2013/2014 Corporate Profile

Technology that works for you, not the other way around.

Our Mission is To design, integrate and support complex audio visual, telepresence and broadcast systems at a competitive price.

Our Passion Sets Us Apart. At AVI, we live and breathe technology. Its just part of our DNA. Were deeply passionate about designing and integrating the latest audio-visual technology for our customers. From telepresence to new media to presentation and collaboration to digital signage to broadcast and production. But we also believe the right solution is not just about the technology. Its about how that technology gets usedhow the hardware and software work together seamlessly to do exactly what you need it to do. Thats why you can trust us to design and implement a solution that not only meets your specific requirements but exceeds your expectations.

A Message from the Chairman

We are fortunate to be in solid financial condition in this time of uncertainty and rapid change. But what does it mean to youour clients and prospects? Here are some thoughts: W  e can continue to recruit, train and retain the highest skilled staff in the market place, and our employees can focus on your work without worrying about the financial uncertainty of their employer. W  e can invest in the best tools and products and adapt them to fit the rapidly changing technology needs of end users.  We can be agile and add acquisitions quickly when it makes good business sense.  We can outlast the toughest of problems. In other words, weve got your back. As a 100% employee owned company, AVI Systems recently received our annual valuation for calendar year 2012 from Stern Brothers Valuation Advisors. This gives us some key indications of how we are doing as a private company. From December 31, 2011 to December 31, 2012, the common stock price reflects an increase of 39.36%, which follows an increase of 18.93% last year and 30.04% in 2010. The principle factors affecting the increase in stock prices are reflected below: A  VI reported increases in stockholders equity and working capital of 26.03% and 62.55% respectively. T  he full year impact of last years acquisitions and office/employee expansion were realized as sales and EBITA were up 46.05% and 43.97% respectively for the year. N  ext year revenue and earnings forecasts have been achieved in six of the last seven years. The level of projected earnings in this years forecast is about 20% higher than last years forecast. T  he company had a $4.5M increase in excess working capital and $860,341 reduction in debt. Currently, the company has no short-term or long-term debt and has cash available to fund expansion and growth. Were just beginning the 40th year of being a part of the exciting and rewarding technology integration business. Our 350 employee owners thank you for your confidence in AVI Systems.

Joe M. Stoebner Chairman of the Board

A Track Record of Success

1974 Launches audio visual equipment supply company in Bismarck, ND. 70s & 80s Becomes premier dealer of audio, video, broadcast and presentation equipment. 1986 Adds offices in Des Moines, IA and Omaha, NE. 1990 Opens Minneapolis, MN office for audio, video, presentation and conferencing systems integration. 1996 Adds Kansas City, KS location. Enters video conferencing market. 2000 Acquires Audio Systems Company in Bismarck, ND, adding sound masking, sound reinforcement and security systems. 2001 Establishes a Total Quality Initiative for the development of technical standards and processes.

AVI At A Glance
Year Established 1974 Number of Employees 400 Number of Offices 16 FY 2013 Revenue $147.1M An ESOP Company 100% employee owned

2003 Gains a West Coast presence in a merger with Televideo San Diego. 2004 Acquires offices in Chicago, Milwaukee, Madison and Grand Rapids under the name AVI Midwest, LLC. 2005 Launches Advanced Managed Services group providing highend AV/IT engineering, enterprise control systems programming and project management. 2006 Continued succession planning results in bringing the overall percentage of the company owned by its employees to 71%. 2008 Audiovisual, Inc. and its subsidiaries begin to operate under the corporate name of AVI Systems, Inc. AVI Midwest and Televideo San Diego names are retired. 2009 Launches multiple AVI Systems branded products: Digital Signage, Asset Management and Conference Support. Jeff Stoebner assumes role as CEO. 2010 AVI Systems is now a 100% employee owned company. 2011 Acquires Workplace AV Systems in Sioux Falls, SD. 2012 AVI adds two new locations in Detroit, MI and Cincinnati, OH. 2013 Adds Denver, CO and acquires Antech Labs of St. Louis, MO. Launches state-of-the-art Global Professional Support Center in Minneapolis, MN.

