Installers and Dealers• Industry Leading Service and Technical Support• 75% Samsung, 25% GVI Branded Products to
Supplement Samsung Line
Distributor InstallerEnd UserGVI
Samsung
GVI Brand Dealer
Sales Channels
Leading Edge Products
5 Canadian Salespeople
55+ US Salespeople
20+ International Salespeople
80+ Salespeople
Strong Sales Force in the Americas
MAJORRETAILER
MAJOR APPARELRETAILER
Baton Rouge
Parish Schools
Baton Rouge
Parish Schools
Sarasota Sarasota School School
DistrictDistrict
Chesterfield Chesterfield County VA County VA SchoolsSchools
Selected Customers
Joshua IndependentSchool District
Joshua IndependentSchool District
Banco Banco de la Republicade la Republica
ColombiaColombia
Brazil Brazil
MetroMetro
Aduana Mexico Gov’t Customs Organization
Tribunal of Justice de Rio de Janeiro
Poder Judicial Republica de Chile
Guatemala Government Customs Agency
Los Angeles Air Force Base
North Carolina Department of Corrections
Americas Market for Video Surveillance Equipment
Mill
ions
of
U.S
. D
olla
rs
Source: IMS Research
Move To Digital Technology
Productivity Applications
Market Drivers
Post 9/11 Security Awareness
Broadband Network Availability0
500
1,000
1,500
2,000
2,500
3,000
3,500
2005 2006 2007 2008 2009 2010
An Exciting Market
Changing Architecture Creates Big Opportunity
Access ControlClosed Circuit Video
Network Video Management
Access Control
Network Video Storage
IP Video
Closed Circuit VideoStand-alone systems loosely integrated via relays or custom software
IP VideoIP based systems integrated via common standards with a master control console
Market Transition to IP
Analog Cameras
IP Cameras
IP Servers
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2004 2005 2006 2007 2008 2009 2010
Mill
ion
s o
f D
olla
rs
Global Video Surveillance Camera Revenue Forecast
High EndMarket
Mid Market (SMB)
Entry Level Market
MarketSweet Spot
The High End Enjoys:• Larger project sizes• Reduced price sensitivity
Entry Level Enjoys:• Higher unit volumes• Reduced system complexity• Reduced sale complexity• Shorter sales cycles
Number of Employees
50 to 1000
>1000
<50
Americas VideoMid MarketSize: $1.3BCAGR: 12%
Source: Phare Consulting Inc.
Targeting the Mid Market
• Strong Strategic Partnership with Samsung
• Samsung has High Growth Goals – Double Market Share
• Strong Partner – $1.5 Million Initial Investment thru Q1 2009
• Samsung Increasing Investment in R&D / QA for Security
• Demonstrated Willingness to Co-Invest in Growth and Acquisitions
• Samsung is Poised to Extend their Leadership in Electronics and IT to the Full Electronic Security Market with GVI as their Strategic Partner
Samsung Strategic Partnership
Acquisition Strategy
SamsungComplementaryTechnology
AccessControl
AccessoriesVideoManagementSoftware
• Video Management Software
• Access Control
• Accessories
• Complimentary to Video
• Customer Projects Often Require Both
• Very High Margins• A Complete Branded
• Offering a More Sophisticated SolutionTakes Samsung to:
Solution
• Repeat Sales• $4B Global Market• 15% Growth Rate
More Upscale Markets More Successful Dealers Higher Margin Sales
• Build on our Unique Strategic Partnership with Samsung
• Deliver Enterprise Level Technology to the Middle Market
• Expand Revenue and Margins
• Acquire Technologies such as Access Control and Video Management Software
• Continue to Build Already Strong Sales Channels
• Target: Double Market Share in 3 Years
Growth Strategy
2005 2006 2007 (est.)
($12.99) ($4.46) $.05
(9,388) (7,887) 2,300
Gross MarginGross Margin
Income Statement
Net IncomeNet Income
($ in thousands) 2006 2007 6 mo 2007 6 mo 2008 Net Sales 43,973 45,025 23,294
24,164 Gross Profit % 15.0% 28.4% 27.3% 29.9%
EPS (fully diluted) ($4.46) $0.08 $0.01 $0.02
Net Income (16,491) 2,637 469 695
Operating Income (7,887) 2,475 1,103 1,517
$ (15, 000)
$ (12, 000)
$ (9, 000)
$ (6, 000)
$ (3, 000)
$ -
$ 3, 000
2006 2007 6mo
2007
6mo
2008
0.0%
10.0%
20.0%
30.0%
2006 2007 6mo 2007 6mo 2008
($ in thousands) 6-30-08 12-31-07 12-31-06
Total assets
20,440 20,892 17,912
23,778 23,356 16,472
Current assets 22,543 21,752 15,846
Total liabilities
Cash and cash equivalents 22 313 225
6,405 9,292 17,850Current liabilities
Stockholder’s equity 3,338 2,464 (1,440)
Balance Sheet
Favorable Credit Facilities
• $15 Million Secured Credit Facility• Prime + .75%• Resets to Prime + .25% on $1M Net Profit in 2008
Price8/5/2008
GVI Security GVSS 0.60 16.9M 0.37 6.99
Henry Bros. Electronics HBE 6.00 35.5M 0.57 43.4
Mace Security International MACE 1.59 26.0M 0.50 Loss
P/S (ttm)
P/E(ttm)
Company Name Ticker Market Cap
Vicon Industries VII 4.55 21.7M 0.33 3.53
Sources: Yahoo
Napco Security Systems NSSC 4.43 84.6M 1.27 15.22
Pelco - Acquired by Schneider Electric in October for $1.54 Billion or 3X Sales of Approximately $500M
Attractive Valuation
Exchange/Symbol: OTCBB/GVSS
Price (8/5/2008): $0.60
Shares Outstanding: 28.1M
Market Capitalization: $16.9M
Price/Sales (ttm): 0.37X
Price/Earnings (ttm) 6.99X
Equity Snapshot
Sep Nov Jan 08
• Emerging Player in Rapidly Growing Security and Surveillance Industry
• Experienced Management Team in Place
• Focused on the $2.4B Americas Market for Video Surveillance Growing at 10% CAGR
• Clear Strategy Aimed at Underserved Middle Market
• Strong Samsung Strategic Partnership
• An Exciting and Executable Plan
Investment Opportunity
GVSS
4x4x
10x10x
A Successful Track Record
Access Control
Strategic Acquisitions