Real-time Trespass Detection Spatial Security Solution & Proposal December 2013

A. The EagleOne Flow Chart  Visitors/Doctors/Patients/Students can be tracked on a real-time basis within buildings, enabling companies to track unwarranted trespasses within security areas.  Utilizing diverse means such as WiFi and/or bluetooth, EagleOne can provide a total spatial security solution: location of Visitors/Doctors/Patients/Students can be tracked on the same floor or different floors without error, real-time. 1. EagleOne Solution Overview 1

B. Major Functions 1)Real-time Security Area Trespasser Detection & Required Protocol / Measure Initiation 2)Real-time Location Monitoring 3)Independent Messenger (Security Control Center  Security Staff) 4)Trespasser Detection & Location Tracking Analysis 1. EagleOne Solution Overview 2

Smart PhonesBluetooth Appropriate Number of UsersBelow 100Over 100 Purchase CostKRW200,000KRW20,000 Monthly Telecommunication FeeKRW30,000Zero Size & WeightLargeSmall(50g) Location Recognition Device DeviceWiFiBluetooth Reader Initial Installation CostKRW100,000 SW EnvironmentAndroid OSFirm Ware Battery Capacity1 Day2 Years Location Recognition MethodActive MethodPassive Method Characteristics  Appropriate for customers with small number of users  Appropriate for customers not wanting to install LAN networks  Appropriate for customers with many users  Appropriate for customer with poor 3G/LTE  LAN Installation Images 1. EagleOne Solution Overview C. EagleOne Solution Types 3

2. Target Market A. Target Customer Government Building, Ministry of Defense (Including Military Installations), Police Building, Corporation (R&D Center, Manufacturing Facilities), Financial Institution, Hospital, School, etc. B. Market Size 1) Overseas Market (Trespass Control) 2009US $5.7 billion 2012US $6.3 billion 2017US$16.3 billion (Projection)  2012~2017 CAGR: 7.0% Yr 2010Yr 2011 Amount Compositio n Amount Compositio n CCTV9, %10, % Trespass Control 3, %3, % Monitoring3, %3, % Bio Recognition1,0593.5%1,2273.8% Electronic Surveillance (Security) 13, %13, % Total30, %32, % 2) Korea Domestic Market (Securities Market) Unit: KRW100 Millions Overseas Market Size: U$0.7 Bil. (2012) Domestic Market Size: U$36.2 Mil. (2011) 4

3. Business Status Sep. 2013: MOU with Newology, ADT Caps, and Igloo Security Sep. 2013: Proposal Meeting with Professtama in Jakarta Oct. 2013: Proposal Meeting with SK Broadband (High interests in Hospitals and schools) Nov : Proposal Meeting with SK Telecom Nov. 2013: Test Bed in T-Tower, SK Telecom Dec : Business Contract with SK Broadband (Hospitals and Schools) 5

4. Merlin Company Introduction Merlin is specialized in In-door LBS company -Subway Wizard App (B-to-C): Provides the world’s first in-door location-based navigational functions in subway. -Customer Recognition Solution (B-to-B): Provides in-door location-based recognition services for VIP customers in hotels & department stores. -Merlin owns 3 core in-door LBS patents. 6

5. Proposal for Telecomm Service Operators In-Door LBS Patented Technology By Merlin Private Biz. Public Biz. (Theme park/department/Airport/Police/Fire) (School/Hospital/ Nursing home) Real-time Trespass Detection Spatial Security Solution Location Confirmation Service Location Information Platform Service App Service-a App Service-b App Service-n In-Door LBS business Platform based on Merlin solution 7