Corporate Presentation

September 2015

Paul TraversPresident

NASDAQ: VUZI

Cautionary Note Regarding Forward Looking Statements

Certain statements included in this presentation may be considered forward-looking. All statements in this presentation that are not historical

facts are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual

results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not

be taken as guarantees of future performance or results. We may use words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “could,”

“seeks,” “estimates,” and variations of such words and similar expressions in identifying forward-looking statements. The forward-looking

statements include statements concerning: our possible or assumed future results of operations; our possible or assumed future results of

operations; our business strategies; our ability to attract and retain customers; our ability to sell additional products and services to customers; our

cash needs and financing plans; our competitive position; our industry environment; our potential growth opportunities; expected technological

advances by us or by third parties and our ability to leverage them; the effects of future regulation; and the effects of competition. These statements

are based on our management’s beliefs and assumptions and on information currently available to our management. It is important to note that

forward-looking statements are not guarantees of future performance, and that our actual results could differ materially from those set forth in any

forward-looking statements. Due to risks and uncertainties, actual events may differ materially from current expectations. For a more in depth

discussion of these and other factors that could cause actual results to differ from those contained in forward-looking statements, see the

discussions under the heading "Risk Factors" in the Company’s annual report on Form 10-K filed by Vuzix Corporation and other documents the

Company’s files from time to time with the SEC. Vuzix disclaims any intention or obligation to update or revise any forward-looking statements,

whether as a result of new information, future events or otherwise, except as required by law.

NASDAQ: VUZI2

Vuzix Background

● Founded 1997

- Worldwide operations

● Leading supplier of Wearable display technology

- Initial focus US Defense markets

● Cornerstone IP and Patent Portfolio

- 41 patents and 10 patents pending

● Employees

- 45 total with 22 engineering staff

● Award-winning Technology and Design

- Immersive Viewing, Virtual and Augmented Reality, Smart Glasses

● Revolutionary Wearable Display Products for Enterprise and Consumer

- Smart Glasses for Mobility and Video headphones

● Major Shareholders

- Intel Corporation – 24%

- Management – CEO & CFO – 22%

NASDAQ: VUZI3

Wearable Technology – The Revolution is Just Beginning

The market opportunity will be huge:

● ABI Research forecasts the wearable computing device market will grow to 485 million annual device shipments by 2018

● More than 75 million of these will be wearable display or Smart Glasses, market >$15 billion

Enterprise to adopt First

● Enterprise market for wearables to surpass consumer market, predicts Deloitte’s Consulting

● Good ROIs can be demonstrated in enterprise (productivity of hands free and information access)

● There are millions of field service, warehouse, maintenance and other enterprise users that will benefit from hands free smart glass solutions

● For Vuzix: Higher gross margins, and less competition

● More open Blue Oceans by not focusing on consumer withmonocular products

NASDAQ: VUZI4

Vuzix M100 Smart Glasses Features – Focused on Enterprise

● Hands-free wearable display, computing & communications platform

● Digital see-through display with 1080p camera

● Earbud & microphone

● Inertial sensors, compass & GPS

● Voice recognition, gesture recognition

● WiFi & Bluetooth

● Safety and prescription glasses mountable

● Based on Android and now Running OS 2.0with iOS and Android compatibility

● Runs thousands of Android apps

● Vuzix App store launched in Dec. 2014

NASDAQ: VUZI5

Vuzix M100 Smart Glasses Multiple Mounting Options

● Support for safety and prescription

● In partnerships with:

- Rochester Optical & Eyeglass World - USA

- UVEX Germany

- Sanko JapanPrescription Safety RO

Safety UVEXPrescription SankoPrescription RO

Enterprise Applications for Smart Glasses and Augmented Reality

NASDAQ: VUZI7

Real Time, Hands Free, Info on Tap, Image/Video Capture, Scan Code Reading and More…

Vuzix Partners are Some of the Largest Companies in the World

● Intel $25M investment, Lenovo China distribution, SAP for Enterprise

NASDAQ: VUZI8

A Growing List of Industry Leading Customers & Partners

Beginning the Move from Initial Trials to Rolling out Programs

NASDAQ: VUZI9

● Examples in field service, warehousing, Telemedicine, manufacturing QA and more….

● The bigger the partner the longer it takes

DHL & RICOH With Ubimax - Introduce Vision Picking

● Vision picking enables hands free order picking and greatly increases productivity.

● 24,000 parts picked with 25% improvement in efficiency over previous picking methods

● “This is just the first step in our innovation journey as we believe augmented reality will become relevant for even more supply chain areas“, says Jan-Willem De Jong, Business Unit Director Technology, DHL Supply Chain Benelux

NASDAQ: VUZI10

Airbus and Accenture Introduce Smart Glasses for Final Assembly

● The glasses enable precise positioning — down to the millimeter — during the cabin installation marking process, when operators designate the exact location where seats and cabin furnishings should be affixed inside the aircraft

● Time spent per aircraft on marking operations is divided by six

● Error rate reduced to zero

● “Even newcomers, after a short training session, can now be entrusted with this activity” said Benoit Rollin, head of manufacturing engineering for A330 cabin furnishing.

