the Conference Rooms with their Netw ork ork Value Added Reseller Value Added Reseller CastleTek Provides over 200,000 computer related and electronic CastleTek Provides over 200,000 computer related and electronic items items Lutron, Honeywell, Cisco, IBM, Toshiba, HP, 3COM, Comdial, Apple Lutron, Honeywell, Cisco, IBM, Toshiba, HP, 3COM, Comdial, Apple , etc. , etc. Provide selection guidance & service Provide selection guidance & service Install and Train Install and Train Provide Post Provide Post - - installation Support (Help Desk and on installation Support (Help Desk and on - - site) site) Smart Home Support Funded by Home Owner 9s Association or High We Smart Home Support Funded by Home Owner 9s Association or High We alth Individuals alth Individuals Conference Room Solutions Funded by Corporations Conference Room Solutions Funded by Corporations CONEXiS was founded in 1993; incorporated May 2000 CONEXiS was founded in 1993; incorporated May 2000 CastleTek Division launched 2003 CastleTek Division launched 2003 Information is considered proprietary and Confidential to Information is considered proprietary and Confidential to CastleTek Systems CastleTek Systems CastleTek Systems Industries that are Hot Industries that are Hot Consumer Consumer (Auto/Telematics) (Auto/Telematics) Electronics Electronics Smart Homes Smart Homes Security Security Home Networking Home Networking Voice over IP & VPN Voice over IP & VPN Conference Rooms Conference Rooms CastleTek Touches All of Them CastleTek Touches All of Them Information is considered proprietary and Confidential to Information is considered proprietary and Confidential to CastleTek Systems CastleTek Systems CastleTek Systems What 9s Hot` What 9s Hot` - - (continued) (continued) Consumer Electronics Industry growing Consumer Electronics Industry growing Auto industry has warmed to Touch screens and onboard computer Auto industry has warmed to Touch screens and onboard computer technology & GPS navigation.<br><br> technology & GPS navigation. Smart Homes Smart Homes People at home are looking for technology and increased comfort People at home are looking for technology and increased comfort New Digital Appliances are hitting the market New Digital Appliances are hitting the market People are now comfortable with technology within their home People are now comfortable with technology within their home Housing in six major markets continues to grow Housing in six major markets continues to grow Las Vegas, Southern CA, TX, FL, GA, and NY Las Vegas, Southern CA, TX, FL, GA, and NY Security Security Home Networking Home Networking Voice over IP & VPN Voice over IP & VPN Integrating the Executive 9s home with the office network Integrating the Executive 9s home with the office network Conference Rooms Conference Rooms Information is considered proprietary and Confidential to Information is considered proprietary and Confidential to CastleTek Systems CastleTek Systems CastleTek Systems CastleTek CastleTek Systems Systems + Industry Standard Hardware With Open Architecture Software Integrator that provides: Smart Home Data Network & Telephone Solutions = CastleTek Systems A Team that Exceeds Expectations Information is considered proprietary and Confidential to Information is considered proprietary and Confidential to CastleTek Systems CastleTek Systems CastleTek Systems CastleTek Systems Smart Home is the CastleTek Systems Smart Home is the Heart of Our Concept Heart of Our Concept Integrating your Smart World with E-Commerce - Entertainment - Control Your Home Information is considered proprietary and Confidential to Information is considered proprietary and Confidential to CastleTek Systems CastleTek Systems CastleTek Systems Market Opportunity Market Opportunity - - Homes/Conference Rooms Homes/Conference Rooms New Homes, Condos & Apts market Continues to Grow New Homes, Condos & Apts market Continues to Grow Competition Does exist in Home Market Competition Does exist in Home Market Crestron Crestron 3 3 Market leader, very expensive; over $20 ft Market leader, very expensive; over $20 ft 2 2 . .