DecisionPoint Investor Presentation-January 2011

Investor Presentation January 2011

Safe Harbor This presentation is neither an offer to sell nor a solicitation of offers to purchase securities. This presentation is the confidential intellectual property of DecisionPoint Systems, Inc. (“DecisionPoint”). Any use or redistribution of this document or its contents without the express written consent of DecisionPoint is prohibited. This presentation contains statements that constitute “forward‐looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Those statements appear in a number of places in the presentation and include statements regarding the intent, belief or current expectations of DecisionPoint, its directors or its officers with respect to, among other things: (i) trends affecting DecisionPoint’s financial condition or results of operations; (ii) DecisionPoint’s financing plans; and (iii) DecisionPoint’s business and growth strategies, among other things. Readers are cautioned that any such forward‐looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward‐looking statements as a result of various factors. You are cautioned not to place undue reliance on these forward‐looking statements, which reflect DecisionPoint’s management’s view only as of the date of this presentation. This presentation is © DecisionPoint Systems, Inc. 2010 OTCBB:DNPI 2

Overview Enables more direct customer interaction by moving decision points closer to the front line worker Designs, develops, installs and supports solutions combining software and hardware for the Enterprise Wireless Mobile and RFID Computing markets Comprehensive solutions make real‐time, interactive data accessible to workers anytime, anywhere over wireless networks via hand‐held devices and electronic tagging Hardware and software agnostic 3 OTCBB:DNPI 3

Investment Highlights Growing imperative for companies to have a mobile solution Building revenue momentum – on path to exceed $100M annually Increasing earnings growth being driven through operating leverage Revenue mix shifting in favor of recurring and higher margin services and software Blue chip customer base Pending reverse merger strengthens balance sheet Proven management with strong domain expertise and sector experience OTCBB:DNPI 4

Mobile Solutions Market $ Billions 12 FAM RFID Demand Drivers 10 MMW 8 • Standardization of Windows CE 6 • Mobile technology maturation easing 4 implementation 2 • Growing imperative for companies to 0 2009 2010 2011 2012 have a mobile solution • Mobile Middleware (MMW): $1.6B by 2013 • Increased affordability of RFID tags • Radio Frequency Identification (RFID): $4.0B in 2009 to $8.4B by 2012 • Solutions becoming more complex • Field Asset Management (FAM): $0.3B in 2008 to $1.6B by 2013 • 40% CAGR in three main markets, totaling $11.0B by 2012 DecisionPoint is at the Epicenter of Market Growth Trends 5 OTCBB:DNPI 5

Delivery of Total Solutions & Ongoing Support Results in Sticky Customer Relationships Customer Customer Carrier – ISV – Pilot Program – Rollout Support Process Carrier Partnerships ISV Partnerships AT&T CXT Sprint Nextel Datatrac T-Mobile DecisionPoint Total Mobile Verizon Simplifies the Process – Time and Cost Effective Delivers Total Solutions Provides Ongoing Service & Support OTCBB:DNPI 6

Track Record of Success - Case Studies Product and Service Traction with Blue‐Chip Customer Base Worldwide ® Vehicle return Manage night security at Complete RFID pedigree management systems at all 2500 BankAmerica and authentication all 200 US locations system locations in North $5.0M implementation America Implemented enterprise‐ program to date $3.5M implementation wide $2.5M annual recurring revenue program to date $4.0M implementation Real‐time management of program to date SLAs $500K annual recurring Significant follow‐on bids revenue in progress OTCBB:DNPI 7

Proprietary, Patented Technology Solutions Warehouse Distribution & Field Mobility Services Retail Manufacturing Field Asset Management (FAM) Mobile Point‐of‐Sale (POS) Enterprise Asset Management (EAM) Maintenance Work Orders Price Management Item & Shelf Labeling Rounds & Readings Line Busting Inventory Management Inspections & Claims Gift Registries Process Control Parts Management Price Checkers Supply Chain Management (SCM) Physical Inventory/Audit Item & Shelf Labeling Business Two‐Way Radio Field Sales Automation Store Management Alerts & Reporting RFID Tracking for Pharma GPS & Turn‐by‐Turn Navigation Inventory Management Proof of Delivery Business Two‐Way Radio Total Solution Expertise OTCBB:DNPI 8

Blue Chip Customer Base Field Mobility Clients Retail Warehouse Distribution & Manufacturing Verticals Served Grocery – Retail – Warehouse/Distribution – Manufacturing – Pharmaceutical ‐ Telecommunications OTCBB:DNPI 9

DecisionPoint's Software Architecture Proprietary MobileTag RFID Middleware AS/400 Mainframe Business Transaction Business Database Reporting Processing Interfaces SQL ERP WMS AeroScout CASE Tools ALE EDI Engine Drivers Interface Tag Acquisition Processor (TAP) RTLS Mobile Devices & (Active Tags) Point RFID Readers Area Readers 10 OTCBB:DNPI 10

Sales Process & Partners Direct Sales Partner Private Label/OEM 18 salespeople Pitney Bowes Located nationwide • “Arrival” package tracking Leads generated • Tracks express by: packages from • Website receipt to ultimate • Direct Marketing addressee within • Trade Shows large corporations • Seminars • Sold to 100’s of • Partner Leads Pitney Bowes Clients OTCBB:DNPI 11

