The Smart Glasses Revolution & The Rise of Augmented Reality in Manufacturing. Dan C. Cui VP Business Development Vuzix Corp.

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The Smart Glasses Revolution & The Rise of Augmented Reality in Manufacturing SAP Manufacturing Industry Forum 2014 Dan C. Cui VP Business Development Vuzix Corp. (OTC: QB: VUZI)

The Revolution introduced me to art, and in turn, art introduced me to the Revolution! Albert Einstein 2

Market Research Predictions Deloitte - Technology, Media & Telecommunications Predictions Report - Smart Glasses are a go! - Smart Glasses will take $2B of the $3B 2014 wearable market - early adopters in 2014 may well number in their millions - demand increasing to the tens of millions by 2016 Gartner Group - In 2017, smartglasses may begin to save the field service industry $1B per year Strategic Analytics - wearable device apps will drive sales to 125M units by 2017 3

History of wearable displays It is arguable that the wearable display is the most intriguing The idea has been around for a while Wearable TV patent filed 1945 4

History of Wearable Technology 1960: Morton Heilig patents a headmounted stereophonic television display. 1966: Ivan Sutherland creates first computer-based head-mounted display 5

Wearables 2011; Not Quite Yet! 6

What s Changed??? 7

Technology; Computers, Mobile OS, WiFi, 4G, etc. 8

Systems On Chips (SoC) 9

BUT Optics Have Been The Challenge What about the ID??? - Its not that easy Conventional refractive and reflective optics have limits Carl Zeiss - Cinemizer Sony - HMZ Oculus- Rift Epson - Moverio Kopin - Golden-I 10 Google - Glass

Prisms And Things! The math is simple: Higher resolution & better FOV = Bigger Prisms 11

1 st Tries At See-Through Venetian Blinds and Squares 12 but with distortions

New Approaches are needed; Waveguide Optics Waveguides are a revolutionary way of moving light - Image is injected into a 1.4mm thin waveguide like a fiber optic - Not bent through bulk material like conventional optics Provides a significant improvement in - Mass, cost, volume, simplicity and optical performance Conventional Optics Waveguide Optics 13

Vuzix Technology IP for Smart Glasses Million invested Vuzix IR&D and US Government - Passive and Dynamic Holographic waveguide optic for existing 2D displays - Hi contrast LED micro scanning display engine - Government SBIRs and development programs for curved surfaces, large FOVs and full color guides All purpose built for eye glass form factors or (Built for the real world eyeglass environment) NOKIA + VUZIX Vuzix secures Nokia technology license for see-through optics GOVERNMENT Advanced Display and Optics Development Contracts. Supports Vuzix Business Strategy and Technology Paths 14

Binocular See-Through Style, Functionality, and True AR 15

The Results: M2000AR Display, Thin, See-through & Bright 16

Key Markets; Industrial, Enterprise, Medical Enterprise/Industrial and Medical companies KNOW the problems they face! Many have planned for smart wearable technology for years. Wearable technology has matured to successfully address these needs. Applications are built upon common platforms. Don t need to find the killer app. Smart Glasses are ready to solve key business issues TODAY! 17

Applications For Smart Glasses And Augemented Reality Real Time, Hands Free, Info on Tap, Image/Video Capture, Scan Code Reading and More 18

Manufacturing, Maintenance, Repair, & Operations An Intense Collaborative Effort Improved safety Situational awareness Efficiencies are key Plant floor is a data-rich environment Reduce decision making time Critical data when you need it Real Time Peer-to-Peer Communications Voice and video between all team members Picture: iquest Safer, more efficient operations resulting in a higher level of quality product. 19

Benefits Service personnel Access to manuals, schematics, next-level support Engineers and Technicians View live process/machine data Production supervisors Immediate notifications of downtime/process interruptions Managers/Executives Live real time updates of business performance Picture: Technische Universitat Munchen 20

Metaio Augmented Reality For Manufacturing 21 www.metaio.com

Field Service, Remote Diagnostics and Training 22

Who Are We? 23

A Little Background The concept of wearable technology has been around for YEARS! Vuzix in 1997 - Initial focus defense research and night vision - In 2004 Introduced first consumer wearable One of the World s Leading suppliers of - Wearable display technology World Wide Operations Award Winning Technology and Designs - Immersive Viewing, Virtual Reality, Augmented Reality From the bleeding edge of technology to the leading edge! 24

The M100 The World s ONLY Commercially Available Smart Glasses 25

Vuzix M100 Smart Glasses Features Hands-free wearable display & communications platform Google Android OS WQVGA digital seethrough display 1080p camera Earbud Microphone Inertial Sensor Compass & GPS Voice Recognition Gesture Recognition WiFi & Bluetooth Safety Glasses Up to 8 hours of use Runs thousands of Android apps 26

Vuzix Smart Glasses Standalone or Cloud Connected Native Apps run on M100 Standalone Enterprise Apps HMD Apps run on Smartphone ios or Android Cloud Optional, all modes Cooperative Related Apps run on Smartphone and M100 ios or Android 27

The M2000AR For Industrial Use First waveguide based solution Ruggedized for industrial applications 720p display and 1080p camera HDMI Interface Electronic sunglass tint 30 FOV Integrated head tracking Integrated compass Anodized aluminum alloy 28

More Fashionable, Wearable, Binocular Smart Glasses First binocular fashion-wear smart glasses Voice and gesture recognition Android OS qhd displays (960 x 540) 1080p camera 30 or better FOV Wireless connectivity True eyeglass styling & electrotint Industrial designs being done now! 29

Smart Glasses, Rising To The Challenge! Thank You! 30