<br><br> AMX AMX 3 3 Struggling and very expensive. Struggling and very expensive. Others Others -- -- start up companies are beginning to pop up start up companies are beginning to pop up Easy to use and understand buttons Easy to use and understand buttons Technophobe can do Video Conference without the aid of IT Technophobe can do Video Conference without the aid of IT Department Department CastleTek provides remote control CastleTek provides remote control IT Dept seldom near the Conference Room IT Dept seldom near the Conference Room Access, see, control and launch applications from remote desktop Access, see, control and launch applications from remote desktop that is within the network that is within the network Launch presentations from network Launch presentations from network Play music or movies while making a presentation Play music or movies while making a presentation Fiber Infrastructure Wireless LAN or Internet Connection Access Wireless LAN or Internet Connection Access Conceptual Overview Conceptual Overview Community Center Legend Internet Internet T3 to the Internet CastleTek LAN Internet Wireless LAN Welcome Home Security Lights Smart Neighborhood Internet Service IP Phone Service Local Intranet Email Service Smart Home Ecommerce Entertainment Integration Repair Warrantees RESIDUALS Wireless Wireless or Internet Connection Wireless or Internet Connection Home Home - - Auto Interaction Demo Auto Interaction Demo Fiber Infrastructure Community Center Legend T3 to the Internet Wireless You Live Here When you drive within range of your Neighborhood or access wirelessly through the Internet, your car links to your home.<br><br> Your car then synchronizes, like a palm pilot, to your home data. Intranet is available, updates to music, movies, and photos are made, and all this is integrated through CastleTek Systems touch panel. Information is considered proprietary and Confidential to Information is considered proprietary and Confidential to CastleTek Systems CastleTek Systems CastleTek Systems Market Opportunity Market Opportunity - - Autos Autos Great buzz from Debut at SEMA Great buzz from Debut at SEMA No Competition in Auto Market Today No Competition in Auto Market Today Best Possibility to create immediate profits Best Possibility to create immediate profits Volvo Charging $3,000 for just GPS Volvo Charging $3,000 for just GPS Clients very receptive to extra $1,500 for added Clients very receptive to extra $1,500 for added features of CastleTek System features of CastleTek System Best looking Interface on the Market Best looking Interface on the Market Highest Quality Video and Sound Highest Quality Video and Sound Strategic Alliances within Auto Market Strategic Alliances within Auto Market Information is considered proprietary and Confidential to Information is considered proprietary and Confidential to CastleTek Systems CastleTek Systems CastleTek Systems Castle Tek Mobile Castle Tek Mobile Information is considered proprietary and Confidential to Information is considered proprietary and Confidential to CastleTek Systems CastleTek Systems CastleTek Systems Castle Tek Mobile Castle Tek Mobile Information is considered proprietary and Confidential to Information is considered proprietary and Confidential to CastleTek Systems CastleTek Systems CastleTek Systems Mobile Computing Mobile Computing Market Size & Growth Potential Market Size & Growth Potential The current market size is just under $10 million at retail, or The current market size is just under $10 million at retail, or approximately $7 million at cost.<br><br> Japan and Europe are much approximately $7 million at cost. Japan and Europe are much further ahead in experience but not in volume. further ahead in experience but not in volume.<br><br> The current market has no brand leaders and has no intellectual The current market has no brand leaders and has no intellectual property rights, other than minor software applications. property rights, other than minor software applications. Interest in mobile computing has grown steadily over the past fi Interest in mobile computing has grown steadily over the past fi ve ve years, despite many obstacles.<br><br> years, despite many obstacles. The telematics market is said to grow by 500% within three years The telematics market is said to grow by 500% within three years . .<br><br> A more realistic or conservative mobile computer growth estimate A more realistic or conservative mobile computer growth estimate is is 150%, or to about $20 million at wholesale, by the end of 2006. 150%, or to about $20 million at wholesale, by the end of 2006. Historically, most consumers purchase computer components via Historically, most consumers purchase computer components via Internet and build end products to suit their needs until Retail Internet and build end products to suit their needs until Retail wholesale distributors and internet recent successes.<br><br> wholesale distributors and internet recent successes. Until recently, in Until recently, in - - car computer solutions or computer packages & car computer solutions or computer packages & were not available to the consumer. were not available to the consumer.