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White Paper on Evolution of Home Security Industry and Phone Companies to Online Sales, Delivery & Support Gives Customers Better Value at a Lower Cost From Companies Like SafeMart and LiveWatch Home Security Named Best Wireless Home Security

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This white paper reviews the evolution of the home security industry as it has evolved into a dependable, wireless, smartphone-controlled, remotely deployed service from various companies. The best wireless home security company was recently named as SafeMart and LiveWatch Security by an independent review company. This paper further describes efforts by various cable and telephone companies (including AT&T and Comcast) as they have tried over the years to deploy home security systems in their markets.SafeMart® has redefined home security. Delivering revolutionary protection and peace of mind, SafeMart delights customers across the country. SafeMart leads the industry with its interactive Plug & ProtectTM wireless alarm system that empowers customers with cutting edge protection and control. SafeMart provides unbeatable value and exceptional service with its award-winning LiveWatch alarm monitoring service. SafeMart is the most recommended security company in America.LiveWatch Security® has revolutionized home security in America. LiveWatch Security protects and delights its customers with its award-winning LiveWatch Security, interactive smartphone controls and commitment to delighting every customer. Thousands and thousands of customers are switching to LiveWatch while saving up to 30-70% off of traditional, location-constrained competitors. LiveWatch Security has forever improved the way you can secure your family, home and belongings. LiveWatch Security from SafeMart is the most recommended security system service in America.

TRANSCRIPT

Page 2: Best home security system SafeMart LiveWatch interactive smartphone iphone ipad android telephone cable company

$44 Bn Security Industry is EvolvingDirect & Wired Interactive & Wireless

Original Direct Line Security Systems

• Intrusion Detection

• Direct Line Required

• Wired System & Sensors

Digital Dialer Security Systems

• Intrusion Detection

• Works with Any Phone Line

• Wired System & Sensors

Wireless Security Systems

• Intrusion, Fire/Smoke, CO, Flood Detection

• Works with or without Phone Line

• Wireless System & Sensors

Interactive Wireless Security and Automation Systems

• Intrusion, Fire/Smoke, CO, Flood Detection

• Video• Interactive Control• Home Automation• Works with or

without Phone Line

• Wireless System & Sensors

© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)

SafeMart LiveWatch Home Security Named Best Wireless Home Security in America, Source

Page 3: Best home security system SafeMart LiveWatch interactive smartphone iphone ipad android telephone cable company

$6Bn+ Annual ARPU from Home Securityout of $44Bn Industry

Source: SDM Magazine, Morgan Stanley Research & Barnes Associates

© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)

Page 4: Best home security system SafeMart LiveWatch interactive smartphone iphone ipad android telephone cable company

© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)

Creating New Opportunities

SafeMart LiveWatch Home Security Named Best Wireless Home Security in America, Source

Page 5: Best home security system SafeMart LiveWatch interactive smartphone iphone ipad android telephone cable company

© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)

And New Revenue Streams

Page 6: Best home security system SafeMart LiveWatch interactive smartphone iphone ipad android telephone cable company

© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)

Changes in Home Security Connectivity

Page 7: Best home security system SafeMart LiveWatch interactive smartphone iphone ipad android telephone cable company

© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)

Comcast, AT&T, Time Warner and Verizon Expand Into Home Security

SafeMart LiveWatch Home Security Named Best Wireless Home Security in America, Source

Page 8: Best home security system SafeMart LiveWatch interactive smartphone iphone ipad android telephone cable company

© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)

Déjà Vu: AT&T’s Epic Fail$1 Billion Loss in Security Industry

1987: Jim Covert starts SecurityLink

which will grow into the 2nd largest security company

1994: Ameritech acquires

SecurityLink for $1.4Bn

1999: Jim Covert and security

industry team leave Ameritech SecurityLink to

form Cambridge Security

Early 2001: Jim Covert’s

Cambridge Security acquires SecurityLink for

$0.5Bn (a $0.9Bn+ loss for SBC) while SBC Ameritech is

under an FCC Mandate to exit

the business

Late 2001: Tyco/ADT

purchases Security Link from

Cambridge for $1 Billion (a $521MM gain in 6 months)

Source: GTCR & Barrons

Page 9: Best home security system SafeMart LiveWatch interactive smartphone iphone ipad android telephone cable company

© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)

ADT’s Negative Cash Flow for 29 Months

Source: ADT (TYCO) Investor Presentations

Page 10: Best home security system SafeMart LiveWatch interactive smartphone iphone ipad android telephone cable company

© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)

$1,000+ Customer Acquisition Cost

Source: ADT (TYCO) Investor Presentations

Page 11: Best home security system SafeMart LiveWatch interactive smartphone iphone ipad android telephone cable company

Expensive Telecom Technicians Increase Cost 2-3X

Telecom Tech: ~$250+ per security install (loaded labor, vehicle, compliance, insurance, et al)

Alarm Tech: ~ $150 per security install(loaded labor, vehicle, compliance insurance, et al)

Page 12: Best home security system SafeMart LiveWatch interactive smartphone iphone ipad android telephone cable company

© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)

Anyone Can Enter this $44Bn Market, Few Will Succeed

Current 20% Market Penetration

120MM+ House-holds

72MM+ Households in Addressable

Market

18MM Households

with Security

1MM-2MM DIY

Path to Success• Find Lower Installation

Costs

• Drive Lower Customer Acquisition Costs

• Eliminate Product Subsidies

Page 13: Best home security system SafeMart LiveWatch interactive smartphone iphone ipad android telephone cable company

© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)

For More Home Security Information or Details Contact Sam McBride

• LiveWatch Home Security

• Sam McBride• 800-628-6093• [email protected]

Page 14: Best home security system SafeMart LiveWatch interactive smartphone iphone ipad android telephone cable company

© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)

APPENDIX

Page 15: Best home security system SafeMart LiveWatch interactive smartphone iphone ipad android telephone cable company

© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)

Gross Annual Attrition Consistent at 12%

Source: SDM Magazine & Barnes Associates

Page 16: Best home security system SafeMart LiveWatch interactive smartphone iphone ipad android telephone cable company

© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)

Interactive Services vs. Home Automation vs.

Complete Home Control

Page 17: Best home security system SafeMart LiveWatch interactive smartphone iphone ipad android telephone cable company

© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)

Broadband Market and Market Size

Page 18: Best home security system SafeMart LiveWatch interactive smartphone iphone ipad android telephone cable company

© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)

Fragmented Home Security Industry Means

Source: SDM Magazine & Barnes Associates