INVESTOR PRESENTATIONMay 24, 2012

VIEW YOUR WORLD™

This presentation contains certain statements that may be deemed “forward‐looking statements”.Forward‐looking statements are statements that are not historical facts and are generally, but notalways, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”,“projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”,“could” or “should” occur. Forward‐looking statements in this presentation relate to the Company’scontinued growth and financial strength and future investment opportunities. The forward‐lookinginformation reflects predictions and possibilities and does not in any way reflect a guarantee. Factorswhich could cause actual results to differ materially from current projections include, among otherthings: competitive conditions in which the Company participates; changes in consumer spending;general economic conditions and normal business uncertainty; customer preferences towardsproduct offerings; the occurrence of a pandemic or other catastrophic event which could createshortages of labour, products or services required to operate the business profitably; fluctuations inforeign currency exchange rates; changes in the Company’s relationships with its suppliers. TheCompany cautions that this is not an exhaustive list of factors that may affect the forward‐lookinginformation contained in this presentation. Potential investors and readers are urged to give carefulconsideration to all of these factors in evaluating any forward‐looking information and are cautionednot to place undue reliance on such information. The Company disclaims any obligation to updateforward‐looking information, except as may be required by law. This Investor Presentation is forinformational purposes only and does not constitute an offer to sell or the solicitation of an offer tobuy any securities.

CAUTIONARY STATEMENT ON FORWARD‐LOOKING INFORMATION AND PRO FORMA FINANCIAL STATEMENTS 

CAUTIONARY STATEMENT ON FORWARD‐LOOKING INFORMATION AND PRO FORMA FINANCIAL STATEMENTS 

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CAPITAL MARKET PROFILECAPITAL MARKET PROFILE

Exchange and Ticker Info: TSX Venture: LOXShares Outstanding*: 44,812,778Shares Fully diluted: 46,267,778Stock Price (May 24, 2012): C$0.9052 Week High / Low: C$0.95/C$0.40Market Capitalization (May 24, 2012): C$41.6 MMarch 2012 Trailing 12 Months Revenues: US$72.6 MMarch 2012 Trailing 12 Months EBITDA: $7.7MInside Ownership %: 52%Institutional Ownership %: 12%

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* Shares Outstanding include: 36,052,788 Common Shares and 8,759,990 Convertible Preferred Shares.

ABOUT LOREXABOUT LOREX

LOREX Technology Inc. is a globalleader in the Video Security MarketSpace, pioneering “do it yourself”(DIY) advanced video securityproducts for consumer applicationsand cost effective scalable solutionsfor professional applications .

The Company provides consumersand businesses with leading edgevideo surveillance security solutions.These products are marketed underthe LOREX brand for Consumers /Small Businesses and under theDIGIMERGE brand for the Business /Professional Market.

Responsible people at home or workcan find the peace of mind, cost‐savings and confidence that LOREXvideo monitoring systems provide,ensuring that valued property,possessions and loved ones areproperly and constantly watched overevery day, all day and from anywhere.

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LOREX PRODUCT LINESLOREX PRODUCT LINES

Do‐It‐Yourself (DIY ‐ or Installed by a pro) Video Surveillance Solutions

Plug & Play WirelessMonitoring Solutions

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The product lines together reflect the breadth of solutions and videosecurity expertise characterized by the LOREX brand identity.

LOREX offers two lines of products that are differentiated by the target end user and how 

the products are installed.

