North America - Slow and Cautious With NextGen Projects Ronald Zimmer CABA President & CEO June 27, 2005

Definition of Intelligent Building Technologies “ The use of integrated technological building systems, communications and controls to create a building and its infrastructure which provides the owner, operator and occupant with an environment which is flexible, effective, comfortable and secure.” Source: Technology Roadmap for Intelligent Buildings Report Complimentary at:

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

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

SHOULD FACILITY OWNERS AND MANAGERS BE CONCERNED? A study of 60 commercial buildings in US found 50% had control problems and 40% had equipment problems. A study of 60 commercial buildings in US found 50% had control problems and 40% had equipment problems. A similar study of 51 schools in Canada found that 50 had either maintenance or systems related problems. A similar study of 51 schools in Canada found that 50 had either maintenance or systems related problems. Intelligent Building Operating Technologies May 2004

Source:

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.

Moving Towards IP Centric Platform Moving Towards IP Centric Platform Integration of Security and Fire with BAS: Putting Copyright Frost & Sullivan 2005 Digital age is ushering in a convergence of voice, data and video. “How” the information is stored and retrieved is becoming more important than “Where” it is stored. Security providers can use this information to provide additional services: - Supervision - notification - Browser interfaces - Audio/video - Up/download common configuration databases on the network More Information to Effective Use

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

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.

“The over-all U.S indoor air 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

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

CABA INTELLIGENT & INTEGRATED BUILDINGS COUNCIL Developing a BIQ Rating System for IB with The Appraisal Institute, and EPA Energy Star. Building a Life-Cycle Cost Analysis Tool with Reed Construction Data/RSMeans. Coordinating National Research Council High Performance/Intelligent Building Demo Project. Next IIBCouncil Meeting - June 29, 2005.

Benefits of Integrated Systems for Facility Owners and Managers Better building access. Standardized infrastructure. Higher building/rental value. Consumption expenses decrease. Occupant/tenant control. Single control point.

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.” (Book Promotion for T otal Productive Facilities Management - By Richard Sievert)