TECHNOLOGy THAT WORKS

FOR yOU, NOT THE OTHER

WAy AROUND.

2013/2014 CORPORATE PROFILE

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. It’s just part of our DNA. We’re

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. It’s about how that technology

gets used—how the hardware and software work

together seamlessly to do exactly what you need it to do.

That’s 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 you—our clients and prospects? Here are some thoughts:

• We 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.

• We 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, we’ve 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:

• AVI reported increases in stockholders’ equity and working capital of 26.03% and 62.55% respectively.

• The full year impact of last year’s acquisitions and office/employee expansion were realized as sales and EBITA were up 46.05% and 43.97% respectively for the year.

• Next year revenue and earnings forecasts have been achieved in six of the last seven years. The level of projected earnings in this year’s forecast is about 20% higher than last year’s forecast.

• The 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.

We’re 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.

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 high-

end 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.

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

UNPARALLELED PRODUCTS & SERVICESTELEPRESENCE SYSTEMS

We’ve been integrating complex telepresence systems since the technology existed—with 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 doesn’t. 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 isn’t worth it, if it can’t be used.

HIGH DEFINITION BROADCAST & PRODUCTION SYSTEMS

Today’s high-definition video and multi-media content requires professional-grade technological

solutions. With our roots in the television and broadcast industry—plus our years of experience

working with network and in-house broadcast and production teams—we 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 it’s 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

We’re 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.

That’s why we offer industry leading training programs, service plans and support options.

A PROVEN PROCESSPHASE 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.

PHASE TWO: 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 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 EXPERTSThe 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 you’ll understand why.

CERTIFICATION QUALIFICATIONS/INDUSTRY CERT./MANUFACTURER CERT.

Diamond AVSP InfoComm’s AVSP System Integrator recognition program – highest level

CTS Certified Technology Specialist – General (over 50% of our employees carry this certification)

CTS-D Certified Technology Specialist – Design

CTS-I Certified Technology Specialist – Installation

CET Certified Electronics Technician

IT RCDD, MCSE, MCP, MCITP, CCNA, CCNP, CCNP Voice, CompTIA A+, CompTIA Network+

Professional BS-EET / BS-PS / EE / EIT / PE / CAPM / PMP

Control Systems AMX ACE / Crestron Master / Xantech / Extron

VTC Systems Cisco / Polycom / LifeSize / Vidyo

Audio DSP Peavey / BSS / Biamp / Gentner / Crown

AVID ASCR

CAD AutoCAD / VidCAD / Revit

Sound Modeling EASE / TEF / JBL / Syn-Aud-Con / NICET LEVEL II AUDIO

Other CSGM PROGRAMMING / PROCARE 6000 / Sencore / First Class FCC License

PARTNERING WITH THE WORLD’S FINEST MANUFACTURERSBy 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

PARTNER DESIGNATION

Cisco Authorized Technology Provider (ATP) – TelePresence Video Master Partner Small Business Specialization, Authorized Digital Media Specialist Partner

Polycom Channel Partner Certification Platinum Level, CSP Certified Service Partner, Federal

Creston Electronics Platinum Partner Level

AMX Platinum Partner

SMART Technologies Technical Solutions Provider, Gold Tier I Education and Enterprise

Extron Electronics Engineered Systems Reseller (ESR) Platinum / Platinum (PL / PL)

Hitachi American LTD Select Partner

Sonic Foundry Certified Partner (highest level)

Biamp Systems Select Certified Audio Integrator / Partner Countries Only Reward Partner

Da-Lite Screen Co. VIP

Christie Digital Platinum Partner

LifeSize Communications Expert Partner

Chief (Milestone AV) Elite Partner

Sony Product Production Reseller Systems Integrator / Reseller

Vidyo Premier Partner

Avid Elite Reseller, ACSR Certifications – Elite, Editing, Storage, Unity, Isis, Windows / Mac

Broadcast Pix Elite+ Reseller

Chyron US Systems Integrator / Dealer

Evertz US Systems Integrator

Ikegami Select Dealer

Miranda Select Dealer

Tektronix Authorized Video Distributor

GLOBAL PRO SUPPORT:WE’VE GOT yOUR BACK

We believe in helping our customers get the most out

of their technology. That’s why we don’t 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 don’t 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

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.

