INVESTOR PRESENTATIONMay 2015

Common Stock 27.3 MM Shares GO

Enabling Cloud Video Surveillance

Stock Symbol: IVDA

This presentation contains forward-looking statements that represent our beliefs, projections and predictions about future events. These statements are necessarily subjective and involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any future results, performance or achievement described in or implied by such statements, including statements relating to: (a) Iveda’s future revenue, expenses, margins, profitability, net income, taxes, adjusted net income, adjusted operating expenses and other measures of results of operations; and (b) Iveda Solution's ability to capitalize on industry trends. Actual results may differ materially from the expected results described in our forward-looking statements, including with respect to: development and acceptance of Iveda’s services; competitive risks, including competing technologies, products and services, and the competitive activities of our competitors; risks associated with the introduction of new products and services; risks inherent in strategic relationships, and technology and service integration efforts. The preparation of our financial statements and forward-looking financial guidance requires us to make estimates and assumptions that affect the reported amount of assets and liabilities and the reported amounts of revenues and expenses during the reported period. Actual results may differ materially from these estimates under different assumptions or conditions.

Iveda assumes no obligation to update any forward-looking statements or information, which are in effect as of their respective dates. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in the Iveda Solutions' securities should not place undue reliance on these forward-looking statements.

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FORWARD LOOKING STATEMENT

Enabling, Disruptive VSaaS Technology− License SERVICE PROVIDERS to compete for Market Share− CLOUD based - NO On-Site SYSTEMS or DVRs

INVESTMENT HIGHLIGHTS

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SENTIR - Internet-based video surveillance PLATFORM Enabling Video Surveillance as a Service (VSaaS)

#1

Proprietary and Efficient Software Platform− Proprietary cloud based architecture – Patented components− Storage and processing efficiency for Big Data

#2

Defined Path to Profitable Growth− Service Provider Contracts in place achieve profitability

#3Extremely Scalable Recurring Business Model− LICENSE large scale Service Providers to deliver VSaaS to Millions

#4

#5Large & Growing Market− Nearly $60B Internet based video surveillance market

Iveda® - CLOUD video surveillance

Access from your phone, tablets, and

computers anywhere in the world• Alerts – Email and Text • Live and recorded video

CLOUD is the Disruptive Technology

Displacing DVRs and traditional on-site systems.

IVEDA ENABLES Service Providers to compete for Market Share

(Telcos, ISPs, Data Centers, Cable)

We LICENSE our CLOUD video surveillance software platform

They SELL Security/Peace of Mind to their millions of subscribers • Bundled offerings• Plug and play cameras

 

COMPANY OVERVIEW

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Simple Revenue Model - Extremely Scalable

Service Providers pay IVEDA a monthly fee per Camera

Service Providers Install Sentir in THEIR Data Center• THEY have the COST of hosting and storage

License $3/month/camera for Sentir• Customer User Interface• Data Center Storage and Compute Optimization• Billing & Admin Tools• Free Mobile Apps   

REVENUE MODEL

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Telecom Data Center

MARKET OPPORTUNITY

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Sources: IDC, Allied Market Research

Estimated CAGR for global sales for IP video surveillance and VSaaS from 2013-2020

Global IP Video Surveillance and VSaaS Market by 2020

International VSaaS

North America

$38.6B

$18.7B

$57.3B

37%

User Friendly

Access live & recorded video from

your computer or mobile device.

No On-Site DVRData Stored and Accessed in the defined CLOUD

Easy to DeployDevices are

Plug and Play.

Camera CompatibilityFirmware can enable any IP

camera.

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Cloud-Based Video Management Platform:Proprietary and Patented components

SALES STRATEGY

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Telcos

Data Centers

Cable Service Providers

ISPs

ServiceProviders End Users

Home

SMBs

Enterprise

Government

License Revenue

Camera Revenue

END USER APPLICATIONS

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Home Small & Medium Businesses(SMBs)

Enterprise Government

Sentir’s flexibility and cost-effectiveness provides an almost endless number of applications.

STRATEGIC BENEFITS

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For IVEDA For Service Providers

ScaleService Providers - Millions of Customers.

Established InfrastructureService Provider will handle billing, hardware distribution, and data center for hosting Sentir on their cloud.

Average Revenue Per User (ARPU)

Revenue from existing customers

Simple And Cost-Effective

Sentir is designed to utilize and optimize existing data center. Easy to install.

Pay Per Device Model

No up front fees, immediate positive cash flow for service providers is an easy purchase decision and builds annuity for Iveda.

Infrastructure Utilization

Increased revenues for bandwidth and data storage in tandem with video surveillance service.

REVENUE MODEL

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Re

ven

ue

So

urce

s

Software Licensing Fees - Perpetual

$3/camera/month

Hardware

Service Providers expected to charge $8-$10/per camera

IVEDA generates additional revenue from sales of its branded cameras

90%

25%

Gross Margin

TELECOM CONTRACTS

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PLDT TelecomPhilippines Largest Telecom

70MM Subscribers

TELMEX TelecomPart of America Movil200MM Subscribers

Japan’s 4th Largest Data Center – Sentir Installed

Vietnam’s Largest Telecom

70MM Subscribers

RECENT TELECOM PARTNERS UPDATE

• Philippine Long Distance Telephone Co - PLDT• Project minimum 30,000 Zee cameras 2015 • 10,000 unit PO ($1.33MM) issued March 2015

