Stream with an Edge Stream with an Edge & Smart Home Framework& Smart Home Framework

IP Camera with Http Live StreamingIP Camera with Http Live StreamingSmart Home Gateway with Digital RFSmart Home Gateway with Digital RF

Market Status - Facts at A Glance

The domestic security industry generated an estimated $33.25$33.25 billion in 2010.

33%33%

comes from residential.

20%20% Alarms17%17% Intrusion Detection11%11% Video Surveillance

5%5% Access Control..

Facts of Residential Market•Total households in the US in 2010 were 114,825,428 114,825,428

•16% ~ 18%16% ~ 18% of U.S. households have monitored security systems – ADT

•Average Installation Price: $1,126$1,126

•Average Monthly Monitoring Fee for Residences: $24 $24

Home Consumer/DIY Video Surveillance

Camera Market to be

$ 1 $ 1 Billion by 2012

Home DIY Security Systems

DIY Market Status

Emerging Trends

No-New-Wires

No-New-Wires

On the Go and in the Know

On the Go and in the Know

Control Consoles Go Mobile.

Control Consoles Go Mobile.

Smooth Video Streaming

Smooth Video Streaming

Smart Home

Home Safety Home Safety and Securityand Security

Health and Health and WellnessWellness

Communication Communication EngagementEngagement

Home Home AutomationAutomation

EmailEmailVideophoneVideophoneCell PhoneCell PhonePCsPCs

Remote Diagnostics Remote Diagnostics Medication Dispense and Medication Dispense and ReminderReminderElderly In-Home CareElderly In-Home Care

Video SecurityVideo SecurityHome MonitoringHome Monitoring

Energy SavingEnergy SavingEnvironmental ControlEnvironmental ControlAccess ControlAccess Control

** ** 4040 Million, 13% of All Million, 13% of All Population in the US in 2010 Population in the US in 2010 are 65 Years and Overare 65 Years and Over

Uncontested Market Segment

WirelessWireless

Smooth VideoSmooth Video

System FlexibilitySystem Flexibility

Affo

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Http Live Streaming

RTP/RTSP vs. HTTP LIVE STREAMING

RTP/RTSP is the most adopted streaming protocol in the IP surveillance industry. It brings us remote viewing anywhere anytime, but not without drawbacks.

HTTP Live Streaming, a new contender, gets its popularity with Apple’s devices. Even Android claims its compatibility with HTTP Live Streaming in its recent release note of Honeycomb. **

How will HTTP Live Streaming help us avoid the bloody red ocean?

Advantages of HTTP Live Streaming

Home Security with HTTP Live Streaming

InternetInternet

Product Package Details

Network Camera with HTTP Live StreamingNetwork Camera with HTTP Live Streaming

• Easy Setup: Minimum Configurations through iPhone/iPad APP or WPS for Easy WiFi Setup• White LEDs for Illumination under Low Light• Fully Compatible with iOS• Continuous Recording on Network Hard Drive• Live View and Playback from App• One Way Audio Transmission• Estimate Cost: $60~$65

WiFi Network Hard DriveWiFi Network Hard Drive

Outsourcing (Trading) Preconfigured as Personal Cloud for Video Storage Estimate Cost of 500GB: $120.00

Free APP Download from Apple App StoreFree APP Download from Apple App Store

Camera Configuration: Add, Delete, Name, and RenameCamera Advanced Setup: Audio On/Off, Motion Detection, Recording Schedule, Alarm Notifications (Email and Text Message)Camera Control: LED On/Off, Auto On/OffCamera Live ViewCamera Playback Channel by Channel Search Event / Alarm Log and Playback

Two Cameras + WiFi Network Hard Drive: Cost $240~250, MSRP: $399.00 ~$450.00Two Cameras + WiFi Network Hard Drive: Cost $240~250, MSRP: $399.00 ~$450.00

Development Schedule

Manpower Planning

Position Count Background Requirement Tasks

Function Development (Project Base)

RD 1 RTSP & FFMPEG within Arm-Linux Http streaming update, including audio, rtsp client, and etc.

