PowerPoint Presentation

Upstate Unleashed Vuzix 2016Paul TraversPresidentNASDAQ: VUZI

Cautionary Note Regarding Forward Looking StatementsCertain 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 herein include, but not limited to, statements concerning: 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 managements 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 Companys most recent annual report on Form 10-K and other documents that the Company has subsequently filed 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 BackgroundFounded in 1997 Leading supplier of wearable display technologyInitially focused on US defense markets (division sold in 2012)43 patents and 23 patents pending or in process45 total employees with 22 engineering staffRevolutionary wearable display products for enterprise and consumerMajor ShareholdersIntel Corporation 23.5%CEO & CFO 22%NASDAQ: VUZI3

Wearable Technology The Revolution is Just BeginningThe market opportunity is expected to be huge:The AR/VR market could hit $120B revenue by 2020, with AR taking the lions share at approximately $90 billion and VR at approximately $30 billion.

For AR in the form of Smart Glasses - Enterprise will Adopt FirstIndustry research predicts that enterprises will outpace consumer adoptionThe number of US workers that use smart glasses will grow from 400k in 2017 to 14.4M in 2025With Enterprises spending $30B+ on smart glasses hardwareThe reason: Good ROIs are being demonstrated in enterprise (productivity of hands free info access)Millions of field service, warehouse, maintenance, inspection, and other enterprise users can benefit from hands free smart glass solutionsUsers can benefit from all day wear-ability; lightweight and hands-freeNASDAQ: VUZI4

Vuzix M100 Smart Glasses Focused on Enterprise Hands-free wearable display, computing, and communications platformDigital see-through display with 1080p cameraEarbud & microphoneInertial sensors, compass & GPSVoice recognition, gesture recognitionWi-Fi & BluetoothBased on Android and now Running OS 2.0with iOS and Android compatibilityRuns thousands of Android appsThousands of M100s sold to enterprise customersNASDAQ: VUZI5

Enterprise Applications for Smart GlassesNASDAQ: VUZI6

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

Moving from Initial Trials to Rolling out ProgramsNASDAQ: VUZI7Examples in field service, warehousing, telemedicine, manufacturing QA and more.The bigger the partner the longer it takes

Vision picking enables hands-free order picking and greatly increases productivity25% improvement in efficiency over alternative picking methodsImproved picking accuracy Satisfied and engaged employees Reduced training time and language dependencyNASDAQ: VUZI8

LOGISTICS - DHL Warehouse Vision Picking

https://www.youtube.com/watch?v=I8vYrAUb0BQ

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DHL is now expanding with top branded partners around the world going live over the next 4 monthsSince announcing the expansion DHL has a large pile of customers wanting to deploy.

NASDAQ: VUZI10The tip of the Iceberg

Vuzix Partners are Some of the Largest Companies in the WorldIntel $25M investment, SAP for Enterprise, DHL, Airbus, Lee..NASDAQ: VUZI11

Tool ProvidersSystem IntegratorsCustomersVARs

Next Generation Enterprise Smart Glasses - M300M300 Non see thru using conventional prismBeing manufactured for us by new tier 1 partnerHighlights:Intel Inside: 4X the speed of current Smart GlassesRuggedized and designed for 24/7 operationHot swap batteries4X the image resolution of current Smart GlassesDual Band Radios 2.4 and 5 GHzSignificant reduction in power consumptionNewest version of Android 6.0Available with a full suite of mountsNASDAQ: VUZI12M300

M300 Mounting OptionsNASDAQ: VUZI13

CONSUMER: Vuzix iWear Video HeadphonesNASDAQ: VUZI14WINNER OF 4 CES 2015 AWARDSNext-gen video headphonesBeats-style headphones with a 125 hi-def video experienceMore powerful than mobile video/VR solutions without complex requirements (i.e. Oculus Rift)No need for custom content and 100% HDMI 3D compliantWorks with most HDMI source including:Consoles, smartphones, drones, Blu-ray, PC, and MacVR capable with tracking, audio, and microphoneHigh precision patent pending optics for gaming to work

