Cyalume Technologies Holdings Inc
Cyalume Technologies — Vector Intersect Security Acquisition — SPAC Merger (September 2008)
22 slides from Cyalume Technologies's SPAC merger presentation, Sep 15, 2008
Slide 1: Vector Intersect Security Acquisition Corporation and Cyalume Technology Investor Presentation
Vector Intersect Security Acquisition Corporation and Cyalume Technology Investor Presentation September 2008 NCyALUME: Light Technology ‘Confidential
Slide 2: Safe Harbor/Forward Looking Statements
Safe Harbor/Forward Looking Statements * The attached presentation was filed with the Securities and Exchange Commission as part of the Form 8-K filed by Vector Intersect Acquisition Corporation (“Vector”) on , 2008. vector is holding presentations for its stockholders regarding its purchase of Cyal
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures * This presentation contains disclosure of EBITDA for certain periods, which may be deemed to be a non-GAAP financial measure within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Management believes that EBITDA, or earnings before inte
Slide 4: Cyalume Light Technologies
Cyalume Light Technologies | §Cyacume-
Slide 5: Cyalume Light Technologies — Summary P&L
Cyalume Light Technologies — Summary P&L [ “Actual | Forecast] Projections Total Revenue 31.1 39.0 45.2 60.0 79.2 26.3% Cost of Goods Sold 19.3 19.1 22.0 30.9 42.8 Gross Profit 11.8 20.0 23.2 29.1 36.4 32.6% Margin % 38% 51% 51% 48% 46% EBITDA 9.0 11.3 14.5 18.5 24.0 27.9% Margin % 29% 29% 32% 31% 3
Slide 6: Business Combination
Business Combination + Vector established in July 2005 as a special purpose acquisition corporation for the purpose of acquiring an operating business in the security and defense industries. + IPO on May 3, 2007, (VTRQ.OB) - Sold 7.4 million units at $8.00 consisting of: * One common share of Vector
Slide 7: Investment Appeals
Cyalume Light Technologies Investment Appeals + Predictable, recurring revenue stream * Strong EBITDA margins + Significant barriers to entry and patents * Strategy targets high growth markets * Compelling valuation « Seasoned management team sy vecTo 4 es Hom CyaAtume 7
Slide 8: Predictable, recurring revenue stream
Cyalume Light Technologies Predictable, recurring revenue stream ¢ 20%+ Projected Annual Growth « 150% Projected Annual Growth from New High Growth Market « Disposable nature of products « Long term contracts with US government and NATO
Slide 9: Highly Profitable Business
Cyalume Light Technologies Highly Profitable Business * Consistent revenue and EBITDA growth — Projected Revenue - 2006 to 2010 CAGR of 26.3% 800 709 600 509 400 300 200 100 Revenue 2006 - 2010 8 — Projected EBITDA - 2006 to 2010 CAGR of 27.9% — 50% + profit margins and 25% + EBITDA margins — Europe
Slide 10: Significant Barriers to Entry
Cyalume Light Technologies Significant Barriers to Entry + Unique chemiluminescence technology position — NOT in the consumer glow stick business. — Long term contracts with NATO and US military - Cyalume has world class R&D team devoted to chemiluminescence advancement — Large patent portfolio, inc
Slide 11: Strong Intellectual Property
Strong Intellectual Property + Recently issued patents for more environmentally friendly products will provide barriers to competition — Phthalate Free Formulation * This new patented formula will comply with NATO, other EU and US requirements. + Use of phthalates are banned in the EU and California
Slide 12: New Military Products: Ammunition
New Military Products: Ammunition 40mm DAY and NIGHT MK 284 MOD1 Night vision equipment Super Owl 3 gen. Omni V
Slide 13: Strategy targets fast growing markets
Cyalume Light Technologies Strategy targets fast growing markets + New ammunition with Chemiluminescent & Photo-luminescent Technologies Revenue — Grew from $2 million to estimated $4 million from 2007 to 2008 from ONE caliber - Continued expansion into new calibers planned through 2010 — Multi bill
Slide 14: Military Products and Applications
+ Applications: + Signaling Safety Military Products and Applications, Products and Applications Marking + Trip-wires + Friend or For Perimeter Control Night marking LuMeE- 14
Slide 15: Safety Products and Applications
Safety Products and Applications + Applications: Auto safety Reflective and Photo luminescent gear Flare replacement Safe, non-powered light Evacuation lights Incursion Baton 1 Cyacume- Yeon 1s
Slide 16: International Opportunities
International Opportunities Sole provider to NATO + Only chem-light provider with valid NATO Stock Number + NAMSA contract provides vehicle for all NATO countries to purchase Cyalume products Environmentally friendly product + NATO and country specific regulations will require all Pan-Europe expansi
Slide 17: Attractive Valuation
Attractive Valuation [Comparables Analyste for Cyafume TechnoTooies ILTM EBITDA Muttiples Cpa oo Prone SO Netoeee eV ITO” Mule att comp sect SO Naber ev EBITDA Mule fete tsanam AS © mo € am € pm ue es ne $ 88S Sra $ AG ER | fons ne teas ane $220 [ramets cor. $ gta 8 amas $ tae trae [Pumeaums.ine [3
Slide 18: Management Team
Management Team + Derek Dunaway — President — Vector Intersect -CEO - TechOnLine = VP Portfolio Management - Selway Partners — Managing Director — AppNet Strategy Consulting + Michael Bielonko - CFO CFO CTM Group; Arcade Equipment ~ Board Member; Omni Facility Services Canada COO & CFO Omni Facility
Slide 19: Financial Results - YTD
Financial Results - YTD 2007 2008 Net Revenue 19,435 20,853 Cost of Sales 9,809 9,790 Gross Profit 9,626 11,063 Gross Margin 50% 53% Adjusted EBITDA 5,459 7,272 EBITDA Margin 28% 35% Adj. Net Income * 679 3,610 * Net Income adjusted for non-cash amortization of intangible assets ee sccwrsirion CowrO
Slide 20: Conclusion
Conclusion * History Stability * Growth Technology Future Cyalume products are embedded in daily ‘operations of the worlds largest militaries, at the individual soldier level ‘Shown here in a picture from the Daily Telegraph, Prince Harry in his standard kit, | including Cyalume glowsticks : securit
Slide 21: Discussion
DISCUSSION VECTOR)INTERSECT aICyavuM= 5
Slide 22: Cyalume Light Technology
NCyALUME: Light Technology ‘Confidential
Vector Intersect Security Acquisition — SPAC Merger (September 2008) on 6ix