PRC Government Entity Now Controlling Shareholder of Infinova / March Networks

* *** ********** ****** is *** *** *********** shareholder ** ** ******** manufacturer ******** ** **** as *** ******-***** ********** March ********, **** *** confirmed.

**** *************, * *** ******-************* company, *** *** **** ultimate *********** *********** ** Hikvision. **** ***** ** a **** ** ************* scrutiny **** *** ********** video ************ *** ** Chinese *********** **** ** firms.

******** **** **** **** "Infinova ** *** ********** by *** *** **********", stressing **** *** ** effect ** ***** ** operations ** ************ - the ******* ************ ********** March ******** *** **** video ************ **** *****.

***** ********'* *** *** government ***** **** ** will **** ***** ****** China, ** ***** * risk ** ***** ********' major ** ******* ********* to ****** ** ************ products **** **** *** government *********.

** **** ********* ******, we ******* **** **** and *** ******* ******, including:

• ******** **********
• ***** *** ******** ********
• *********
• *** ********
• ******** ********
• ******** ******** ********
• ***** ******* ******** ********
• ********* *** ***** ***********
• ***** ****
• ***** ******** ********
• *** ***** ** *** Government *********

[***************]

Infinova **********

******** ***** ** *** Shenzhen ***** ******** ** 2011,******* * ******* (*** video ************ *********) $*** million *** ***** *** valued **** ** ~$*.* billion. *******, *** *******'* valuation *** ********* ** the **** ******, ******* the ********* ** *** PRC ***** ************ ******:

***** ********'* ******** **** grown *************, *********** **** about $** ******* ** 2009 ** ***** $*** million ** ****, **** growth *** ******* ****** on ************ ** ******** firms (***** ******** ** ****,***** ** ****) ****** **** ********'* own ************ ********. ******** even********* ******* ******* ********* company **************** ****, *** **** sector ******* ******** $*** million ** ***** **** year *.*. ****** **** of ********'* ****** *******, according ** ********'* **** annual******.

Profitability *********

***** **** ******** ******** has ******** ** ******* growth *** ********, ** has *** ********* *************. Infinova's ********* *********** **** that **** **** ** the ***** ***** ******** of ****, ******** **** about $*.** ******* ** sales *** * *** loss **-$*.** ******* ** that ****.

**** ****** ** ******** to ********** ***** ************ manufacturers **** ********* *** Dahua, *** ****$*.** **********$*** ********* ******* ** **** respectively (******** ** $** million *** ******** **** year). ******** *** ********* to **** * ******** in *** *** ********** surveillance ****** **** ***** firms ***** **, ****** been "******** ** ** American *******" ** ***** as**** ********** **** ****.

Founder ******* *** ** ****** *********** ***********

** * ******** ******** stock ********************, ******** ****** **** a ******* ************** ********** *********** "****** *** *********** shareholder ** *** *******" with ********* *** ****** rights **** **.**% ** Infinova's *****.

**** ******** ***** *** bought *% ** ******** for ***** $** ******* (343 ******* ***) **** a ***** ******* ********** by ******** *** *** founder ******* *** ********* ******** ***. (*** ******* ***** substantial ******** *****, ***** it ***** ****** ** 2018.) *** ******** *** also **** ** ****** rights **** **** ** its *****, ****** *** the *********** ***********.

SIH ***** ** ***** - **** ** *********

***** * ***** ********** entity ***** ** ******* businesses ** ******** *** the *********** "******* *** Area". ** ********* *** ******** ********* SASAC ** *****-***** ****** Supervision *** ************** ********** of *** ***** *******.

************* ** *******,******* *** ******* *** economic ****** **** ******** China's ********* *****-***** ********** sector. *********'* *********** ***********, CETHIK, ****** ***** ***** ** SASAC.

Official ********* *** ****

********* ************** ******** **** *** would **** ******** ** a ****** ** ****, such ** ********* ********** and ********** ********:

** * *********** *********** of *** ****** ******* [Infinova], ******** ********** ******** will *** *** ********** toconnect *** ****** ******* **** ***'* *****-***** ****** ****** *** *** ******** ***** ** *** ****** ******* (********* ***** ****, ***** ****, ***** ****, ******* *********, ********, ***.) ** ****** *** ****** ******* ** ********** ******** ********; it will use the resource advantages of Shenzhen Investment Holdings and its subsidiaries to assist the target company in developing relevant business; the advantages of investment and [SIH] funds and financial resources to assist the target company to expand *** **** ****** **** *** ****** ******* ******* **** ***** ********* ************, *********** ********** *** ****** ** ********* *** ******** ********* *****. [emphasis added]

