1. Where Detection is Cutting Edge

2. “Over the next decade, $250B in healthcare spending will shift from disease treatment to diagnosis” – Jeff Immelt, CEO GE

3. Why Better Diagnostics Are Needed Imagine……………....the blood bank used for your blood transfusion could better screen for newly infected HIV patients –50,000 new infections/ yr in US alone –14 to 30 day period post infection before detectable..your blood test could detect a cancer at a lower level (and earlier) than can be detected today Better mainstream detection systems are needed to make this a reality Sword is introducing a simple, sensitive detection system –Enhances tests in the research market today –Will enhance clinical diagnostics in near future 3

4. Sword’s Next Generation Detection System All Diagnostic Tests Require a Detection System Sword is First Revolution in Mainstream Detection in 15 Years Sword detection chemistry –Core patent issued October 2009 –Runs on large installed base of instruments –Joint product launch preparation underway with large instrumentation company Provides key benefits… –Improved sensitivity for better detection of disease markers – Improved precision & accuracy for reducing misdiagnoses 4 …without compromise in speed, performance or cost – Fast results – Comparable price to mainstream –Easily integrated into diagnostic instruments and tests

5. Benefits of Sword Detection are Very Important to Researchers *Biocompare Researcher Survey -2008 Sword Detection improves many features of greatest importance to researchers without sacrificing other attributes PERFORMANCE WITHOUT COMPROMISE *

6. 6 How Sword’s Patented Detection System Works Color producing chemistry Product (Color) Enzyme Existing tests: Final test step Sword Modified: Final test step Chemistry added to create color signal Chemistry added to create Raman signal Test protocol identical to current tests, except for final step – Easily integrated into existing tests and workflows – Uses standard instrumentation Standard chemistry in final step replaced by Sword chemistry – Raman detection used for many applications e.g. airport screening Improved test performance, independent of target Sword proprietary chemistry Product (Raman) Enzyme

7. 7 Improved Test Performance Example: IL-2 Assay (Inflammatory Biomarker) Sword Detection System produces stronger signal across test concentrations Results in improved sensitivity, accuracy and precision of tests Standard Detection Sword Detection

8. Competition Sword Unmatched for Sensitivity and Simplicity Performance Simplicity & Cost Effectiveness MSD – electro- chemiluminescence Anaspec – fluorescent dyes Invitrogen – Fluorescent dyes Singulex – laser induced fluorescence 8 PerkinElmer AlphaScreen

9. Example: Sword vs Alphascreen Sword Generation 1 Advantages –Sensitivity: Sword generally more sensitive even before optimizing assay for Sword chemistry –Ease of integration into existing ELISAs –Potential interferences are washed away before detection Sword Disadvantage –Not homogeneous (but easily automated) Alphascreen with 15 years optimization Alphascreen advantage –Homogeneous (but multiple steps) Alphascreen Disadvantages –Laborious assay development (conjugate antibodies to beads and re- optimize assay) –Light sensitive (need to work in the dark) –Many interfering substances –Hook effect at high analyte concentrations –Significant temperature sensitivity –Laser excitation only (expensive instrumentation)

10. Team Overview Extensive entrepreneurial & Fortune 100 experience Dave Dingott: CEO /Founder -Co-founder & President OpenReach (now Corente’) Mitch Gaver: Director, Business Dev. – Thermo Fisher, Amersham.. Top Scientists from Abbott Labs Diagnostics Division Dr. Neal Siegel- CSO – former Level 1 (highest rank) scientist at Abbott Labs Top R&D scientists from Abbott Experienced Board of Directors & Advisors Gail Page: CEO Vermillion- former COO, Luminex ( a $700M detection system company); former SVP LabCorp Dr. James Koziarz -former Abbott Labs Corporate VP R&D for Diagnostic Products, Mel Schatz –CEO, Crux Biomedical; Former VP, Abbott Labs, Medtronic Joe Falkenstein – Partner, NJTC Ventures, Former Partner at Andersen 10

11. Achievements to Date US core patent issued October ’09 Cover article of IVD Technology Magazine June ‘10 Outsourced manufacturing/ distribution of chemistry kits – Amresco: Contracted to manufacture, warehouse and ship kits large custom manufacturing business for research and diagnostics with strong customer bases in both markets Regulatory capabilities for MSDS production, world-wide shipping and import/export documentation Frequent international shipments will include our products at low cost First agreement in place with top instrumentation company –Planning and preparation underway toward joint product launch –Planned joint launch in Q4 ’10 11

12. Why is a Top Instrumentation Company Partnering with Sword? Moves their detection instrumentation from commoditized product to holistic value added system Can be implemented on their equipment with no product development cycle –provides significant differentiator immediately for new sales – without investment in instrument changes –can grow for use in additional markets / applications Further information about this partnership with this public company is available under a confidentiality agreement

13. Likely Terms for Joint Partnership Co-marketing of Sword chemistry to its existing and future customer base –Joint development of applications data, support packages, & marketing collateral –Lead sharing, joint sales calls, trade shows, seminars, and promotions –Sword to certify and promote its detection chemistry on their instruments –Sword sells reagent kits and supports reagent sales –Benefit to Instrumentation Company: Market differentiator of innovative detection reagents for their instruments generating increased sales Referral revenue

14. Attractive Business Model Recurring revenue stream –Chemistry kit consumables (high recurring margins) –Licensing revenue (ongoing revenue stream) Proven business model for detection systems –Licenses for research-use only Licensees are large suppliers to research market –Applications ready to become diagnostics require additional license –Similar revenue model to Luminex, a successful Nasdaq listed detection system company 14

15. Commercialization Plans 15 Near term sales to do-it-yourselfers in research market 40% of research market – Sword will exploit partner brand – Dramatic decrease in customer acquisition cost Leverage instrumentation partnership for next phase partnership with kit manufacturers –60% of research market –Instrumentation partner facilitating next step Additional opportunities in clinical diagnostics market –Longer sales cycle/ later stage Additional applications of Sword’s IP creates market opportunity of $1.7B

16. Financial Projections High margin consumables business Co-marketing with instrumentation company reduces sales and marketing costs while controlling our own destiny Licensing to assay companies ramps up product adoption in short time frame

17. Funding Status $7M raised to date –NJTC Ventures, Calvert Group, Heartland Angels, others.. Currently raising $1M Funds for joint launch of product with strategic partner Commercialization 17

18. Strategy Creates Strong Exit Opportunities Sword positioned to build sizable platform company over next few years based on comparable companies in space Opportunity also exists to exit at earlier inflection point Precedent valuations strong in either case –Lumigen (Acquired ‘06 by Beckman, 2 transactions, $210M at 7X revenue) –BioVeris (Acquired ‘07 by Roche; $600M at 25X revenue) –Luminex ($650M market cap; 7X Revenue) 18