HOME, FAMILY & BABY VIDEO MONITORSCrystal clear audio and video with wireless connectivity

SIMPLE VIDEO SECURITYMultiple security camera solutions designed in a simple way for the regular consumerEasy to install providing complete remote access via the internet

CONNECTED VIDEO SECURITYOffers the latest advancements in wireless video surveillance with simple easy to use camera systemsPlugged into Skype™ for simple remote monitoring

LOREX PRODUCT LINESLOREX PRODUCT LINES

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DIGITAL VIDEO RECORDING (DVR) BUNDLESCutting edge technology with advanced security features such as motion recording, real time recording, and high definition videoUniversally compatible with all wired and wireless security camerasAccess live streaming video via smart‐phones or computers

COMPONENT OR INTEGRATEDThe innovative Touch security DVR systems are the first commercial video surveillance recording systems with a touch‐enabled user interfaceTouch screen LCD monitor controls security system with finger tip

ANALOG OR IPIP cameras include network, wireless network and high tech wireless PTZ cameras

LOREX PRODUCT LINESLOREX PRODUCT LINES

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DIGIMERGE PRODUCT LINESDIGIMERGE PRODUCT LINES

DIGIMERGE serves the needs of professional installers andsystem integrators in the rapidly expanding security andsurveillance industry.

DIGIMERGE offers a family of products focused on mobile /remote connectivity with market leading features at valuepricing.

DIGIMERGE CCTV products set the security industrystandard for price, performance, quality and customerservice.

DIGIMERGE provides full solutions for small to medium sizecommercial and industrial applications. The products arescalable to meet the needs of larger applications and arealso designed to be readily integrated into existing securitysystems.

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DIGIMERGE PRODUCT LINESDIGIMERGE PRODUCT LINES

Leading Edge Products Include: Analogue, IP and HD Cameras

Digital Video

Network Video 

HD Recorders 

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UNIQUE SYNERGIESUNIQUE SYNERGIES

Offering professional grade products, simplified for Consumers (DIGIMERGE  LOREX) 

Providing ease of use solutions from the Consumer market to Businesses and Professionals  (LOREX  DIGIMERGE)

Economies of Scale – leveraging large production in the main‐stream channel to benefit the professional channel

Synergies

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TECHNOLOGY  DIFFERENTIATIONTECHNOLOGY  DIFFERENTIATION

We have Ability to Sustain Price Points by Providing LeadingTechnology and Innovative Solutions

1st to Market Advantage Product  Categories  – 1st with All‐In‐One integrated LCD DVRSolutions  – 1st DVR with a Touch Screen OperationCompatibility  ‐ 1st to Offer Mac  CompatibilityConnectivity  ‐ 1st to Offer Blackberry ConnectivityEase of installation – 1st  to offer Auto Port Forwarding Wizard

Create Demand in the Consumer Market by Designing Innovative Solutionsthat Utilize Latest Technology, Form‐Factor and Utility

Digital Wireless with Recording CapabilitiesTouch OperationCameras with Infra Red FiltersEdge DVR ConceptMulti‐Function Operation

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Global leader of DIY Security Through Leading Technology  that is 1st to Market :  Winners of 6 ‐ Consumer Electronics Show (CES) Innovation Awards

Multifunction Integrated DVR  (DVR ‐ picture frame – component ‐ PC monitor)  CES Innovation Award for L20WD “Video Component” 2009

DVR Edge concept – micro form factor, VESA, Flex IR, HDMI output CES Innovation Award for EDGE DVR “Video Component” 2009

Digital Wireless 7” LCD, 2 cam, SD‐DVR recording                                                                 CES Innovations Award for LW2700 “Integrated Home” 2010

Super connected Link  DVR  – Mobile viewing iPhone, Black Berry + Mac and PC                                       CES Innovation Award  for LINK DVR “Video Component”   2010

Internet Live Connect video Gateway, iPhone, Android, PC, Mac compatible CES Innovations Award for Live Connect “Integrated Home” 2011

Skype Internet video monitoring Live Connect 2, mobile and PC/Mac applications                                    CES Innovations Award for Live Connect 2 “Health and Wellness” 2012

TECHNOLOGY INNOVATIONTECHNOLOGY INNOVATION

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New Arrivals For 2012Edge 2 DVRs with touch screen, 1080p HDMI video, full mobile, PC and Mac apps CE design Eco 2 / Eco 3 DVRs real time recorders, HDMI output, APF, full mobile, PC and Mac apps LiveView video baby monitor LW2220 Real time wireless D1 (FHSS) CCTV camera  and receiver for DVRLive Sense PT wireless pan tilt  camera and baby monitor 

TECHNOLOGY INNOVATIONTECHNOLOGY INNOVATION

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And More In Development……….

