1. Homeland Security 2010-2020 Israel Livnat

2. A leading global provider of intent-based solutions for capturing, managing, analyzing and acting upon multi-channel interactions, transactions and physical data to improve business performance and make the world a safer place NICE at a Glance 2

3. Extract Value from Customer Interactions to Impact Business Performance Risk Management and Compliance Solutions for Financial Institutions Solutions to Prevent Crime and Fight Terror Our Offerings 3

4. Difficult to Connect the Dots and Act Efficiently Vast amounts of Sources of Information More sophisticated and Complex threats Persistent Threat of Terrorism and Rising Crime Rates Integration is key Security Challenges - Know more and Do More, Faster

5. Integrated Security Strategy main challenge is to: Obtain and Filter Relevant Information on Time Difficult to Connect the Dots and Act Efficiently Vast amounts of Sources of Information More sophisticated and Complex threats Persistent Threat of Terrorism and Rising Crime Rates Security Challenges - Know more and Do More, Faster

6. NICE Offering 6 Mass Collection Financials Intelligence Location Tracking Satellite Interception Entry Points Video Surveillance Access Control & ID Management Physical Sensors Audio ControlCenter

7. NICE Systems Value Proposition Physical Security Intelligence Prevent Crime and Terror Activities Real-Time Response for Any Event

8. Increasing threats Tougher regulations Reduced budgets A “PERFECT” STORM PUBLIC TRANSPORTATION AS AN EXAMPLE

9. Challenges facing public transportation  Vandalism  The “broken window” theory  Antisocial behavior  The effects and cost are both tangible and intangible  Terrorism  Madrid €3.3m damage to the operator, €42B drop in FTSE (Source: Deloitte)  Negative public perception  Perception drives behaviour, regardless of accuracy  Metal & copper thefts  £4m for copper replacement on top of 240,000 minutes of delays refund (Network Rail 07)  Level crossing accidents  Cost of fatality 1.4m pound (UK)  OPEX Pressure  All investments require a clear ROI and constant need to “do more with less”

10. The complexity of securing public transport  Heavily populated and open environment - difficult to enclose  Large geographical span  Need to secure passengers and assets while maintaining high operational efficiency  Fragmented jurisdiction and collaboration  internally and externally  Security provisions must respond to public transport’s unique characteristics  one size does not fit all 10

11. Perception Drives Behaviour  The actual risk of being victim of violence for a Munich UBahn traveler is 1:1.9M - but it is perception that drives passengers behavior Source: Munich police crime statistics, 2007  “ 11.5% more journeys would be made on public transport if passengers felt they were more secure” Source Dft, “Tackling crime on public transport” Source: German Urban Agglomeration Area Customer Survey 2007 Day Time Night Time Passengers Sense of Security in Stations 90% 41% 31% safe Partially safe unsafe

12. Operations Center Stakeholders Responders Systems Op 3Op 1 Video Audio Fire & Safety Access Control The complexity of securing a large organization Op 2 Stakeholders Systems 12 Overload of information Inefficient response Building Mgmt. SCADA

13. Adaptive Response Actions Operations Center Stakeholders Responders Systems Situation Awareness Situation Management Op 3Op 1 Op 3Op 1 How to Respond What’s Happening Where it’s Happening Video Audio BMS Operational Systems Fire & Safety IM/PACS/PIDS The solution – Situation Management Integration & Correlation Op 2 Stakeholders Systems 13 Time Location Severity Sensors

14. Additional trends  In Utilities  Smart grid, cyber threats  In the corporate environment/financial sector  IT security, ID management, Cyber threats  Leveraging of the security investment for Operational purposes

15. THE FUTURE AHEAD FOR HLS

16. What does this mean?  Security requires similar solutions as Oracle/SAP/IBM provided for the enterprise  Multidisciplinary, scalable, tailored, highly integrated  The Israeli Hi-tech needs to leverage its leadership in various fields and create high-value combined solutions for the HLS market  Physical security  IT security & Cyber Security  Financial Security  Legal interception and tracking  Defense expertise 16

17. How can we achieve that?  Invest in highly advanced technologies  Proliferate the knowledge acquired in the defense industry to other high-tech industries in Israel  Creating a generation of managers that know how sell value and deliver solutions rather than sell technology and build products  Build large companies… 17

18. NICE Systems  Corporate Profile  24,000 customers  80+ Fortune 100 companies  150+ countries  30 Local Offices  5 R&D Centers  Revenue: $589M (2009)  Founded 1986  NASDAQ: NICE  ~2700 Employees  800+ Service Engineers  150+ Registered Patents  88+ Pending Patents