Lttc 102013

Lattice Inc.

RedChip Conference October 23, 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

Communications technology leader in the

correctional facilities market. 400% growth from 2009 to 2012, CAGR 90% Provides a suite of cloud based services

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

Providing secure communications and

information technology since 1973.

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

Correctional Technology Market Overview

$5.0B+ Market total in Federal, State, and County

Additional revenue from other non-communications services

2.3 Million Inmates Strong recurring revenue base Prison population steadily growing at 3%

annually Communications revenues are split with

prison, enhancing their profits

Competitive Landscape

Small Regional Service Providers Solid regional relationships with

smaller under 50 bed facilities Outdated Technology generating

lower revenues per inmate 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)

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


Business Model Technology sales/license revenue Transaction revenue Services revenue

Current Foreign Sales Pipeline

Asia Canada Israel Mexico U.K. India Belgium Caribbean


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

Device Agnostic

SECURE COMMUNICATIONS CLOUD

COMMISSARY ORDERING

SCHEDULING SERVICES

LEGAL COUNSEL

INMATE E DEVICE

EMAIL

INTEGRATION SERVICES

MUSIC DOWNLOAD

EDUCATION

INVESTIGATION

VIDEO VISITATION

SOCIAL MEDIA

DEDICATED INMATE STATION

TEXT MESSAGING VOICE MAIL

HOME PC

SECURE FIREWALL

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

Products and Services managed and accounted for by ICON

Communication

PIN Debit and PPC Phone Accounts

ICON Application

Management


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


ICON Jail Management System

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 [email protected]

Paul Burgess

CEO [email protected] 856-910-1166 ext 2111