RD 1 RTSP & FFMPEG within Arm-Linux Http streaming source code take-over, verification, rebuild and etc.

RD 1 MAC-ObjectiveC & GUI MAC NVR AP

RD 1 iOs Platform iOS APP

RD 1 Network & GUI Tools Applications

RD 1 JAVA/JSP/Database/Linux Server & Web Platform

Firmware (Project Base)

RD 1 C++ & HTML Tag CGI coding, FW version control

RD 1 Mac/Linux/Windows Testing

Hardware (Project Base or Existing Employee)

RD 1 PCB Layout Verification & Control

Web GUI (Project Base or Existing Employee)

Design 1 Web Design Web Page Layout and Design

Others (Long Term Hire)

PM 1 Technical Management Cross-Platform Integration and Protocol Definition

PM 1 OEM / ODM Project Control SPEC Confirm, Schedule Control, Cost Review and etc.

Total 12

Comparison of SoC Solutions

Original Solution (8161) New Solution (8126)

Cost Approx. NT$12 Million Extra NT$800,000~NT$1,000,000

Schedule 6-9 Months Extra 3~4 Months**

SoC Performance

CPU 500 MHz 540 MHz

Video Resolution

704x480(D1), 75 fps 1280x720(720p), 45 fps or

1,920×1,080(1080p), 30 fps

Estimate BOM US$60~US$65 US$35~US$40

Life Cycle 2 Years and above (2009) New (2011)

Smart Home Gateway-- Power of Digital RF and Wi-Fi AP

Smart Home– The Race is On

Smart Home Gateway

Functions of Gateway Functions of Gateway

Live View and Playback of All Cameras

Camera’s Video Storage

Automation and Security Console through Digital RF

Unique Digital RFUnique Digital RF

AES128 Encryption

Auto Hopping to Avoid Signal Interference

WPS for Easy Setup

Benefits of GatewayBenefits of Gateway

Zero Configuration: All Configurations Can Be Done During Production. True Out-of-Box Setup.

Less Restrictions of Camera Selections and Higher Flexibility to Integrate New Solutions

High Flexibility to Add New Products and Varieties

One App Rules All: Interoperability among Devices

Integration with Access Control and Alarms

Smart Home Product Stages

Easy Setup: Zero Configuration Gateway with Built-in HDD for Local

Storage and RF Module for Smart Home Integration

White LEDs for Illumination under Low Light

Fully Compatible with iOS Advanced Setup Wirelessly through

APP Continuous Recording on Gateway Live View and Playback from App One Way Audio Transmission

3 Axis Bracket for Easy Positioning

Pan/Tilt/Zoom Network Camera PTZ Control through APP Two Way Audio

Use iPhone or iPad as Netowk Camera WiFi Pocket Drive as Mobile Storage

Complete Add-on Product Lines for Complete Home Security Application

One App for All Integrated Devices One Gateway to Control All Devices

Stage 1Stage 1 Stage 2Stage 2 Stage 3Stage 3

RFWiFi/Internet

Product Packages for Stage One

Entry Package: Home Security Kit

• One Gateway and One Camera

• Estimate Cost: $90 + $40 Hard Drive

• Low Hard Drive Capacity

• Free App

• For Price Sensitive Markets

• MSRP: $199.99

Premium Package: Entry Level Smart Home

•One Gateway, One Camera, One RF Power Socket, and One Alarm

•Estimate Cost: $120 + $40 Hard Drive

•Low Hard Drive Capacity

•Free App

•For Price Competitive Market but with Unique Features

•MSRP: $299.99

Deluxe Smart Home Package

•One Gateway, Three Cameras, Two RF Power Sockets, and One Alarm

•Estimate Cost: : $250 + $50 Hard Drive

•Free App

•For Higher End Market

•MSRP: $599.99

Competition StatusiZoniZon VueZoneVueZone Q-SeeQ-See

Smartphone Smartphone CompatibilityCompatibility

iOS 4.0 or higher (iPhone 3GS or later and any iPad)

iOS, Blackberry and Android iOS, Blackberry and Android

Sold AtSold At Target, Best Buy, Apple Retail Store Costco.com, Sears, Micro Center, Amazon Costco, Fry’s, Micro Center Online, Staples, Best Buy, Sears, TigherDirect, Home Depot…

