Open Systems:Open Systems:

A LON OverviewA LON Overview

Who is TAC?Who is TAC?

To be our Customers’ preferred provider To be our Customers’ preferred provider of Building Environment Services based of Building Environment Services based

on Open Systems and Building IT™on Open Systems and Building IT™

Our VisionOur Vision

TAC HistoryTAC History

Recent EventsRecent Events

Acquisition of Control Solutions – January 2002

Longtime TAC Partner

Acquired by Schneider Electric – August 2003

$9 billion annual revenue (2002)

75,000 employees

Presence in 130 countries

Sister companies include Square D & Veris Industries

TAC GrowthTAC Growth

Revenue

$0

$100

$200

$300

$400

$500

1998 1999 2000 2001 2002

EBITDA

$0

$10

$20

$30

$40

$50

1998 1999 2000 2001 2002

REVENUE 400%

PROFIT 800%

*Revenue shown in Millions*Revenue shown in Millions

Global PresenceGlobal Presence

TAC has installations on all seven continents and 250 TAC has installations on all seven continents and 250 subsidiaries and partners in more than 70 countries.subsidiaries and partners in more than 70 countries.

Market Trends Driving Open SystemsMarket Trends Driving Open Systems

Individual Devices Complete Systems

Proprietary Open Systems

Stand Alone Systems Integrated Solutions

Local Interface Internet Connectivity

Building owners are driving these trends!Building owners are driving these trends!

Master/slave Distributed systemsStand-alone controllers NetworksClosed, single-vendor Open, multi-vendor

End Users are driving these trends!

Systems EvolutionSystems Evolution

Why Do You Care?Why Do You Care?

EducationEducation

Customer’s are now educating themselvesCustomer’s are now educating themselves

Tremendous opportunity to expand your baseTremendous opportunity to expand your base

Those who adapt to use new technology reap the Those who adapt to use new technology reap the benefits benefits

Interoperability vs. IntegrationInteroperability vs. Integration

Interoperability The ability to integrate products from multiple vendors

into flexible functional systems without the need to develop custom hardware, software or tools

Integration To allow limited information sharing and interaction between

dissimilar systems requiring the use of engineering intensive Gateways

Building IT includes both

What are Your Choices?What are Your Choices?

Proprietary

Open Systems

ASHRAE’s BACnet

Echelon’s LonWorks

Proprietary SystemsProprietary Systems

Robust and reliable

Feature Rich

Easy to use front-end

Mature products

Limited integration

Higher maintenance expense

Gateways are necessary

Locked into 1 vendor

ProsPros ConsCons

Traditional Proprietary Integrated ArchitectureTraditional Proprietary Integrated Architecture

Tiered Structure

Polling Communication

Gateways a must

Limited Data Sharing

Gateway

TCP/IP

Or Equivalent

RouterRouter

C

O

N

T

R

O

L

L

E

R

s

C

O

N

T

R

O

L

L

E

R

s

HMI 1 HMI 2

Proprietary vs. Open SystemsProprietary vs. Open Systems

Isolated subsystems results in limited systems integrationOperations and Maintenance costs are higher Multiple user interfaces

Open systems allow full information sharingEconomies are gained from shared communication mediaRedundant components are eliminated

BACnetBACnet

Pros

• Endorsed by ASHRAE

• Supports Ethernet, token passing, point to point communication

• Defined standards

ORCAview

Cons

• Vague interpretations of guideline

• No guarantee of interoperability

• Focuses only on HVAC

LonWorksLonWorks

Over 17 million products in operation worldwide

More than 4500 companies support LonWorks

High degree of flexibility

Interoperable at the hardware level

LonMark Association

New product

Pros Cons

LonMark Interoperability AssociationLonMark Interoperability Association

Partners

Sponsors

ABB Network Partners • BTE • Carrier Corporation • Echelon Corporation • Honeywell Inc. • Johnson Controls • Legrand • Molex Inc. • Motorola • Olivetti • SIEBE plc • Schneider Automation. TAC Inc.

AB Networks Inc. • ABB Stromberg Power Oy • Adcon Telemetry, Inc. • Ahlstrom Corporation • Alya Systems Inc. • American Innovations Ltd. • Andover Controls Corporation • Automated Logic Corporation • Baxall Security • Belimo Automation AG • Bircher AG • Cambridge Accusense Inc. • Caradon Group • Cerberus AG CeTeLaB AB • Circon Technology • C & K Systems, Inc. • Coactive Aesthetics, Inc. • Comelta S.A. • Computer Process Controls • Connext, Inc. • Continental Control Systems • Copeland Corporation • Cristal Controles Ltee • CSI Control Systems International• CTI Products, Inc. • Dancer Communications Inc. • Danfoss A/S • Delta Controls Inc. • Dynavision Group • ECS Lighting Controls Ltd • Edwards High Vacuum • Electronic Systems USA Inc. • E-mon Corporation • Encorp, Inc. • Enermet Oy • Engenuity Systems • Falck Securitas • Fracarro RadioIndustrie • George Barker and Co. Ltd. • Gesytec GmbH • G E Wiring Devices • Grayhill Inc. • Habtech Communications Inc. • Halton Oy • Heat-Timer • Helvar Oy • Hitachi Ltd. • Hoffman Controls Corporation • Home Automation Ltd. • Hubbell Inc. • Hussmann Corporation • HyCal • IBM • ISH Systems Inc. • IEC Intelligent Technologies • Intellinet • Intellution • Johnson Controls Inc. • J. Gordon Electronic Design Inc. • KABA Benzing GmbH • KABA Lasbolaget AB • Kele & Associates • Kniepkamp Engineering Co. • Landert-Motoren AG • Landis & Gyr • Leviton Manufacturing Co. • LightMedia Corporation • MTL • McQuay International • Menvier • Metra Corporation • Microsym Computers Inc. • Multitone Electronics plc • National Grid Company • Intellution • Johnson Controls Inc. • J. Gordon Electronic Design Inc. • KABA Benzing GmbH

Over 300 Members, 17 Countries

What is a Lon Network?What is a Lon Network?

Router Repeater

Router Repeater

Router Repeater

Router

Node

NC

T Node

NC

T

Node

NC

T Node

NC

T

Node

NC

T Node

NC

T

Channel

SegmentSegment

Physically Tiered, Logically Flat

2 Segments per Channel (50 nodes per segment)

Node (communicating device) Defined by Transceiver and Neuron Chip

Independent of media

Ethernet

TP/FT-10

Interoperability AnalogyInteroperability Analogy

Personal Computer IndustryStandardizedCompatible productsInterchangeableInteroperableCustomizableCost-efficientMulti-vendor Freedom of choice

Open Systems ApplicationOpen Systems Application

What are the benefits?

Compatible products

Interoperable products

Customized solutions

Cost-efficient installation

Multi-Vendor sourcing

What Does it all Mean?What Does it all Mean?

With Open SystemsWith Open Systems

Customers can choose:Customers can choose:

+ The best productsproducts

+ The best application knowledgeknowledge

+ The best serviceservice

Greater Independence & High Quality / “Best of Breed”Greater Independence & High Quality / “Best of Breed”

Where to Go From HereWhere to Go From Here

TAC is available to:TAC is available to: – Assist with specifications

– Provide you or your clients with a demo

– Tour current or past project sites

– Provide references

– Answer any questions, anytime