In The Boardroom With...

Mr. Jim Hall
CEO
Security Media Corporation
www.SecurityTV.com

SecurityStockWatch.com: Thanks for joining us today, Jim. You've had an interesting background with the U.S. Coast Guard. Please give us an overview of your background, your management team and your advisory team at Security Media.

Jim Hall: Thanks for the opportunity to interview with SecurityStockWatch.com. As founder and CEO of Security Media, I gained my experience developing niche Internet properties during the inception of the .com era in 1996 as founder of DiversityNet. The memories are still fresh. I managed a team who transitioned DiversityNet's bulletin board service into what was then thought of as an interactive website. We submitted our business plan to compete for the coveted space in AOL's Greenhouse. The Greenhouse was the equivalent of an incubator space for budding websites. At the same time, we submitted our application and business plan to become a content partner as part of The Microsoft Network (MSN), again competing for limited niche space against the likes of the soaring BET channel. As I look back, I would not trade this experience.

Although we were recognized for providing innovative leadership in direct marketing, it was much too early to truly understand the power of the Internet. This same fact exists today.

Prior to founding Security Media in 2004, I spent 14 years in the security industry. My security experience spans from enlistment in the US Marine Corps (U.S.M.C.), and in later years, after honorably discharging from the U.S.M.C., I attended Seattle University where I earned a BA in Communications and returned to serve as an officer in the U.S. Coast Guard. These by land, by sea, environments led to my realization that after 911, the security industry warranted its own unique holding company. Our mission is to aggregate security information and make it available using convergent and collaborative technologies.

Security Media’s Advisory Team includes Brad Williamson and Johnny May, among others.

Brad Williamson

He was Managing Director of RSM McGladrey’s Northwest Risk Management Practice for three years. His practice at RSM McGladrey provided internal audit, regulatory compliance, Information Systems, credit review, and Sarbanes-Oxley consulting to banks, thrifts, and credit unions in Washington, Oregon, Idaho, Alaska, California, and Arizona. Prior to joining RSM McGladrey, Mr. Williamson was Senior Vice President of Deposit Operations for Phoenix Savings Bank for four years. In that role, he supervised deposit and financial activities, compliance, quality control, regulatory affairs and was Corporate Secretary. Prior to joining Phoenix Savings, Mr. Williamson worked for the State of Washington, Division of Banks for five years as the Program Manager for Examinations and as a Supervising Examiner. Prior to joining the State, he spent 7 years with the Federal Deposit Insurance Corporation as a Commissioned Bank Examiner. Brad is a graduate of the Pacific Coast Banking School and has been a frequent speaker at industry conferences and training sessions.

Johnny May, Identity Theft expert and Consultant

A widely respected and highly sought after security professional, is an independent security consultant and trainer who specializes in protecting individuals and organizations from identity theft. He is the author of Johnny May’s Guide to Preventing Identity Theft and the featured expert in the video production Identity Theft: How to Protect Your Credit, Your Money and Your Good Name.

Mr. May has lectured extensively on security and crime prevention topics and is regularly cited by the media as a leading authority. He has appeared on “NBC Nightly News” with Tom Brokaw, A&E Open Book, Comcast Newsmakers and scores of other television and radio shows. He has also been featured in publications such as Consumers Digest, “Entrepreneur” magazine, “The Robb Report” and numerous other publications.

A graduate of the University of Detroit-Mercy, Mr. May earned his B.S. in Criminal Justice and his M.S. in Security Administration. He is an adjunct professor at the University of Detroit-Mercy, Madonna University and Henry Ford Community College.

He has also been designated as a Certified Protection Professional (CPP) by ASIS International and is “Board Certified in Security Management”.

SecurityStockWatch.com: Security Media seems to be well positioned to take full advantage of the growing market for security media content. Please give us a brief company history.

Jim Hall: Security Media’s existence was forged in the aftermath of 911. This date has fundamentally changed the way people live, business is transacted, and how the rule of law is enforced. Its history and the continued developments in Afghanistan and Iraq, has forced the integration of security with the media, its branding, commerce and community.

The idea for the creation of Security Media was kindled while I served as a U.S. Coast Guard officer. I had the opportunity to experience varied and multiple assignments. The majority of those assignments performed were regulatory in nature and usually required specialized skills in all aspects of vessel safety, environmental compliance, inspections, operations and investigations of marine incidents. Not until I was stationed at Coast Guard Headquarters in Washington, D.C., did I have the fortune to explore assignments well off the beaten path. Those assignments included, a leading role in the initial development of the Coast Guard's WMD program, international security assessments to deter terrorism against passenger ships and passenger terminals in both, United Arab Emirates, Dubai and Kenya’s, Mombassa, Africa. After 911 occurred, the assignments became even more challenging although rewarding. The next task, however, was easily the most difficult academic challenge, writing the initial draft of the United States Port Facility Security Assessment (PFSA) proposal to the International Maritime Organization for submission to the United Nations. The assignment, in the wake of 911, far exceeded any I had previously undertaken. It involved the creation of a global security standard for conducting security assessments at ports. Its impact was enormous, and at that point, I knew the security industry warranted its own unique media presence. This foresight led to the purchase of several key domain names, at a time when the dot-com era was still in its infancy, nearly 5 years after I launched DiversityNet. In 2003, I decided to once again chase my entrepreneurial spirit, left the Coast Guard and moved forward with the concept as growth in the security market escalated.

