PropertyRoom.com Police Auctions Online Company Overview

26421 Crown Valley Pkwy, Ste 200 Mission Viejo, CA 92691 +1.800.799.2440

Who We Are ¾ PropertyRoom.com was founded in 1999 by former law enforcement to facilitate the auction of lost, seized, stolen and surplus inventory for law enforcement and other public agencies. ¾ We combine expertise in law enforcement procedure, inventory tracking, warehouse logistics, marketing & customer service to provide a more effective property disposition and auction system to police departments. ¾ Since our launch we have grown to a base of 900,000+ registered users, over 1 million visitors per month and 500,000+ auctions annually. Our unique story is regularly featured in national and regional media “as THE best bargain online.”

Geographic Reach 6 PropertyRoom.com Locations in the US with 1,500+ Clients Warehouse

Seattle Helena

Portland Bend PD

Keene, NH PD Fargo PD W St Paul Appleton

Pocatello Rock Springs SFPD

Schaumburg Cedar Rapids Lincoln PD

Sacramento

Las Vegas

Provo PD

Henderson LAPD & LACS Warehouse OC Sherriff HQ’s SDPD Tempe

Colorado Springs

Albuquerque

PropertyRoom.com

Lansing

Hartford Warehouse Allentown PSA NYPD Perth Amboy, NJ Toledo

Baltimore Client Services Kansas City County Lexington Independence, MO Tulsa Bradley County, TN Oklahoma Chattanooga Winston-Salem City Little Rock Macon` Montgomery Sumter Plano PD Savannah Natchez Houston PD

Agency Partners

Indianapolis St. Louis

Portland Mass SP

Rochester

Warehouse Orlando

Jefferson Parish, LA Tampa

Broward County Miami Beach

What We Do 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Supply manifests and bar codes Pick-up at agency location or auction “In-Place” with our large item auction program for vehicles, boats, commercial equipment, etc. Unload: physically and electronically receive into warehouse, unless sold in-place. Group/Ungroup Test Research, Estimate and/or Appraise valuables Manage listings, market the website and auction 24 x 7 Process payments via credit card, or for high dollar items, cashier’s check and wire transfer, as required Ship within two business days of payment settlement or arrange for pick-up of in-place item Provide secure online reports for chain-of-custody visibility Offer telephone support for clients & shoppers

How it Works – Step by Step Step 1: Free pick-up from your property room or auction "In-Place" with our large item auction program

Step 2: Bar Code Items for complete audit trail from pick-up to sale

Final Step:

Step 3:

Mail monthly check to your department

Inspect, clean, sort and digitally photograph

Step 7:

Step 4:

Full customer and client service and support

Group/ungroup to properly merchandise items We do not sell “miscellaneous lots”

Step 6: Process payment then pick, pack and ship to winner

Step 5: Post auction on PropertyRoom.com

Key Benefits

¾ Free-up space in property rooms and other storage ¾ Reduce storage, labor costs and sweat equity ¾ Maintain chain-of-custody with online audit trail ¾ Increase bidders, bids and yields ¾ Monetize assets into monthly cash payments

Old-Fashioned Auction vs. PropertyRoom.com Issue

Old Police Auction

PropertyRoom.com

Frequency

2 - 4 auctions per year

365 auction days per year, 24 x 7

Bidder Accessibility to Auction

Limited: depends on work, monetary, physical circumstances

93% US workers: high speed internet 80% of home internet: high speed The physically disabled bid on PR.com

Bidder Count

Less than 200 bidders

Over 850,000 registered bidder base 30,000 visitors per day

Visibility

Limited item traceability Manual record keeping Blind trust for weeks or months

Documented Chain of Custody Electronic manifest and reporting 24/7 online visibility from pickup to auction close to agency payment

Merchandise Mgmt

Items sold “as-is, where is”

Item research, testing, descriptions, retail estimates and appraisals

Large Item Auction Advantage Service Provided through PropertyRoom.com

Silver

Gold

Platinum

1

Large-item in-place auctions: cars, trucks, boats, planes, etc.

9

9

2

Checklist review and coordination with Client

9

9

9

3

Listing write-up, auction launch management and marketing

9

9

9

4

Proprietary auction technology management

9

9

9

5

Customer support to bidders

9

9

6

Coordination of Winning Bidder payment and vehicle pick-up

9

9

7

Transaction (i.e., payment) processing

9

9

8

Off-premises auction of vehicles: pick-up and haul-away

9

9

Photographing, vehicle review, equipment description

9

Fee Structures Client share of Winning Bid PropertyRoom.com share of Winning Bid Transaction Processing Costs PropertyRoom.com Buyer’s Premium

100%

95%

70%

0%

5%

30%

Pro-rata*

Pro-rata*

**

15%

15%

0%

PropertyRoom.com In The News PropertyRoom.com is a unique concept and because of that we are regularly featured in the media, some examples below:

¾

King5, Seattle, WA (NBC) – Evening Magazine, click here http://www.king5.com/video/eveningmagazine-index.html?nvid=139905

¾

WPLG, Miami, FL (ABC), click here http://www.local10.com/news/17132990/detail.html#video

¾

KTVU-TV - Oakland, CA (Fox), click here http://www.ktvu.com/video/17725655/index.html

¾

WCCO - Minneapolis, MN (CBS), click here http://wcco.com/local/property.room.website.2.881250.html

¾

KPIX-TV aka CBS 5 - San Francisco, CA (CBS), click here http://cbs5.com/consumer/propertyroom.stolen.goods.2.879266.html

¾

WCVB Channel 5 (ABC) Boston, MA, click here http://www.thebostonchannel.com/asseenon5/18416375/detail.html

No comparable data for ‘06

References “PropertyRoom.com is the perfect solution for all police and sheriff departments currently experiencing problems in their property rooms. Departments looking to reduce costs, increase revenue and obtain assistance with storage, logistics, audit and disposal in their property rooms should contact Property Room Inc.” - Daryl F. Gates - former Chief of Police, Los Angeles Police Department “I feel that PropertyRoom.com offers a high level of integrity and an understanding of documentation and standards that police agencies must maintain. These factors have contributed to the development of an exceptional relationship between PropertyRoom.com and my agency” - Kelly Donnelly – Evidence Technician Mercer Island Police Department, WA [email protected] (206) 236-3500 x595 “When our Department did auctions in-house all of the labor and time was at our expense. Based on the labor expense we continually lost money on the auctions. With PropertyRoom.com our property can be picked-up monthly with no expense. Our cost savings and revenue accrued is far greater than we ever expected. Everything PropertyRoom.com says they will do they do, as an added bonus they are very professional and a pleasure to work with” - Detective Jim Greenwood River Forest, IL 708-366-7125

“We are ecstatic about our relationship with PropertyRoom.com… including their staff, their responsiveness and their results.” - Doug Storm – Assistant Sheriff Orange County Sheriff’s Dept Santa Ana, CA “It’s really a winning solution for us… we save money in personnel and warehousing costs and now we can allow more people to bid on our equipment. With our past fixed day, fixed place auction, 99% of the people didn’t know about it… PropertyRoom.com reaches people nationwide with each item appraised separately…” - Tom Buckley – Lieutenant San Francisco Police Department (415) 553-1378

Additional References Available

No comparable data for ‘06

PropertyRoom.com

Since 1999, PropertyRoom.com has been the #1 online auction service specializing in Public Agencies, Law Enforcement, States, Counties and Municipalities. PropertyRoom.com works with over 1,500 agencies nationwide and growing. Each year we auction more than 500,000 items online.

26421 Crown Valley Parkway Suite 200 Mission Viejo, Ca 92691

About

Large Item Auction Program

PropertyRoom.com has joined forces with Copart, a leading online remarketer of vehicles and large equipment, selling more than 1.2 million vehicles per year with buyers in more than 85 countries worldwide. Copart manages a network of more than 146 facilities in the United States, Canada and the United Kingdom. Powerful Partnership: Industry Leaders Join Forces to Provide a Full Service Solution Proven Technology: Secure, Fast and Reliable Auction Technology Superior Support: Top-Notch Client and Customer Support Teams There Every Step of the Way Locations: Over 146 Facilities to Service Your Needs

Traffic: See How We Blow the Competition Away Monthly Visits* 2.3 Million

PropertyRoom.com & Copart.com PublicSurplus.com

299,569

Bid4Assets.com

233,400

Lonestar Auctioneers Auctions International

159,801 93,565

*Source: Compete.com - December 2008

CONTACT US New Clients: [email protected] 1-800-799-2440 Existing Clients: [email protected] 1-866-799-3551

From Full-Service to ZERO Cost We Have a Program for You

Full Service Auction Program with Volume Pricing PropertyRoom.com and Copart, both leaders in vehicle auctions have joined forces to create a full-service online auction solution that reaches thousands more bidders than on-site live auctions and gives your auctions simultaneous online national and international visibility. Platinum service includes towing, title transfer along with PropertyRoom.com’s innovative auction marketing program giving you a complete package for your auction needs with built in volume pricing that saves you time and money. Services Provided Through PropertyRoom.com and Copart: • Large-item auctions: cars, trucks, large equipment, boats, planes, etc. • Checklist review and coordination with client • Listing write-up, auction launch management and marketing • Proprietary auction technology management • Customer support to bidders • Coordination of winning bidder payment and vehicle pick-up • Transaction (i.e., payment) processing Off-premises auction of vehicles: pick-up and haul-away Photography, vehicle review, equipment description Live vehicle inspection Fee Structure*:

Annual Volume >50 vehicles >25 vehicles