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DronesMarketsDrones are being used in many diverse areas like boosting crop yields, verifying insurance claims, inspecting powerlines and assisting in future Hollywood blockbusters in a business thats due to boom by more than 6,000 percent by the end of the decade.The global market for commercial applications of drone technology, currently estimated at about $2 billion, will balloon to as much as $127 billion by 2020, consulting group PricewaterhouseCoopers LLP said in a report published in May of this year.Drone RacingThere are now more than 100K registered drone racers compared to only about 10K just a few short months ago. The clearest and biggest field of view I have ever seen in an FPV goggle, breathtaking Flying experience especially when flown with Connex HD FPV system""The Vuzix iWear is a game changer in drone racing. Combined with Amimon Connex's ProSight 720p HD camera and transmitter, the iWear erases the latency and IPD issues that many goggles experience. With 5-7 milliseconds of latency and crystal clear vision, iWear will make pilots faster, races quicker, and a more immersive experience for online viewers."

NASDAQ: VUZI15

Its a Good Start butNASDAQ: VUZI16Carl ZeissCinemizerSony HMZEpsonMoverioGoogleGlassKopinGolden-IOculusRift

Technological innovation focuses on functionality before formMass adoption, especially among consumers, will require both First commercially available cellphones lacked any aesthetic appealFor the Mass Market the technology needs to improve (disappear) First Cell PhoneConventional Optics for Video Viewers & GamingConventional Options for Smart Glasses

Vuzix Technology and IPWaveguides (patented) that allow true eyeglass form factorsRevolutionary way to move light and magnify1.4mm thin and shrinks display engine, so not bulky like conventional opticsSignificant improvements in weight, size, cost, and optical performancePurpose Built Waveguide Optics for Fashionable Smart GlassesNew Rochester manufacturing facility operational Spring 2016Proprietary nano-imprinting for low cost manufacturingThin HD optics with large FOVsScalable to mass market levelsPatented technology within our portfolio consists of 40 patents and 23 pendingNASDAQ: VUZI17

Conventional OpticsWaveguides

Smart Glasses AR 3000 for Enterprise and ConsumerNASDAQ: VUZI18Vuzix waveguide-based opticsFirst binocular fashion-wear smart glassesHands-free operation by voice and gesturingHigh resolution displays and 1080p cameraDesigned to support Augmented Reality applicationsTrue eyeglass styling to cross the chasm to the mass marketPlan to introduce in early 2017

Technology Evolves: Day in the Life of Cloud Connected You

http://sidv.co/author/sid/Images: Siddharth Vanchinathan

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So what could it be like wearing Cloud Connected Glasses?First of all your glasses could just be doing what they do now shade you from the sun or correct your vision theyre see-through.But they could be helping you get to where you are going or just help you find your way when you are lostHelp you to read signs in another language or put signs up to help you shop.Help you or others to keep track of your well being.Wide field of view doesnt mean distracting or blocking your viewIt means freedom to have small pieces of information placed anywhere in your line of sightOr replace real objects with ones more useful to you, like the translation of road signs examplePossibilities are limitless in the hands of creative content and applications developers

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Put together to create amazing experiences

Put together to create amazing experiences like Infinity ARs vision of the future

Vuzix HighlightsStrategic investment and partner with Intel Corporation (23.5% owner) Acknowledged as one the worlds leaders in Smart Glasses, and at the front-end of market opportunities in the billions of dollarsExtensive cornerstone IP and technology base in wearable displays and smart glassesEvolution to waveguides has started at Vuzix:Optics are critical and Vuzix believes that it has a leading position over even the largest playersStrong R&D plan and product roadmap to commercializenext generation technology for both Vuzix and potentialthird party OEMs and licenseesExperienced team with a clear vision of the importantrole that wearable displays will play in the futurePartnerships with leading technology companies NASDAQ: VUZI22

THANK YOUInvestor Relations:IRTH CommunicationsAndrew Haag866-976-4784vuzix@irthcommunications.comContact:Vuzix Corporation585-359-5000http://www.vuzix.com/