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In The Boardroom With...

Mr. Dave Cunningham
NYSE:UTX Thank you for joining us today, Dave. Please give us an overview of your background and your role at Lenel.

Dave Cunningham: As President of Lenel, I am responsible for the day-to-day operations of the Lenel business. My major focus is on strengthening Lenel’s already strong market position within the United States, expanding its position globally and further developing and deploying the company’s cutting-edge digital video, identity management and integrated systems technologies. Since I am an engineer by trade, I am extremely excited to be part of a company with a history of technological leadership and innovation.

Lenel is a business unit of UTC Fire & Security, which is in turn a division of United Technologies Corporation. UTC Fire & Security provides world-class capabilities in the Fire Safety and Security markets through its subsidiaries.

I’ve worked for United Technologies for more than 20 years. Most recently, I was the General Manager of Customer Services–Americas for Hamilton Sundstrand, which is another UTC business unit. In that role, I provided direct oversight of Hamilton Sundstrand’s overhaul and repair facilities and field service resources in North and South America. will read on that IdentityDefender® is “….a new identity management product suite…..built from the ground up to be in total compliance with all FIPS 201 requirements.” May we have an overview of this product solution?

Dave Cunningham: Absolutely. IdentityDefender is a complete, end-to-end smart card solution that enables an organization to create advanced smart card IDs for use in a multitude of security applications, both physical and logical. IdentityDefender is a modular solution comprised of four robust applications that provide full management, enrollment, production and issuance of smart card identification credentials. The IdCollector enrollment application supports all the advanced biometric requirements of not only FIPS 201, but of commercial implementations as well. Advanced algorithms are built into the software to ensure efficiency, compliance and state-of-the-art data processing. The IdProducer and IdActivator applications are complete printing, production, encoding and issuance solutions that support multiple printing scenarios using the industry’s leading hardware devices. IdentityDefender is built around the IdDirector workflow engine, enabling an organization to have complete control over workflow.

What does this mean to the user? It means that the complete IdentityDefender solution can be anything an organization wants it to be. By creating customized workflows for applications such as FIPS 201, badge creation and management, visitor ID creation and anything else that an organization can envision, an advanced smart card ID can be created for a variety of uses. Unlimited workflow templates can be created, making IdentityDefender the single solution for an infinite number of identification needs. For our government system users, an approved FIPS 201 workflow is built right into the software to guarantee compliance with all HSPD-12 requirements. IdentityDefender is also completely web-based, allowing a simple thin client software application to be utilized on almost any platform. And this is all done within a single user interface from start to finish. You will find many of our products on the GSA Approved Product List for HSPD-12 compliance. understand that Lenel’s OnGuard® systems have been deployed by over 15,000 system user entities. Please tell is about OnGuard and its competitive advantages.

Dave Cunningham: OnGuard is our flagship product platform, the one that put Lenel on the map. The solutions deployed provide our system users with all the capabilities they need to effectively perform and manage their security operations. Each application delivers highly-focused security management functionality in every area of the security life cycle. We offer industry-leading applications in many markets, including digital and network video, intelligent video analytics, access control, identity management, visitor management and alarm monitoring, among others. All OnGuard application modules can be seamlessly integrated together, utilizing a single database server and a single user interface for all applications. All OnGuard application software can be configured and managed from a single administrative workstation, and event activity can be monitored from a single alarm monitoring workstation. And, very importantly, OnGuard offers full support for business automation processes, ODBC database standards and customizable XML communications engines. about Lenel services solutions?

Dave Cunningham: Our services truly set us apart from the competition. Since I came onboard at Lenel, I’ve made customer service a top priority. Our corporate services group includes dedicated teams that are passionate about ensuring that our customers are nothing less than completely satisfied. Lenel’s learning solutions team develops and presents industry-leading training programs for all of our products. These training courses are available to our system users and value added resellers, both on-site and through our online distance learning program. We also have an in-house technical support group dedicated to assisting our value added resellers diagnosing system user problems. Lenel’s professional engineering services group is our “special forces arm”—a complete, advanced engineering and implementation organization in house. We also offer remote managed services, which include support services such as remote system health assessment, dedicated emergency pager services, proactive support plans and multi-tiered preventative maintenance programs. We strive to create a bond between Lenel, the reseller and the system user. By adding the Lenel portfolio of services as the fourth dimension of security, we can greatly increase OnGuard system value and productivity. has had several “wins” at colleges, universities, museums, libraries and public schools. What are the solutions that Lenel brings to this market?

