EF Johnson Technologies

Our Business :

: Overview

At EF Johnson Technologies, Inc, we design, develop, market and support private wireless communications, including wireless radios, wireless communications infrastructure and systems, and secured communications encryption technologies for analog wireless radios. We provide our products and services to homeland security, defense, public safety and public service and international markets. We leverage our software and engineering expertise in radio frequency, or RF, applications to provide first responders such as police, fire and other emergency personnel secure, highly reliable wireless radios and systems. The adoption of new digital products and systems is being accelerated by the FCC mandate for narrowband efficiency as well as the need for interoperable communications and information systems related to homeland security. Customers for our products and systems include federal, state and local governmental entities, domestic commercial users, and international entities.

EFJ, Inc. Acquires 3e Technologies International 3eTI is a technology company that offers security solutions for wireless platforms such as WiFi, mesh networking and Bluetooth. 3eTI also develops and sells secure wireless infrastructure that meet Federal Information Processing Standards, FIPS 140-2 validated 802.11i-compliant wireless networking standards. 3eTI was founded in 1995 and currently has 95 employees located in U.S. and Taiwan. 3eTI also provides security solutions for wireless sensor networks, radio frequency identification (RFID), wireless video surveillance, and location-based context-aware solutions based on its wireless application middleware.

*Private Wireless Communications* Through our subsidiary, EFJohnson, we design, develop, market and support wireless mobile radios and wireless communication infrastructure and systems. Our wireless radio offerings are primarily digital solutions designed to operate in both analog and newer digital wireless radio system environments. Our products and systems are based on industry standards utilizing Voice-Over-Internet-Protocol, or VoIP, technology and are designed to enhance interoperability among systems, improve bandwidth efficiency, and integrate voice and data communications. We sell private wireless communication products and systems primarily to domestic entities, such as the Departments of Defense and Homeland Security, as well as state and local governmental agencies.	Secured Communications Through our subsidiary, Transcrypt, we design, develop, market and support secured communications encryption technologies for analog wireless radios. Our secured communications segment leverages our leading market position to gain new customers in parts of the world where wireless radio systems remain analog, security needs are high, and the cost to upgrade to digital secured communication system is prohibitive. Our secured communication products are sold as aftermarket add-on components or embedded components for existing analog radios and systems. Terrorist threats, political unrest and military conflicts drive the need for more secured communications. We are developing other solutions, such as our digital encryption product for analog wireless radios, to obtain higher levels of security and that allows for compatibility with our analog encryption product line. We sell secured communication products primarily internationally, specifically to entities in developing countries.

We also have significant license rights that allow us to sell products that work in the largest proprietary analog public safety radio network base as well as in networks that will utilize the next generation of public safety technology. There is a large installed base of analog wireless radios, infrastructure and proprietary systems that are used for private and secured wireless communications primarily by government agencies and users. When the terrorist acts occurred on September 11, 2001, many first responders, such as police and fire, were unable to communicate with each other due to incompatible wireless communication systems, severely hampering the coordination of emergency and rescue efforts. The US Government is committed to improving homeland security by providing first responders with secure and interoperable communications. Government agencies are now mandating secure and interoperable compliant digital wireless communication systems to replace the existing analog systems. Federal government and state governmental agencies have made appropriations for such future systems a high priority. According to IMS Research, approximately $7.0 billion would be spent in the five year period from 2004 through 2008 on upgrading analog systems to new digital radios and systems.

Strategy The following key elements of our strategy will allow us to continue to grow our business as a leading provider of private wireless and secured communications technologies. Continue our Digital Product Development Demand is growing significantly as the industry transitions from analog to digital and public safety and public service users increasingly utilize Project 25 products and solutions. Project 25 is the standard for interoperable digital two-way wireless communications products and systems and was developed under state, local and federal government guidance and Telecommunications Industry Association, or TIA, governance. We plan to capitalize on this demand growth by continuing to develop Project 25 compliant feature enhancements and additions to our digital radios and systems. In addition, our secured communications business will continue to enhance our recently launched technology that provides digital encryption for analog radios. The commercialization of this product will enable us to penetrate original equipment manufacturers of radios. Offer Scalable System Solutions Based on Voice over Internet Protocol, or VoIP, Technology We believe that the architecture of our communications network has positioned us to address the private wireless systems market. Our VoIP systems are cost-effective for a full range of system deployments and offer expandability, making it easy to add new features and capabilities. Our VoIP solution provides for migration from analog to digital systems as well as to future Project 25 system enhancements. Pursue Strategic Acquisitions We intend to pursue strategic acquisitions that will further strengthen our competitive position and drive revenue and profitability growth. We seek to make acquisitions that expand our product portfolio, build on our existing system capabilities, or give us a presence in complementary markets. Our strategy is to accelerate our ability to provide more complete and valuable solutions to our customers. Actively Participate in Driving Industry Standards We intend to continue to be a leader in setting the public communications standards, which are critical to the markets we address. Our active participation in the Association of Public Safety Communications Officials International, Inc., or APCO, development activities, allows us to contribute to the development of better solutions for the market, to build recognition of our technical competence in the industry and among our customers, to gain insight into market trends, and to secure positions for our intellectual property within the technology standards EFJ was incorporated in Delaware in 1996. Our principal executive offices are located at 1440 Corporate Drive, Irving, Texas 75038. Our phone number is (972) 819-0700 and our website is www.efji.com.

© 1999-2008 • EF Johnson Technologies, Inc. • 1440 Corporate Drive • Irving, TX 75038 Phone: 972.819.0700 • webmaster@efji.com