1

ISEE 2006 Instantel Dealer Meeting

History & Recent PurchaseSales & MarketingTechnical Support &

ServiceProduct Development

2

Instantel Company History

Acquired in 2005 by VeriChip, sub of Applied Digital (ADSX)

Little change in management during ownership changes

Instantel Incorp

orated

Dec. 22, 1

982

Launched Blastm

ate II

Launched Blastm

ate

Launched WatchMate

Wander P

reventio

n System

Launched Hugs

Infant Pro

tection S

ystem

Acquired by

Perceptis

Launched Blastm

ate III

Acquired

by VeriC

hip

1990 1992 1995 1998 2001 20051983

Instantel’s Ownership - Future Applied Digital is NASDAQ small cap

– $100 million revenues,$175 million market capitalization

Wholly-owned subsidiary VeriChip has Dual Focus: – Security & Industrial, Healthcare

Announced plans for IPO in mid 2006 Instantel run as independent Business Unit

4

Questions Regarding New Ownership & Continuing Business

5

Marketing & SalesDealerZone On-line ToolsPromoZone Web StoreMarketing Development FundForecasting

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DealerZone On-line Tools

Secure, on-line, self-serve website– Marketing materials

– Dealer materials

Receiving good traffic– 125 dealer accounts

– 40% active in last month

Suggestions are welcome!

7

PromoZone Web Store

On-line ‘store’ for promotional materials– Launched mid-2005

MDF funds may be used– Offset 50% of cost

Canadian-made goods only at this stage

Suggestions welcome!

8

Marketing Development Fund

Cost-sharing program for dealer-initiated Instantel marketing activities– Booth space at Trade Shows, Advertising

expenses, Promo Materials 2005 saw more Dealers taking advantage

– 2004: 3 transactions totaling $2,700– 2005: 17 transactions totaling $12,400

What would make you use the program?

Importance of Forecasting

Perpetual 12-month forecasting model Dealer-driven 1-month bookings forecast Accurate forecasts = Product availability

Manage Opportunities

Generate sales orders

12-month Forecast

1-month BookingsForecast

Plan production

Build to stock

Ship & invoice

Dealer channel

Customer Receipt

10

Questions Regarding Sales & Marketing Initiatives

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Technical Support & Service

On-line RMA ToolsInfoChange KnowledgebaseDiscussion on Training Needs

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On-line RMA Tools

InfoChange RMA’s The Process Information Provided Turn Around Time Future - Enhancements

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InfoChange KnowledgebaseInfoChange FAQ’s Appropriate Articles? Is the Information

Useful? What is the Most

Important Information? What Should be Added? Dealer Section – Coming

14

Discussion on Training Needs

15

Questions Regarding Technical Support & Service

16

Product DevelopmentTurn-key Modems through Mobile

ElectronInstantel Webware Web Reporting

System

17

Mobile Electron Presentation

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Webware Web Reporting

Several Dealers leveraging Web Reporting– Kalliotekniikka, Finland - BlastView– Explotech, Canada - BlastVibrations– Saros, Australia – BlastHub

Various requests for simple Instantel system Objective: a simple, pay-per-use system that

dealers can brand and market on their own Benefit: develop the market for web reporting in

North America - open doors to potential

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Webware Web Reporting

InternetCDMA1X

Dealer PC- Blastware- Forwarding Agent

Instantel Webware Server- Database- Web Pages (GUI)

Clients

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Webware Reporting Demo

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Webware Web Reporting

Beta trials in mid-February, release in March No entry fee or investment required for interested

Instantel Dealers Dealer site can be established in minutes over the

phone with Instantel Technical Support Group Dealer adds/removes Projects, Users and Monitors

on their own Fixed monthly fee per active monitoring point on

the system – no monitors, no fee

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Discussion on New Products and Evolving Market Requirements