******** **** ** * detailed ********, ******* **** Infinova ** "*** ********** by *** *** **********" because:

*** *********** ** ******** is *** *****. ** is ***, ** ********** holding ******* ***** ******* is ** ******* ***** development ** ******** ** investing ** ***** ***********. SIH ** ***** ** Shenzhen **** ********* **********. By *** ** *******, SIH ** ******* ** a ********* **** ** the ***, ***** *** operated ** * ************. One ***** *** ******** a ********* **** ** be ***** ** ********** by *** ******* **********.

*** ** * ********-****** investment ******, *** *** intention **** ******** ** financial ********** ****. ** being ********** ** * “controlling ***********,” *** ** able ** **** ** Infinova’s ********** **** *** overall *******. **** ** important ** ***’* ********* ***** ** an ********** ******* *******, even ****** ** ***** holds ***** ****** **** the ******** ****** ** Dr. *** *** ***.

*** ** * *********** second ** *** ******** US ******** ********** ** Dr. *** (*.*. **. Liu *** ***). *** became *** ********** ** Infinova ******* *** ********* from ********** *** ****** rights ********** **** **** of *** ******, ******* to ******* **********.

******** *** ************ ** managing *** ********* *** business. ** ************ ****** in *** ****** ********** in *** **** *** cited, ** **** ************ is ********, **** *** voting ****** ** *** abstained ****** **** ** restored, *** **** **** controller ******, *** *** combined ** ******** **** regain *******.

** *****, ******** ** not ********** ** *** PRC **********.

******** ******** ******* ****:

• ***’* ********** ** ******** is ****** *********.
• ********’* ********** ** ***** Networks ** **** *********.
• ******* *** (* ** citizen *** ********) ** the ***** ******* ******* of ******** *** ** in ****** ** ********’* business ******* *****.
• ***** ** ** *********** or ******** ** **********, products, *** ********** ******* March ******** *** ********’* companies ** *****. ***** Networks *** ******** ** a ********, ********** ******** independent ** *** ********* from *** *** **** continue ** ** **. The ********* ** *****’* business ********* ** *** affected ** **** ******.

******** **** ********* ****** from ***** ************ ********:

****** **** **** ** recent *****, ********’* ******** in ***** ************ ** China *** ********** ** a ********** ***** ** terms ** ********’* ******* and **** **** ** in ***** ** ****** share ** *****. ******** in ***** ** *** a ******* ********* *** information ******* *********** *******.

Analogy **********

******** **** **** **** SIH ** *** ***** by ***** *** ** the ***** **********, ******* to * ********* **** in *** ***. *******, SIH ** **** ** the ******** *****, ***** has ******** ** *** ******* on *** *******.************, ********'* ********** ***** the **** **** ****** the ***, *** *** is * ******* ***** by * ****** ********* party **** ******** *** levels ** **********.

**** ***** *****-***** ******** - **** ***** **** - **** **** ***** loyalty/obedience ** *** ********* Party, *** **** **;*** *** *** *** Party ************** ********* ******* *** Party *** *** ********* role ****** *** *******, for *******:

• ******* ** *** "********** ***** ************ *** ****** ******* of ********* ****** *** development", ******* **** "*** new ****** ** ********* decision-making"
• ******* * "******* ******** *****" ** "** ***** and ********* *** ********* speech ** ******* ********* Xi"
• ******* ** "***** *******" ** *** ****** of *** **** **** protests ** ******* "*** security ********* ****** ********" and ****** ********* ** "always ** ********" ******* "external ******* ******"
• *** *** ***************** *** **** ********** *** ******* ********* Party ***** ****** ********* to "****** ** ********* thinking **** ******* *************** in *** *** *** of ** *******"

Focus ** "******* *** ****" *******

** ** **** ***** that *** **** ******** that ***** *** *** government's *****, ***** ******* the **** ** ***** up *** ********* *** "******* *** ****" ****** ******** - a *********** ** **** ********** in **** ******* ***'* **** ****** ties ** *** ******* mainland.

** *** ******** ******************, ******** **** ** would *********** **** *** on ******* *** **** projects:

** *** ******, *** Company [********] *** *** will ********** ************* ** the *********** ** ***** Industrial *****,the *********** ** *** *********-**** ****-***** ******* *** ****, and will work closely with other portfolio companies of SIH and SASAC regarding collaboration and capital support, in order to achieve a win-win [situation] and build a future together.

