Lttc 01222014-reduced

Lattice Inc.

RedChip Conference January 22, 2014

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smaller under 50 bed facilities "  Outdated Technology generating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

Foreign Market Overview

!  Business Model "  Technology sales/license revenue "  Transaction revenue "  Services revenue

! Current Foreign Sales Pipeline Asia Canada Israel Mexico U.K. India Belgium Caribbean

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

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  Communica-on  Layer  

ICON  will  consist  of  five  major  components:  

•  Products  and  Services  management  •  Customer  Informa-on  Database  

•  Payment  Processing    

•  Accoun-ng/Billing  •  Customer  Care  

ICON  Core

All  communica-on  between  payments  and  services  will  u-lize  ICON’s  Secure  

Communica-on  Layer.    Outside  development  firms  will  have  standard  interfaces  to  u-lize  

Integrated  Correc-ons  Opera-ons  Networks  (ICON)  

Communication

ICON Application Management

ICON  will  provide  centralized  database  management  and  payment  capability.  U-lizing  the  a  central  core  engine  will  allow  mul-ple  soMware  applica-ons  to  reuse  soMware  processes  saving  

development  -me  and  producing  far  more  efficient  business  prac-ces.  

Jail Management System

Secure

Products  and  Services  managed  and  accounted  for  by  ICON

Communication

PIN Debit and PPC Phone Accounts

ICON Application Management

Jail Management System

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  correc-onal  facility  processes,  inmate  

booking,  inmate  informa-on,  and  trust  accoun-ng  

Jail Management System

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 Jon@Redchip.com

Paul Burgess

CEO pburgess@latticeinc.com

856-910-1166 ext 2111