Introduction to the ’ NexGen eration’ of eCylinders Products

1. Introduction to the ’NexGeneration’ of eCylinders Products Selling the new ASSA ABLOY is the global leader in door opening solutions, dedicated to satisfying end-user needs for security, safety and convenience

2. Intro to NexGenXT • Software overview & Demo • Selling Smart Products • The Layered Approach • Support Materials available • Smart SFIC Sales & Marketing • eCylinder Sales & Marketing • Summarize What we will cover

3. Introducing Leader in Retrofit continues with new electronic offerings NEW Credential • Offers Loss and Liability Control in SFIC • 25% (average)of market currently using SFIC • NexGen XT Advantages • Up sell vs. mechanical(Smart SFIC) • Complements other eCylinder offerings

4. NexGen XT Cylinder • Tested Technology in high abuse industrial applications • Features • Durable Indoor/Outdoor Use • Electronic core installation and removal • 2000 audit events • Temp Range -40⁰ F to 160⁰ F • Pick & Bump Resistant • Fits 6 & 7 pin housings

5. NEXGEN XT Key Small, Rugged, Convenient • Features • Rechargeable battery, 800 openings • 5,000 cylinders audits maximum • 5,000 audit events maximum • All programming done at key • Key powers the cylinder • One Key-multiple functions • Operate • Audit • Control (remove cores) • Setup (load Blacklist)

6. Nexgen XT Accessories • Accessories Key Charger • Charge from PC, wall, or vehicle • Uses standard USB cable • Programming Key Programmer • Programs and charges the key • Connects to PC USB port • Uses standard USB cable

7. NEXGEN XT Software A Solid Operating Platform • Stand Alone or Web Based • Activity reports display all accesses & unauthorized user activity. • Exception reporting- “Alarm” indications provide instant notification of unauthorized user activity. • Customizable reports show only the information you select. • Keys can be programmed while software is unattended.

8. What is ‘Cloud’ software – terms you need to know Web Software & ROI – The Web Advantages Recurring Revenue Pricing XTWM – Nexgen XT Web Manager Demo Sales person Demo database login Overview

9. ‘By 2012, 50% of the entire new demand for managed IT infrastructure services will be delivered via the Cloud.’ CIO weekly

10. What is web-based ‘Cloud’ software? • ‘Cloud’ is a metaphor for the Internet. • Applications based ‘online’ accessed by Web Browser • Data is stored on remote servers • CMW & XTWM fit this description • Cloud vs. SaaS (terms you need to know) • SaaS – Software as a Service or ‘Software on Demand’ • Deployed over the internet • Run behind a firewall on a local area network or personal computer • Data typically stored locally Web-Based SoftwareTerminology Clarification

11. Web-Based Software Lower upfront costs Advantages contributing to Higher ROI for your customer • Lower infrastructure costs -not having to manage and maintain internal systems • Reduction of internal IT staff – no maintenance of software and systems • Higher Security - keeping the data off of local laptops/desktops • More Advantages • NO CD’s to install • NO Large Downloads • NO Upgrades to worry about: You’re always using the latest and greatest. • No Technical Experience necessary - We handle all the security, uptime, backups, upgrades and other “IT type” stuff. • No Sleepless nights - Data is stored on Secure Servers that are always-updated & backed-up and contained in a highly-secure data center.

12. Web-Based Software Recurring Revenue Our Goal – Reduce upfront costs with monthly/annual contracts. Why? • Medeco System Hosting – • No emailing of system files • Faster system implementation – no local installation • Easier to support (for EU & Dealers) – everything online • Easier upgrades – server based/no individual upgrades • NO system incompatibilities – on our servers • Ease of Use (locally) • Infrastructure savings – use any PC with web access • Data Maintenance – all done by Medeco • Data Backup – all done by Medeco • Data Security – one copy of data in secure server Definition of Recurring Revenue:The portion of a company's revenue that is highly likely to continue in the future. (Answers.com)

13. XTWM – Nexgen XT Web Manager Demo

14. Selling “Smart” Products New Tools And Techniques To Grow Your Business

18. I Need Audit and Access Accountability To Meet New Codes And Guidelines

19. Want Loyal Customers? Make it Easy for Them to Get their Problems Solved – Mark Johnson

20. It’s Not Just About Products Anymore • End user needs are more complex than ever • New Legislation • Stricter Codes • Budget Pressure • Demand for Accountability • One size never fits all. One size fits one. • Sell Solutions…Not Products

21. Can You Identify New Opportunities? • Discover and recognize challenges regarding keying and security? • Adapt to budget limitations? • Provide complete coverage to satisfy end-user needs? Sell hardware you get a door…sell solutions you get the building

22. Thinking Differently = Opportunity You are no longer just a locksmith just as Medeco/Arrow no longer just make hardware. Think, act and be a Security Solutions Provider

23. Bigger Perspective: Legislation and Codes Provide New Opportunities Become an expert on legislation, building codes and regulations for your local markets. Be a Security Solutions Provider and grow your business.