<br><br> Retail has proven that both dealers and consumers want and will Retail has proven that both dealers and consumers want and will purchase mobile computer packages, as well as individual purchase mobile computer packages, as well as individual components. components. Information is considered proprietary and Confidential to Information is considered proprietary and Confidential to CastleTek Systems CastleTek Systems CastleTek Systems Mobile Computer Mobile Computer Historic Historic Problems Problems Computers lock up and require a reboot cevery once in a while d.<br><br> Computers lock up and require a reboot cevery once in a while d. Solution Solution - - JUST DEAL WITH IT. Locate a reboot button in a JUST DEAL WITH IT.<br><br> Locate a reboot button in a very conspicuous spot. very conspicuous spot. Most favorite feature in France.<br><br> Most favorite feature in France. Computing system (with all the toys) is too much for what I Computing system (with all the toys) is too much for what I need in MY car and definitely TOO EXPENSIVE $$. need in MY car and definitely TOO EXPENSIVE $$.<br><br> Solution Solution - - With an open platform only install what you need. With an open platform only install what you need. Grow/expand when YOU are ready!<br><br> Grow/expand when YOU are ready! Computing (Auto Computing (Auto - - PC) systems are too feature rich. Not PC) systems are too feature rich.<br><br> Not everyone needs cemail and voice recording in the car d. everyone needs cemail and voice recording in the car d. Solution Solution - - Offer 3 flavors so that only what is required is part Offer 3 flavors so that only what is required is part of the offering!<br><br> of the offering! The system is too complicated to use and not user friendly! With The system is too complicated to use and not user friendly!<br><br> With either too many or not enough buttons to navigate. Frys tells it either too many or not enough buttons to navigate. Frys tells it all!<br><br> all! Solution Solution - - Create a user interface that is obvious and Create a user interface that is obvious and comfortable. CHECK OUT OUR DEMO!<br><br> comfortable. CHECK OUT OUR DEMO! Information is considered proprietary and Confidential to Information is considered proprietary and Confidential to CastleTek Systems CastleTek Systems CastleTek Systems Mobile Computing Mobile Computing Current Current Problems Problems No trustworthy mini No trustworthy mini - - computer solution providers and too many computer solution providers and too many component sellers component sellers - - Solution Solution - - Castle Castle - - Tek to position themselves as the market Tek to position themselves as the market leader through Internet awareness, technical phone centers, leader through Internet awareness, technical phone centers, tested and regulated install instructions, patentable product tested and regulated install instructions, patentable product features, warrantees and offer mass personalization and features, warrantees and offer mass personalization and solution marketing strategies.<br><br> solution marketing strategies. Perceived high price Perceived high price - - Solution Solution - - CastleTek has marketing campaign to show how cost CastleTek has marketing campaign to show how cost effective and efficient the mobile computers are for the effective and efficient the mobile computers are for the consumer. consumer.<br><br> Lack of mini Lack of mini - - computer awareness computer awareness - - Solution Solution - - Mount an advertising campaign through trade and Mount an advertising campaign through trade and consumer magazines. consumer magazines. Information is considered proprietary and Confidential to Information is considered proprietary and Confidential to CastleTek Systems CastleTek Systems CastleTek Systems Mobile Computing Mobile Computing Problems (continued) Problems (continued) No technical assistance No technical assistance - - Solution Solution - - CastleTek to add proper mobile computer install CastleTek to add proper mobile computer install details to their current technical assistance phone center and details to their current technical assistance phone center and add FAQ 9s and Troubleshooting Help to instruction manuals.<br><br> add FAQ 9s and Troubleshooting Help to instruction manuals. Current mobile computer case size (s) are not DIN Current mobile computer case size (s) are not DIN - - size size - - Solution Solution - - Work and partner with a mini Work and partner with a mini - - computer manufacturer computer manufacturer to offer a DIN to offer a DIN - - size case or optional slave unit or in size case or optional slave unit or in - - dash flip out dash flip out product. product.