Q4 News & Events December 30: Completed CMAC, Inc. Aquisition December 23: Announced Acquisition of CMAC, Inc. with 2010 revenue of $10.4M December 6: Announced Expansion of Board of Directors With Appointment of Robert M. Chaiken November 11: Received A6 security clearance certification for US government contracts November 3: Reported Record 3Q Revenue of $16.4M, up 43% Year‐Over‐Year November 2: Launched MobileCare Up and Running and Keep it Running bundled support service offerings October 20: Announced Reverse Merger Agreement with Copernic: Merged Company to apply for NASDAQ Capital Market Listing OTCBB:DNPI 12

Competitive Analysis – U.S. Differentiating Factors “One-stop-shop” Proprietary Software RFID Expertise Equipment/Brand Agnostic Nationwide Capabilities DOS to CE Solutions Comments: Full System Niche player Niche player WMS national Niche player in Horizontal Integration in East in Southeast company upper Midwest National Capabilities Company Broadest Set of Capabilities in North America 13 OTCBB:DNPI 13

Growth Strategy • Extract greater share of spend from existing partners and customers • Double revenue mix of software and professional services from ~35% to 60%+ by end of 2012 • Further penetrate existing verticals • Leverage partners’ reach to acquire new customers • Introduce new products and services • Acquire complementary businesses OTCBB:DNPI 14

Seasoned Management Team Name / Title Age Selected Prior Experience Nic Toms 61 Chairman, President and CEO of Peak Technologies Chairman, CEO and Director CEO of Cape Systems Group, Inc. Skadden Arps Slate Meagher & Flom Don Rowley 59 CFO of Peak Technologies CFO and Director CFO of Norand Corporation (now part of Intermec) John Chis 54 20 years with Symbol Technologies and Telxon (acquired by Symbol) SVP Sales North America sales, marketing and operations management experience Brent Felker 49 Formerly Senior Sales VP of Peak Technologies Director of Field Mobility Initiated Field Mobility Practice at Motorola/Symbol Initiated Field Mobility at Psion/Teklogix Melinda Wohl 40 Controller for an international manufacturer/distributor of electronic components VP Finance and Controller Roy Ceccato 51 Former CFO and Director of Public OEM Commercial Trailer Manufacturer and VP Finance, Compliance Sarbanes‐Oxley compliance experience 15 OTCBB:DNPI 15

Financial Highlights $$ mm Gross Profit(1) 20 30% $$ mm Revenue 16 20.2% 19.0% 18.9% 18.4% 18.0% 20% 12 $10.1 $9.7 65 8 $53.3 10% $48.3 4 $2.0 $2.5 $3.0 52 0 0% 39 FY2008 FY2009 1Q10 2Q10 3Q10 G ro s s P ro f it G ro s s M a rgin (1) 26 $16.4 Cost of revenue includes fully-loaded technical staff $11.1 $13.3 13 $$ mm Operating Income 0 3 FY2008 FY2009 1Q10 2Q10 3Q10 $1.8 2 $0.9 1 YTD 2010 = $40.8M ($0.39) $0.04 $0.48 0 FY2008 FY2009 1Q10 2Q10 3Q10 -1 OTCBB:DNPI 16

Target Business Model ProForma* YTD 2012 9/30/10 Revenue $48.6M $100M+ Recurring Revenue 30% 40%+ Gross Profit % 19.2% 24%-25% Operating Income $0.6M $10M+ Operating Income % 1.3% 10%+ Key Takeaway * ProForma for CMAC acquisition, completed Dec. 30, 2010 OTCBB:DNPI 17

Benefits of Reverse Merger Announced on October 20 Expected completion during 1Q’11 Merged company to be named DecisionPoint Entire management team of DecisionPoint will become management team of merged company Merged company will apply for NASDAQ Capital Market Listing Deal strengthens balance sheet PRO FORMA COMBINED BALANCE SHEET 9/30/10 (000’s) Cash $3.5 Current Assets $24.0 Total Assets $30.0 Current Liabilities $25.0 Debt $6.0 Stockholders’ Equity $3.4 Adjusted Working Capital $4.5 OTCBB:DNPI 18

Summary Balance Sheet & Capitalization BALANCE SHEET CAPITALIZATION as of 9/30/10 as of 9/30/10 $M $M Shares (000) Current Assets $16,345 Common Stock* $8,063 33,230 Goodwill $4,861 Vested Options 67 2,594 Convertible Preferred 975 1,950 Total Assets $21,456 Series A Warrants ($1.00) 488 488 Current Liabilities** $25,789 Series B Warrants ($1.25) 610 488 Total Liabilities $25,789 Convertible Warrants ($0.50) 500 1,000 Convertible Warrants ($0.60) 600 1,000 Bridge Note Warrants ($1.00) 130 130 $11,433 41,891 * Management owns 19.2% plus company ESOP owns 34.2% ** On 12/30/10, $2.0M subordinated debt paid off and replaced with 3 year $3.0M term loan. OTCBB:DNPI 19

Investment Highlights Growing imperative for companies to have a mobile solution Building revenue momentum – on path to exceed $100M annually Increasing earnings growth being driven through operating leverage Revenue mix shifting in favor of recurring and higher margin services and software Blue chip customer base Pending reverse merger strengthens balance sheet Proven management with strong domain expertise and sector experience OTCBB:DNPI 20

Thank you

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DecisionPoint Investor Presentation-January 2011

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DecisionPoint Investor Presentation-January 2011 — Presentation Transcript