TwinLinx Company Presentation

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Presentation OCOVA September 9th, 2008

Jacek Kowalski CEO
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Who is Twinlinx?

• Twinlinx Created in August 2006 by Jacek
  Kowalski, Founder and former CEO of Inside
  Contactless, currently leading chip supplier for
  contactless payment and NFC markets
• Our Vision NFC technology integrated with the
  mobile phone will generate many opportunities
  for development of attractive consumer oriented
  contactless applications
• Mission Provide NFC hardware and applications
  development platform allowing to integrate NFC
  technology with the existing and future mobile
  phones

2006
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What NFC-enabled phones can do?
Server
Link to a back office server
Recharge
Exchange data
Update
Listen/Talk
View
Get information
Type
Pay for services
NFC (Near Field Communications) Short range
contactless communication technology allowing a
phone to behave as a card or as a reader.
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Enabling NFC market development

• Why NFC market does not develop?
• There are no applications as there are no
  NFC-enabled phones
• Phone manufacturers will not generalize NFC
  integration within phones without clear consumer
  demand for such phones
• Consumers are not keen to change their phones to
  get access to an NFC application and are not
  fully confident in phone security as banking card
  
• Uncertain business models around NFC-enabled
  phones of different market players
• Twinlinx solution is

A thin sticker integrating NFC technology and
using bluetooth communication to connect it to
the phone
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NFC versus bluetooth phones volumes
1500m
NFC sticker TAM
350m
NFC Phone TAM
Source PiperJaffray 2007, ABI Research 2007

• Todays phones park 50 of phones has
  bluetooth, no NFC phones
• In 2012 80 of phones will have bleutooth,
  only 10 of phones will have NFC
• Conclusion NFC sticker will be the mainstream
  market for NFC-enabled phones

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NFC sticker concept
Area for branding
Switch-on button
35 mm
28 mm
Photovoltaic cell for battery recharging
SPDU sticker activation model?

• Stick it to the back of the phone
• Pair it with the phone
• Download application midlet from the sticker or
  from the server
• Use phone with different card-like or reader-like
  applications

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Strengths of the NFC Sticker concept

• Proven acceptance by consumers of phone sticker
  concept
• Phone sticker with card only function issued by
  Mastercard
• NFC Sticker works with the existing phones
• No need to issue many new phone models
  integrating NFC
• No need to convince consumers to change their
  phones
• 25x lower costs compared with the phone
  replacement (10 versus 250)
• Compatibility with any existing contactless card
  application
• Immediate market with distribution channels for
  200m card users
• Respects the existing smart card value chain and
  security models
• Sticker can be personalized using standard
  contactless card model

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Existing markets for NFC applications

• Transport
• 200m consumers using contactless cards for
  transport payment
• NFC sticker used to pay for a trip or as a
  commuter card
• NFC phone used to recharge units in the sticker
• Payment
• 50m consumers having contactless payment cards in
  the US
• NFC sticker used as payment card
• NFC phone connect to the sticker for on line
  payment services
• Retail
• Millions of loyalty cards issued
• NFC sticker used as multiple loyalty cards
  carrier
• NFC phone used to display point, product
  information, promotions,
• Access Control
• 50m users of contactless cards as company card
• NFC sticker used for door entrance and as
  internal payment card
• NFC phone used to issue access rights and payment
  nghts

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Some future NFC applications

• Smart posters
• Connecting on-line to get access to information
• NFC sticker used read a contactless tag attached
  to the poster
• NFC phone used to connect to a server and display
  information
• CD music sampling
• A poster issued for each CD and containing tags
  with music samples
• NFC sticker used to download the music from the
  tag
• NFC phone used to listen to the music
• Pairing
• Pairing a bluetooth device with the phone
• NFC sticker reads the bleutooth device
  identification number
• NFC phone performing pairing with device using
  this number
• Business cards
• Personal information is stored on the sticker
• Approaching 2 phones make transfer information
  between phones
• NFC phone used to display the information

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Twinlinx competitive advantages

• Patented NFC sticker architecture making it
  compatible with the existing contactless
  applications and with future NFC phones
• Strong financial support of the project from the
  Region
• Highly experienced team internationally
  recognized in the field of NFC, contactless and
  smart cards
• Advantage of the first mover

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CONTACT INFORMATION
Espace Descartes Bat B 425, rue Rene
Descartes 13587 Aix-en-Provence, France Tel. 33
(0)4 42 50 08 04 Fax. [phone]
70 www.twinlinx.com

• Jacek Kowalski , CEO
• Cell 33 603 901 901
• Email jkowalski_at_twinlinx.com
• Steve Lewis, VP Business Development
• Cell 33 660 475 440
• Email slewis_at_twinlinx.com
• Eric Alzai, CTO
• Cell 33 614 951 090
• Email ealzai_at_twinlinx.com