Lattice Incorporated Investor Presentation

1. Lattice Inc.
RedChip Conference
October 23, 2013
Ticker Symbol: LTTC
© 2011, Lattice Incorporated. All Rights Reserved.

2. 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.

3. 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.

4. Financials
2009
2010
2011
2012
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
Revenue
* Excludes Government services Division and associated corporate expenses

5. Correctional Technology Market Overview
 $5.0B+ Market total in Federal, State, and
County
 Additional revenue from other noncommunications 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

6. 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 Outdated Technology generating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

7. 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)

8. 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

9. 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

10. 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

11. 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

12. SECURE COMMUNICATIONS CLOUD
INTEGRATION SERVICES
INVESTIGATION
LEGAL COUNSEL
EDUCATION
HOME PC
EMAIL
MUSIC DOWNLOAD
SOCIAL MEDIA
SCHEDULING SERVICES
DEDICATED INMATE STATION
COMMISSARY ORDERING
INMATE E DEVICE
VIDEO VISITATION
VOICE MAIL
TEXT MESSAGING
SECURE FIREWALL
Device Agnostic

13. Integrated Corrections Operations Networks (ICON)
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.
ICON Core
•
ICON will consist of five major
components:
Products and Services management
• Customer Information Database
• Payment Processing
• Accounting/Billing
• Customer Care
Secure Communication Layer
All communication between payments and
services will utilize ICON’s Secure
Communication Layer. Outside development
firms will have standard interfaces to utilize
Secure
ICON
Application
Management
Jail Management
System
Communication

14. Products and Services managed and
accounted for by ICON
Secure
ICON
Application
Management
Jail Management
System
Communication
PIN Debit and PPC
Phone Accounts

15. ICON Jail Management System
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
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
Secure
ICON
Application
Management
Jail Management
System
Communication

16. 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.

17. 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