Vigilant and Responsible Homeowners

Vacation and Second‐Home Owners

Business Owners

Multiple Property Owners

New Parents

Pet Owners

Caregivers

Installers

Grandparents, Friends, Relatives, Gift‐givers

Nature Lovers, Hunters, Gardeners and Curious Consumers

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END USERSEND USERS

We Sell  LOREX Consumer Brand Products....through 3,500 Retail locations across North America such as:

Via the internet through affiliate reseller web portals such as: Costco.com, Amazon.com, BestBuy.com and Walmart.com

and our Lorex e‐commerce estore www.lorextechnology.com

HOW WE SELLHOW WE SELL

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HOW WE SELLHOW WE SELL

We Sell Our DIGIMERGE Professional Products ......

through a multi‐point channel strategy; security distribution, IT distribution and direct to dealer/integrator and Fortune 500 end users

utilizing an international sales and stocking distributor network across the USA, Canada, Mexico, Central America and the Caribbean

this network includes Wholesalers, System Integrators and Value Added Retailers  such as: ADI, Tri‐Ed, Eastern Distributing and Systems Distributors... and other Partners

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CURRENT MARKET TRENDS RETAILCURRENT MARKET TRENDS RETAIL

According to ISM Research…..

Market size in North America for LOREX DIY Consumer product line was US $300 Million in 2010 and is forecast to grow at an annual rate (CAGR) of 10.8% to $500M by 2015

Analogue video surveillance  = 70%  (Cameras, DVRs, etc)Ave Annual Growth 8.9%

Network video surveillance =  12% (NVRs, IP Cameras, etc)Ave Annual Growth 20.8%

Accessories, Covert Cameras = 18% (Fake Cameras, Cables, etc)Ave Annual Growth 10.8%

The Increasing Need for Security, Connectivity and Affordable Technology Costs are Driving the DIY 

Video Surveillance Market

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OUR POSITION IN THE RETAIL DIY MARKETOUR POSITION IN THE RETAIL DIY MARKET

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In 2010 LOREX was the MARKET LEADER with approximately 16%* market share.  In 2011, LOREX North American sales grew 37% compared to prior year – significantly ahead of the industry trend.

Other Active Participants:

* Based on 2010 ISM Research Data

CURRENT  MARKET TRENDS PROFESSIONALCURRENT  MARKET TRENDS PROFESSIONAL

CCTV Market size for DIGIMERGE Professional Product Line was Approximately US $600 Million in 2011 in North America *

This segment of the market is expected to grow 10% in 2012; and 12% in 2013 *

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* These are estimates based on 2008 ISM Market Research Data

DIGIMERGE POSITION IN PROFESSIONAL MARKETDIGIMERGE POSITION IN PROFESSIONAL MARKET

We Grow Market Share Because:

Product Simplicity and High Service Level Leading to Reoccurring Sales from Dealers and Integrators 

Ease of Use and Technology Innovation Allows DIGIMERGE to Capture Increased Market share

Strong Relationships at the Corporate Level of our Distributors

Highly Trained Sales Professionals  Recognized by  Distributors Dealers and Integrators

DIGIMERGE Sales in 2011 Estimated to Represent Approximately 1.5%* of the Professional CCTV Market  in North America.  DIGIMERGE North American Growth in 2011 was 17%  =  Above Average Growth Trend 

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*Estimated based on 2008 ISM Research Data

HOW WE CONTINUE GROWTHHOW WE CONTINUE GROWTH

Continue to Lead in Technology  Innovation

Introduction of New Products & Evolution of Existing Products at Consistent Price Points

Retailer Expansion (both Bricks & Mortar and Ecommerce)