Unparalleled Products & Services

Telepresence Systems Weve been integrating complex telepresence systems since the technology existedwith easily over 5000 systems installed to date across a variety of applications and industries. So you can trust that we know what works and what doesnt. Plus, we provide training and support to ensure that the system works simply, beautifully, every time. New Media Systems There are so many amazing new ways to create, visualize and interact with video content. But how do you know which new media technologies are right for your needs? Our in-house experts can help design and integrate the right technology to deliver engaging and dynamic experiences. Presentation & Collaboration Systems Now more than ever, organizations rely on and expect flawless presentations and collaboration technology. A truly integrated system means combining state-of-the-art display and audio technology with a simple, easy-to-operate control system. Because even the most advanced presentation and collaboration technology isnt worth it, if it cant be used. High Definition Broadcast & Production Systems Todays high-definition video and multi-media content requires professional-grade technological solutions. With our roots in the television and broadcast industryplus our years of experience working with network and in-house broadcast and production teamswe have the expertise to deliver the best solutions for high definition conversion, video editing, control rooms, studios, video servers and more. Digital Signage Systems From single-screen to enterprise wide solutions, our Digital Media Group will design a truly integrated digital signage system. We offer a full range of technology, software and services whether its a hosted or in-house system, content creation services, help desk support and more. You can be confident you have a system that will always work and can adapt as your needs change. Global Professional Support & Services Were committed to providing unparalleled service and support for all of our audio-visual technology solutions to ensure you get a system that is truly integrated and works flawlessly. Thats why we offer industry leading training programs, service plans and support options.

A Proven Process
Phase One:
Planning For YOur Success First, we understand your functional and environmental technology requirements so we design the right system for your exact needs, scope, budget and timeline. This phase also helps establish the relationship and expectations between the client, architect, contractor and us. Engineering For Excellence Designs are drawn, details are configured and the technology components are selected. During this phase, equipment and material schedules and construction documents are created.

Phase Two:

Phase Three: fabrication, programming and testing

The integration of equipment takes place in our fabrication labs, where the systems are wired, programmed and tested to ensure a smooth and fully functional field installation.

Phase Four: on-site integration and system launch

During this stage, all structured cable and hardware are set in place, displays are mounted and audio reinforcement and equipment racks are installed and put to the test.

Phase Five: training and sign-off

With the implementation process completed, the next important step is client training and system sign-off. Further adjustments and additional training often occur during the first year of operation.

Phase Six: Global Professional SUPPORT

High-tech audio visual, telepresence and broadcast systems require continuing re-certification to ensure smooth operation and peak performance. Our Global Pro Support will give you peace of mind that support is always there if or when you need it.

Not Just Experts, Certified Experts

The experience, knowledge and expertise of our staff truly sets us apart as one of the most qualified audio visual technology integrators out there. One look at some of our many certifications and designations, and youll understand why.
CERTIFICATION Diamond AVSP CTS CTS-D CTS-I CET IT Professional Control Systems VTC Systems Audio DSP AVID CAD Sound Modeling Other QUALIFICATIONS/INDUSTRY CERT./MANUFACTURER CERT. InfoComms AVSP System Integrator recognition program highest level  ertified Technology Specialist General (over 50% of our employees carry C this certification) Certified Technology Specialist Design Certified Technology Specialist Installation Certified Electronics Technician RCDD, MCSE, MCP, MCITP, CCNA, CCNP, CCNP Voice, CompTIA A+, CompTIA Network+ BS-EET / BS-PS / EE / EIT / PE / CAPM / PMP AMX ACE / Crestron Master / Xantech / Extron Cisco / Polycom / LifeSize / Vidyo Peavey / BSS / Biamp / Gentner / Crown ASCR AutoCAD / VidCAD / Revit EASE / TEF / JBL / Syn-Aud-Con / NICET LEVEL II AUDIO CSGM PROGRAMMING / PROCARE 6000 / Sencore / First Class FCC License 

Partnering With the Worlds Finest Manufacturers

By building strong partnerships with over 200 quality manufacturers, we help our clients get the best products and prices available. We invest heavily in sales and service training for the products we carry. And we even integrate them into our own Technology Centers. So you can trust we know them and know them well.
KEY INTEGRATED MANUFACTURERS Cisco Polycom Creston Electronics AMX SMART Technologies Extron Electronics Hitachi American LTD Sonic Foundry Biamp Systems Da-Lite Screen Co. Christie Digital LifeSize Communications Chief (Milestone AV) Sony Vidyo Avid Broadcast Pix Chyron Evertz Ikegami Miranda Tektronix PARTNER DESIGNATION Authorized Technology Provider (ATP) TelePresence Video Master Partner Small Business Specialization, Authorized Digital Media Specialist Partner Channel Partner Certification Platinum Level, CSP Certified Service Partner, Federal Platinum Partner Level Platinum Partner Technical Solutions Provider, Gold Tier I Education and Enterprise Engineered Systems Reseller (ESR) Platinum / Platinum (PL / PL) Select Partner Certified Partner (highest level) Select Certified Audio Integrator / Partner Countries Only Reward Partner VIP Platinum Partner Expert Partner Elite Partner Product Production Reseller Systems Integrator / Reseller Premier Partner Elite Reseller, ACSR Certifications Elite, Editing, Storage, Unity, Isis, Windows / Mac Elite+ Reseller US Systems Integrator / Dealer US Systems Integrator Select Dealer Select Dealer Authorized Video Distributor

