Frost & Sullivan: The Russian Physical Security Market Still Offers Huge Growth Opportunities

LONDON, February 4 - The economic crisis in Russia has affected many segments of its physical
security market. This is mainly due to the fact that the security market is
closely connected with sectors such as construction, oil & gas as well as the
private and commercial sector. However, as the economy recovers, the public
sector will be the greatest contributor to the growth of the physical
security market in Russia, starting in 2009 and going into 2010. According to
Frost & Sullivan, this will continue in the future thanks to the increasing
number of federal, commercial, and oil and gas projects.

(Logo: www.newscom.com/cgi-bin/prnh/20081117/FSLOGO)

New analysis from Frost & Sullivan, Opportunities in the Russian
Electronic Security Market, (www.autoid.frost.com), covers the video
surveillance, access control, intrusion detection, and security fire alarms
segments. The study finds that video surveillance and access control are the
most dynamic segments of the Russian electronic security market, with
compound annual growth rates (CAGR) of 13 per cent and 7 per cent,
respectively, over the period from 2008 to 2012.

"Part of the recovery of the Russian security market is driven by booming
investments for the 2014 Winter Olympic Games in Sochi. On top of these
'one-off' investments, there is also the ongoing need for the replacement of
older electronic security equipment for the many State-owned Russian
conglomerates," says Frost & Sullivan Industry Analyst, Matia Grossi. "Small
and medium enterprises and the industrial sectors were hit the hardest by the
recession, mainly because of their direct correlation with foreign
investments and overall economic activity. Nevertheless, the continued
modernization of security equipment, especially in the oil & gas and nuclear
sectors will contribute to the recovery of the commercial sector."

The federal budget, which is used to finance many of the security
programs, is based by over 50 per cent on revenues coming from oil and gas
exports. In 2008-2009, many Federal programs were postponed. However, as
prices start climbing up again, it is highly probable that the Government
will restart postponed State programs and initiate new ones.

The economic recovery in many Asian Pacific countries and stronger ties
between Russia and China are pointing toward a strong recovery of economic
activity in Russia. Companies need to position themselves ahead of the curve
in order to take advantage of the huge potential of the Russian security
market.

Opportunities in the Russian Electronic Security Market is part of the
Automatic Identification & Security Growth Partnership Service programme,
which includes research in the following markets: European Video Surveillance
Market, World Mobile Video Surveillance Market, and European Convergence
Market. All research services included in subscriptions provide detailed
market opportunities and industry trends that have been evaluated following
extensive interviews with market participants.

If you are interested in more information on this study, send an e-mail
to Joanna Lewandowska, Corporate Communications, at
joanna.lewandowska@frost.com, with your full name, company name, title,
telephone number, company e-mail address, company website, city, state and
country.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to
accelerate growth and achieve best-in-class positions in growth, innovation
and leadership. The company's Growth Partnership Service provides the CEO and
the CEO's Growth Team with disciplined research and best-practice models to
drive the generation, evaluation and implementation of powerful growth
strategies. Frost & Sullivan leverages over 45 years of experience in
partnering with Global 1000 companies, emerging businesses and the investment
community from 40 offices on six continents. To join our Growth Partnership,
please visit www.frost.com.

            Opportunities in the Russian Electronic Security Market

    Contact:
    Joanna Lewandowska
    Corporate Communications - Europe
    P: +48-22-390-41-46
    E: joanna.lewandowska@frost.com

www.frost.com

Joanna Lewandowska, Corporate Communications - Europe, Frost & Sullivan, +48-22-390-41-46, joanna.lewandowska at frost.com