NASDAQ: VUZI12

HP MyRoom and Visual Remote Guidance (VRG)

● The power of HP MyRoom collaboration using VRG includes:

- Live chat

- Virtual face-to-face meetings

- Your own online rooms.

● Boosts productivity and cost-efficiency with live, visually guided collaboration.

● Dramatically cut repair time and operating costs

NASDAQ: VUZI13

Next Generation Enterprise Smart Glasses - M3 Series

● M300 – Non see thru using conventional prism

● M3000 – See thru using Vuzix waveguide

● Highlights over existing M100

- Intel Inside 4X the speed of current Smart Glasses

- Ruggedized and designed for 24/7 operation

- Hot swap batteries

- 4X the resolution of current Smart Glasses and larger screen image

- Dual Band Radios 2.4 and 5 Gig

- Significant reduction in power consumption

- Latest Android OS compatibility with enterprise ready security

● Both for commercial release in first half of 2016

NASDAQ: VUZI14

M300

M3000

15 OTCQB:VUZI

BUT Smart Glasses are just getting started

Mass

Market

Function and Form - Smart Glasses Need to Improvement

NASDAQ: VUZI16

Carl ZeissCinemizer

Sony HMZ

EpsonMoverio

GoogleGlass

KopinGolden-I

OculusRift

● One of the most frequent questions I get: When will Vuzix finally hire a fashion ID firm?Well, its not quite that easy

● Conventional refractive and reflective optics simply have limits

● Ultimately a true eyeglass form is needed to gain general consumer acceptance of smart glasses.First Cell Phone

Conventional Optics for Video Viewers & Gaming

Conventional Options for Smart Glasses

Vuzix Technology and IP - SOLVES THE PROBLEM

Waveguides (patented) that allow true eyeglass form factors

● Revolutionary way to move light and magnify

● 1.4mm thin so not bulky like conventional optics

● Provides significant improvements in mass, costs and optical performances.

Purpose Built Waveguide Optics for Fashionable Smart Glasses

● New Rochester stage II manufacturing facility operational Fall 2015

● Proprietary Nano-Imprinting for Low Cost Manufacturing

● HD very thin optics with large FOVs

● Easily scalable to mass market levels

NASDAQ: VUZI17

Conventional Optics

Waveguides

Smart Glasses – B Series for Enterprise and Consumer

NASDAQ: VUZI18

● Will deliver on the promise that Google Glass tried to provide

● Vuzix Waveguide based optics

● First binocular fashion-wear smart glasses

● Hands-free operation by voice and gesturing

● Hi resolution displays and 1080p camera

● Designed to support Augmented Reality applications

● True eyeglass styling to “cross the chasm” to the mass market

● Coming to market in 2016

Technology Evolves: Day in the Life of Cloud Connected You…

http://sidv.co/author/sid/

Images: Siddharth Vanchinathan

Vuzix IWear 720 Video Headphones

NASDAQ: VUZI20

WINNER OF 4 CES 2015 AWARDS

● Next gen video head phones

- Think Beats headphone with a 125” hi def. video experience

● HDMI 3D and streaming WiFi ready

● Designed for PCs, consoles, smartphones

● 720P - highest resolution with largest FOV at 55+ degrees (front row of theater)

● AR & VR application capable with tracking, audio, microphone, camera

● High precision patent pending optics for gaming to work

● Fully immersive video or VR experience

● Available now for pre-order – ships fall 2015

New Facility

● We have recently broke ground on a new facility in Rochester.

● Corporate offices, R&D as well as production for ALL the waveguides to be used in the various products that are to be based on this technology.

● Approximately 4-times the size of our existing facility. The move will enable us to operate more efficiently and improve the accuracy and volume of waveguide manufacturing.

● Speed-up the new development process to support the substantial interest we are seeing from existing relationships and potential new partners.

NASDAQ: VUZI21

Intel

● January we announced at $24.8 million investment into Vuzix form Intel Corporation at $5 a share.

● Intel and Vuzix have been working together on both Vuzix and Intel new projects.

● Including Vuzix’ new M3xxx series Smart Glasses

NASDAQ: VUZI22

M3000M300

Marketing & Sale Team Growth

● Brad Craig - Director Developer Relations

- Directly support the commercial launch of Vuzix’ Virtual Reality (VR) compatible iWear Video Headphones, and Vuzix Augmented Reality (AR) Fashion based Smart Glasses.