SecurityStockWatch.com: How many viewers are there in distribution now and where do you expect to be one year out?

Jim Hall: Security Media’s subsidiary, The Security Television Network (SecurityTV.com), has completed a Beta Test of its initial presence on the Internet. During the Beta Test, our thoughts were confirmed that there is a growing interest in security content. With only a minimal static presence on the web and without any marketing, the SecurityTV.com site has received over 11,000 page views monthly. Additionally, SecurityTV.com has partnered with 6 vendors, 8 content providers, and 2 syndication partners: to include Discovery Channel (Education), the US Army and Career Builder. SecurityTV’s site is viewed monthly across the globe by users in the following countries: United States, United Kingdom, Russian Federation, China, Australia, Canada, New Zealand, Brazil, Japan, Republic of Korea, Vietnam, Turkey, Indonesia, Taiwan, Pakistan, Saudi Arabia, Netherlands, Sweden, Germany, France, Belgium, Austria, Ireland, Croatia, Italy, Egypt, and South Africa. With the strategic initiative we currently are arranging, we hope to have 100,000 page views monthly by December 2007.

SecurityStockWatch.com: Security Media has two holdings at the present time: The Security Television Network and the Security Radio Network. Let's cover the TV business first. One will read on www.SecurityTV.com that, "SecurityTV is the worlds first Television Network dedicated exclusively security." What is the goal of SecurityTV?

Jim Hall: Like Stuart Evey, the founder of ESPN, who was inspired by watching the O’brien Twins play basketball at Seattle University, my vision is similar. Yes, I want to see SecurityTV along side other major network programming like ESPN or CourtTV. Citizens are long overdue for compelling 24-hour SecurityTV news, entertainment, and educational crime prevention content. I believe this opportunity is within reach, and when we sign a carriage agreement we will make an announcement. The difference today, however, unlike when ESPN was first developed, is the Internet’s Media Delivery Infrastructure. My vision begins with this infrastructure and looks at security from a global audience perspective, delivering 100’s if not thousands of security channels.

In the interim, we’re taking the steps necessary to build a strong Internet Presence. Our operations initially began on Akimbo.com. The Akimbo service was one of the first successful IPTV launches here in the United States. It was built on the idea that you download television shows and specialty video (currently more than 13,000 programs are on offer) via a home broadband connection. The video is stored in Windows Media format, and once downloaded users can view selected programming at any time. The Akimbo subscription service lets users select shows and movies to be downloaded, and the unit's interface enables users to build a library of favorite videos.

While video sales among consumers are growing, demand for training videos, news, and film production of events is also a growth market. Understanding this need to securely deliver training video designed for law enforcement training, firefighters, and/or corrections officers, among others, is key to unlocking IPTV's compelling use case for security! It's so compelling a retired Saint Louis Police Academy Chief who now sells training videos said, "you build the box and I want nine (9) for the academy and local police stations." Well, I heard the message loud and clear, and we're extending our current service to accommodate this market in the first quarter of 2007 with our own Online IPTV Solution. I am very pleased to announce that Security Media has partnered with NeuLion Corporation to launch a 24/7 IPTV Live and On Demand Security Television Network. Ordering of the set-top box will be available through our website on SecurityTV.com. We will deliver high quality video to your home or business using your existing high-speed Internet connection. Our Set Top Box connects the Internet to your TV, delivering high-quality content that you can watch on your TV, just like you would with normal TV. Instead of being stuck in front of a PC, you can enjoy high quality broadcasts and video on demand right from your favorite TV.

SecurityStockWatch.com: What is Security 2.0 and how can security solutions companies use it in their marketing efforts to build sales? Do videos, blogs, and podcasts all play a part in Security 2.0?

Jim Hall: Security 2.0 can be defined as a post 911 effort to remove local, state, federal, and private information and technology silos; replaced by transparent information aggregation, analysis and the convergent birth of collaborative security technologies. This effort supports a climate of consumer trust although inevitable security breaches will occur.

An example of Security 2.0 is today’s expanded use of the surveillance cameras. For example, video feeds are looked upon as information and is analyzed today versus prior to September 11, 2001. In the past, security personnel would monitor one or multiple CCTV security cameras, while viewing multiple feeds, and tracking multiple moving objects. The convergence of software and video surveillance automates this process.

Today, software can monitor video much more effectively than any human can by proactively filtering simultaneous video feeds, while automating the process of object tracking. Additionally, software is now available to analyze the tracked objects and their behaviors. The behaviors are checked against a database, which can compare and match against inappropriate behaviors and triggering alerts. It’s now commonplace to see many examples where information silos are dismantled in favor of collaboration. At the same time, convergence of security technologies lends credence to the term Security 2.0, much like Web 2.0 defines second generation Internet collaboration services.

