ELECTRO OPTIC SYSTEMS HOLDINGS LIMITED — AGM Information 2008

May 29, 2008

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• Review of 2007 • The Future

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Key Events of 2007: Weapon Systems

US Army CROWS award to Kongsberg

Response :

• Emphasis on keystone customers outside US.

• Closure of US production & reduction in staff from 220 to 120

Near-Term Results:

• Significant losses as investments written off

• Decline in 2007 revenue

• Production viability re-established at lower levels

Key Events of 2007: Weapon Systems

US Army CROWS award to Kongsberg

Long-term Implications and EOS Responses:

• For large markets, EOS’ competitiveness diminished

  • A new range of large strategic partners are being engaged

• Economy of scale setback

  • Outsourcing arrangements for most volume production are being put in place.

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EOS Military program status

• Current contracts and users are Australia, NATO, Asia, and USA

• Customer satisfaction is high

• Production viability established at low production volumes, with outsourcing in place for future reexpansion.

• Viability independent of US market established

• New technology & products on track, including Redback and next-generation CROWS systems

Key Events of 2007: Space

US space spending continues to be curtailed by costs of Iraq war.

Difficulties obtaining revenue from NGST relationship

Response :

• Emphasis for growth moved outside US, to Europe and Asia, where space spending is increasing rapidly. [navigation, surveillance]

Near-Term Results:

• Strategic agreements focused on funded near-term programs in growth markets.

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EOS Space Program Status

• Space ground segment operations activities continue normally.

• Space ablation development program continues to set new technical performance levels. This technology is now being adapted to multiple users and applications.

• New strategic partners are being engaged to broaden market access in terms of customer applications and geographic markets.

• US requirements continue to be monitored pending a future return of addressable funding to this sector.

Summary

• Loss of CROWS was a setback that has caused EOS to reposition itself in the weapon system market.

• Re-positioning involves new strategic partners, increased outsourcing and re-scaling the business for profitability on smaller volume in the near term. All of these efforts are on track.

• EOS has retained the capability to re-enter the US market with more advanced products at any time.

• Space business has been re-focused on emerging markets in Europe and Asia, acting through new strategic partners.

• EOS expects space funding in the US to recover from 2009 and it retains capabilities and technology that would meet the needs of this market.

• 2008 will be a year of consolidation after setbacks in 2007.

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