The Ultimate Solution for Cash Handling

Bank Notes in Circulation January 1996 – January 2004

Cash is Costly Cost in EU ( source: Euopean payment Council) –No less than EUR 50 billion (0,4 – 0,6% of GDP) –360 billion Cash Transactions –60 billion Non-cash transactions Cost Split –Bank 50%, retailers 40%, others 10% Cost for banks –About 20% of annual operating costs Estimated Cost in United States –USD 60 billion

Counting ATM Head cashier Or cashier Cashier NOTE DELIVERY TO BANK AND EXCHANGE / LOW VALUE NOTES TO STORES IN DISPOSABLE CASSETTES NOTES FOR DESTRUCTION COUNTING CENTRAL BANK POST NATIONAL BANK BANK / DEPOT / POST NIGHT DEPOSIT OR CASHIER QUALITY SORTED INTO TWO LEVELS: NATIONAL BANK QUALITY (6 SEK/100 Notes) ATM QUALITY (10 SEK/100 Notes ) CASH FLOW TODAY: Manual NOTE COUNTING everywhere Counting Cashier Counting COUNTING BANK / POST The cost for cash handling in Sweden today, appr. EUR 1.2 billion/year. Corresponding amount in the U.K., appr. EUR 5.5 billion/year.

COUNTING ATM HEAD CASHIER OR CASHIER Cashier NOTE DELIVERY TO BANK AND EXCHANGE / LOW VALUE NOTES TO STORES IN DISPOSABLE CASSETTES NOTES FOR DESTRUCTION COUNTING CENTRAL BANK POST NATIONAL BANK BANK / DEPOT / POST NIGHT DEPOSIT OR CASHIER QUALITY SORTED INTO TWO LEVELS NATIONAL BANK QUALITY (6 SEK/100 Notes) ATM QUALITY (10 SEK/100 Notes) CASH FLOW TODAY: Manual NOTE COUNTING everywhere COUNTING Cashier Counting COUNTING BANK / POST The cost for cash handling in Sweden today, appr. EUR 1.2 billion/year. Corresponding amount in the U.K., appr. EUR 5.5 billion/year.

SHORTCIRCUITSHORTCIRCUIT Head cashier Or cashier Cashier DISPOSABLE CASSETTES NOTES FOR DESTRUCTION NATIONAL BANK BANK / DEPOT / POST Internet Cash flow Control CASH FLOW TOMORROW: No manual NOTE COUNTING Counting Cashier Counting Recycling Low quality UNDERFLOW / OVERFLOW IN DISPOSABLE CASSETTES EXCHANGE / LOW VALUE NOTES IN DISPOSABLE CASSETTES NOTES FOR DESTRUCTION IN DISPOSABLE CASSETTES Low quality Recycling NEW DEPOSIT/DISPENSE MACHINE Automatic ATM loading by customer Deposit receipt for customer Quality sorting of notes Overflow > Disposable cassettes Low quality notes > Disposable cassettes Suspect counterfeit > Disposable cassette Estimated cost reduction after installation of QCR in Sweden, appr. EUR billion. Corresponding amount in the U.K. is appr. EUR 2.1 billion. Technical service

Local Circulation Deposits Withdrawals Deposits/Withdrawals

Branch staff dispenses and deposits Q-CashRouter Local Recycling QCR productivity with one deposit and two dispense fascias One deposit of 400 notes (3 minutes) Dispenses to 6 customers 5 notes each Q-CashRouter Dispenses to 6 customers 5 notes each Processes 12 customer Withdrawals during the same time as 1 customer makes a Deposit

SealPack™ - Automatic Bundling of notes Quality sorted Notes Suspected and Ink-died Notes Counterfeit Notes Poor quality Notes

New Innovative Business Concepts Q-CashRouter Replaces: ATMs Deposit machines Night Deposit Safes Manual processing of daily takings Locations: Bank Branches Supermarkets/Hypermarkets Shopping Malls Partnering: Banks Shops CITs Real estate owner

Q-CashRouter - Main Benefits Local Recycling of notes with a significant cost reduction Replaces up to 2 ATMs, single note, bundle and envelope deposit systems and Night Deposit Boxes Immediate crediting of depositor’s bank account New Revenues for Banks: Change from a cost driven to a revenue driven cash handling Business –Revenues from Deposit services (fewer CIT transports and no costs for central sorting, counting, etc.) –Sales of exchange cash SealPacks to Retailers –Sales of SealPacks for ATM-loading

BANQIT’s Future BANQIT will become number one in the world in cash handling Our concept and our products for local recycling will reduce the volume of bank notes, and the costs for cash handling, by up to 50% BANQIT’s concepts and products are protected by an extensive and worldwide patent portfolio BANQIT needs a resourceful partner with extensive market coverage in the banking and retail sector in countries where the company does not have a presence today Why and how did BANQIT develop these concepts, and the technology?