Investor Update - Feb 2014

© Redline Communications Inc. 2014. All rights reserved.

1| 1 |rdlcom.com

March 2014

Redline CommunicationsRob Williams, CEO

http://www.rdlcom.com/


2| 2 |rdlcom.comForward-Looking Statements

From time to time Redline makes written and oral statements that constitute forward-looking information within the meaning of applicable securities laws (“forward- looking statements”). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Business, or developments in Redline’s industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include all disclosure regarding possible events, conditions or results of operations that are based on assumptions about future economic conditions and courses of action. Forward- looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. Redline cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made.

These statements may include, but are not limited to, comments about: our objectives and priorities for the future, our strategies, expectations for our financial condition, the outlook for our operations, and external factors that may impact results, including global economies and industry trends. Forward-looking statements are based on management’s current plans, estimates, projections, beliefs and opinions, and Redline does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. We caution that this list is not exhaustive of all possible factors. Other factors could adversely affect our results. For more information, please see the discussion on the principal risks that could affect our results, which is included in our most recent MD&A and in our latest annual information form, available on SEDAR at www. sedar.com. The assumptions behind our outlook are also discussed in our public filings.



3| 3 |rdlcom.com

Powerful wide-area wireless networks for mission-critical applications+ Enables Machine-to-Machine (M2M), voice, data, and video communications

over wide areas, in remote locations+ Oilfields, Military Operations, Critical Infrastructure Monitoring+ Redline engineers, plans, manufactures, delivers and supports

Redline



4| 4 |rdlcom.com

Publicly traded on Toronto Stock Exchange - RDL 115 employees in 15 countries, offices in Canada, USA, Europe and

Middle East Large and diversified customer base with 90% of revenue from outside

Canada to customers in 70 countries $32M in revenues in 2013, approximately 40% from Energy sector

Redline



5| 5 |rdlcom.com

Oil and Gas requires reliable, secure, high speed networks in some of the toughest places on the planetRedline has a unique differentiated solution for this market

Key Market – Oil and Gas



6| 6 |rdlcom.com

Oilfield Challenges Large geography lightly populated with

people and machines, harsh environment Very expensive operations Complex communications needs: M2M,

access to internet and corporate systems,video for collaboration and surveillance for safety

Typically no wireless carriers except satellite, fiber is very expensive, other terrestrial wireless systems fail to deliver



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8| 8 |rdlcom.com

Rugged, Reliable and Secure WirelessLowest meantime between failure, widest temperature rangeHighly secure, FIPS 140-2 certified, approved for Military use



9| 9 |rdlcom.com

Mobile Drilling Rig

Battery Tank RTU - Remote Terminal UnitPLC - Programmable Logic Controller

Emergency Response

Work VehicleCWE - Collaborative Work Environment

Process Domain

Video Monitoring

To HQCentral Control RoomSCADA Systems

SMART OILFIELD Well Pad

Field Office

Well Head AutomationMobile Field ConnectivityOperational Video Surveillance

Micro Seismic ApplicationsAsset Tracking via RF-IDEnergy ManagementCollaborative Working Env.Smart Drilling

SCADA Wi-Fi

The Digital Oil Field is enabled by Redline Wireless



10| 10 |rdlcom.com

Governments, military, service provider sales done through VAR channel, Energy sales are largely direct with installs done with local partners

Strategic partners such as Cisco, Honeywell, ABB and Systems Integrators help drive business

Revenue comes from:+ product sales + functionality upgrades via software+ professional services+ recurring support revenue

Redline Business Model



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MILITARY:

PUBLIC SAFETY AND WELL-BEING:

TELECOM SERVICE PROVIDERS:

ENERGY :

Customers

Lynda Partner

we have stellar customers in all our verticals - here is a chacne to touch on other markets we sell into, talk about what they all have in common with energy - need for powerufl, reliable, secure, versatile networks



12| 12 |rdlcom.com2013 Highlights – Financial

Warrant Exercise contributes $13.4M

$10M Bought Deal Financing

Restructuring cuts $10M in annual costs

Jan Dec



13| 13 |rdlcom.com2013 Highlights – Financial & Operational




Jan

Redline wins BSI Quality Award

CEO takes medical leave, Rob Williams Acting CEO

Redline CEO Resigns

Redline achieves perfect ISO audit

Rob Williams appointed permanent CEO

Dec



14| 14 |rdlcom.com2013 Highlights – Financial, Operational & Sales




Jan

Redline wins BSI Quality Award

CEO takes medical leave, Rob Williams Acting CEO

Redline CEO Resigns

Redline achieves perfect ISO audit

Rob Williams appointed permanent CEO

First Oil and Gas Customer in South America

New SCADA product for Oil & Gas Market

“Super Major” Customer Win

4 new Oil and Gas Sales people hired for a total of 10

Dec



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Revenues and Gross Margin

2011 2012 20130.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

52%

54%

56%

58%

60%

62%

BWI Revenue WiMAX Revenue Gross Margin %$M

Core product revenues maintained as older technology is ended

Gross Margins strong and growing



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Energy Sector Momentum

Redline has networks in 27 oil fields with 16 Oil & Gas customers in various stages of deployment

Pilot Projects allow new customers to try Redline in their field(s)

Most fields have the potential to deliver $2-$4M in revenue over several years

2010 2011 2012 20130

5

10

15

20

25

30

0

2

4

6

8

10

Energy Bookings $M Energy Backlog $M # Pilots at year End$M

# Pi

lot I

nsta

llatio

ns



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2013 Financial Highlights Top Line

+ $32 million revenue+ $37 million new order bookings + $17M order backlog

Margin and Bottom Line+ 61% gross margin+ $5.5 million Adjusted EBITDA loss

Cash+ C$10.6 million financing

completed+ $13.5 million cash (net of debt)



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2014 - the year of sales execution+ Capitalize on unique solution with Oil and Gas “Land Grab”

Strengthen partnerships Maximize new pilots and convert existing pilots

+ Work towards Positive EBITDA Protect revenue stream from non Oil and Gas markets Maintain margins Realize the benefits of Q4-2013 restructuring

+ Develop new products and services for Oil and Gas+ Maintain and enhance high quality Brand

Looking Forward


Technology

Investor Update - Feb 2014