Brand Protection & Authentication Solutions Confidential Information INKSURE Technologies Brand Protection & Authentication Solutions Confidential Information

INKSURE Technologies Provider of covert, machine readable brand security solutions The verification process is based on proprietary authenticators that provide instant, reliable, forensic-quality results INKSURE’s taggant technology is applied to tens of billions of consumer items and high-value documents annually Established in 1999; U.S. public corporation (INKS.OB) - SEC regulated Corporate Headquarters in NYC; Global R&D Center at the Science Park in Rehovot, Israel

Brand Protection Solutions

Covert Machine Readable Technology Optical taggants that are not visible to the human eye Mixed with the brand owner’s own Inks & varnishes Flexo, Offset, Gravure, Screen, TTR, Pad, Hot Ink Roll, Inkjet Authenticated by a handheld, battery operated, portable reader The reader gives a positive response – not subject to Human Interpretation Many custom security formulations available Enhances overt authentication Security No visible response to UV excitation No IR up converters No false accepts

How Does It Work? Each item is invisibly marked with INKSURE’s SmartInk during standard printing production Although visually identical to regular ink or varnish, SmartInk includes a covert taggant code The code is customer/application exclusive INKSURE’s range of proprietary readers are used to conclusively authenticate products and documents by detecting electro-optical material behavior, identifying the code and providing on-the-spot pass/reject indication

SmartInk Covert Applications SmartInk can be applied to almost any substrate – paper, plastic, foils, laminate, thermal transfer ribbon etc. SmartInk utilizes standard printing processes & infrastructure such as offset, inkjet etc. “If it can be colored, coated, printed, or packaged, INKSURE can protect it”

SignaSure Handled Readers A sophisticated optical authentication reader, analyzing complex spectral signatures Each reader can store up to 10 codes to detect different marked applications Forensic Level Authentication- up to 75 data points Configured for each customer/application Simple & intuitive user interface; light weight, ergonomic design Clear audible and visual confirmation/alert within seconds Rechargeable batteries; USB connectivity

PocketSure Handled Readers A new, pocket-size reader for field authentication Size: 5.5” x 1.1” Weight:2.5 ounces Highly accurate 10 point data count Lower-cost for high volume distribution Warehouses Law Enforcement Retail Locations Multiple codes in memory Audio tone and visual (red/green LED) only, no LCD screen Replaceable batteries, no charging circuits

SortSure – In Line Process Control Continuous hands free feedback Effective cost monitoring capability Data collection for future QA reference or evidence

CodeSure – Barcode & Taggant Reader Detection of overt, covert and mixed symbols printed utilizing tagged and untagged inks Will read 1D 2D barcodes, OCR etc. Onboard database Track & Trace data is stored locally (USB/Micro SD attachments) for quick lookup (eliminates the need for connectivity to a remote server)

Target Market

INKSURE’s Targeted Verticals INKSURE is focused on four distinct verticals: Security Integrators (government & security products) Hologram Manufacturers Label Manufacturers Security Printers In each vertical INKSURE has successful large scale implementations & reference customers

Security Integrator – Case Study The Ukraine Tax Stamp (2008 – Current) Ukraine Population: 50M Tobaccos & Alcohol consumption – several billions items annually Security Integrator – EDAPS Corporation (Ukraine Based) Introduction of INKSURE’s covert taggants + distribution of >1,300 readers to tax inspectors Successful integration resulted in an immediate increase of ~30% in tax revenues EDAPS distributed a case study detailing the project success The Secretary General of the World Customs Organizations singled out the Ukrainian tax stamp project

Security Integrator – Tax Stamp Applications SmartInk can be applied to a Tax Stamp via any of the following: Hotstamp hologram tagged by SmartInk Background design by using SmartInk Intaglio or clear overcoat for a yes/no authentication SmartInk Inkjet for yes/no authentication of serial numbering SmartInk Sequential for group level tracking (manufacturer, designated markets, etc.) Multiple reading configurations: Field Forensic SignaSure for authorized customs personnel Handheld PocketSure for supply chain authentication High speed SortSure with counting capabilities for production

Hologram Manufacturer– Success Case European Partner (Italy) Insertion of INKSURE’s taggants into hologram base foils Producing over one million meters of tagged base foils annually Producing several billions of hotstamp holograms annually Tagged holograms are very durable and can provide accurate covert results for several years INKSURE’s team works closely with manufacturer to ensure a seamless & consistent process

Label Manufacturer– Success Case US based partner – confidential Insertion of INKSURE’s taggants into label base foils Labels are applied to electronic products & accessories Producing several billions labels annually Label are being distributed globally (mainly to china)

Security Printer – Banknote Project A Central Bank (OECD member) Addition of INKSURE’s taggant to a specific area in the banknote Taggant and & designated area – known only to the central banks Successful integration at the Security Printer’s facility in Switzerland INKSURE implemented SortSure to automatically verify large quantities of banknotes at the Central Banks safes Banknote rollout is expected during 2011

INKSURE Brand Protection - Summary Highly experienced and execution-oriented management team Solutions protect tens of billions of consumer items and high-value documents annually Proven large scale implementations of tax stamps, holograms and security labels projects Strong & long term relations with local integrators especially in Eastern & Central Europe