International Communications Industries Association

Press BriefingFebruary 11, 2005

Agenda

ICIA 2005 Market Forecast and InfoComm Preview

- Randy Lemke, Ph.D.

Executive Director, ICIA

Intrepid’s New Experiential Kamikaze Exhibit and Tour

- Glenn Polly

President, VideoSonic

Everything AudioVisual

• The International Communications Industries Association (ICIA)

• Since 1939, association for the audiovisual (AV) communications industry

• 3,200 members in 60 countries• Provider of pro AV education and certification• Offices in U.S., Europe, Asia, and Australia• Tradeshows in U.S., Europe, China and Southeast Asia

ICIA Serves $19 Billion AV Industry

• The AV industry produces revenues of $18.9 billion a year in North America*

• The industry is projected to grow at a rate of 9.6 percent annually over the next five years

* Source: ICIA Market Definition and Strategy Study 2004

Technologies, Systems and Services

• Visual and data display• Video production• Control Systems• Audio systems• Remote video and web conferencing

AV in Business

AV in Training & Education

AV in Museums

AV in Government

AV in Healthcare

AV in Retail

2005 Market Forecast Survey

North America

Methodology

• ICIA/ICIF sponsored survey• Survey conducted October-December 2004• Survey of Dealers and Independent Design

Consultants• Follow-up survey done for European

comparisons

Projected Total Gross Revenue 2005

North America

Projected Net Profit %

9.1%

12.1%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

2004

2005

Financial Changes 2005-2007

71%-83% anticipate gross revenue and net profits to increase over the next 3 years

78%

14%

6%2%

76%

16%

6%2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Gross Revenue Net Profit

Increase

Remain the Same

Decrease

Not Sure

Involvement in Vertical Markets

84% / 80% in Business/Corporate, Higher Education, Hotels and Restaurants

High Importance Markets 2005-2007

Business/Corporate, Higher Education most important to future business growth

Entering New Markets 2005-2007

57% expect to enter new vertical markets in the next three years

Growth Markets

• Residential• Retail and Digital Signage• Security• Healthcare• Legal• Military• Webcasting

Why AV: The Power of Sight and Sound

• Solves communication challenges• Efficient information dissemination• Improves educational process• Improves command, control and security

functions

Industry Trends

• Challenges for ProAV firms– IT firms entering the AV marketplace– Margin erosion in proAV products

Industry Trends

• Opportunities– Increased use of conferencing and

collaboration– Integration of AV systems into IT environment– Growth in residential market– Greater use of AV in retail/digital signage

For More Information

www.infocomm.org/marketintelligence

InfoComm Overview

10,000 Technologies at InfoComm

• Display and Projection• Audio Systems• Videoconferencing • Streaming Media• Digital Signage• Residential Systems• Lighting and Staging• Controls and Interfacing

700 Exhibitors - Major Brands

• Bose • Casio• Crestron• Extron• Hitachi• Honeywell• Mitsubishi• Panasonic

• Philips• Polycom• Samsung• Sanyo Fisher• Sharp• Shure• Sony• Tandberg

25,000 Attendees from the AV Industry

• AV manufacturers• AV dealers, systems integrators and installers• Rental & staging companies• Independent consultants• Production companies• Presentations professionals• End users in business, education, government

200 Courses at InfoComm

Basic, Intermediate and Advanced Courses on:• Audio • Conferencing • Design • Display/Projection• Rental and Staging • Systems Integration• Residential

Beyond Exhibits and Education

Large Venue Display Gallery

Demonstrations…

Themed pavilions• Audio• Streaming Media• Digital Signage• Conferencing• Lighting/Staging• Residential• Presentations

Off-site Tours

• Behind-the-Scenes AV Technology Tours– Fashion Show– University of Las

Vegas– Wynn Resort– Cirque du Soleil’s “O”

Special Interest Conferences

• Insight Media• EduComm• Digital Cinema Report• IMCCA (Interactive Multimedia Collaborative

Communications Alliance)• T3 – Church Production Magazine’s Technical Training

Tour• Media Communications Association International• MCG

International Buyer Program

• InfoComm supported and promoted by U.S. Department of Commerce

• Earned due to:– Show’s export potential– International interest– U.S. exhibitor offerings

InfoComm: Where Business Happens

“The Information Communications Technology Marketplace”

International Communications Industries Association

Press BriefingFebruary 11, 2005