VERTEX STANDARD is registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Vertex Standard Co. Ltd Digital Introduction North America Channel Partner Module

Why Digital? ● Improved performance and extended range ● Clear, consistent audio quality ● Increased systems capability vs. analog ● Better spectrum efficiency ● Regulatory requirement

Digital Delivers: Improved Performance & Extended Range Area of improved audio performanceDIGITAL ANALOG AUDIO QUALITY Good Poor Strong Weak SIGNAL STRENGTH

Digital Delivers: Increased System Capabilities vs. Analog Clear Voice Quick Communications Enhanced Call Management Security Call Routing Dispatch and Control Location Range and quality Free form text. Canned messaging. Selective private call, group call, group management. Inherently secure with encryption levels. Dedicate specific slot as either voice or data. IP-based dispatch. Embedded telemetry I/Os. GPS tracking, vehicle reporting, etc.

VERTEX STANDARD is registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Vertex Standard Co. Ltd TDMA Digital Advantage

Vertex Standard is committed to developing digital communications to bring customers a new choice in TDMA digital technology that provides: double the capacity on existing licensed channels increased coverage longer battery life, and superior audio performance.

TDMA Digital vs. Analog: Doubles Spectrum Capacity Regulatory emissions mask ANALOG TDMA 12.5 kHz ● 1 voice for each 12.5 kHz channel ● 1 repeater for each channel 12.5 kHz TDMA ● 1 channel divided into 2 time slots ● 50% reduction in repeater costs ● 40% increased battery life ● Reduced need for combining equipment

TDMA Digital Advantages ● Doubling of capacity in current spectrum ● High data rate for enhanced call features ● 40% increased radio battery life Effective transmit time cut in half with two-slot TDMA Overall battery consumption per call dramatically reduced ● 50% lower repeater costs vs other digital & analog ● Reduced combining equipment ● Global ETSI standard called DMR Developed by the European Telecommunications Standards Institute (ETSI) as a replacement for analog radio technology Globally available, open standard for greater flexibility

TDMA Digital: Good For Narrowbanding ● Meets FCC requirement for user’s license to be on 12.5 kHz channels by Jan 1, 2013 ● Enables users to keep valuable 12.5 kHz channels and double capacity ● Meets FCC recommendation that users migrate directly to 6.25 kHz efficient equipment ● Meets requirements for manufacturers to have 6.25 kHz efficiency or equivalent built into radios  12.5 kHz TDMA is an equivalent

TDMA 12.5 KHz vs. FDMA 6.25 KHz Spectrum Efficiency Twice the capacity in existing or new 12.5 kHz repeater channel Poor spectrum efficiency Radio Manufacturers Motorola, Vertex Standard, Tait, HYTIcom, Kenwood Licensing Fits into existing channel space Re-farming and new license required. Limited number of 6.25 licenses available End User Total Cost of Ownership Lower cost than equivalent 2-channel system; no combining equipment for <2 channels Additional cost to achieve spectrum efficiency gains. Need 1 repeater for each sub-channel; cannot combine repeaters to share antenna site 12.5 kHz TDMA 6.25 kHz FDMA

12.5 kHz TDMA TDMA Capacity Advantage vs. FDMA TDMA = Predictable doubling of capacity in existing 12.5 kHz channels. Source: DMR Association

2-channel Analog or FDMA Digital System One call per repeater & channel Radio Groups TDMA Delivers: Reduced Equipment Cost Reduced equipment cost Lower license cost 2-channel TDMA System Two calls per repeater & channel Frequency 1 Frequency 2 Repeater 2 Combining Equipment Repeater 1 Frequency 1 Radio Groups Combining Equipment Repeater

TDMA vs. FDMA: Compare the Benefits NoYes Open standard for more choices? CapabilityTDMAFDMA Achieve spectrum efficiency? YesNo Use existing licenses? YesNo Battery life improvement? YesNo Channels to repeater ratio 2:11:1 Combining equipment required? NoYes Simultaneous voice and data per channel? YesNo

Customer Opportunities for TDMA NeedsTDMA Solution Spectrum congested2:1 capacity in 12.5 kHz repeater channels Maintain 12.5 kHz license & improve spectrum efficiency Divides one 12.5 kHz channel into 2 slots for 6.25 kHz efficiency. Improved audio at further distance Provides better noise rejection and preserves voice quality over greater range than analog Maintain voice quality while using text/data applications Delivers extra capacity efficiently for optimized performance Support longer shifts40% improvement in battery life Maximized equipment ROI Achieve 6.25 kHz efficiency with minimized investments

What to Expect From Vertex Standard ● Radios will operate in analog or digital mode  No future software upgrades are required  All digital capabilities are in the radio at product launch ● Can replace system one radio at a time, one channel at a time or the entire system ● Allow users to scan both analog and digital channels The ‘Standard’ is ETSI DMR Will Vertex Standard digital radios work with MOTOTRBO?

Get Prepared Digital Changes The Game Read DMR Information Develop Customer Base Future Tools from Digital is not a new product…it’s a new technology, a new way of doing business. Preparation is key for success. Without it, you and your customers will be dissatisfied Review and bookmark DMR Association website Scout for prospects to switch to Vertex Standard Categorize and qualify your customers & opportunities Sales and technical training Road shows & demonstrations End user sales & training tools