24. Change or Be Changed HIPAA TJC PCI SOX FERPA FERC ATSA Our World Has Changed Let’s Review some of the New Pressures…

25. The Health Insurance Portability and Accountability Act (HIPAA) Health care entities must maintain reasonable safeguards to prevent intentional and unintentional disclosure of protected health and personnel files What solution would you recommend?

26. Joint Commission and Code of Federal Regulations Require secured access to controlled substances What solution would you recommend?

27. PCI Standards Require that all credit card information, be secure and access is monitored/recorded What solution would you recommend?

28. Sarbanes-Oxley Act of 2002 Electronic financial reporting must have a log of access to sensitive information to avoid data manipulation and increase integrity What solution would you recommend?

29. Family Education Rights and PrivacyAct (FERPA) Schools are required to ensure that teachers and administrators are given access to student records only when necessary. Institutions are encouraged to audit access and provide log of access to records to comply with this regulation and avoid penalties What solution would you recommend?

30. Federal Energy RegulatoryCommission (FERC) Requires owners and operators of the bulk power system to monitor access to multiple areas within a facility What solution would you recommend?

31. Aviation & Transportation Security Act Requires monitoring of security access to protect areas inside, outside, and around perimeters of airports What solution would you recommend?

32. Revisit your list… Think “Main Street” and add new names. Which “Main Street” Customers Have These Pressures?

33. 2010-2011 VA Medical Center Security Mandate Update to the “Physical Security Requirements and Options” Key Control Requirements Room specific security requirements Enhanced access control requirements Veterans Administration Must Respond To New Requirements

34. All facilities must be compliant by the end of 2011 Various levels of access control and key control on areas such as pharmacies, medical equipment rooms, research/clinical labs, and server rooms/IT mainframes Nearly 1,000 NEW Opportunities For YOU! http://www1.va.gov/vetdata/docs/quickfacts/Homepage-slideshow.pdf

35. Get Proactive… Target end-users required to comply with codes and regulations Provide a suite of solutions to solve challenges So What Should You Do?

36. Selling Solutions:Security Needs Vary Throughout a Facility, so What Determines Security Needs?

37. Need quality assurance and management of a simple key system • Convenience Layer Medeco’s Perspective on Layers of Security

38. Would you like to add on to your existing Best® SFIC Key System? • Convenience Layer How to Identify Security Needs and Layers

39. Identifying Layers = New Opportunity Control Layer Hardened Layer Loss & Liability Layer If you had been selling one product, would you have gotten all these doors?

40. Convenience Layer Supply the Smart Solution

41. The reason it seems that price is all your customers care about is that you haven’t given them anything else to care about. - Seth Godin

42. Providing a suite of solutions to accommodate the SFIC Market

43. Smart SFIC Solutions Unmatched Suite of Products • Value • Available in Best Keyways A-Q, W and T • Compatible with existing Best equipment and parts • Made in USA • Loss and Liability • Electronic SFIC controls loss and liability in critical areas • Electronic master key system capability • Adds audit and scheduling without changing hardware • No wiring or power supply necessary • Security • Largest Master Key Systems for SFIC • Patent Protected Against Unauthorized Duplicate Keys Until 2027 • One Key Flexibility With Hybrid • Made in USA 43

44. Convenience Layer: Arrow Pointe Provides Value and Flexibility • Retrofits Existing Best SFIC Systems • Precision Machined on State of the Art Equipment • Solid Brass Construction • Rugged DependableDesign • Full Range of BestKeyways

45. Control Layer: KeyMark x4 Provides Unrivaled Security and Keying Capability • Long Patent Life • Fewer Hardware Replacements • One System…All Hardware…One Key • Large MK Capability • Potential for 4X MK size on end user systems • Control Over Unauthorized Key Duplication

46. Loss & Liability Layer: Nexgen XT • Electronic Master Key System Capability • Adds Audit And Scheduling Without Changing Hardware • No Wiring Or Power Supply Necessary • Electronic SFIC Controls Loss And Liability In Critical Areas

47. We Lead The Market in Product TechnologyTotal Package

48. eCylinder Positioning Conclusion • Do: • Get to the need • STOP-LOOK-LISTEN • Average 7-10 touches for success • Know your products • Don‘t: • Rush it • Assume NexGen XT will be an easier sale due to lower cost • Confuse sale with too many options • Other approaches • Loss & Liability • Remember ‘Total Sale’ • ‘Total package’ with Smart SFIC

49. NEXGEN XT Price & Cut Sheet Sharing the Same Front Cover Available now as .pdf

50. NEXGEN XT Price & Cut Sheet But With Different Backs