Market Talk - Agency & FDIC Marketplace Overview Presentation
Ian Burdette & Kevin Jackson

This material was prepared and presented by third parties and used with their permission. It reflects the judgment of the presenters as of the date of the report and subject to change without notice. It is not intended to be a complete analysis of every material fact of the subject matter and the opinions expressed are those of the speakers and are not necessarily those of Bonds.com, Inc. Bonds.com, Inc. believes the information presented to be reliable but does not make any representation or warranty as to the accuracy or completeness of this material.

Certifcates of Deposit

The Emergency Economic Stabilization Act temporarily increased the basic limit on deposit insurance for all account ownership categories from $100,000 to $250,000. This increase is effective from October 3, 2008 to December 31, 2009. IRAs and certain other retirement accounts for which the deposit insurance limit already was $250,000 prior to October 3, 2008 will continue to be insured up to $250,000. After December 31, 2009, account ownership categories for which the deposit insurance limit was $100,000 prior to October 3, 2008 will revert to the $100,000 limit.

Brokered CDs and bank CDs vary in their liquidity characteristics. Brokered CDs trade in the secondary market at prevailing prices, which may be more or less than the original investment. The CD market price depends largely on the level of interest rates at the time of sale. It is important to note that investors in Brokered CDs do not have the option of early withdrawal, thus, selling a brokered CD prior to maturity may bring in more or less than the equivalent of the proceeds of a bank CD less any early withdrawal penalty.

Market Talk - Income and Default in 2009
Richard Lehmann

Bonds.com, Inc. (“BCI”) did not assist in the preparation of this presentation, and its accuracy and completeness are not guaranteed. The opinions expressed in this report are those of Mr. Lehmann and are not necessarily those of BCI. The investment discussed may not be suitable for all investors. Investors must make their own decisions based on their specific investment objectives and financial circumstances. Listeners are cautioned that investing in foreign securities involves risks not typically associated with U.S. investing, including currency fluctuations, political instability, uncertain economic conditions and different accounting standards. Investments made in metals can be very volatile, are speculative and considered high risk.

Municipal Bonds

Municipal bonds, like other fixed income instruments, are subject to changes in market price based upon factors including the level of interest rates, market conditions and credit quality of the issuer. For certain investors, the income from bonds designated AMT may be subject to the Alternative Minimum Tax. Discount bonds may be subject to capital gains tax. Rates of such vary for individual taxpayers. Bond insurance does not protect against fluctuations in market value.

Market Talk - Structured Products
Mark Kolodzinski

The many permutations of structured products have various risk profiles. It is therefore essential to ascertain the precise terms and conditions of any specific structured product and the particular risks associated with it from the relevant issue documentation (term sheets, etc.) or product descriptions. Another important risk factor is the issuer’s credit standing.

Structured products give the investor certain claims against the issuer, which is why issuer quality is so important. Risks vary depending on the type of product used. Some structured products are more suited to investors with a small appetite for risk, whereas others carry more risk. What is important is that the investor understands the risks involved with a specific product and its underlying, and that the investor discusses these with his/her advisor.

This presentation in not intended to be a comprehensive summary of all material information, benefits, and risks relating to the companies or securities mentioned. Any references herein to past prices or quotes do not in any way imply that such prices or quotes will again be available or actionable. Past performance is no guarantee of future results.

Treasury Inflation Indexed Services

Interest on TIPS is exempt from state and local taxes but is subject to federal tax. TIPS investors pay federal income tax on interest payments in the year they are received and on growth in principal in the year that it occurs.

Why would you want to buy a bond?

Investors may also buy zero coupon bonds. Zero coupon bonds are bonds that do not pay interest during the life of the bonds. Instead, investors buy zero coupon bonds at a deep discount from their face value, which is the amount a bond will be worth when it "matures" or comes due. When a zero coupon bond matures, the investor will receive one lump sum equal to the initial investment plus the imputed interest, which is discussed below. The maturity dates on zero coupon bonds are usually long-term—many don’t mature for ten, fifteen, or more years.