MSRPMSRP $129.95 $289.95 for Two-camera + Vue Gateway$99.95 for Additional Camera$49.95 /yr for 250MB Storage Online

$269.99 8ch Security DVR w/ 4 Cameras $349.99 8ch Security DVR w/ 8 Cameras$499.99 8ch 10.2” LCD-DVR w/ 8 Cameras

ProsPros Easy Setup through App (Wirelessly)Compatible with iOSSleek Product IDEasy Positioning with Magnetic StandGood Price Range with AudioSmooth Video with Audio

Out-of-Box Zero Configuration: Gateway to minimize configuration

Easy Sync with One ButtonBattery Powered Cameras (6 months Battery

Life with about 5 minutes of use per day) Magnetic Mounts with Peel-and Stick

Adhesive: Easy Positioning and Rotation

Affordable System Easy Recording Setup Continuous Recording Clear Video Day/Night Locally

ConsCons Remote Session 5 min and One iOS Device at A Time

Resolution Limited to QVGA20 Seconds LatencyWeak Product Line: Only One ProductUnsecured Wireless Hotspot at Initial

SetupLow-contrast, Ultra-grainy Images

under Low LightUnreliable Motion Sensing

Video Quality needs improvementOnly Active Upon Events, Unable to Record

ContinuouslySlow to React When Motion Triggers Video

CaptureSlow Transmission unde High Resolution and

Poor Picture Quality under Low ResolutionPoor Performance under Low-Light

Conditions

Require Running the Wires to Cameras Require Configuring Router Poor Picture Quality on iPhone Sketchy Mac Compatibility Unreliable Product Quality Different Apps for Different Models Limited Possibility of System Expansion Limited Possibility of System Integration

Supplementary Data: Smart Phone Subscribers

Apple iOS vs. Android OS Across Media Devices3 Mo. Avg. Ending February 2011Total U.S. Mobile Subscribers, Age 13+Source: comScore MobiLens

 Total Installed Base (000)

Share (%) of Mobile Subscribers

Total Subscribers 234,000 100.0%

Apple iOS 37,868 16.2%

Android OS 23,763 10.2%

Age Demographic Profile for Apple iPad Owners3 Mo. Avg. Ending February 2011Total U.S. Mobile Subscribers, Age 13+Source: comScore MobiLens

% of Users

Total Mobile

Smartphone iPad

Total Subscribers

100.0% 100.0% 100.0%

Age 13-17 7.1% 6.3% 7.6%

Age 18-24 12.5% 16.9% 15.2%

Age 25-34 17.6% 27.4% 27.0%

Age 35-44 16.8% 22.1% 20.3%

Age 45-54 17.8% 15.3% 16.4%

Age 55-64 14.1% 7.4% 7.3%

Age 65+ 14.0% 4.6% 6.2%

Revenue of Vivotek and Alpha Networks

$17,480,138

$57,884,828

$48,212,069

$78,734,383$83,274,024

$37,578,897

$41,088,207$37,755,414

$55,384,738

$71,538,014

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

$90,000,000

2004 2005 2006 2007 2008 2009 2010

Year

US

D

Vivotek

Alpha

Supplementary Data: Revenues of IP Camera Suppliers

US$27mil.US$23mil.

Alpha Networks: Alpha Networks:

Revenues from Digital Home, not including switches and routers. Current Major OEM Supplier for D-Link.

Vivotek: Vivotek:

The leading Network Camera Manufacturer in Taiwan. Previous Major OEM Supplier for D-Link.

Supplementary Data: Comparison of Streaming Protocols