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

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

$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

$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)

© 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

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

And New Revenue Streams

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

Changes in Home Security Connectivity

© 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

© 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

© 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

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

$1,000+ Customer Acquisition Cost

Source: ADT (TYCO) Investor Presentations

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)

© 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

© 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• Info@SafeMart.com

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

APPENDIX

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

Gross Annual Attrition Consistent at 12%

Source: SDM Magazine & Barnes Associates

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

Interactive Services vs. Home Automation vs.

Complete Home Control

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

Broadband Market and Market Size

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

Fragmented Home Security Industry Means

Source: SDM Magazine & Barnes Associates