HEXALOCK ® CD Copy Protection Solutions Overview Presentation May 12, 2005

HEXALOCK ® CD John Stevens Vice President of Business Development May 12, 2005

HexaLock - The Company HexaLock, Ltd. Develops Copy Protection and Digital Rights Management Solutions to prevent unauthorized copying and use of digital content. Established in March 2001, headquartered in Israel. US office in NJ. Products: CD-ROM Copy Protection CD-R Copy Protection (CD-RX) Content Copy Protection Virtual Digital Hologram (VDH)

CD-RX Disc Introduction CD-RX media represent a new recordable disc format developed by HexaLock. CD-RX discs contain pre-burnt information that make the discs copy protectable. CD-RX media are made from standard, high quality CD-R’s. Currently there are 14 authorized CD-RX media manufacturers, WW. CD-RX discs are Orange Book compliant. Available Production Plug-ins. Rimage, Microtech, Others under development.

Structure 1 st session – Pre-burnt information Serial numbers Unique Encryption Keys Authentication Element (VDH) Recordable Area (670 MB)

The Virtual Digital Hologram (VDH) HexaLock’s VDH technology creates special bit patterns on the CD that provide a “Hologram Effect” to the CD/DVD reading device. Optical Hologram creates different views, to the human eye. But a picture of an optical hologram creates a view from a specific angle. Similarly, when making a copy of a CD-RX the VDH pattern will disappear. Instead, a static bit pattern will appear.

VDH (cont.) When making a copy of a CD-RX disc the VDH pattern will disappear. Instead, a static bit pattern will appear. The HexaLock software will detect the absence of the VDH and act accordingly.

The AutoLock Wizard HexaLock has developed its own recording software, the AutoLock Wizard. The AutoLock Wizard is available free of charge. The AutoLock Wizard can be used to protect both software program files and content only files such as documents, presentations, and multimedia files. Flagged Gold Masters – CD-ROM Replication Flagged Gold Images – CD-RX Duplication The AutoLock Wizard is also a “desktop software” that allows recording of one CD-RX at a time on your own desktop computer and a standard recorder.

Copy Protection Applications Software Copy Protection Software developers and publishers can use CD-RX media to protect low volume productions, beta copies and press samples of their software. Protected CD-ROMs are used for larger volume distributions. The protected files can then run only when the protected CD on which they were made exists in one of the local CD/DVD drives. Protected software can be copied to the HDD for performance reasons, but it still requires the original CD in the drive.

Copy Protection Applications Content Copy Protection HexaLock Content Protection System (HCPS) is the only copy protection system in the world that can protect content files while making them 100% transparent to viewing/playing in their default players. Protectable File Types: PDF, HTML, GIF, JPG, AVI, MPEG. Protected content files can then be viewed/played only from the original CD. Unlike protected program files, protected content files become unusable when copied to the HDD or any other media. Copying the contents of protected files using Copy & Paste, Save As, , and optionally, even print, is blocked.

Copy Protection Applications Content Copy Protection

Demo CD Headquarters Shefayim Center, P.O Box 32, Shefayim 60990, Israel Phone: Fax: US Office P.O. Box 5007, Basking Ridge, New Jersey, Phone: Fax: