Page: 1 AdvanTech, Inc Riva Rd, Suite 1030, Annapolis MD, * (800) Prepared for GERMAN SPORT GUNS Presented by Bob Bona, VP Operations

Page: 2  What is A&D Secure  Shared Asset Visibility  RFID Integration  Benefits  Implementation Steps  AdvanTech’s Role  Next Steps A&D Secure Overview AdvanTech, Inc Riva Rd, Suite 1030, Annapolis MD, * (800)

Page: 3 Shared Asset Data RFID Technology A&D Secure Overview AdvanTech, Inc Riva Rd, Suite 1030, Annapolis MD, * (800)

Page: 4 Shared Asset Data RFID Technology A&D Secure Overview AdvanTech, Inc Riva Rd, Suite 1030, Annapolis MD, * (800)

Page: 5 Current Supply Chain Asset Visibility Manufacturing Distributors Dealers AdvanTech, Inc Riva Rd, Suite 1030, Annapolis MD, * (800)

Page: 6 Shared Supply Chain Asset Visibility AdvanTech, Inc Riva Rd, Suite 1030, Annapolis MD, * (800) Manufacturing Distributors Dealers A&D Secure

Page: 7 A&D Secure Data Flow Manufacturing Distributors Dealers A&D Secure AdvanTech, Inc Riva Rd, Suite 1030, Annapolis MD, * (800) P/O S/O ASN P/O S/O ASN A&D POS Shipment Recpt A&D

Page: 8 A&D Secure Overview Shared Asset Data RFID Technology AdvanTech, Inc Riva Rd, Suite 1030, Annapolis MD, * (800)

Page: 9 Introduction  Focus on Passive RFID (pRFID)  Focus on pRFID and an Integrated Supply Chain  Personal Privacy  Department of Defense pRFID Successes AdvanTech, Inc Riva Rd, Suite 1030, Annapolis MD, * (800)

Page: 10 What pRFID: IS  Valuable Management Tool  Improves Operations  Improves Accountability  Increases Asset Visibility IS NOT  “Electronic Bar Code”  Additional Overhead AdvanTech, Inc Riva Rd, Suite 1030, Annapolis MD, * (800)

Page: 11 RFID Technologies GPS Active RFID Passive RFID  Transmitter  Satellite Reader  Satellite Receiver  Reusable Transmitter with internal power source  Multiple Fixed Readers  Extension of LAN / WAN  Disposable Transmitter with external power source  Fixed Reader with Multiple Antennas and/or Handheld Readers CategorySpecificationsReading Range AdvanTech, Inc Riva Rd, Suite 1030, Annapolis MD, * (800)

Page: 12 1)RFID Truck With Tagged Container Approaches Interrogator 2) Interrogator sends out signal for aRFID tag to respond 3) aRFID tag transmits signal in response to interrogator – Active RFID Operation 4) Interrogator reads and sends data to supporting Information System Container Tagged with aRFID AdvanTech, Inc Riva Rd, Suite 1030, Annapolis MD, * (800)

Page: 13 1) Forklift with pRFID tagged pallets and cases approaches portal 2) Portal reader creates RFID read zone 3) Signal from RFID portal energizes pRFID tag antenna and chip for response 4) Portal reads pRFID tag information and sends to supporting Information System Passive RFID Operation AdvanTech, Inc Riva Rd, Suite 1030, Annapolis MD, * (800)

Page: 14 AdvanTech, Inc Riva Rd, Suite 1030, Annapolis MD, * (800)

Page: 15 End to End Supply Chain Quality Process Points of RFID Integration Manufacturer Wholesale/Distributor ReceivingRepackagingShippingReceivingStock Movements Sale Shipping Dealer Receiving and Storage Receiving and Storage Point of Sale PackagingF/G Inventory 2 2 AdvanTech, Inc Riva Rd, Suite 1030, Annapolis MD, * (800)

Page: 16 Manufacturing Wholesale/Distributor Dealer Demand PlanningYes Contract ManagementYes Production ManagementYes Shipping / InvoicingYes ReceivingYes Location ManagementYes Order Picking and StagingYes Physical Inventories and Cycle CountsYes Shelf Space AllocationYes Point of SaleYes Anti-CounterfeitingYes Product RecallsYes Expiration Date TrackingYes Stop Loss (Theft Prevention)Yes Where can pRFID be Incorporated? AdvanTech, Inc Riva Rd, Suite 1030, Annapolis MD, * (800)

Page: 17 Operational Improvements Operational ActivityDocumented Results Production ControlReduced Quality Checks by 20 hours per week ReceivingReduced Receiving Time from 3 hours to 20 Minutes Point of SaleProcessed Platoon of 50 Recruits in 1 hour down from 2.5 hours Physical Inventory CountingReduced Counting Time from 2 days to 6 hours Physical Inventory VarianceVariances reduced from 5% to 0.18% AdvanTech, Inc Riva Rd, Suite 1030, Annapolis MD, * (800)

Page: 18 A&D Secure Overview Shared Asset Data RFID Technology  Immediate Production Status Data  Improved Finished Goods Tracking  Automated Location Management  99%+ Picking, Staging and Shipping accuracy  Visibility of Assets throughout the Supply Chain  Improved Production Planning  Eliminate handwritten documentation  Immediate Updates to A&D Bound Book  Rapid Serial Number Searches  Automatic Bound Book changes audit trail  Electronic Bound Book files and Back ups  Automated Receiving  Vault Management and Asset Tracking  ATF Audit Ready AdvanTech, Inc Riva Rd, Suite 1030, Annapolis MD, * (800) Benefits

Page: 19 A&D Secure Implementation Steps

Page: 20 Data Integration with Legacy System Packaging Module (RFID / Bar Code) Packaging Module (RFID / Bar Code) RFID Vault Management  Push Master Catalog, Current Inventory, Production Orders and Sales Order Data from Legacy System  Data is incorporated into A&D Secure and A&D Local databases  Updates can occur multiple times per day  Incorporate RFID into existing Packaging Processes that incorporate current Labeling requirements  Generate RFID Tag to attach to each item and verify correct link to each Serial Number  Update A&D Book on A&D Secure Web site  Tracks Personnel in and out of Vault using RFID Enabled ID Cards  Track individual items into and out of Vault  Customized Rules to notify appropriate personnel for Items that have left the vault  Perform complete Shipping function including individual Serial Number accounting using RFID Tags or Bar Code Serial Numbers  Generate RFID Case and Pallet Labels a part of Shipment Staging Process  Generate Packing Slips and Manifests as required  Update A&D Bound Book on A&D Secure Web site  Electronically sent Advanced Shipping Notice to Distributors/Dealers using A&D Secure application  Send Detailed Packaging data back to update the Production and Inventory Tables  Send Detailed Shipping data back to update Shipping, Sales Order and Inventory Tables Shipping Module (RFID / Bar Code) Shipping Module (RFID / Bar Code) Data Integration back to Legacy System Data Integration back to Legacy System A&D Secure Implementation Steps

Page: 21 AdvanTech: Does  Train Clients on Use and Value of an Integrated pRFID approach  Provide “Test Kit” to allow Clients to try pRFID first hand  Project Management  Baseline Current Processes and Identify points of pRFID Integration  RFP Development and Evaluations  Develop Business Case Analysis  Implementation Support  Link 3 Supply Chain Segments in coordinated solution (Manufacturers, Distributors, Dealers  Reduce Implementation Time  Reduce Start-up Costs Does NOT Sell Hardware Have Contractual Relationships with RFID Manufacturers Have Contractual Relationships with RFID Solution Providers AdvanTech, Inc Riva Rd, Suite 1030, Annapolis MD, * (800)

Page: 22 Thank You Vielen Dank für Ihre Zeit und Interesse Questions and Next Step Visit our website(s): AdvanTech, Inc Riva Rd, Suite 1030, Annapolis MD, * (800)