ProblemSolution

1
Problem Solution

• Retail Shoplifting
• 37 Billion Lost Each Year
• Current Technology
• Small Market due to Cost
• Uses a Direct Sales force

• Tags Attached to Merchandise
• Sensors at Doorway
• Disruptive Technology
• Lower Cost explodes Market size and distribution
  method.

2
Comm-Engines Innovation STEAL WEB

• Low Cost
• User Installed
• Marketed Through a Distribution Channel
• Huge Underserved Market of Small Retailers

3
Electronic Article Surveillance (EAS)

• User Installed
• No Installation Cost
• Low Cost to Operate
• Low Power Consumption
• Suspended Over Doorway
• No Pedestals
• Aesthetically Pleasing

4
Market

• Small (Less than 10 million per year) Retail
  Clothing Store
• NAICS code 448
• 128,630 Stores in US per 2002 Census Data
• ASP of Detector 1800, ASP of Tags 5000
• 5 penetration is 43 million
• Tyco/Sensormatic
• 1 Billion sales Worldwide
• ASP of Detector is 10,000. ASP of Tags 100,000
• Payback is 12 months on average
• Checkpoint
• 770 Million Sales Worldwide
• ASP of Detector is 6,000 ASP of Tags is 100,000
• Payback is 12 months on Average

5
Scientific Merits of the Technology

• Comm-Engines
• Revolutionary Microware Detector Design
  (patented)
• Use ultra-narrowband filtering and digital signal
  processing to detect tags on merchandize
• Low power consumption design uses components from
  Cellular Industry
• Backwards compatible means we can detect existing
  tags in the Market
• User Installed due to software and detector
  similar to cordless phone
• Microwave, RF and Acoustic-Magnetic are
  industry names for the three technologies used in
  the EAS market worldwide

6
Scientific Merits of the Technology

• Tyco/Sensormatic
• Acoustic-Magnetic
• Requires large pedestals
• Huge power consumption
• Custom Installed
• Checkpoint
• RF Technology
• Requires large pedestals
• Medium power consumption
• Custom Installed
• Microwave, RF and Acoustic-Magnetic are
  industry names for the three technologies used in
  the EAS market worldwide

7
Development Milestones

• Key Milestones
• Prototypes Installed ( 1H07)
• Contract Manufacturer ( 1H07)
• Wholesale Shipments ( 2H07)
• High function Tags ( 1H 09)
• FSU patent pending
• Capital Needed to Ramp and Fill Pipe

8
Opportunity

• Soliciting 100K-500K
• Uses
• Initial Production for inventory
• Prototype of secure tag and sensor
• Marketing Assistance to Distributors
• Exit IPO or Acquisition

9
Thanks, Please Contact

• Todd Franklin, President
• Comm-Engines Inc
• [phone]
• FSU contact Jack Sams
• [phone]
• Visit our display outside