ASTAV, inc. Safety Bolts for Web Doors.™

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Presentation transcript:

ASTAV, inc. Safety Bolts for Web Doors.™ Investor / Financial Partner Presentation May 2005 ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2005 ASTAV, inc. – Confidential & Proprietary – Patents Pending

The Pain of “Phishing” Who? financial institutions on the web How? steal password, steal $$ and identity Online identity theft also known as “Phishing” 2000 2002 2003 2004 1.11 1.44 1.7 2.4 Scope: 2 Million victims per year (Gartner Group) Costs consumer and business $2.4B per year Identity theft Claims 10 Million victims per year (Federal Trade Commission) Cost consumer and business $52B per year in 2003; $48B in 2002; $775M in 1997 On the increase thru the internet Source: Gartner, Sept. 2003 ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2005 ASTAV, inc. – Confidential & Proprietary – Patents Pending

Competitive Landscape Must protect customers from giving away password Passwords - what you know Inherently insecure Become less secure with each use Biometrics - who you are Inherent false positives (people change) Expensive (require additional hardware) 2-Factor Authentication - what you have Inconvenient (hard to use, one required for each account) Expensive (require additional hardware, e.g. RSA tokens or Smart Cards) Protect customers by not relying only on a password Necessitate various forms of authentication such as digital signature on all outgoing customer email from financial institutions and websites (such as proposals by Microsoft and Yahoo) Protecting customers from giving away password Continuous education by financial institutions and public organizations such as the US Federal Trade Commission, etc. Various forms of authentication such as digital signature on all outgoing customer email from financial institutions and websites (such as proposals by Microsoft and Yahoo) Protecting customers by not relying only on a password Biometrics, e.g. Fingerprinting Two factor authentication Special physical token e.g. RSA token, Smart Card ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2005 ASTAV, inc. – Confidential & Proprietary – Patents Pending

ASTAV Solution NOPHISH™ Competitive Advantages Removes the expense and inconvenience of 2-factor solutions NOPHISH™ 2-factor web login program, password replacement option Covered by two patent applications (April 04, November 04) Details available under NDA Competitive Advantages As secure as existing hard 2-factor solutions More economical to deploy Easier to use Engineered for simple retrofit into legacy web login systems “I spoke with Tim Sutton, our CEO, and he believes that the technology could be a benefit to Positive's service portfolio. I continue to think the idea sounds valuable, and we would likely add support as soon as it became available.” – Steve Dispensa, co-founder & CTO, Positive Networks ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2005 ASTAV, inc. – Confidential & Proprietary – Patents Pending

Competitive Comparison Secure Overall Hacker-proof Low Cost Uses Existing Hardware Minimal User Training Web Spoofing Protection Positive FRAUD Labeling NOPHISH™ PASSWORD REPLACEMENT Yes Hard 2-factor (RSA Security, Activcard AAA radius server) No Biometrics PassMark Security Very little! A single browser command (“File/Save”) can download an entire web site on your personal computer, for anyone to edit at will… An HTTP directive can block that browser command, but that can be bypassed by anyone by editing the (freely available) browser source code. Fundamentally: the bits are all coming to the end user CPU; they can always be stored. To date, most anti-phishing solutions have either focused on helping a company’s security team detect and shut down offending sites or have relied on black lists to protect customers. Given the speed with which hackers are adapting their phishing attacks, these approaches are already out-dated, even in their infancy.  A year ago, most spoof sites were hosted on free services of major US ISPs; today, a huge percentage are on foreign ISPs or on personal computers that have been compromised by malicious code, unbeknownst to their users. In fact, the latest genre of phishing sites not only attempt to trick users into divulging personal information, but also download eavesdropping programs like Trojan horses and keystroke loggers onto visitors’ PCs to enable the hackers to use the machines to further propagate the scam.  Hackers also move their sites from one IP address to another—often on an hourly basis. The combination of these factors makes shutting down spoof sites or accurately tracking their URLs increasingly difficult, resulting in longer-lasting phishing attacks that expose more users to potential loss of identity. Simply terminating fraudulent sites and updating blacklists with URLs are no longer effective means of protection against the phishing problem. ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2005 ASTAV, inc. – Confidential & Proprietary – Patents Pending

ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. Market Financial Services, Banking, & Online Auction companies Citibank, Schwab, SunTrust, Etrade, Ebay, Paypal, … Business Model: Software license: initial fee + yearly fee based on usage Maintenance: yearly percentage Go To Market plan: Sell directly to local (Bay Area) institutions Leverage indirect channels (Accenture, FISERV, …) to extend into US, Europe, and Asia There are more than 1,000 financial institutions in the U.S. alone; over 2,000 Worldwide The largest are: Bank of America, Wells Fargo, Citibank,Visa, etc. Most are offering on line financial transactions; in addition there are pure online financial firms ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2005 ASTAV, inc. – Confidential & Proprietary – Patents Pending

ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. Revenue Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Beta Customers (at 50% discount) 4 New Customers 2 18 36 70 100 Cumulative Customers 6 24 60 130 230 Cumulative web users (150,000 users/customer) 900,000 3,600,000 9,000,000 19,500,000 34.500,000 License fee (fixed) [All $ are in $K] 200 Licensing Revenues from new customers 800 3,600 7,200 14,000 20,000 Capacity-based license fee (10 cents/user ann.) 90 360 900 1,950 3,450 Maintenance fees at 12% per year 144 576 1,440 3,120 5,520 Total Revenues 1,036 4,536 9,540 19,070 28,970 $ $ $ $ $ Above projections do not include any NOBOTS or OFFLIST revenues. Revenue potential still under evaluation. Year 1 starts after funding is received ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2005 ASTAV, inc. – Confidential & Proprietary – Patents Pending

ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. Income Projections Year 1 Year 2 Year 3 Year 4 Year 5 Revenues 1,034 4,536 9,540 19,070 28,970 Direct Costs 72 318 668 1,335 2,028 Gross Profit 962 4,218 8,872 17,735 26,942 Research & Development 550 1,200 1,908 3,814 5,794 Selling, Marketing, & Administration 500 2,000 4,293 8,582 13,037 Operating Expenses 1,050 3,200 6,201 12,396 18,831 Operating Income, before Tax (88) 1,018 2,671 5,340 8,112 Income Tax (if C corp., currently S corp.) - 407 1,068 2,136 3,245 Net Income 611 1,603 3,204 4,867 $ $ $ $ $ ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2005 ASTAV, inc. – Confidential & Proprietary – Patents Pending

ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. Team: Management Yonah Alexandre Bronstein, Ph.D. – Founder, President & CTO MS and PhD in computer science, from Stanford University 6 years in Silicon Valley start-ups past 5 years was a senior researcher at HP Labs, focusing on Internet Systems led the 1st port of the Microsoft NT operating system to the DEC workstations Ira Machefsky – Advisor and acting Executive VP of Marketing partner at Odeon Capital Partners, a venture capital fund located in New York, where he has led investments in early stage high tech companies for 5 years senior analyst and vice-president at Giga Information Group where he headed the company’s security and e-commerce practices over 18 years of technology management at DEC Shlomo Waser – Advisor and acting Sr. VP of Sales over 30 years experience in the high tech industry last 12 years focused on general management of global businesses including Oak Technology, Zilog, and Philips in VP- & GM-level positions managed over $200M annual business Protecting customers from giving away password Continuous education by financial institutions and public organizations such as the US Federal Trade Commission, etc. Various forms of authentication such as digital signature on all outgoing customer email from financial institutions and websites (such as proposals by Microsoft and Yahoo) Protecting customers by not relying only on a password Biometrics, e.g. Fingerprinting Two factor authentication Special physical token e.g. RSA token, Smart Card ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2005 ASTAV, inc. – Confidential & Proprietary – Patents Pending

Team: Partners XML Voice Specification Engineer Ex-MCI VOIP Architect Law Office of Paul Horstmann patent creation & prosecution XML Voice Specification Engineer Ex-MCI VOIP Architect Ritchey, Fisher, Whitman & Klein IP protection & corporate counsel WTRS, LLC marketing & lead generation Protecting customers from giving away password Continuous education by financial institutions and public organizations such as the US Federal Trade Commission, etc. Various forms of authentication such as digital signature on all outgoing customer email from financial institutions and websites (such as proposals by Microsoft and Yahoo) Protecting customers by not relying only on a password Biometrics, e.g. Fingerprinting Two factor authentication Special physical token e.g. RSA token, Smart Card BetaSphere, Inc user community management Finck, Rudnick & Company accounting & incubator services Note: the above are equity-based relationships ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2005 ASTAV, inc. – Confidential & Proprietary – Patents Pending

ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. Summary & Next Steps Summary ASTAV focused on well known & large market pain ($B) NOPHISH solution as reliable, less expensive, and better featured than competition IP is protected by several patent filings Funded so far by $120K sale of common stock & shareholder loans Next Steps Raise $60K now to prototype NOPHISH & deploy NOBOTS Raise $750K within 6 months to market & support NOPHISH Making cyberspace a humane place.SM Thank you! ABUSE SUPPRESSION TECHNOLOGIES, ACTIVITIES, VISION. ©2005 ASTAV, inc. – Confidential & Proprietary – Patents Pending