COMPUTERS IN CRISIS Computers have not changed their basic approach since the beginning (von Neumann binary) Conventional computers are commodity items Industry is in financial trouble and facing scientific limitations Silicon is reaching its limitations in size and speed The need for a breakthrough has never been greater

NEW FUNDAMENTAL APPROACH TO COMPUTING THE FIRST NON VON NEUMANN COMPUTER WITH LEARNING ABILITY First Generation Ovonic Cognitive Computer: Devices are digital not binary A single device that can perform mathematical operations offering completely new levels of functionality Revolutionary ability to perform many unexpected functions in a single sub- micron device made by Ovonic production methods Much higher storage density Increased accuracy for large integers (e.g., present computers are up to 32,000, and this one increases to 1010) Faster computation because of the ability to operate with decimals instead of binary numbers Single thin-film device in the sub-micron range that incorporates memory, logic and computing, not only binary but higher base arithmetic Which results in the ability for massive parallelism Eliminates slow data transfer from RAM to processor

THE FIRST NON VON NEUMANN COMPUTER WITH LEARNING ABILITY (Cont’d) Devices are non-volatile and radiation hard Continues to compute after power disruption Excellent for space and military requirements Eliminates need for ultra-quality electricity Completely proprietary Devices are low voltage Drastically reduces power requirements and heat generation Thin-film, lightweight, low cost, manufacturable “chips” Multi-layer device demonstrated 3-D inter-connectivity Increases density of storage Dramatic reduction in size, cost and weight

THE FIRST NON VON NEUMANN COMPUTER WITH LEARNING ABILITY (Cont’d) Cognitive abilities with similar levels of inter-connectivity as neurons, dendrites and synapsis I.d., neurosynaptic self-learning computer itself is a self-adapting neural net Proprietary thin-film technology includes new basic types of modulation and switching devices of exceptionally small sizes. It breaks the barriers of size holding back computers by the ability to go down to angstrom dimensions. Can have both digital and analogue operations Has attributes of quantum computing, but: Is reliable in practice Has robust data retention Can replace conventional computer Has all conventional computing functions Faster, more accurate, smaller lighter, cheaper, more robust

THE FIRST NON VON NEUMANN COMPUTER WITH LEARNING ABILITY (Cont’d) Plus additional features: Hardware merges with software - data encryption (double security) 3-D computers Neurosynaptic processing – has learning and intelligence capability

OVONIC COGNITIVE COMPUTER CAPABILITY We are the originators of amorphous and disordered material devices: We invented the basic Ovonic chalcogenide devices over 40 years ago Ovonic optical phase change memory is in world-wide production and is experiencing increased sales We founded Ovonyx, a Joint Venture with Intel and Tyler Lowrey, former Vice- Chairman and Chief Technology Officer of Micron Technology, for memory applications We can demonstrate proof-of-concept devices for the new computer ECD has a world class, clean room laboratory build in 2001. One of the most advanced in the world. We have the fundamental patents And, we have a proven, experienced team in place The ability to build these new devices and integrate them into a paradigm changing computer which can be the basis of a new computer industry Original commercialization will take place with joint venture partners and funding from government and other sources to build a new computer industry

Programming Curves for Low Current Device Resulting Programmed Resistance (Ohms) Current (mA) Device Voltage (V) Programming Current (mA)

Cycle Life > 1013 Write/Erase Cycles

Multi-State Storage Multiple-bit storage in each memory cell (10 pulses per step, repeated ten times.)

Near Ideal Memory Qualities Non-volatile High endurance – >1013 demonstrated Long data retention – >10 years Static – no refresh overhead penalty Random accessible – read and write High switching speed Non-destructive read

Near Ideal Memory Qualities (continued) Direct overwrite capability Low standby current (<1mA) Large dynamic range for data (>40X) Actively driven digit-line during read Good array efficiency expected No memory SER – RAD hard No charge loss failure mechanisms

Highly Scalable Performance improves with scaling Only lithography limited Low voltage operation Multi-state demonstrated 3D multi-layer potential with thin films Small storage active medium

Neurosynaptic Cell Output fires when the threshold is reached by summing the inputs

Ovonic Neuronal Memory Increased unique functionality complementary logic (20-12=8) Ovonic Neuronal Memory Increased unique functionality

DIVISION of INTEGERS Increased unique functionality

FACTORING Increased unique functionality