© VR Security, Inc. 1 Stephen Russell CEO & Founder 3VR Security, Inc. Search in Surveillance: A NewTool for Information Warriors

© VR Security, Inc million cameras 200 billion video hours

© VR Security, Inc. 3 Information Overload: Security manufacturers continually improve our ability to collect information … Proprietary and Confidential © VR Security, Inc. 3

4 … but our ability to “collect” has long since outstripped our ability to “analyze”, resulting in catastrophic human and economic loss. Proprietary and Confidential © VR Security, Inc. 4

5 The Security Gap

© VR Security, Inc. 6 Failure to close this gap has resulted in catastrophic human and economic loss Proprietary and Confidential © VR Security, Inc. 6

7 July 7, 2005 Proprietary and Confidential © VR Security, Inc. 7

8 How do you track 4 suspects among millions of hours of video?

© VR Security, Inc. 9 Recognizing Suspects Under Surveillance Khalid Al-MidharMohamed Atta 9/10 (Gas Station) 9/11 (ATM) Known Al-Qaeda affiliate on INS watchlist since 2000 Proprietary and Confidential © VR Security, Inc. 9

10 Surveillance –Innovation & Standards Holdout Security manufacturers have failed to leverage commercials useful innovations from information technology and management. Scalable Computing Computer Vision Search Databases SOAP/ XML

© VR Security, Inc. 11 3VR uses SEARCH technology to structure security data and connect security professionals. Proprietary and Confidential © VR Security, Inc. 11 Innovations in search and intelligent video are helping to close the information gap.

© VR Security, Inc. 12 SEARCH: Using technology to “structure” security data and “connect” security professionals is critical to transforming security industry. Proprietary and Confidential © VR Security, Inc. 12

© VR Security, Inc. 13 Proprietary and Confidential © VR Security, Inc. 13 “O’Reilly’s Internet Guide” Google Search brought “structure” to the Internet... …and in turn connected internet users.

© VR Security, Inc. 14 “Google for Surveillance” Proprietary and Confidential © VR Security, Inc. 14

© VR Security, Inc. 15 Face Recognition Restricted Area Motion Direction Abandoned/Removed Objects Use Video Analysis to Turn Video into Events

© VR Security, Inc. 16 Make Event Based Monitoring Possible

© VR Security, Inc. 17 Searchable Events Speed Investigations Conventional DVR Search Results 1.Review text lists 2.Wait for video downloads 3.Watch numerous videos, one by one Typical Investigation: 15 minutes 1.Scan storyboard to isolate event 2.Only download one video 3.Single click export to case management Typical Investigation: 2 minutes 3VR Search Results in EventStoryboard™

© VR Security, Inc. 18 Use Relevance to Enhance Quality Selectively compress face images to keep high quality evidence while still maximizing storage DVR Face Image3VR Face Image

© VR Security, Inc. 19 Use Relevance to Extend Storage Use intelligent recording and dynamic, user determined durations for key events to reduce storage and bandwidth by over 90% compared to conventional DVRs DVR

© VR Security, Inc. 20 Structured Information Optimized for the Network DVR or NVR3VR Distributes heavyweight video files Distributes lightweight metadata + key frames 2MB per transaction120K per transaction Searches only by transaction information, requires manual review of video. Searches across branches by face or transaction, easily scanned event cards

© VR Security, Inc. 21 Video Search Video Analysis Video Management … One Product 3VR SmartRecorder™

© VR Security, Inc. 22 About 3VR » Best Product –Fastest growth in commercial sector –Fastest rate of product innovation –Won nearly every industry award » Leading Company –Funded by IT and Security Leaders (Kleiner Perkins, In-Q-Tel, VantagePoint, DAG) –Led by Search and Video Visionaries (Inktomi, TiVo, USWeb) Top 25

© VR Security, Inc. 23 Search: A Disruptive Idea

© VR Security, Inc. 24 Banking $5B Check Fraud ($5B) Banking DVRs ($200M) Organized Theft ($31B) $31B Retail DVRs ($300M) Proprietary and Confidential © VR Security, Inc. 24 Search transforms security market with value-driven applications to address huge vertical problems… Economic impact of 9/11 alone: $1 Trillion RetailGovernment

© VR Security, Inc. 25 Proprietary and Confidential © VR Security, Inc. 25 Text Files + Mainframes Databases + Enterprise Software We saw something similar when databases made the enterprise searchable...

