©2008 Schwab Retirement Technologies, Inc. All rights reserved. ( ) Schwab RT Web Image-Based Authentication Enrollment Enhancements Mitchell Savage Executive Vice President, Vidoop, LLC November 13, 2008 Schwab Confidential Benjamin Lee Director, Product and Technology Initiatives, Schwab Corporate & Retirement Services (SCRS)

2 ©2008 Schwab Retirement Technologies, Inc. All rights reserved. ( ) Agenda  Online security - current climate  Schwab RT Web - why change the enrollment process? * Identity Theft Resource Center 2008

3 ©2008 Schwab Retirement Technologies, Inc. All rights reserved. ( ) Vidoop Online Security Continues to Grow in Importance  Reliance on the online channel continues to rise  Heightened financial pressure makes online security crucial  Global market has not acted to overcome cyber crime  Hacking technology continues to evolve  80% concerned that online finances lead to ID theft * * Identity Theft Resource Center 2008

4 ©2008 Schwab Retirement Technologies, Inc. All rights reserved. ( ) Vidoop Security  The state of the cyber crime economy  2008 data breach count 69% higher than 2007 *  $43 billion lost last year **  Business case for strong login security  55% of cost of a data breach is to restore brand damage  25% will switch financial institutions over security **  Average cost of a password reset = $40 $27 (host) + $13 (user) * ** *** Identity Theft Resource Center 2008 (through June) Reuters, February 2008 Ponemon Institute 2005

5 ©2008 Schwab Retirement Technologies, Inc. All rights reserved. ( ) Schwab RT Web Image-Based Authentication – Enrollment Enhancements  Overview  Why the changes?  Action taken based on your feedback and an independent usability study  Partnered with Vidoop to simplify the enrollment process

6 ©2008 Schwab Retirement Technologies, Inc. All rights reserved. ( ) Schwab RT Web  Wizard approach to facilitate enrollment  Eliminated redundant screens  Clear, simple instructions  Action-based  Fewer words  Placement on screen  Status bar to highlight each enrollment step 1.Select Image Categories 2.Enter Access Code 3.Enrollment Confirmation Image-Based Authentication – Enrollment Enhancements Simplify enrollment experience Creating a user friendly and intuitive experience Eliminating confusion, reducing anxiety

7 ©2008 Schwab Retirement Technologies, Inc. All rights reserved. ( ) Schwab RT Web  Revised category policy to select 1 – 3 image categories  Reduced and eliminated confusing image categories  Reduced size of image grid to 3x3  Removed sequencing as an option Image-Based Authentication – Enrollment Enhancements Simplify enrollment experience Creating a user friendly and intuitive experience Eliminating confusion, reducing anxiety

8 ©2008 Schwab Retirement Technologies, Inc. All rights reserved. ( ) Image-Based Authentication – Enrollment Landing Page

9 ©2008 Schwab Retirement Technologies, Inc. All rights reserved. ( ) Select Image Categories – Screen 1 Image-Based Authentication – Enrollment

10 ©2008 Schwab Retirement Technologies, Inc. All rights reserved. ( ) Enter Access Code – Screen 2 Image-Based Authentication - Enrollment

11 ©2008 Schwab Retirement Technologies, Inc. All rights reserved. ( ) Enrollment Confirmation – Screen 3 Image-Based Authentication – Enrollment

12 ©2008 Schwab Retirement Technologies, Inc. All rights reserved. ( ) New 3 x 3 image grid Image-Based Authentication – Login

13 ©2008 Schwab Retirement Technologies, Inc. All rights reserved. ( ) Schwab RT Web Image-Based Authentication – Enrollment Enhancements Questions?

14 ©2008 Schwab Retirement Technologies, Inc. All rights reserved. ( ) Disclosure The material provided on pages 3-4 of the presentation is proprietary to Vidoop, LLC and is provided for informational purposes only. Vidoop, LLC is not affiliated with The Charles Schwab Corporation or any of its affiliates (collectively, “Schwab”). None of the information provided constitutes an opinion, a recommendation or advice by Schwab. Schwab does not guarantee the suitability or potential value of any particular information source provided by Vidoop, LLC nor does Schwab guarantee the accuracy, timeliness, or completeness of the information. The Charles Schwab Corporation provides services to retirement plans and participants through its subsidiaries, Charles Schwab & Co., Inc. (Member SIPC), Charles Schwab Trust Company, a division of Charles Schwab Bank, Schwab Retirement Plan Services, Inc., The 401(k) Company and Schwab Retirement Technologies, Inc.®. Schwab also provides equity compensation plan services and other financial and retirement services to corporations and executives through Charles Schwab & Co., Inc. Unless otherwise noted, the material contained herein is proprietary to Schwab and is provided for informational purposes only. None of the information constitutes a recommendation by Schwab and is not intended to provide, and Schwab does not provide herein, tax, legal or investment advice. Certain information presented herein may be subject to change. Neither the presentation, nor any information or material contained in it may be copied, assigned, transferred, disclosed or utilized without the prior express written approval of Schwab.