Dave Cunningham: Open campuses present a formidable security challenge, because just about anyone can freely enter the premises. Our system users in these markets regularly use several application modules of our integrated product platform, OnGuard, to address that issue. System users are using access control to prevent outsiders from penetrating secured areas. They’re using ID management to provide customer-issued identification credentials to help visitors distinguish between legitimate employees and others. And they’re using digital video with intelligent content analysis to immediately alert security management when security incidents might be in progress. Having each of these modules in one suite of software provides the most effective and efficient means possible for securing the public venue. also has a number of impressive wins in the financial services space with companies such as Capital One, Wells Fargo, Blue Cross Blue Shield just to name a few. Care to discuss Lenel’s solutions in this space?

Dave Cunningham: Financial service businesses exercise intense security scrutiny because their customers’ information is a precious asset. Controlling who is able to access this data can work to prevent the episodes known to erode customer trust. Financial services organizations are using some of the most sophisticated access control configurations we have seen to date, specifically an array of customer configurable options that can determine how many people can access certain areas and under what conditions they’re allowed to enter. These system users are using OnGuard's access control capabilities to tightly manage accessibility to data, while enforcing stringent policies that maintain federal compliance and minimize risk. We’re proud to serve those companies. is your perspective on the market drivers for Lenel security and ID solutions at this time?

Dave Cunningham: We’re very excited about the industry’s push toward advanced identification standards and processes. In the government space, we see strong market push for unified identification protocols and system interoperability between government agencies. Current mandates in the government market have given Lenel a great opportunity to design and release to market an advanced new product line, which delivers and manages the complete identity life cycle. Current trends in the commercial market have enabled Lenel to utilize its current identity-centered system architecture in ways that were unimaginable just a few years ago. We are seeing strong market drivers focusing on web-based, enterprise-level identity workflow solutions. Commercial organizations are looking to unify their human resource and security badge creation and management processes on multiple levels. This is exciting for us. We have for many years been laying the foundation for such systems with our open-architecture platform. Now the network technology and security processes have finally advanced enough to allow us to truly deliver ultimate value to an organization’s identity management operations. We’re seeing a strong return on investment for these newly-converged systems. What trends are you seeing in the marketplace?

Dave Cunningham: The security market is currently in a state of transition. As network technologies have become more readily available and affordable, organizations are now able to deploy more advanced solutions over secure bandwidth. The major trend in the video market has been a move toward IP-based cameras. Organizations are finally becoming comfortable with the idea of secure video communication over an IP network, and they’ve begun to see distinct advantages in utilizing secure network architecture. Lenel has jumped into this market with prestigious, enterprise-level implementations around the world that are using our multi-tiered IP video solutions. Within that space, we have also seen a strong trend toward web-based video viewing and management applications. Enabling an organization to securely access crucial video data on demand from anywhere in the world provides tremendous value to the organization’s asset and risk management procedures. Lastly, and again this is video-specific, the market is finally ready to adopt intelligent video analytics as a means to proactively secure facilities. We’ve been developing those complex video algorithms for years. We’ve seen that when implemented with the right hardware tools and security personnel, intelligent video analytics act as a strong front line to asset management and facility security. We anticipate that the video market will grow exponentially for the remainder of the decade. This is certainly an exciting time for Lenel and its video operations! What resources such as streaming video, webcasts, podcasts, “white papers” and “case studies” are available for end-users on

Dave Cunningham: Along with the total rebranding of Lenel’s corporate identity, our Web site underwent a complete overhaul. Outfitted with a new look and feel, Lenel’s Web presence includes all the tools necessary for any user wishing to learn more about our products and services. We’re constantly updating our download page with the latest white papers, case studies, news releases and product information. also contains password-protected areas targeted to our Value Added Resellers, government clients, system users and consultants. We also offer the latest software updates via download from our secure servers. Lastly, our market presence is readily available in our section of current events, promotions and industry appearances. Our Web presence strongly reflects our emphasis on customer service and complete satisfaction. Thanks again for joining us today, Dave.

Dave Cunningham: Thank you for this opportunity.