Lattice Inc.

RedChip Conference June 26, 2013

Ticker Symbol: LTTC

© 2011, Lattice Incorporated. All Rights Reserved.

Safe Harbor Statement Management’s prepared remarks contain forward-looking statements which are subject to risks and uncertainties and management may make additional forward-looking statements in response to your questions. Therefore, the company claims the protection of the Safe Harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from those discussed today, and therefore we refer you to a more detailed discussion of the risks and uncertainties in the company’s filings with the Securities and Exchange Commission.

The Company

Lattice has been providing secure communications and information technology since 1973. Provides communications technology for high security

installations such as correctional facilities. Provides a suite of cloud based services enabling

smaller facilities access to technology traditionally only available to large facilities.

U.S. Market Overview 2.3M Inmates

Growing at 3% per annum Telecom funding source Federal, State, and County

$650 - $750 Telecom Revenue/inmate $2.0B + Market

2.0B from Telecom revenues only Additional revenue from other value added

services

U.S. Market Inmate Location

Competitive Landscape Small Regional Service Providers

Solid regional relationships Inferior Technology Lattice Resells to some providers

Large National Service Providers Focusing on 500+ bed facilities Technology and service is inconsistent Losing smaller facilities as customers

Business Model – US Market

Exclusive Rights to Facility Revenue sharing with Facility Provides extra revenue for strapped state budgets Range from 20-60%

Up-sell Leading Features & Products Provides customer stickiness

Ability for family members to credit inmate’s call account Video Visitation Kiosk for cash management and value added services Integrated jail management software solution (difficult to replace)

Introducing Secure Corrections Cloud (2013)

Sales and Marketing

Direct Sales to Facilities Local sales presence Expand upon established local concentration Referrals important for winning county customers

Indirect Wholesale & Technology License Sales Utilized by channel partners for larger facilities and

State bids For out of direct sales region Builds Lattice footprint and brand recognition

Foreign Market Overview

Competitive Landscape Incumbent Telcos primary competition Legacy payphone model (collect calling) New technology yet to be introduced

Lattice has Unique Technology Advantage

Lattice technology provides cost reductions Lattice Model provides enhanced revenue streams Lattice technology provides enhanced security and

investigative tools

Foreign Market Overview

Business Model Technology sales/license revenue Transaction revenue Services revenue

Current Foreign Sales Pipeline

• Asia • Israel • U.K. • Belgium

• Canada • Mexico • India • Caribbean

Foreign Market Overview

Canadian Market Awarded four installations All 4 being implemented in 2013 Partnered with Telus Canada for larger provinces Smaller facilities partnering with Wymactel

U.K. Market First site operational in Gibraltar (2011) Successful trial completed with Sodexo Justice Services 90,000+ inmate potential in UK

Secure Firewall

Secure Firewall

Secure Firewall

SECURE CORRECTIONS CLOUD

Secure

Secure Communication Layer

ICON will consist of five major components:

• Products and Services management • Customer Information Database

• Payment Processing • Accounting/Billing

• Customer Care

ICON Core

All communication between payments and services will utilize ICON’s Secure

Communication Layer. Outside development firms will have standard interfaces to utilize

Integrated Corrections Operations Networks (ICON)

Communication

ICON Application

Management

ICON will provide centralized database management and payment capability. Utilizing the a central core engine will

allow multiple software applications to reuse software processes saving

development time and producing far more efficient business practices.

Jail Management System

Secure

The ICON JMS includes the following features:

•Reporting

•Scheduling •Multi-Facility/Multi Agency

Integration •Special Diet/Meal Count

•Workflow •Biometrics

•Booking •Trust Accounting/General Ledger

•Medical Records •Incident Reporting

•NCIC Background screening

Communication

ICON Application

Management

The ICON Jail Management System (JMS) is a key component to the ICON

core. The JMS stores and manages correctional facility processes, inmate

booking, inmate information, and trust accounting

Jail Management System

ICON Jail Management System

Secure

Products and Services managed and accounted for by ICON

Communication

PIN Debit and PPC Phone Accounts

ICON Application

Management

Jail Management System

Secure

Centralized Customer Database

Communication

A centralized customer database will facilitate account management across all

services and payment methods. It will provide simple methods to manage all

customer information to take payments and deduct funds for services provided. The web

portal will aloow friends and families to manage account information and transfer

funds between accounts. Payment methods that will access the

customer database: • Call Center Software/Reps

• Kiosks • Web Payment Portal

• IVR Products & Services accessing the customer

database: • Commissary

• Inmate E-device • PIN Debit calls

• PPC calls • Debit Card Calls

• Voicemail • Email

• Video Visitation

ICON Application

Management

Jail Management System

Secure

Centralized Payment Processing

Communication

A centralized payment processing solution will eliminate the need to reproduce

payment methods for new products and services. All payments will come into the ICON core, process through Authorize.net

and then be distributed to the appropriate accounts for use. Centralized payment

processing greatly reduces the risk of fraud and simplify’s accounting processes.

ICON’s inbound payment methods:

• Call Center Software/Reps • Kiosks

• Web Payment Portal • IVR

Products & Services accessing ICON’s

payment outputs: • Commissary

• PIN Debit calls • PPC calls

• Debit Card Calls • Voicemail

• Email • Video Visitation

ICON Application

Management

Jail Management System

Secure

ICON Customer Care

Communication

ICON’s customer care module will be built on a web based 3-tiered user access model.

Based on usernICON and password, the system will provide support for CSR’s, Jail

customers or friends and families to report, track, and resolve any trouble related to our

products and services. The ICON IVR will provide automated phone support for

friends and families as well as inmates to access 24X7X365

Friends and Family problem resolution:

• Dropped Calls • PPC Account balances

• Payment disputes

Jail customer problem resolution: • Loss of service

• Inmate kites • Billing/Commission Inquiries

Inmate problem resolution

• PIN Debit/Commissary Accoutn balances • Dropped Calls

• Payment Inquiry’s

ICON Application

Management

Jail Management System

Secure

ICON Accounting

Communication

Aggregation of all customer and payment

transactions will provide a single interfaceall accounting functions. ICON accounting will

integrate seamlessly into most standard acounting/business software packages such

as quickbooks. Automated and accurate reporting capability will be provided in a flexible and user friendly interface. The

ICON accounting module will be responsible for all of the following accounting functions:

• Facility commissions

• Revenue Reports • Profitability Reports • Revenue assurance

• Taxation • Rates/Prices

• Refunds • Cost tracking

ICON Application

Management

Jail Management System

Financials

2009 2010 2011 2012 Revenue 1,096 3,554 4,572 7,530 COGS 464 2,343 3,243 5,094 GP 632 1,211 1,329 2,436 SGA 1,104 1,299 2,116 1,982 EBITDA* (472) 104 (483) 830 * Excludes Government services Division and associated corporate expenses

Investment Highlights

Rapid expansion of the Company’s service and technology sales to drive overall growth and margin improvement.

Lattice offers industry leading proprietary technology to traditionally underserved area of the market—small and midsized correctional facilities.

International expansion with key partnerships growing sales and margin growth while increasing the Company’s footprint.

CAGR of 90% over the last 4 years. Early stages of growth potential.

Q&A

Contact:

Jon Cunningham RedChip Companies, Inc.

1.800.REDCHIP x107 | 407.644.4256 x107 Jon@Redchip.com

Paul Burgess

CEO pburgess@latticeinc.com 856-910-1166 ext 2111