<br><br> Composite monitors not desirable with mini Composite monitors not desirable with mini - - computer computer - - Solution Solution - - CastleTek to offer VGA headrest monitors along with CastleTek to offer VGA headrest monitors along with flip downs and approved VGA splitters. flip downs and approved VGA splitters. Few touch screen sellers in US Few touch screen sellers in US - - Solution Solution - - Work with sellers on a N.<br><br> American exclusive and/or Work with sellers on a N. American exclusive and/or discuss with other foreign producers of touch screens. discuss with other foreign producers of touch screens.<br><br> Information is considered proprietary and Confidential to Information is considered proprietary and Confidential to CastleTek Systems CastleTek Systems CastleTek Systems Market Summary Market Summary The primary target dealers are considered high end shops. The primary target dealers are considered high end shops. The initial target consumers are computer literate males The initial target consumers are computer literate males 20 years of age and up.<br><br> 20 years of age and up. The marketing message will involve offering a cSolution d The marketing message will involve offering a cSolution d for Mobile for Mobile - - Home Communication, Safety & Security! Home Communication, Safety & Security!<br><br> Entertainment! Information! Entertainment!<br><br> Information! Current mobile computer offerings do not extend a home Current mobile computer offerings do not extend a home security solution. This is the Castle security solution.<br><br> This is the Castle - - Tek difference. Tek difference. 80% of current mobile computer package sales include 80% of current mobile computer package sales include GPS Navigation.<br><br> GPS Navigation. A typical mobile computer package includes, mini A typical mobile computer package includes, mini - - computer, 7 d VGA touch screen monitor, GPS Navigation, computer, 7 d VGA touch screen monitor, GPS Navigation, web web - - camera, DVD/MP3/CD player, software and ac camera, DVD/MP3/CD player, software and ac inverter. inverter.<br><br> Information is considered proprietary and Confidential to Information is considered proprietary and Confidential to CastleTek Systems CastleTek Systems CastleTek Systems Competition Competition The current component selling competitors The current component selling competitors include dozens of small companies marketing include dozens of small companies marketing via the Internet in both the US, Canada, via the Internet in both the US, Canada, Japan and Europe. Some of the main re Japan and Europe. Some of the main re - - sellers in the US & Canada are VIA, XENARC, sellers in the US & Canada are VIA, XENARC, G G - - Net, Stealth, Spy Net, Stealth, Spy - - Supply, TRC, Q Supply, TRC, Q - - PC, etc.<br><br> PC, etc. By providing credibility, warrantees, install By providing credibility, warrantees, install instructions, phone center technical instructions, phone center technical assistance, technical advances, driver assisted assistance, technical advances, driver assisted software and solution (home/auto software and solution (home/auto - - security security /entertainment / information) marketing /entertainment / information) marketing strategies & CASTLE TEK will take the upper strategies & CASTLE TEK will take the upper - - hand in the growing mobile computer market. hand in the growing mobile computer market.<br><br> Information is considered proprietary and Confidential to Information is considered proprietary and Confidential to CastleTek Systems CastleTek Systems CastleTek Systems Supporting Information/Quotes Supporting Information/Quotes "The market for in "The market for in - - car computing is poised to embark on an amazing car computing is poised to embark on an amazing journey," said journey," said Bob McKenzie, general manager of the Automotive Bob McKenzie, general manager of the Automotive Business Unit at Microsoft. Business Unit at Microsoft. "Safety and security services are among the "Safety and security services are among the most important criteria to motorists.<br><br> They want access to Intern most important criteria to motorists. They want access to Intern et et - - based based information such as news, traffic updates, instant messaging, na information such as news, traffic updates, instant messaging, na vigation vigation assistance and other services. They also have a keen interest in assistance and other services.<br><br> They also have a keen interest in back back - - seat seat entertainment systems. The Car.NET framework is designed to prov entertainment systems. The Car.NET framework is designed to prov ide these ide these features and more by delivering state features and more by delivering state - - of of - - the the - - art reliability, flexibility and art reliability, flexibility and connectivity." connectivity." Tim Scannell, an analyst at Tim Scannell, an analyst at Mobile Insights Inc.