Creating Value with Ideas

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Creating Value with Ideas Hans Kobler CEO ICx
Technologies July 2008
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OVERVIEW
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• World leader in advanced sensing technologies
  with broadest platform in the industry
• Making sensors more sensitive, accurate, faster,
  lighter and cheaper, network-centric
• Based in Arlington, 20 locations worldwide
• 800 employees, incl. 400 multi-disciplinary
  developers
• Technology innovator with young expanding product
  portfolio at the beginning of life cycle
• Initial focus on security with substantial
  potential in commercial applications
• 5 consecutive quarters 30 organic growth
• History of successful MA
• Built in optionality for break-out growth

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MULTIPLYING THREATS AT HUGE ECONOMIC COST
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VARYING SOURCES
GWOT
EXOTIC DISEASE
CRIME
DOMESTIC TERROR
NATURAL DISASTERS
ASYMMETRIC WAR
WIDENING TARGETS
AIRPORTS
SEA PORTS
CRITICAL FACILITIES
BORDERS
MASS TRANSIT
US ARMED FORCES
CHANGING TACTICS
BOX CUTTERS
CHEMICAL AGENTS
DIRTY BOMBS
SUICIDE BOMBER
IEDS
BIO THREATS
HUGE ECONOMIC COST
OKC 0.7 b
9/11 1,100 b
CRIME 105 b
KATRINA 150 b
LONDON 0.7 b
GWOT 200b
Sources Houston Chronicle, Congressional
Research Service, Traveltrade Australia Insurance
Journal, Institute for Analysis of Global
Security, MSNBC, Department of Justice
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BROAD FOOTPRINT, ORGANIZED IN PLs
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SOLUTIONS The Glue. Network centric access to all
sensors
DETECTION Laboratory quality sensing at the front
line of security
SURVEILLANCE Superior perimeter awareness
control
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ICx BUILT ON CUSTOMER REQUIREMENTS
More security through better sensors integrated
into network centric solutions offering
actionable information
1975
2001 - 2005
2005
Since 2006
9/11
DPC
INDEPENDENT ENTREPRENEURS
FOCUSED VENTURE PORTFOLIO
UNIFIED TECH PLATFORM
INTEGRATED OPERATING COMPANY

• Long on ideas
• Short on money connections

• Accelerated RD
• Increasing market exposure

• Merger of complimentary technologies
• Marketing Synergies

• High organic growth
• Scalable platform
• Development synergies
• Integrated solutions

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OUR STRATEGY
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• Grow core business organically at 30 through
  product innovation and growing sales synergies
• Leverage our widely diversified product base into
  integrated solutions tailored to our customers
• Expand our technology leadership through strong
  research and cross-technology fertilization
• Keep attracting and retaining the best and
  brightest talent in the industry
• Leverage our proprietary deal flow for accretive
  acquisitions of entrepreneurial technology
  leaders
• Transplant our unique technologies into
  profitable, high growth commercial markets beyond
  security

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ICX INNOVATION ENGINE
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UNIQUE, TALENTED TEAM

• 400 Engineering, RD
• 60 PhDs
• Multi-disciplinary
• molecular biologist
• nuclear physicists
• material scientists
• engineers

PROPRIETARY PATENTS LICENSES
NEW PRODUCT PLATFORMS
COMBINATION PRODUCTS

• INVESTMENT 160 MM
• Internal RD 40M
• Contract RD 120 MM

STRONG RESEARCH PARTNERS
INTEGRATED SOLUTIONS

• MIT, Purdue University
• Pacific Northwest National Lab
• Oak Ridge National Laboratory
• Sandia National Laboratory
• World Class Tech Advisor y Board