Global Pro Support:

Weve Got Your Back
We believe in helping our customers get the most out of their technology. Thats why we dont just install your system and walk away. We offer comprehensive training services and support options from reliable and responsive experts. When you contact Global Pro Support, you dont get an automated call center or an auto-reply email; you get a real person with the expertise and know-how to help. Plus, you get on-site support if and when you need it. No hassles, no push-back. Just the peace of mind that we have you covered.

Avi systems technicians continue to impress me with the technical knowledge and customer service. They not only provide baseline support for our conference center rooms, but also provide insight on how to improve and operate our av equipment.
jon H. ITS department

Proudly Employee Owned

We are an employee owned (ESOP) company with incentive-based compensation to reward employees for superior job performance. We believe ownership is a powerful incentive for ordinary people to do extraordinary things. Stockholders alone do not build companies employees build companies. And employee owners build great companies.

Jeff Stoebner CEO

Financials
AVI Systems, Inc. is an open book company. We openly share financial information with the people and companies that have a vested interest in our financial success. We see those people and companies as being our customers, our supply chain partners and our shareholders. Our client base has a vested interest in our financial stability because many of our customers are moving away from managing their audiovisual systems on a project by project basis to managing those systems, and in the process their cost of ownership, over the effective life of those systems. To do this, they need a financially sound audiovisual partner that can and will support and service their systems for the long haul. A sound financial foundation is important to our supply chain partners as well, because they want and need to know that the trade credit they extend to us is safe and secure. We measure and monitor Accounts Payable In Days because we believe that earning the trust and respect of our supply chain partners helps us better serve our customers. As a 100% employee owned company, our employee/shareholders naturally take an interest in the finances of the company. Based on the same philosophy that financial information is and should be shared openly, we share our financial results with our employees so they can determine how their investment in the company is being managed and how their commitment to our customers creates shareholder value. Over the last two years, AVI Systems has invested heavily in acquisition related growth and those investments and our acquisition strategy are generating tangible financial results. Revenue for the fiscal years ending March 31, 2013 and 2012 has grown by 29% and 24%, respectively. We have managed our balance sheet prudently over this period of rapid growth. The company has approximately $21 million dollars of working capital, our current ratio is better than 2.0 to 1.0, theres a significant amount of liquidity in our working capital assets, and the metrics we use to manage and measure how well were managing inventory and our accounts receivable are some of the best in our industry. We have also made notable progress in terms of our capital structure. We paid off all of the Companys term debt in fiscal year 2013, and with Debt to Tangible Net Worth and Debt to Equity ratios of 0.9 to 1.0 and 0.7 to 1.0, respectively, AVI Systems has the capital and financial wherewithal to hire leading edge talent, grow the AVI Systems brand and make the investments needed to provide best-in-class service to our customers.

Randi Borth Chief Financial Officer

AVI Systems, Inc.

Consolidated Balance Sheets MARCH 31, 2013 and 2012
Assets 2013 Current Assets Cash $ 14,238,252 Certificates of Deposit Accounts Receivable 21,098,357 Costs & Estimated Earnings in Excess of Billing 931,762 Inventories 1,260,325 Prepaid Expenses 387,128 37,915,824 Other Assets Security Deposits Certificates of Deposit Intangible Assets, Net Property & Equipment, Net Liabilities And Stockholders Equity Current Liabilities Current Maturities On Long-Term Debt Accounts Payable Billings In Excess Of Costs & Estimated Earnings Accrued Expenses Unearned Maintenance Contract Revenue Long-Term Portion of Unearned System Support Revenue Equity Common Stock Additional Paid In Capital Retained Earnings Less: Treasury Stock Total Equity 224,983 504,520 4,120,431 4,849,934 2,496,665 $ 45,262,423 $ 2012 $ 3,734,903 3,614,060 21,754,923 842,765 1,019,152 253,571 31,219,374 158,410 4,285,045 4,443,455 2,008,360 37,671,189