In December 2004, I coined the phrase Security 2.0, and first used the phrase in a Podcast on Security Media's subsidiary SecurityRadio.com, where I focused on collaborative technologies. Since that time, Security Media has filed for a trademark (USPTO, Serial No. 78925311) of the term Security 2.0. Security Media has launched a website (http://www.securitytwozero.com) focused on Security 2.0. The site provides the media tools necessary to collaborate in the Security 2.0 age. This is in keeping with Security Media’s mission, which is to aggregate security information and make it available using convergent and collaborative technologies. Videos, blogs, and podcasts all play a role in Security 2.0 because their functionality is derived from collaborative technologies.

SecurityStockWatch.com: Do you provide free video consultations to help companies become familiar with your programs?

Jim Hall: Security Media’s free opportunity analysis and brand-story consultations can assist CEO, CSO, CIO, IT Managers, Resellers, and Business Owners in understanding Security 2.0. Our success can only be achieved through understanding unique business requirements, while providing Security 2.0 education. Business faces two critical challenges: 1) To build a quality memorable brand, and 2) Support the brand with Demand. Security Media’s consultations have a laser like focus on these same challenges. Its video consultations provide innovative ways to deliver targeted messages and unique promotions. Click here to arrange for your FREE video consultation.

SecurityStockWatch.com: We understand that you have a strategic relationship with VitalStream. Without giving away any confidential or proprietary information....can you give us an overview of this relationship?

Jim Hall: VitalStream is a world leader in delivering audio and video streaming media to a global audience. Security Media became interested in Vitalstream as a delivery source for its own video programming. Their services combine innovative MediaConsole® management software with an award-winning content delivery network to streamline the process of broadcasting Macromedia® Flash™ Video and Microsoft® Windows Media® over the Internet. VitalStream serves a broad customer base including Fortune 500 corporations, movie studios, news broadcasters, music and radio companies, advertising agencies and educational institutions.

Security Media and Vitalstream have strategically partnered to sell Security 2.0 services to the security sector:

• Streaming Service for Flash Video to deliver an interactive video experience to audiences around the world.
• Streaming Service for Windows Media to securely deliver high-quality media to audiences around the world.
• Content Delivery Services to manage, deliver and track files and other content using our worldwide CDN.
• Professional Services for Full-service software development, design and video production.
• Authentication to safely deliver content with maximum control by allowing only authorized viewer’s access to media.
• Media Hosting, Delivery and storage for sites, databases and interactive applications using an award-winning network.

SecurityStockWatch.com: Let's turn to Security Radio. What are the capabilities of this business and how does it fit in with the Security 2.0 program?

Jim Hall: SecurityRadio.com is another top level domain...where I launched the first Security 2.0 Podcast in December 2OO4. The podcast is still available but the site is currently under development and we will be relaunching the site by mid 2007.

SecurityStockWatch.com: What type of programming can we expect to see on SecurityTV and Security Radio and other properties you maybe developing?

Jim Hall: Here is an example of our programming:

Larry Pages CES Keynote Larry rides out in the car that won the DARPA challenge and talks about Google.

We're in the process of taking orders for channels on the Security Television Network. Content providers and advertisers can join our network for secure digital distribution of their properties. If you have video assets send an e-mail to mail@securitytv.com and discuss your IPTV future with a Security Television Network Representative. It's an excellent time to have your own channel and show leadership in your sector. Join our network and become a partner! Our initial lineup of channels will include the following categories:

Online & IPTV Set-Top Box Channels

Security Conferences
Education
Bio-Defense
Environmental Security
Financial Security (Fraud Prevention)
Military Defense
Network Security
Physical Security
Law Enforcement
Homeland Security
Corrections
Custom Brand Channels (Government, Corporate, etc.)

Customer Profile

SecurityTV has nine primary customer categories: Local, State, & Federal agencies, IT & Other Security Professionals, Corporate Management, Small-Medium Size Business, The Channels (VARS, VADS, etc.), Security Enthusiasts & Influencers, Consumers, Law Enforcement, Corrections, and National Crime Prevention Organizations.

SecurityStockWatch.com: What resources are available on SecurityTV.com for end-users and consumers?

To see a current sample of our programming visit: http://my.akimbo.com/program.aspx?pid=8f5c9c632a52a248

Jim Hall: Our IPTV solution will debut with a 24-hour Live and On Demand service broadcasting with a combination of basic and Premium Channels. And that only begins to describe this breathtaking new service. It will have the capability to stream live video feeds straight to your desktop. If you get bored watching traditional news channels, you can switch to a live report from a security conference or watch an interview with a CSO or a Security Makeover of a Home or Business. The goal is to become the world leader in security video programming offering hundreds if not thousands of security channels. Yet, keep in mind, we're just beginning. Call us today at 253.942.3704 or send an e-mail to mail@securitytv.com.

SecurityStockWatch.com: Jim, many thanks for joining us today.