March ******** ********

***** ********, ***** ** ***** owned ** ********, *** find ****** ** * difficult ******** ***** ** provides ***** ************ *** major ** ********** ******* clients ("**** **** *** banks *** ****** ******" worldwide, ******.)

***** *** ********* ****** of *** **** **** process, **** ******* *** be ********* ** ** further ******** **** ***** Networks *** ** *** parent ******* ****** * PRC ********** ****** ** its *********** ***********. *******, this **** ** *********** for ***** ** ***** as **** **** ******** or ********* ** ******** with ***** *********.

March ******** ********

***** **** **** **** they ***** "******** ** operate *************". ***** ** their **** *********:

************, **** ******* ** March ********, ** **** continue ** ******* *************, just ** ** **** the **** * ***** since ***** ******** ** US-based ********. *** ************ has ******* *** ******* to **** **** *** top-line ******* *** ************* in ****** ***** ***** delivering ** *** ***** of *** ****** ********** customers. ** ***** ****** the **** ***** ** independence ** *** ******.

***** ******** ******** *** designed ** *** *&* centers ** ****** *** Italy. *** ** *** Intellectual ******** ** **** in ******. ***** ** no *********** ******* ***** Networks *** ******** *********** teams.

*** ******** ** *** products *** ************ ** our ************** ** ******** by *** ****, **********-***** Sanmina (******: ****) - our ****-**** ************* *******. Together, ** **** ********* arguably *** ********’* **** reliable, *******, *** ****** Linux-based ********* **********.

*** ********** ********* ****** secure ***** ********* *** we *** ********* **** March ******** **** ******** to ******* ** ***** needs **** **** *** future.

Divestiture *********

** *** **** ***, this ***** *********** * more ********** ****** *** March.

** ******** ** *** challenges *** *****'* ******* customers, ***** *** ** strong '*********' *** ***** to ** **** ** Infinova. *** *******, *****'* video ************ ******** ** at *** ******** *** of *** ****** *** Infinova's ***** ******* ********* agency ** ** ** benefit ** *******-******* ***** Networks.

******, *** **** *** years **** ************ ******* equity *****' *********** ******** in ******** ******** *********. March, ** ***** * sizable ****** ** ***** niche, ***** ****** **** suitors.

Potential ******** ******** ******** / CFIUS

*** ** ********** *** a ******* ********* ***********(*** ********* ** ******* Investment ** *** ****** States) ***** ******* ******* is ** ****** *********** sensitive ******* *********** **** US *********, ********** ** they **** **** ******** technology/data *** ******* ***********.

******** ******** ** **** IPVM ** ** *** informed ***** ** **** transaction, ******:

** ****** ******* ** specific ***** *******.************* *** ***** *********** seriously *** ** **** advice **** ******* ** ensure **** ** *** in ********** **** ********** laws *** ***********.

**** ******* *** ** CFIUS ****** ** **** did *** ** **** not ******** * ******** yet.

************, ***** *********, ***** involvement ** ********.****** *********, * ******** ****** at *** ******** ********* for ************* *********, **** IPVM **** "***** *** always ****** * *********** if * ******* ******* takes * *********** ***** in * ** ********."

** ********, ***** ** likely ** **** ** interest ** *** ******** is ********** **** * foreign ********** (***** ** some ***** *** **** trigger * ********* ****** to *****), ** *** technology *** ** ******** provides ***** ***** ****** controls, *** ** *** US ******** ** * supplier ** *** ** government (********** ** *******) or ** ** ******** infrastructure.

The ***** ** *** ********** *********

******** ** *** ****** company ** *** **** few ****** ** ** taken **** ** * PRC ********** ******. ***********'* ******* *** ********, Netposa ******** *****-**********. ***** *** ***** fit **** * ******* pattern ** *** *** government ******** ** ** many *** ***** **** increased ************ *** ** China's ************ ********** ************* conditions.

**********

**** **** ***** ** positive *** ******** ** SIH ******** ***** *** company ****** ********* *** government ********, ** ** has ******.

*******, ** ******** ***** for ***** ******** *** to ********** ** ********** client ******** **** *** government *******.

*** **** **** ******** a ********* ***** ***** if ***** ******* ** step **.

**** *******, **** ****** concerns ***** **** ***** 'private' ***** ********* *** taken **** ****.