• Vietnam’s Largest Telecom - VNPT• Signed Framework Agreement in December 2014• Completed their company and technology due diligence• Final licensing agreement – Executed April 2015

• 50,000 unit commitment• Hundreds of units per month per 63 provinces

• Telmex Mexico and US• Projecting 100,000 cameras first year • Projecting at least 1,000,000 cameras over 36 months

ILLUSTRATIVE FINANCIALS

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Customer First Year Camera Activations

Average Camera Revenue

First Year Camera Revenue

Monthly Sentir Fee per Camera

End of First Year Sentir Fee Annuity

Sm-Med Telecom20-100MM Subscribers

50,000 $120 $6 Million $3 $1.8 Million

Large Telecom200MM Subscribers

100,000 $120 $12 Million $3 $3.6 Million

REVENUE MODEL EXAMPLE

Activations Hardware Hardware Margin

Annual License Fee

Estimated Annual Cash Operating Expense

250,000 $30 M $7.5 M $9 M $4 M

500,000 $60 M $15 M $18 M $4.5 M

1,000,000 $120 M $30 M $36 M $5 M

CASHFLOW ANALYSIS EXAMPLE

Accumulated Activations

Monthly License Fee

Hardware Monthly8k-10k units

Hardware Margin

Monthly Cash Op Exp.

Positive Cash Flow

40,000$120K

(A) $1-$1.2M

$250K-300K(B)

$300K (C)A + B - C

$70K to $120K

MONTHLY CASH BREAKEVEN ANALYSIS

2015 PROJECT-BASED CONTRACTS

MEGAsys (100% owned Taiwan System Integrator)• Secured $1.8 M contract with Chunghwa Telecom• Secured $1.4 M contract with Taiwan Stock Exchange• Secured $500K contract with Taiwan International Airport• Secured $1.5 M contract with Chunghwa Telecom

MEGAsys anticipated to be positive cash flow and profitable for 2015 with just these announced projects.

RECENT TECHNOLOGY PARTNER UPDATE

•Collaboration Partnership Agreement signed with Wolfcom, Body Camera Manufacturer, in January 2015

• Iveda is integrating Sentir into Wolfcom’s body camera

•Wolfcom’s 20+ distributors worldwide will begin selling its body cameras in 2015 with live video access and cloud storage

•Minimum revenue of $3/month/device

RECENT FINANCING UPDATE

• Converted $4M debenture into Series A Preferred Stock in December 2014

• Closing of $3.125M private placement of Series B Preferred Stock in March 2015

• Significant Reductions in cost structure related to Licensing focus of US operations

CORPORATE ROADMAP

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With the launch of Sentir in 2014, Iveda is on course to execute on its licensing strategy culminating with an up list to Nasdaq and Profitability.

Path to Profitability

Sign Additional Service Provider

Agreements

NASDAQ Uplist

Achieve Profitability

Sentir Launch April 2014

Existing Service Provider Contracts

EXPERIENCED LEADERSHIP

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David Ly Chairman/CEO

• 10 years cloud video technology within the security industry

• 14 years Sales Management, Telecom industry

Bob Brilon President/CFO

• 30 years’ as CEO, President, and CFO of NASDAQ technology companies

• InPlay (NASDAQ:NPLA); Duraswitch (NASDAQ:DSWT); Rental Service Corp. (NYSE:RRR) and Go-Video (AMEX:VCR)

Dr. Joseph Lee Cloud Architect

• Cloud computing expert• CTO at 21Vianet, largest data center in China• Sr exec at Microsoft, Lucent Technologies, Exxon and

Owens Corning

Dr. Eric Chen Cloud Storage

• Founder/CEO of CA-based ProphetStor Data Services• Big Data storage architecture expert• Sr exec at FalconStor Software (NASDAQ: FALC), IBM

Management

Technology Advisors

CONFERENCE SCHEDULE

New York, New York, May 27-28, 2015 Luxe Hotel, Los Angeles, CA June 1-3, 2015

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COMPANY STATISTICS

Share Statistics 

Trading Symbol (OTCQB) IVDA

Stock Price (4/08/15) $0.80

Shares Outstanding 27.3M

 52wk Range $0.70 - $1.80

 Daily Avg. Volume 5,761

 Warrants/Options (Avg. $1) 8.0M / 5.7M

 Insider Ownership 36%

 Market Capitalization $22M

Other

Full-time Employees 50

Website www.iveda.com

Corporate HQ Mesa, AZ

Taiwan Subsidiary 100% owned

Enabling, Disruptive VSaaS Technology− License SERVICE PROVIDERS to compete for Market Share− CLOUD based - NO On-Site SYSTEMS or DVRs

INVESTMENT HIGHLIGHTS

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SENTIR - Internet-based video surveillance PLATFORM Enabling Video Surveillance as a Service (VSaaS)

#1

Proprietary and Efficient Software Platform− Proprietary cloud based architecture – Patented components− Storage and processing efficiency for Big Data

#2

Defined Path to Profitable Growth− Service Provider Contracts in place achieve profitability

#3Extremely Scalable Recurring Business Model− LICENSE large scale Service Providers to deliver VSaaS to Millions

#4

#5Large & Growing Market− Nearly $60B Internet based video surveillance market

GO

APPENDIX

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• Easy to set up • Excellent video quality at an

affordable price • See all your cameras on a single

dashboard • View from your computer, tablet or

smartphone • Cloud hosted, 24/7 Web access to

live & recorded video • Off-site cloud storage for video

security

True Plug & Play