Benefits of Investing

Commanding Video Surveillance and Applications Portfolio

• March Networks delivers a broad portfolio of video surveillance and real-time analytical and management applications optimized to meet the needs of our customers
• Our comprehensive solutions include sophisticated video management software, standard resolution and high definition cameras, networked video recorders, fixed and mobile solutions that allow our customers to migrate at the pace they dictate.
• We are a market leader and our solutions have been deployed by thousands of customers in over 50 countries.

Strong Market Demand

• The worldwide video surveillance market was estimated at US$8.2 billion in 2008 and is forecast to grow at a compound annual growth rate (“CAGR”) of 10.1% by 2013 (source: IMS)
• The market today is fuelled by continued security concerns, the rise in retail shrinkage, increased bank fraud and escalating insurance claims and litigation.
• The market is undergoing a massive technology shift paced by the adoption digital technologies which are driving annual growth rates of up to 40% for key segments addressed by the Company’s product strategy  
• The March Networks portfolio of solutions mitigates risk, prevents losses, improves security while increasing operational efficiencies and reducing the total cost of ownership.

Focused Investment Strategy

• March Networks continues to adopt a tightly focused, vertical market based go-to-market strategy. The success of this initial strategy of aggressively pursuing customers in the financial, retail and mobile transportation markets fuelled our growth.
• Our product development and market differentiation strategy has been to create a true set of end-to-end solutions including applications and sales and marketing propositions specifically targeted at vertical markets, the effect of which has created increased customer loyalty and a larger average deal size.
• The success of this focus has allowed us to invest in geographical expansion and to broaden our vertical market penetration to include commercial and industrial, fixed transportation and the government and educational sectors.
• Outperforming a Growing Market
• March Networks’ revenues have grown from $12 million in fiscal year 2004 to $101 million in fiscal year 2009 representing a 53% CAGR while the global market grew at a 14% CAGR for the same period.
• Revenues from our international operations continue to grow and for fiscal year 2009 represented 32 percent of total revenues.
• At the end of fiscal year 2009 the company had a cash balance of $50.9 million, a strong balance sheet and no debt.
• We will continue to grow organically while considering complementary acquisitions to accelerate our growth.
• Our R&D investments over the last five years position us well.  Many competitors have not made similar investments and we believe the number of independent manufacturers will decline as a result.