AuthorizID Anti-counterfeit Proactive System in technical collaboration with Techno-Sciences Inc, USA Proprietary Information 141/A Great Western Building, Medows Street Ext Fort, Mumbai Website: Phone: Fax:

Counterfeiting On The Rise  Fake goods sales has been estimated to rise by 20% YOY  In India counterfeit sales are projected to reach Rs.55,000cr by 2013  FMCG Sector - maximum losses of up to 45% with an average loss of 25% market share  Pharma % of medicines made in India are estimated to be fake  Globally fake drug industry totals to $90 billion Proprietary Information

Duplicates & Deceptions  Existing Counterfeited products:  128 ‘known versions’ of Parachute hair Oil  113 versions of Fair & Lovely Creams  44 copies of Vicks VapoRub  38 versions of Clinic Plus Shampoos Proprietary Information

Counterfeiting Effects  Loss in Market Share Companies are losing market share to counterfeit products every passing day  Harming the Users Due to sub-standard quality; consumers commonly suffer health complications or in extreme cases it has caused loss of lives  Brand Reputation Bad consumer experience on using duplicates; affects brand reputation and can cause serious loss of hard-earned consumer confidence to the company Proprietary Information

Counterfeiting Costs Products Fair & Lovely Parachute Hair Oil Vicks VapoRub Abbott India Estimated Annual Sales Rs. 1675crRs. 500crRs. 380crRs. 11,700cr Estimated loss in revenues Rs. 400crRs. 120crRs. 100crRs. 1100cr Possible Revenue Gain (Just10% counterfeiting prevention) Rs. 40crRs. 12crRs. 10cr  Trying to fight counterfeiting for the past few years, Pharma & FMCG companies have now assigned budgets to setup dedicated teams  With limited resources, the limiting factor still remains information about location and type of duplication Proprietary Information

Current Solutions - Holograms  Common belief exists that holograms cannot be counterfeited  Several straightforward and inexpensive ways exist to copy holograms Costs  Cost of well designed holograms can range from 5p to 20p per print  Companies often need to introduce changes in their designs to stay ahead of counterfeiters which attracts more fixed costs  Adds another process to the packaging line  Lack of infrastructure to verify authenticity of a hologram Proprietary Information

Current Solutions – Design Renewals  Companies sometimes change logos and packaging designs to give a fresh look to an existing product  More often than that, companies make minor changes to product packaging to stay ahead of counterfeiters Costs  Huge costs are involved – designing costs, new machinery, clearing old inventory  Distributors regularly need to be kept informed about new changes, which can prove difficult in a country like India with remote towns and villages Proprietary Information

Current Solutions - Barcodes  Barcodes are increasingly becoming mandatory by government agencies, but they still lack any authentication or verification use  Recently introduced 2D barcodes provide good logistical fidelity  Barcodes still largely remain tools to increase efficiency and tracking capability  Barcodes are the easiest to counterfeit since even the most basic printers now have inbuilt barcode printing capability  Small distributors and retailers lack the infrastructure to authenticate barcodes Proprietary Information

AuthorizID – anti-counterfeit proactive system  AID system empower end consumers with an easy way to verify authenticity of his/her product anytime from anywhere  Along with the manufacturing date and M.R.P. a unique AID numerical code is printed on each item  Consumers can simply verify the authenticity of a product by sending a SMS  If a code is found to be a fake, customer is informed not to use the product and customer info is sent right away to the company Proprietary Information

AuthorizID – Features  Almost impossible to create a fake AID code – 1 in 10 Trillion codes  100% accuracy guaranteed  Unlike holograms doesn’t involve any additional steps during packaging  In most cases system is deployed with no running or overhead costs  Manufacturers will automatically receive detailed reports about any counterfeit product detected  Saves additional cost of holograms and complicated ink designs which have to be constantly changed to avoid copying Proprietary Information

AuthorizID – Technology  AID servers provide unparalleled security for each and every product manufactured  A Centralized Database System (CDS) and Automated Response Engine (ARE) together create a low maintenance authorization service  Will be compatible with GS1 product serialization for Pharma sector Proprietary Information  An encrypted database file is provided to the manufacturer with AID codes for every batch  This file is then loaded onto AID printer which prints an unique AID code on each strip/packet

Company Info  E14 Technologies Pvt. Ltd. has a primary goal to develop new and exciting products for rapidly developing markets, particularly India. Our aim is to develop products that combine state of the art technology, simplicity of design, function and have a mass appeal.  Core Businesses:  Pharmaceutical Inspection & Automation Systems  Product Verification Systems  Healthcare  Technology tie-up with Techno-Sciences Inc – RnD company based in USA in business for more than 35 years Proprietary Information

Conclusion AuthorizID – anti-counterfeit proactive system Provides consumer protection against counterfeits Helps catch counterfeiters Boost sales and regain market share Market Edge  Product differentiation  Brand owners can enhance the safety and well-being of consumers while regaining market value and increasing sales  Maximize efficiency of product distribution channel by using detailed feedback Proprietary Information