Building Intelligence Tour Jan. 25, 2006 Chicago, IL

CABA Mission To encourage the development, promotion, pursuit and understanding of integrated systems and automation in homes and buildings.

Pneumatic Transmission Electric Controls Electronic Controls Mini Computers Personal Computers Direct Digital Controls BACnet/Lon Revolution Internet/Intranet Growing Convergence of BAS and IT Wireless Interfaces and Alarms IT Standardizing Information Presentation Models Evolution of Systems that may Integrate all Building Services on Standard IT Infrastructure Copyright Frost & Sullivan 2005 Technological Evolution of BAS Technological Evolution of BAS Integration of Security and Fire with BAS: Putting More Information to Effective Use

North American demand for intelligent building controls- environmental (IBC) systems from 1995 to 2010.

Forecast growth of IBC systems and penetration of IP- based solutions in North America from 2004 to 2012.

Growing Convergence Information Technology Building Automation Increasing need for interconnecting facilities and accessing real-time data over the Internet. Convergence of enterprise network and the building automation network for data communication and sharing facility wide data for BAS as well as other organizational needs. Copyright Frost & Sullivan 2005 BAS and IT Converging BAS and IT Converging Integration of Security and Fire with BAS: Putting More Information to Effective Use Growing need to interconnect building facilities spread over different geographical locations for remote monitoring/analysis and control. Use of BAS data for other organizational needs such as facility management. Increasing machine-to-machine communication.

Construction & Design- Build Cutbacks!

Financial impacts/life cycle costs. Integrated design/build process. IBS reliability. Education and changing practices. Competing technologies. Standards/protocols are not interoperable. Challenges to IB GROWTH

Integrated Design Team An Integrated design team and process - dedicated to the integration notion! Integration should be implemented from inception to completion. The initial design stage is perceived as most critical to the process. The guidance of the System Integrator at this stage is indispensable!

Benefits of Integrated Systems will assist Facility Manager Better building access. Standardized infrastructure. Higher building/rental value. Consumption expenses decrease. Occupant/tenant control. Single control point.

MARKET GROWTH “ The global market potential for building management systems (BMS) is estimated at $37.7 billion in Rising at an average growth rate of 2.9%, the available market is expected to reach $43.6 billion in 2009.” Source: Building Communications Company Inc. March 2005

“The over-all U.S indoor quality market (IAQ) was $5.6 billion in 2003 and is expected to rise at an average annual growth rate of 11% to $9.4 billion by 2008.” POSITIVE EFFORTS TO IMPROVE IAQ Source: Building Communications Company Inc. March 2005

Audiovisual Industry Forecast Finds Residential, Retail and Digital Signage Top Growth for $19 Billion U.S. AV Market “Among the most positive trends respondents indicated was the increase use of digital signage, particularly in the retail sector, for delivering a message, selling products or simply providing information. The market for large information displays is growing at a tremendous rate, as increased competition leads to lower prices and demand increases from businesses and universities.” Bob O’Donnell, Research VP of Clients, Mobility and Display Technology, IDC.

WIRELESS-THE NUMBERS SPEAK 97% of customers says that WLANs have met or exceeded their expectations to provide their company with a competitive advantage. 97% of customers says that WLANs have met or exceeded their expectations to provide their company with a competitive advantage. On average, WLAN users are 22% more productive. On average, WLAN users are 22% more productive. Productivity benefits quantified are 48% of the total return on investment of WLAN installation. Productivity benefits quantified are 48% of the total return on investment of WLAN installation. The average time to pay back the initial costs of WLAN installation is less than nine months. The average time to pay back the initial costs of WLAN installation is less than nine months. Sources: Surveys conducted by the Wireless LAN Association and NOP World Technology

NOTE: The revenue figures indicate the market size for the perimeter security equipment and the interior security equipment only. These figures exclude any revenues for installation, training, or servicing of such equipment. NOTE: The revenue figures indicate the market size for the proximity card, magnetic stripe, smart cards and other card-based access control systems markets only. These figures exclude any revenues from sale of any individual component in isolation such as card or reader. These figures exclude any revenues for installation, training, or service of such equipment. Compound Annual Growth Rate ( ): 8.1% Compound Annual Growth Rate ( ): 12.7% Market Revenues Market Revenues Integration of Security and Fire with BAS: Putting More Information to Effective Use Copyright Frost & Sullivan 2005

FACILITIES AS PROFIT CENTERS “Today, facilities are viewed as strategic resources... elevating the facility manager to the role of asset manager supporting the organization's overall business goals.... managing facilities as a true profit center.” ( From an promoting a new book “Total Productive Facilities Management - By Richard Sievert)

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