© Copyright 2007, Prototype Productions, Incorporated. All rights reserved Prototype Productions, Inc. JHU/APL Patents & Pizza Prototyping for Commercialization September 6, 2007

© Copyright 2007, Prototype Productions, Incorporated. All rights reserved Commercialization Commercialization for APL means selecting and working with a commercial partner, often through licensing. A successful prototyping effort will improve the value of the license and speed time to market.

© Copyright 2007, Prototype Productions, Incorporated. All rights reserved Risk Reduction Licensing implies reduction in risk for the licensee and allows them to allocate their in-house resources to other projects or technologies. In order to commercialize and bring technology out of the lab, it must be made readily accessible to the licensee.

© Copyright 2007, Prototype Productions, Incorporated. All rights reserved Best License Value Best license value: –Most risk reduction –Most direct fit for commercial partner License value can be negotiated based on maturity of technology and risks that have been addressed prior to licensing.

© Copyright 2007, Prototype Productions, Incorporated. All rights reserved Experimentation Risk reduction requires experimentation in the most challenging areas of the design. Effective prototyping is critical to effective experimentation. Successful experimental results strengthen the license.

© Copyright 2007, Prototype Productions, Incorporated. All rights reserved Cost of Prototyping Prototyping can be costly: –low volume –no ability to amortize NRE –High setup costs with traditional methods Prioritize prototyping efforts: –Does it further the core technology? –Does it improve value of license? –Functional or Cosmetic? –Valuable experimentation?

© Copyright 2007, Prototype Productions, Incorporated. All rights reserved So, In Summary… Prototype experimentally on the riskiest aspects of design first, to make best use of funds. Keep the commercial partner in mind when deciding what needs to be prototyped. Carefully consider the manufacturing methods used in their existing products

© Copyright 2007, Prototype Productions, Incorporated. All rights reserved Mechanical Prototyping Methods in Detail Traditional metalworking methods are well developed and understood. Rapid prototyping has recently become mature and widely accepted. The methods are well understood. Both methods have their place and are often used in combination.

© Copyright 2007, Prototype Productions, Incorporated. All rights reserved Sheet Metal Machining Traditional Metalworking Methods Pros Accuracy Widespread Use Well Understood Durable Cons Cost Related to Complexity Lead Time in Weeks/Months Resource Constraints Limited Part Geometries &

© Copyright 2007, Prototype Productions, Incorporated. All rights reserved Recommendation Alternative: Design for manufacture from plastic where possible, and utilize one of three primary Rapid Prototyping methods shown on the following pages. Plastic is widely used for manufacture of fully commercialized (cost- reduced) product, and demonstrates sophistication, evolution of a design, and shows that cost was considered during initial development.

© Copyright 2007, Prototype Productions, Incorporated. All rights reserved Liquid Resin Photocured with Laser RP with Stereolithography (SLA) Pros Lead time days, not weeks Most widely used Highly developed Lowest cost Cons Limited material properties Brittle, non-functional parts Poor chemical compatibility Requires support structures &

© Copyright 2007, Prototype Productions, Incorporated. All rights reserved Continuous melting, extruded plastic filament RP with Fused Deposition Modeling (FDM) Pros Lead time days, not weeks ABS, PC, PPS Materials Office-friendly equipment Lowest equipment cost Cons Rough surface finish Speed related to complexity Poor chemical compatibility Requires support structures &

© Copyright 2007, Prototype Productions, Incorporated. All rights reserved Powdered material, fused together with a laser …This is what we use… RP with Selective Laser Sintering (SLS) Pros Lead time days, not weeks Rugged, functional parts Very good accuracy Nylon, Titanium, Stainless Steel Cons Needs paint for best finish Most expensive equipment Needs coating for watertight Industrial equipment install &

© Copyright 2007, Prototype Productions, Incorporated. All rights reserved In the last 10 years, PPI has completed 66 products in various industries including: 13 Commercial and Medical – Immersions robotic surgical simulation training systems, including I.V. Catheterization, Pacemaker Implantation, and Endoscopy. PPI and Immersion Medical were the first commercially viable manufacturer of surgical simulators. 11 Industrial and Consumer - Airaks fiber-optic sensing systems for utility and shipboard applications, Privaris handheld biometric identification device, PowerGrid Fitness virtual reality exercise equipment, Wireless Ventures Set-top-box, and Keynetiks ruggedized PDA. 12 Biotech - Edge Biosystems automated preparation systems for PCR, JHU/APLs intelligent sample processing systems for biological agent detection, Frito-Lays visual inspection systems for FDA food processing environments, and Bausch & Lombs contact lens manufacturing center. 30 Aerospace and Defense - SureScan solid-state CT-based baggage inspection system, ruggedized machine vision system for United Defense mobile Howitzer artillery platform, US Army ARL autonomous package delivery system, Special Forces remote monitoring and sensing platform. Who is PPI?

© Copyright 2007, Prototype Productions, Incorporated. All rights reserved A Diverse Product Development Company

© Copyright 2007, Prototype Productions, Incorporated. All rights reserved Prototype Productions Ventures, LLC (PPIV) Investment and Commercialization

© Copyright 2007, Prototype Productions, Incorporated. All rights reserved PPIV views PPI as IP/startup filtration engine PPIV views PPI as IP/startup filtration engine PPIV commercializes filtered projects PPIV commercializes filtered projects PPIV primary screening criteria: PPIV primary screening criteria: Potential for VC-like return on investment Potential for VC-like return on investment PPIV owns a minimum of 50% upon investment PPIV owns a minimum of 50% upon investment Device-base companies, web-based software but PPIV will be opportunistic (e.g. food tech) Device-base companies, web-based software but PPIV will be opportunistic (e.g. food tech) PPI + PPIV

© Copyright 2007, Prototype Productions, Incorporated. All rights reserved PPI/PPIV Model I. Internal (PPI )IP SBIRs SBIRs Spot Opportunities Spot Opportunities II. Third-Party IP Universities, Govt labsUniversities, Govt labs Joint Ventures (Food Tech)Joint Ventures (Food Tech) M&A (NPI)M&A (NPI) PPIV PPI Design Design Prototyping Prototyping Manufacturing Manufacturing CONCEPT TO COMMERCIALIZATION Seed Financing Seed Financing Business Plans Business Plans Valuation Valuation Business Development Business Development Capital raising Capital raising M&A M&A Liquidity eventsLiquidity events Licensing RevenueLicensing Revenue DividendsDividends

© Copyright 2007, Prototype Productions, Incorporated. All rights reserved Contact Information Ben Feldman Vice President, Product Development x304 Prototype Productions, Inc Beaumeade Circle Suite 301 Ashburn, VA