© VR Security, Inc. 26 Proprietary and Confidential © VR Security, Inc. 26 … as the market or databases expanded, the market for enterprise applications exploded.

© VR Security, Inc. 27 Proprietary and Confidential © VR Security, Inc. 27 » Purpose-built word processor » Sold bolt-on office applications (mail, spreadsheets, etc) » Killed by cheaper, more flexible, extensible software system (PC) » Purpose-built video recorder » Trying to bolt-on analytics (face, object, LPR, etc) » Killed by cheaper, more flexible, extensible software system (3VR) DVRs will be security’s Wang Computer DVR

© VR Security, Inc. 28 Example: Addressing Fraud in Retail Banks

© VR Security, Inc. 29 » Sample Text Proprietary and Confidential © VR Security, Inc. 29 » In 2005, banks lost $64 million to robbery » Those same banks lost $5 billion to fraud » Fraud is “the number one way criminals are attacking our financial system” – Chief of Financial Crimes, US Secret Service Fraud: Banking’s Biggest Problem Proprietary and Confidential © VR Security, Inc. 29

© VR Security, Inc. 30 CrimeGuard™ - Facial Surveillance to Stop Fraud CrimeGuard™ automatically indexes branch video with biometrics assigning a unique template to every face. Proprietary and Confidential © VR Security, Inc. 30

© VR Security, Inc. 31 SimilaritySearch™ Face templates can be remotely searched to link a fraudster’s activity across both time and branches » Solves previously unsolvable cases » Searches are instant and reduce investigation time » Proactively identifies even unreported fraud events » Robust to false identities Proprietary and Confidential © VR Security, Inc. 31

© VR Security, Inc. 32 PeopleShare™ With a single-click, PeopleShare™ publishes faces and alerts to watchlists within every branch across user-defined regions » Automates intelligence distribution » Prevents fraudsters from serially targeting branches » Centralized alert management PeopleShare™ Proprietary and Confidential © VR Security, Inc. 32

© VR Security, Inc. 33 SimilarityAlerts™ CrimeGuard™ performs real-time comparison of individuals in branches against regional watchlists. Matches trigger real-time alerts at teller windows, manager desks, or remote monitoring centers. » Stops fraud attempts and reduce losses » Increase deterrence to reduce future attempts » Stopping and deterring attempts means less investigations AlertViewer™ Proprietary and Confidential © VR Security, Inc. 33

© VR Security, Inc. 34 Fraud – Big Opportunity for Impactful ROI Example Scenario$ at RiskResult 1 st attempt$4,000Suspect in Database 2 nd attempt$4,000Attempt Detected and Stopped 3 rd attempt$4,000Attempt Deterred or Stopped 4 th attempt$4,000Attempt Deterred or Stopped $16,000 potential loss is reduced to $4,000 Proprietary and Confidential © VR Security, Inc. 34

© VR Security, Inc. 35 Demonstration

© VR Security, Inc. 36 Case Study Fighting Fraud in Los Angeles

© VR Security, Inc. 37 Pilot Program Overview » 15 3VR systems deployed across branches in an area recognized for high fraud activity » Multiple tests conducted to measure accuracy, false positives, investigative productivity, and effectiveness. » Tests conducted jointly by 3VR and customer

© VR Security, Inc. 38 Real-Time Watchlist Test - Results Metric Branches with Poor Conditions (Class 1 and 2) Branches with Good Conditions (Class 3, 4, and 5) Matching Accuracy9%94% Nuisance Alert Rate.005%.04% Number of Sites2 branches13 branches Total Faces Analyzed2,88585,724 With basic system tuning, 3VR accurately identified 94% of test subjects in branches with appropriate environmental conditions.

© VR Security, Inc. 39 Investigation Test Results (Post-Tuning) MetricDVR3VR Investigation Speed70 min44 min Quality of Evidence Images2 CIF4 CIF Number of New Events Found 528 Test Methodology » Two investigators given same fraud case. » One investigator used legacy DVR, one used 3VR » Investigators instructed to find additional instances of a suspect within the same bank branch.

© VR Security, Inc. 40 Proprietary and Confidential © VR Security, Inc. 40 Searchable Surveillance™ Disruptive innovation transforming traditional surveillance operations 1 Enabling new value-driven applications to expand government effectiveness using video 2 Platform for ongoing innovation and integration 3

© VR Security, Inc. 41