1. Intelligent Automation, Inc. 15400 Calhoun Drive, Suite 400 Rockville, MD 20855 www.i-a-i.com Dr. Jacqueline Haynes: jhaynes@i-a-i.com / 301 294 5260jhaynes@i-a-i.com Shannon Beltz Mayhew: smayhew@i-a-i.com / 301 294 5230smayhew@i-a-i.com David Mayhew: dmayhew@i-a-i.com / 301 294 5264dmayhew@i-a-i.com

2. 2 Intelligent Automation, Inc. Woman-owned small business Founded in 1987 Located in Rockville, Maryland 92 professional staff; Approx $18M revenue estimated for 2006 Specialize in R&D; advanced artificial intelligence applications Highly qualified scientists, educators, psychologists, engineers, and software developers with extensive experience in advanced technologies; most with advanced degrees

3. 3 Intelligent Automation, Inc. Six research groups Education and Training Technology Core expertise in Reading and Cognition, Adaptive Technologies, Multimedia Architecture, Artificial Intelligence, Electronic Learning Devices Applications across diverse domains Distributed Intelligent Systems and Robotics Signal Processing Sensors Communications Forensic Technology Multi-disciplinary staff creates environment for unique innovations Engineering from our electromechanical research made possible some compelling playware applications in education area

4. 4 Multisensory Computing and Learning – “Playware” Background/foundation of our technology Idea began with graduate research at Harvard Graduate School of Education Kids connect most strongly with their world through touch Learners are especially likely to make new ideas when they are actively participating in building and manipulating an external artifact—e.g. a robot, story, or popsicle stick house—which they can reflect upon and share with others (Papert, 1980). Learning tools need play appeal if you want kids to use them

5. 5 Multisensory Computing and Learning – “Playware” Background/foundation of our technology StoryTiles 4th round of funding from Department of Education ($935K total) on a family of projects within this line of research 5th round of field tests –Kids like it!!Kids like it!! »Tactile experience –StoryTiles was shown to foster language skills and motivate play »Kids using entire 45 minutesKids using entire 45 minutes »Silly storiesSilly stories

6. 6 Consists of two components “Cradle” “Manipulatives” Children use manipulatives (toys and pictures) to experiment with storytelling.experiment with storytelling Manipulatives have code on bottom that can be read by cradle Preprogrammed manipulatives When manipulative or button is pressed, cradle will speak the word that corresponds to the manipulative Programmable manipulatives Child can record her own label or story to correspond with the manipulative StoryTiles™

7. 7 Pressing green “story button” causes cradle to tell the story the child has constructed Cradle can be plugged into computer to augment play possibilities with software Animation of child’s story Storybook that can be printed StoryTiles™

8. 8 Productizing StoryTiles Versions StoryTiles Basic: as a standalone toy that comes with a cradle and basic set of manipulatives StoryTiles Deluxe: with animation and storybook software Animation software sold separately Storybook software sold separately Other software can be created (interactive games between device and computer) Could provide outlet / sales enhancer for licensed properties/characters Expansion sets of manipulatives or manipulatives plus specific software Package with book and specialized figurines Trademark registration is in process Patent process underway Disclosure filed with USPTO