6,533,574 230,935 6,014,534 4,236,610 17,015,653 1,972,313 386 2,034,342 36,729,599 38,764,327 (12,489,870) 26,274,457

690,979 6,944,607 271,993 5,580,642 3,657,644 17,145,865 495,063

386 2,034,342 30,485,403 32,520,131 (12,489,870) 20,030,261 $ 37,671,189

$ 45,262,423

Key Financial Metrics MARCH 31, 2013 and 2012

Liquidity Working Capital In Dollars Current Ratio Accounts Receivable In Days Accounts Payable In Days Inventory Turnover Capital Structure Debt to Tangible Net Worth Debt to Equity Pre-Approved Bonding Capacity Single Job Aggregate $ 2013 20,900,171 2.2 to 1.0 55 Days 25 Days 75 Times 0.9 to 1.0 0.7 to 1.0 $ 5,000,000 $ 15,000,000 $ 2012 14,073,509 1.8 to 1.0 58 Days 27 Days 77 Times 1.1 to 1.0 0.9 to 1.0 $ 5,000,000 $ 15,000,000

Providing More Solutions. Serving More Industries.

Auditoriums Boardrooms  Broadcast and Production Classrooms Command Centers Conference Rooms Corporations Digital Signage Distance Learning Educational Institutions Entertainment Federal Government Healthcare Hotels Houses of Worship Large Venues Legal & Correctional Manufacturing Military Defense  Municipal & Government Retail Telecommunications Training Rooms Utility and Transportation Video Conferencing / Telepresence

The AVI Team came in and fixed a mess another vendor had left and turned it into a system people are happy to use today.
B  rett t. iowa health System

AVI At A Glance
FY 2013 Individual Projects 2,020 Completed Technology Value $85,133,350 Average Project Size $42,145 Largest Project Size Over $5M
Auditoriums Board Rooms

Broadcast and Production

Classrooms / Distance Learning

Command Centers

Conference Rooms

Corporate

digital signage

HOUSES OF WORSHIP

Training Rooms

Video Conferencing

avisystems.com

AVI Locations & Partial Client List

BISMARCK, NORTH DAKOTA
North Dakota Supreme Court Bismarck Public Schools Workforce Safety and Insurance North Dakota Heritage Center State of North Dakota

CHICAGO, ILLINOIS
Mercer Allstate United Airlines Sears Chicago Bears Elmhurst College

CINCINNATI, OHIO
Wendys Company Hamilton County Regional Operations Center Cincinnati State Technical and Community College Baptist Healthcare Systems GE Aviation

DENVER, COLORADO
Xcel Energy Faegre Baker Daniels LLP Brocade Communications Husch Blackwell

DES MOINES, IOWA

REG Iowa Health Systems Emerson Process Management Iowa Communications Network Wellmark, Inc. Iowa Lakes Community College

DETROIT, MICHIGAN
Tennaco Automotive Palace Sports Detroit Pistons Duffey, Petrosky & Company MI Association of Public School Academies CBS Radio AT&T

FARGO, NORTH DAKOTA

Dakota Medical Foundation Microsoft Corporation NDSU Doosan/Bobcat Sanford Health

GRAND RAPIDS, MICHIGAN

Hillsdale College Michigan State University Perrigo University of Michigan Spectrum Health Western Michigan University

KANSAS CITY, KANSAS

University of Kansas Hospital NetSmart Technologies FreightQuote.com Cerner St. Lukes Health Systems BRR Architects

MADISON, WISCONSIN
University of Wisconsin Madison QNI Broadcasting American Family Insurance UW Hospital Sub-Zero

MILWAUKEE, WISCONSIN
Caterpillar Marquette University SC Johnson Kohls Johnson Controls

MINNEAPOLIS, MINNESOTA
3M Company Cargill Hennepin County Medtronic Allina Health

OMAHA, NEBRASKA
TD Ameritrade UNMC Blue Cross Blue Shield Childrens Hospital

SAN DIEGO, CALIFORNIA

AT&T Sandia National Labs NBC Universal Abbott Vascular General Atomics BAE Systems

SIOUX FALLS, SOUTH DAKOTA

Avera Health Sanford Health Raven Industries Sioux Falls School District South Dakota National Guard State of South Dakota

ST LOUIS, MISSOURI
Nestle-Purina Pet Care Washington University St. Lukes Hospital Foresight Energy Maryville University

avisystems.com