<br><br> in Mobile Insights Inc. in Mountain View, Calif., Mountain View, Calif., said said cimprovements in in cimprovements in in - - car car computing are seen by many computing are seen by many as a natural link between as a natural link between workers' homes and offices d. workers' homes and offices d.<br><br> "'The most promising technology for minimizing "'The most promising technology for minimizing driver distraction from telematics services is the driver distraction from telematics services is the voice voice - - based user interface. Interacting and based user interface. Interacting and controlling a telematics program via voice allows controlling a telematics program via voice allows drivers to focus their attention on operating the drivers to focus their attention on operating the vehicle,' vehicle,' said Thilo Koslowski, lead said Thilo Koslowski, lead automotive analyst and research director automotive analyst and research director for GartnerG2.<br><br> for GartnerG2. 'It will also help the telematics 'It will also help the telematics industry build consumer confidence and cultivate industry build consumer confidence and cultivate support from government regulators and safety support from government regulators and safety advocates.'" advocates.'" Information is considered proprietary and Confidential to Information is considered proprietary and Confidential to CastleTek Systems CastleTek Systems CastleTek Systems Global In Global In - - Car Computing Car Computing Forecast Forecast SRD Japan, Inc., SRD Japan, Inc., forecasted US sales forecasted US sales to surpass 14,000 to surpass 14,000 units in 2003. All units in 2003.<br><br> All indications prove indications prove they are very close they are very close to correctly to correctly predicting today's predicting today's volume. volume. Information is considered proprietary and Confidential to Information is considered proprietary and Confidential to CastleTek Systems CastleTek Systems CastleTek Systems Conservative Conservative Mobile Computer Growth Chart Mobile Computer Growth Chart Estimated US wholesale revenue Estimated US wholesale revenue 2003 Current Market Size 2003 Current Market Size 7 Million 7 Million 2004 Estimated Market Size 2004 Estimated Market Size 10 Million 10 Million 2005 Estimated Market Size 2005 Estimated Market Size 14 Million 14 Million 2006 Estimated Market Size 2006 Estimated Market Size 20 Million 20 Million 1 3 5 7 9 11 13 15 17 19 21 23 25 2003 2004 2005 2006 2003 2004 2005 2006 Information is considered proprietary and Confidential to Information is considered proprietary and Confidential to CastleTek Systems CastleTek Systems CastleTek Systems Market Strategy Market Strategy The marketing strategy is simple.<br><br> The marketing strategy is simple. Offer a combined home/auto security solution, Offer a combined home/auto security solution, entertainment, information product solution (in entertainment, information product solution (in - - car car mobile computer with touch screen monitor) to the high mobile computer with touch screen monitor) to the high end dealers and new customers at a competitive price end dealers and new customers at a competitive price combined with technical advances, warrantee, combined with technical advances, warrantee, instructions and outstanding technical service & instructions and outstanding technical service & assistance. assistance.<br><br> Information is considered proprietary and Confidential to Information is considered proprietary and Confidential to CastleTek Systems CastleTek Systems CastleTek Systems What features does the What features does the automobile need? automobile need? MP3/Digital (Personalized) Music MP3/Digital (Personalized) Music DVD movies for back seat DVD movies for back seat GPS Navigation GPS Navigation Internet capabilities/home interfacing for Internet capabilities/home interfacing for safety and security safety and security Information is considered proprietary and Confidential to Information is considered proprietary and Confidential to CastleTek Systems CastleTek Systems CastleTek Systems What 9s next for the car?<br><br> What 9s next for the car? Web Web - - camera for rear vision and video camera for rear vision and video conferencing! conferencing!<br><br> XM satellite radio XM satellite radio Auto Diagnostics Auto Diagnostics - - OBDll feedback OBDll feedback Auto crediting in the drive through at Auto crediting in the drive through at McDonalds. McDonalds. Let your imagination go wild!<br><br> Let your imagination go wild! Thank You Thank You Questions and Answers Questions and Answers

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