- Brad has over 25 years of hands-on experience in developing and enabling the supporting content ecosystems

- Key contributor at companies, such as Compaq, AMD, ATI, Future Publishing, Ingram Micro and Electronic Arts, to name a few

● Lance Anderson - VP Enterprise Sales

- Responsible for Enterprise sales, marketing, and business development, focused on expanding the global enterprise market for the Vuzix line of AR smart glasses.

- Over 15 years in the Supply Chain and Logistics space

- Extensive sales and management experience in complex technical/software environments for Fortune 500 clients worldwide.

NASDAQ: VUZI23

Balance Sheet

NASDAQ: VUZI24

(Condensed in $000s) Jun 30, 2015 (Unaudited)

Dec 31, 2014

ASSETS

Cash and Marketable Securities $ 20,048 $ 85

Accounts Receivable 84 383

Inventory, Vendor Deposits & Prepaids 2,467 1,491

Current Assets 22,599 1,959

Net Fixed Asset & Intangibles 1,735 1,741

TOTAL ASSETS 24,334 3,700

Current Liabilities 1,594 3,386

Long-term Debt 1,203 1,179

Derivative Liability – Long-term 169 13,541

Total Liabilities 2,966 18,097

Share Capital 73,023 29,763

(Deficit) -51,655 -44,161

Stockholder’s Equity (Deficit) 21,368 -14,398

Total Liabilities & Stockholders’ Equity $ 24,334 $ 3,700

Interim Financial Data – 6 Months Ended June 30th

NASDAQ: VUZI25

(Unaudited and Condensed in $000s)6 Mths Jun 30,

2015 6 Mths Jun 30,

2014

Total Sales $ 1,237 $ 1,522

Cost of Sales 1,023 913

Gross Margin 214 609

Operating Expenses - Cash 3,360 2,288

Operating Loss - Cash -3,146 -1,679

Stock Based Compensation & Services -2,548 -39

Depreciation and Amortization -138 -201

Interest, Discount Amortization and Other -634 -154

Gain (Loss) on Derivative Valuation -1,027 3,824

Net Income (Loss) $ (7,493) $ 1,751

Basic EPS (Loss) – after Preferred Dividends ($0.56) $0.17

Capitalization Table

NASDAQ: VUZI26

SecurityAverage

Exercise PriceAs of June 30,

2015

Common Shares - Outstanding Currently – 16,001,434

Preferred Stock - Series A Convertible (Intel) $5.00 4,962,600

Convertible Debt (excludes accrued interest) $2.25 845,556

Warrants - Outstanding $2.40 575,329

Options - Outstanding $4.76 899,551

Fully Diluted 23,284,470

Recent Industry and Corporate Activity

● Facebook buys Oculus Rift for $2.3 billion (March 2014)

- Only selling dev kits at the time

● Google/Qualcomm invests $542 million for 20% of Magic Leap Inc.(October 2014)

- No products for sale yet

● Microsoft buys patents from ODG for $150 million

● Intel Corporate invests $24.8 million for 30% of Vuzix Corporation (January 2015)

- Vuzix Smart Glasses becoming a standard in Enterprise markets

- Many deployments in process and partnerships with Tier 1 players

- iWear being launched in Fall 2015

- M300 and M3000 being launched in 1st half of 2016

- Waveguides moving into production products in early 2016

NASDAQ: VUZI27

Vuzix in 2015/16

● Expecting continued growth with the M100 as an Enterprise solution with pilots moving to wider adoption (10s to 100s and then to 1,000s)

● Expanding developer base and continued launch of new applications

● Strengthen and expand partnerships to bring Smart Glasses across markets

● Release HD iWear 720 products for mobile entertainment and gaming

● Move to new larger facility with 5x cleanroom space for volume manufacturing

● Introducing next generation M3 series Enterprise Smart Glasses

● Commercialization of waveguides for enterprise and then consumer markets

● Targeting strong revenue growth in fourth quarter of 2015 and into 2016 with customer rollouts and new product introductions

● Release/Demonstrate see-through waveguide based binocular Smart Glasses CES 2016

NASDAQ: VUZI28

Vuzix Investment Highlights

● Industry leader Intel Corporation (24% owner)

● Acknowledged as one the world leaders in Smart Glasses, and at the front end of market opportunities in the billions of dollars

● Extensive cornerstone IP and technology base in wearable displays and smart glasses

● Strong R&D plan and product roadmap to commercialize itsnext generation technology for both Vuzix and potentialthird party OEMs and licensees

● Experienced team with a clear vision of the importantrole that wearable displays will play in the future

● Partnerships with leading technology companies

● Multiple waveguide based smart glasses being released in 1st half 2016

NASDAQ: VUZI29

THANK YOUInvestor Relations:IRTH CommunicationsAndrew Haag866-976-4784vuzi@irthcommunications.com

Contact:Vuzix Corporation585-359-5000http://www.vuzix.com/