Aggregate RD Spending fromJanuary 1, 2004
through Q3 2007
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TECHNOLOGY LEADERSHIP
FAST POLYMERASE CHAIN REACTION (PCR)
MOLECULAR WIRES
DIGITAL SIGNAL PROCESSING
ENZYMES
NEAR INSTANT IDENTIFICATION OF BIO THREATS
LOW COST CHEM AGENT DETECTION
ULTRA-SENSITVE EXPLOSIVE VAPOR DETECTION
MINIATURE SENSOR INTEGRATION
PHOTONIC BANDGAP CRYSTALS
SURFACE PLASMON RESONANCE
PORTABLE MASS SPECTROSCOPY
FREQUENCY MODULATED CONTINUOUS WAVE RADAR
MULTIDIRECTIONAL LOCATION OF SLOW-MOVING OBJECTS
ADVANCED BIOLOGICAL ANALYSIS
SPECIFIC IDENTIFICATION OF CHEMICALS EXPLOSIVES
IDENTIFY FRIEND FOE
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• IED DEFEAT
• weapon of choice
• 12,000 US platoons
• 6,000 Iraqi platoons
• urgent need today
• aftermath tomorrow
• ICx ADVANTAGE
• more sensitive
• more accurate
• lighter
• battle proven

Dobie Heishman in Iraq selling to Iraqis
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• ROBOTS
• carrier of the future
• 30,000 plus robots
• UAV, UGV, UNV
• ICx ADVANTAGE
• 5x lighter
• more sensitive
• more accurate
• sensor integration

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• LIQUID EXPLOSIVES
• current favorite
• huge security gaps
• 10,000 check points
• ICx ADVANTAGE
• 1000x more sensitive
• proven

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• NUCLEAR DIRTY BOMBS
• huge potential impact
• entry market
• first responder market
• 2 b
• ICx ADVANTAGE
• market leader
• better electronics
• more accurate

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BIO THREAT
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• Most devastating impact
• 10b DoD and DHS
• large technology gap
• ICx tech leader
• Sampling
• Triggering
• Identification
• Integrated systems
• Opportunities
• 200k to 200k per mile
• US southern border 300 miles

• CHEM BIO WARFARE
• biggest threat
• largest solution deficit
• largest CRAD budget
• DoD DHS potential
• ICx ADVANTAGE
• technology leader
• complete solution

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STS 4400

• SECURE BORDER INITIATIVE
• 10 b program
• struggling
• white knight potential
• ICx ADVANTAGE
• high resolution radar
• slew-to-cue solutions
• tried and trusted by end customer

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• WORLDS BORDERS
• biggest price in HLS
• 100,000 miles
• 200k - 2 MM / mile
• ICx ADVANTAGE
• technology leader
• tried trusted
• complete solutions
• reliable partner

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• NETWORK CENTRIC CONVERGENCE
• the future of security
• welcome upgrade for partners
• 100b market
• ICx ADVANTAGE
• best sensors
• easy to integrate
• channel focused

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SIGNATURE INSTALLATIONS WITH BLUE CHIP CUSTOMERS
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HOUSTON AIRPORT
NYPD
GAZA
US NUCLEAR INDUSTRY
US MILITARY IRAQ
US COAST GUARD
BOEING/SBI
DNDO/THERMO FISHER
TSA
PENTAGON
STATUE OF LIBERTY
CUSTOMS BORDER PATROL
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NON-SECURITY APPLICATIONS
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MOLECULAR WIRES
ENZYMES
FAST PCR
PHOTONIC CRYSTALS
MASS SPEC
FMCW
TECHNOLOGIES
DIAGNOSTICS
ALTERNATIVE ENERGY
ENVIRONMENTAL
ALZHEIMERS IMAGING
TRANSPORTATION
FOOD AGRICULTURE
NON-SECURITYAPPLICATIONS
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• ANALYTICAL INSTRUMENTS
• multiple huge multi- billion dollar markets
• bio medical
• environmental monitoring
• agriculture
• ICx ADVANTAGE
• Innovation engine
• leveraging CRAD
• dual use

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• CANCER DETECTION
• multi-billion dollar market
• early stage cancer detection
• DNA Analysis
• ICx advantage
• Innovation engine
• leveraging CRAD
• dual use

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ICX INNOVATION ENGINE
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PROPRIETARY PATENTS LICENSES
WE ARE CONTINUOUSLY LOOKING FOR IDEAS TO FUEL THE
INNOVATION ENGINE
NEW PRODUCT PLATFORMS
COMBINATION PRODUCTS
INTEGRATED SOLUTIONS