Berkshire Systems Group, Inc. Serving Eastern Pennsylvania Creating a $ Profitable Fire Alarm Service Organization AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

Our Basic Philosophy At Berkshire, we are eternal optimists. We believe that if we provide “quality service” customers will naturally come and choose our company over our competition. Customers who don’t place a high value for quality service are probably not going to do business with us. We are not, and don’t want to be, the cheapest game in town. AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

We Serve the Dreaded Bid Market “Parts & Smarts” – 80% of our new Project Business We do very little actual installations We provide CAD drawings for most projects Even though we have 4 Project Managers, our Application Specialists (Salesmen) do far too much Project Management AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

Present Service Department Volume Service was Approximately 22% of our total business volume in 2006. This volume includes: Parts Billed Service Labor Inspections & Tests Does not include New Project Commissioning AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

Service Manager’s Response To: Why is Berkshire’s Service Dept. Successful? We deal aggressively with all Customer Complaints Good communications with Customers We don’t make promises we knowingly can’t keep AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

Service Manager’s Response To: Why is Berkshire’s Service Dept. Successful? We go the extra mile, even though it might not initially be to BSGI’s financial advantage. Always be honest. Efficient Scheduling Pro-Active to Customers Needs AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

Present Service Department Management Service Manager Staff Support Clerk Supervisor - Protection Division Service/Installations Supervisor - Inspections/Test Supervisor - Sprinkler Services Supervisor - Communications Dept. Service/Installations AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

Present Service Department Management Protection Division 13 Technicians 10 Full-Time Inspectors 5 Part-Time Inspectors 2 Sprinkler Technicians AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

Present Service Department Management Communications Division 4 Technicians 3 Telephone System Technicians and Installers AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

Other Contributing Issues On-Call Policy U.L. Certificated Systems Having the Required Tools Managing our Customers Programs Certifications and Training Keeping Turnover Low AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

On-Call Policy There is always the following on-call service available: On-call Protection Division Technician On-call Communications Division Tech On-call Access Control Technician On-call Security Technician – Government Agencies AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

On-Call Policy The Protection Dept. technicians are on-call one day at a time. (The Technician changes every day) A Communications Div. Technician is on all for a week at a time. (few after-hours calls) The Access Control Technician is called by the other on-call Technicians only when there is an Access Control Issue AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

On-Call Policy Government Accounts Technician is called when there is a call at one of these Facilities. On-call technicians will contact other On-Call Technicians or other technicians not on call, when the need dictates AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

On-Call Policy We do not place the On-call Technician in the uncomfortable position of deciding if they should respond or not. If the customer wants them to respond – RESPOND. The basic policy is, for other than a very few accounts, go get the job done, management will deal with collecting the money. We lose very little service revenue due to this policy. AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

On-Call Compensation Technicians are paid $20 a day to be on-call. They receive $5.00 for each after- hours phone call. If they are called out, they are always paid double time from the time they leave their home until they return back home. AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

Customer Benefit Berkshire considers the on-call policy and availability of Emergency Service to be a very important “Value Added” benefit to our customers. We market this value added benefit and our reputation supports this value. When managed properly, this is a profitable part of our Service Revenue. AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

U.L. Certificated Systems Berkshire presently has in excess of 70 U.L. certificated Fire Alarm Systems. Emergency Service response is required within 4 hours from the time called. AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

U.L. Certificated Systems U.L. requires the building Owner to maintain this level of response on a 24/7 basis. We either include the cost of this emergency response in our Maintenance Agreement or charge on an “as needed basis”. AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

Managing our Customers Programs All programs are stored on a networked desk-top PC in the Service Dept. Program down-loads are also accessible from the field via our password protected Web-site. AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

NICET Certification NICET Certification is strongly promoted Fire Alarm Systems 6 Level IV 1 Level III 10 Level II 2 Level I Presently 22 employees are enrolled in an in-house NICET Study Course. AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

NICET Certification Sprinkler Certification 3 - Automatic Sprinkler Systems Layout 1 - Inspection of Water-based Systems 2 – Special Hazards AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

Communications Div. Certifications NICET Audio Systems 2 - Level II 1 - Level I BiCSi 1 – Level II AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

NICET Certification Compensation Berkshire pays: All reference material Testing costs Seminars for maintaining certification A $1,000 annual increase for each level obtained, starting at Level II in Fire Alarm Systems, Level I Audio. AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

Keeping Employee Turnover Low Treat all Employees with Respect. Listen, Listen, Listen – They most often have the answers. Fair pay and benefit package Annual reviews. Provide Employee Assistance Programs when needed. Training – you can’t provide enough. AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

Summarizing Contributing Issues for Long-Term Profitability On-Call Policy U.L. Certificated Systems Having the Required Tools Managing our Customers Programs Certifications and Training Keeping Turnover Low AFAA Annual Meeting - Colorado Springs, CO April 19, 2007

BUT! There are many other items that can and will effect profitability. Don’t expect short-term profit decisions to have lasting effects on your bottom line! AFAA Annual Meeting - Colorado Springs, CO April 19, 2007