Overview

CTS product technology has been developed from the beginning as a single, organically integrated application platform. This is of key importance in our core business, as the interoperability between system components (often provided by different vendors) has been a continuous annoyance to the end users.

Not only has this dramatically improved our competitive posture in the Public Safety and First Responder industry, but also it has been the basis for our move into Homeland Security and other strategic projects in the federal, state, and local markets. Since First Responders are the "ground troops" of Homeland security, our interoperability and intelligence sharing solutions and ability to easily integrate with high performance wireless and surveillance technologies has positioned us as a leading innovator in Homeland Security solutions.

The Department of Homeland Security consists of twenty-two separate agencies and more than 170,000 employees. According to the Civitas Group, LLC (a Washington , D.C. strategic advisory and investment service firm), Homeland Security spending this year will approach $42 billion. This spending will be as follows: (i) 24% for Intelligence; (ii) 20% for Law Enforcement and Counterterrorism; (iii) 12% for Emergency Preparedness and Response; (iv) 9% for Bioterrorism Prevention; (v) 7% for Aviation Security; (vi) 7% for Cyber-Security; (vii) 7% for Physical Security; (viii) 6% for Port Security; (ix) 4% for Border Security; (x) 3% for Nuclear/Radiological Prevention; and (xi) 1% for Land Transport Security.

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Addressing the needs of Homeland Security

CTS 's market segment focus, as well as some of the solutions we have configured to address Homeland Security requirements, includes the following:

• First Responder multi-agency communications interoperability
• Intelligence collection, analysis, dissemination, and coordinated counter terrorism action at the regional, state, multi-state, and federal levels
• Integrated solutions for:
  • Seaport facility, cargo, and passenger security
  • Multi-modal Cargo transportation security
  • Rail cargo and passenger transportation security (including station and platform security)
  • Air Transport security (including terminal, parking, perimeter and surface)
  • Port Authority security (including tunnels, waterline, bridges, etc.)
  • Protection of high-value targets (e.g., nuclear power stations, chemical plants, etc.)
  • Protection of economic security zones (resort areas, casinos, city centers, etc.)
  • Integrated solutions for border management security (including visa entry/exit, border crossing security, unmanned border surveillance and multi-agency border patrol dispatch, etc.)

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