Geographic Expansion

Increased Internal E‐Store Sales

Expansion of Professional  DIGIMERGE Products Distribution

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OUTSOURCED MANUFACTURINGOUTSOURCED MANUFACTURING

We utilize a simple low cost outsourced  manufacturing model

Redundancy of suppliers ensures competitiveness and reliability

Strong supplier base manufacturing to the design requirements of LOREX

ISO certified manufacturing partners with high quality standards

Model enables flexible and timely response to demand changes

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FINANCIAL OVERVIEWFINANCIAL OVERVIEWSelect Balance Sheet Info

Expressed in Thousands USD (000’s) As of Mar 312012

As of Sep 302011

Assets

Cash $2,372 $995

Accounts Receivable $8,249 $10,632

Inventory * $14,918 $17,153

Total Assets $29,914 $33,203

Liabilities

Bank Debt / Working Capital Revolver $0 $4,168

Accounts payable and accrued liabilities $11,144 $13,614

Total Liabilities $11,828 $18,023

Shareholders' Equity $18,086 $15,180

* Inventory level is in anticipation of sales forecasted; financed by improved working capital. 

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FINANCIAL OVERVIEWFINANCIAL OVERVIEW

2012 Q2 and Trailing 12 Months P & L  HighlightsExpressed in Thousands USD (000’s)

Three Months EndedMarch 31

Twelve Months EndedMarch 31

2012 2011 2010 2012 2011 2010

Revenue $16,976 $11,336  $9,342 $72,558 $54,507 $44,435

EBITDA $1,358 $358 $223 $7,651 $5,798 $1,926

Earnings Before Income Taxes $1,254 $244 $61 $7,137 $5,371 $699

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Strong top and bottom line growth over the last three years.  See full Financials for complete analysis. 

FINANCIAL OVERVIEWFINANCIAL OVERVIEWRevenues and Earnings Trending HigherGross Profit Margin Consistent Year over Year – (2009, 2010, 2011)(2012* Revenues are Projected at $75M)

*

Sustained Profitability with 14 Consecutive Quarters of Positive EBITDA

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2009 2010 2011 2012

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Years

Revenue

Gross Profit

EBITDA

MANAGEMENTMANAGEMENT

Lorex Technologies Inc. is led by an exceptional management team that has over 225 years ofcombined experience in consumer products and the security industry. This experience includesthe ownership, operations and sale of Sonigem Products, a business with over $150M in revenueat time of sale by Reuben Klein, Lorex’s CEO. It also includes executive and senior levelleadership by Lorex’s management team in finance, sales, marketing, operations, logistics,manufacturing, R&D and e‐commerce with leading organizations including Sony, Panasonic, G.E.Security, Samsung, Sanyo, Acer, Magnasonic, Obus Forme and other leading companies.

Lorex’s senior management team includes:Reuben Klein, Chairman and CEOChris Atwood, Vice President Operations – Lorex CorporationEric Miller, Chief Financial OfficerGodfrey D’Cruz, Senior Vice President Operations and LogisticsGilad Epstein, Vice President Product Management & MarketingJoel Kligman, Vice President Marketing & Corporate Development – DigimergeMartin Worndl, Senior Vice President ‐ Product DevelopmentSufi Khan Sulaiman, Director of Ecommerce and Digital ServicesSteven Gold, President, Lorex CorporationWayne Hurd, Executive Vice President of Sales & Marketing – Digimerge

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INVESTMENT THESISINVESTMENT THESISMarket Leader in DIY Consumer and Professional Advanced Video Security Products

Proven First Mover in Technology Innovation and New Product Introductions

Revenue Trend Outpacing the Industry while Delivering Strong Earnings to Shareholders with 14 Consecutive Quarters of Positive EBITDA

Engaging and Attacking Tech‐Savvy Consumer and Professional Market – Combined Markets are Experiencing Double Digit Growth that is Expected to Reach over a Billion Dollars by 2015

Capitalizing on LOREX Premium Brand Image in the Retail / Consumer Space

Expanding Market Share in the Professional Market

Growth Business currently Trading at Low Valuation and P/E  

Minimal Capital Expenditures Required

Only Pure Play Public Company Investment  Opportunity in this Space

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