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INKSURE Technologies Brand Protection & Authentication Solutions Confidential Information.

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1 INKSURE Technologies Brand Protection & Authentication Solutions Confidential Information

2 INKSURE Technologies  Provider of covert, machine readable brand security solutions  The verification process is based on proprietary authenticators that provide instant, reliable, forensic-quality results  INKSURE’s taggant technology is applied to tens of billions of consumer items and high-value documents annually  Established in 1999; U.S. public corporation (INKS.OB) - SEC regulated  Corporate Headquarters in NYC; Global R&D Center at the Science Park in Rehovot, Israel 2

3 Brand Protection Solutions

4 Covert Machine Readable Technology  Optical taggants that are not visible to the human eye  Mixed with the brand owner’s own Inks & varnishes  Flexo, Offset, Gravure, Screen, TTR, Pad, Hot Ink Roll, Inkjet  Authenticated by a handheld, battery operated, portable reader  The reader gives a positive response – not subject to Human Interpretation  Many custom security formulations available  Enhances overt authentication Security  No visible response to UV excitation  No IR up converters  No false accepts 4

5 How Does It Work?  Each item is invisibly marked with INKSURE’s SmartInk during standard printing production  Although visually identical to regular ink or varnish, SmartInk includes a covert taggant code  The code is customer/application exclusive  INKSURE’s range of proprietary readers are used to conclusively authenticate products and documents by detecting electro-optical material behavior, identifying the code and providing on-the-spot pass/reject indication 5

6 SmartInk Covert Applications  SmartInk can be applied to almost any substrate – paper, plastic, foils, laminate, thermal transfer ribbon etc.  SmartInk utilizes standard printing processes & infrastructure such as offset, inkjet etc. “If it can be colored, coated, printed, or packaged, INKSURE can protect it” 6

7 SignaSure Handled Readers  A sophisticated optical authentication reader, analyzing complex spectral signatures  Each reader can store up to 10 codes to detect different marked applications  Forensic Level Authentication- up to 75 data points  Configured for each customer/application  Simple & intuitive user interface; light weight, ergonomic design  Clear audible and visual confirmation/alert within seconds  Rechargeable batteries; USB connectivity 7

8 PocketSure Handled Readers  A new, pocket-size reader for field authentication  Size: 5.5” x 1.1”  Weight:2.5 ounces  Highly accurate 10 point data count  Lower-cost for high volume distribution  Warehouses  Law Enforcement  Retail Locations  Multiple codes in memory  Audio tone and visual (red/green LED) only, no LCD screen  Replaceable batteries, no charging circuits 8

9 SortSure – In Line Process Control  Continuous hands free feedback  Effective cost monitoring capability  Data collection for future QA reference or evidence 9

10 CodeSure – Barcode & Taggant Reader  Detection of overt, covert and mixed symbols printed utilizing tagged and untagged inks  Will read 1D 2D barcodes, OCR etc.  Onboard database  Track & Trace data is stored locally (USB/Micro SD attachments) for quick lookup (eliminates the need for connectivity to a remote server)

11 Target Market

12 INKSURE’s Targeted Verticals INKSURE is focused on four distinct verticals:  Security Integrators (government & security products)  Hologram Manufacturers  Label Manufacturers  Security Printers  In each vertical INKSURE has successful large scale implementations & reference customers 12

13 Security Integrator – Case Study  The Ukraine Tax Stamp (2008 – Current)  Ukraine Population: 50M  Tobaccos & Alcohol consumption – several billions items annually  Security Integrator – EDAPS Corporation (Ukraine Based)  Introduction of INKSURE’s covert taggants + distribution of >1,300 readers to tax inspectors  Successful integration resulted in an immediate increase of ~30% in tax revenues  EDAPS distributed a case study detailing the project success  The Secretary General of the World Customs Organizations singled out the Ukrainian tax stamp project 13

14  SmartInk can be applied to a Tax Stamp via any of the following:  Hotstamp hologram tagged by SmartInk  Background design by using SmartInk Intaglio or clear overcoat for a yes/no authentication  SmartInk Inkjet for yes/no authentication of serial numbering  SmartInk Sequential for group level tracking (manufacturer,  designated markets, etc.)  Multiple reading configurations:  Field Forensic SignaSure for authorized customs personnel  Handheld PocketSure for supply chain authentication  High speed SortSure with counting capabilities for production 14 Security Integrator – Tax Stamp Applications

15 Hologram Manufacturer– Success Case  European Partner (Italy)  Insertion of INKSURE’s taggants into hologram base foils  Producing over one million meters of tagged base foils annually  Producing several billions of hotstamp holograms annually  Tagged holograms are very durable and can provide accurate covert results for several years  INKSURE’s team works closely with manufacturer to ensure a seamless & consistent process 15

16 Label Manufacturer– Success Case  US based partner – confidential  Insertion of INKSURE’s taggants into label base foils  Labels are applied to electronic products & accessories  Producing several billions labels annually  Label are being distributed globally (mainly to china) 16

17 Security Printer – Banknote Project  A Central Bank (OECD member)  Addition of INKSURE’s taggant to a specific area in the banknote  Taggant and & designated area – known only to the central banks  Successful integration at the Security Printer’s facility in Switzerland  INKSURE implemented SortSure to automatically verify large quantities of banknotes at the Central Banks safes  Banknote rollout is expected during 2011 17

18 INKSURE Brand Protection - Summary  Highly experienced and execution-oriented management team  Solutions protect tens of billions of consumer items and high- value documents annually  Proven large scale implementations of tax stamps, holograms and security labels projects  Strong & long term relations with local integrators especially in Eastern & Central Europe 18


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