PROUDLy EMPLOyEE

OWNED

Jeff Stoebner CEO

FINANCIALSAVI 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, there’s a significant amount of liquidity in our working capital

assets, and the metrics we use to manage and measure how well we’re 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 Company’s 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 BorthChief Financial Officer

AVI SySTEMS, INC.CONSOLIDATED BALANCE SHEETS MARCH 31, 2013 AND 2012

Assets 2013 2012Current Assets

Cash $ 14,238,252 $ 3,734,903Certificates of Deposit – 3,614,060Accounts Receivable 21,098,357 21,754,923Costs & Estimated Earnings in Excess of Billing 931,762 842,765Inventories 1,260,325 1,019,152Prepaid Expenses 387,128 253,571 37,915,824 31,219,374

Other AssetsSecurity Deposits 224,983 158,410Certificates of Deposit 504,520 –Intangible Assets, Net 4,120,431 4,285,045 4,849,934 4,443,455

Property & Equipment, Net 2,496,665 2,008,360

$ 45,262,423 $ 37,671,189

Liabilities And Stockholders’ Equity Current Liabilities

Current Maturities On Long-Term Debt $ – $ 690,979Accounts Payable 6,533,574 6,944,607Billings In Excess Of Costs & Estimated Earnings 230,935 271,993Accrued Expenses 6,014,534 5,580,642Unearned Maintenance Contract Revenue 4,236,610 3,657,644 17,015,653 17,145,865

Long-Term Portion of Unearned System Support Revenue 1,972,313 495,063

EquityCommon Stock 386 386Additional Paid In Capital 2,034,342 2,034,342Retained Earnings 36,729,599 30,485,403 38,764,327 32,520,131Less: Treasury Stock (12,489,870) (12,489,870)Total Equity 26,274,457 20,030,261

$ 45,262,423 $ 37,671,189

KEY FINANCIAL METRICS MARCH 31, 2013 AND 2012Liquidity 2013 2012

Working Capital In Dollars $ 20,900,171 $ 14,073,509Current Ratio 2.2 to 1.0 1.8 to 1.0Accounts Receivable In Days 55 Days 58 DaysAccounts Payable In Days 25 Days 27 DaysInventory Turnover 75 Times 77 Times

Capital Structure Debt to Tangible Net Worth 0.9 to 1.0 1.1 to 1.0Debt to Equity 0.7 to 1.0 0.9 to 1.0

Pre-Approved Bonding Capacity Single Job $ 5,000,000 $ 5,000,000Aggregate $ 15,000,000 $ 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.

– BRETT T. IOWA HEALTH SySTEM

VIDEO CONFERENCING

CONFERENCE ROOMS

BROADCAST AND PRODUCTION

HOUSES OF WORSHIP

CLASSROOMS / DISTANCE LEARNING

AUDITORIUMS

COMMAND CENTERS

TRAINING ROOMS

BOARD ROOMS

avisystems.com

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

CORPORATE DIGITAL SIGNAGE

avisystems.com

OMAHA,NEBRASKA

TD AmeritradeUNMCBlue Cross Blue ShieldChildren’s Hospital

SIOUX FALLS,SOUTH DAKOTA

Avera HealthSanford HealthRaven IndustriesSioux Falls School DistrictSouth Dakota National GuardState of South Dakota

ST LOUIS,MISSOURI

Nestle-Purina Pet CareWashington UniversitySt. Luke’s HospitalForesight EnergyMaryville University

SAN DIEGO,CALIFORNIA

AT&TSandia National LabsNBC UniversalAbbott VascularGeneral AtomicsBAE Systems

FARGO,NORTH DAKOTA

Dakota Medical FoundationMicrosoft CorporationNDSUDoosan/BobcatSanford Health

DES MOINES,IOWA

REGIowa Health SystemsEmerson Process ManagementIowa Communications

NetworkWellmark, Inc.Iowa Lakes Community

College

GRAND RAPIDS,MICHIGAN

Hillsdale CollegeMichigan State UniversityPerrigoUniversity of MichiganSpectrum HealthWestern Michigan University

DETROIT,MICHIGAN

Tennaco AutomotivePalace Sports – Detroit

PistonsDuffey, Petrosky & CompanyMI Association of Public

School AcademiesCBS RadioAT&T

MINNEAPOLIS,MINNESOTA

3M CompanyCargillHennepin CountyMedtronicAllina Health

KANSAS CITY,KANSAS

University of Kansas HospitalNetSmart TechnologiesFreightQuote.comCernerSt. Luke’s Health SystemsBRR Architects

MADISON,WISCONSIN

University of Wisconsin Madison

QNI BroadcastingAmerican Family

InsuranceUW HospitalSub-Zero

MILWAUKEE,WISCONSIN

CaterpillarMarquette UniversitySC JohnsonKohlsJohnson Controls

BISMARCK,NORTH DAKOTA

North Dakota Supreme CourtBismarck Public SchoolsWorkforce Safety and

InsuranceNorth Dakota Heritage CenterState of North Dakota

CHICAGO,ILLINOIS

MercerAllstateUnited AirlinesSearsChicago BearsElmhurst College

CINCINNATI,OHIO

Wendy’s CompanyHamilton County Regional

Operations CenterCincinnati State Technical

and Community CollegeBaptist Healthcare SystemsGE Aviation

DENVER,COLORADO

Xcel EnergyFaegre Baker Daniels LLPBrocade CommunicationsHusch Blackwell

AVI LOCATIONS & PARTIAL CLIENT LIST