TASR / TASRW. Safe Harbor Statement Certain statements contained in this presentation may be deemed to be forward- looking statements as defined by the.

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Presentation transcript:

TASR / TASRW

Safe Harbor Statement Certain statements contained in this presentation may be deemed to be forward- looking statements as defined by the Private Securities Litigation Reform Act of 1995, and TASER International intends that such forward-looking statements be subject to the safe-harbor created thereby. Such forward-looking statements relate to: 1) expected revenue and earnings growth; 2) the Company’s estimations regarding the size of its target markets; 3) the ability of TASER to successfully penetrate the law enforcement market; 4) the growth expectations for existing accounts; 5) the ability of TASER to expand its product sales to the private security, military and consumer self-defense markets; and 6) the Company’s target business model. TASER cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements herein. Such factors include, but are not limited to: 1) market acceptance of the Company’s products; 2) TASER’s ability to establish and expands its direct and indirect distribution channels; 3) TASER’s ability to attract and retain the endorsement of key opinion-leaders in the law enforcement community; 4) the level of product technology and price competition for the Company’s Advanced TASER product; 5) the degree and rate of growth of the markets in which TASER competes and the accompanying demand for its products; and 6) other factors detailed in the Company’s filings with the Securities and Exchange Commission.

TASR / TASRW ADVANCED TASER M26

TASR / TASRW Effective Range

TASR / TASRW (Click on image above to start video. Click once to pause.) Ohio State Highway Patrol All Patrols Carry M26

TASR / TASRW TASER vs. OC Spray RCMP Testing

TASR / TASRW TASER Results Orange County Sheriffs, Florida

TASR / TASRW Reduction of Deputy Injuries Orange County Sheriffs, Florida

TASR / TASRW Cost Benefit Model Annual Savings Officer Injury reduction: $368 / Officer

TASR / TASRW Phoenix PD Field Results All Patrols Carry M26 Suspect Injuries Dropped First Top-10 City to Deploy to All Patrol Officers 72 %

TASR / TASRW Los Angeles Sheriffs Analysis of Potential Savings Estimated liability savings: $2,500,000 M26 averted 3 potential shootings in first year alone.

TASR / TASRW Cost Benefit Model Annual Savings Officer Injury Reduction: $368 / Officer Liability Reduction: $294 / Officer Suspect Injury reduction ??? Initial Cost: $741 / Officer Net Year 1 Cost: $ 76 / Officer Months to Break Even: 13.7

TASR / TASRW

5 Year Lease Option El Paso (1091 Officers) Example Taser Initial Cost: $ 808,059 Annual Cartridge Purch (4x):$ 99,117 Total 5 year cost:$1,204,527 Monthly Lease Cost:$ 22,789 Annual Lease Cost:$ 273,468 Annual Est. Savings:$ 724,882 Net Annual Savings:$ 451,414

TASR / TASRW US Potential Market (TAM) *Based on U.S. Handgun ownership: million households. **non-gun owning households

TASR / TASRW Police Market Penetration 0.3%12,000,000Global Police 3.6%1,100,000U.S. Police 100% 40,000 Police TASER M-26 % of TotalGroup

TASR / TASRW Truly Incapacitating Specially Modified MX Animal TASER (Click in area above to start video)

TASR / TASRW Pricing & Margins Distributor End User ITEM PricePriceMargin CARTRIDGES:$12-15$ % ADVANCED TASERS:$300$ %

TASR / TASRW Financial Performance (in thousands) 2.8 Million Shares Outstanding * Company Projections Revenue: $2,366 3,499 6,800 9,843 Earnings Per Share: $(0.52) (0.19)

TASR / TASRW Financial Performance (in thousands) 2.8 Million Shares Outstanding Post Offering Revenue:$ 6,853$ 9,843 up 44% Gross Margins: 57% 56% Net Income:$ 515$ 209 Basic Earnings Per Share: $ 0.22 $ 0.07

TASR / TASRW 2002 Marketing Investments

TASR / TASRW Target Business Model 17% % 46% 0.1% 57% 100% Inv. Turns DSO (days) 45%40% Effective Tax Rate 3.6%20% Op. Profit 51%39% SG&A 1.4%5% R&D 56%64% Gross Margin 100% Revenue 2002Goal * One time tax benefit

TASR / TASRW Stock Data IPO Date:May 8, 2001 Price on 3/03/03:$4.00 Trading Range:$3.30-$21.01 (since unit split) Market Capitalization:$11.2 million Shares Outstanding:2.8 million Float:1.8 million EPS (mrq):$0.02 basic EPS (2002):$0.07 basic

TASR / TASRW

Nasdaq: TASR,TASRW (Chairman) Kathy Hanrahan (CFO)