Driving Customers IRAP Presentation 4 March 2008

eBay ® of Urban Transportation  21% of mobility trips are not done by collective forms of transportation because of a lack of information.  Collective forms of transportation may provide services similar to those of the private car at comparative costs.  Potential for arbitrage between modes.  Sell collective forms of transportation as cheaper, cleaner, more convenient & more productive.  Multiple ways to build revenue streams. Comparative Urban Transportation Costs per seat - km Limousine Taxi Urban Transit Bus Demand Response Cost Vanpool (US) Cost SOV Cents / place - km An information and trading platform where buyers and sellers can trade standardized urban trips.

Market Size The Canadian passenger bus and urban transit industry (2005):  Total revenues of $ 8.6 billion  Net income of $ 1.3 billion  Services billion passengers.  Growth rate of 12.2% Large urban passenger transportation market in Canada, US, and Overseas

Trends  Continuance of traditional approaches by incumbents.  Increase in environmental & sustainability concerns.  Introduction of carbon emissions taxes.  Increase in gas price and driving cost.  Rising congestion and time lost to traffic delays.  Increase in demand for wayfinding & navigation technology.  Ubiquity of location-enabled handheld devices.  Social networking and hobby tribes.  Decline of impression-based advertising

Technology Platforms Current Platform: Web-based Interface ORIGINDOWNTOWN VANCOUVER DESTINATIONDOWNTOWN VICTORIA *via BC FerryTIMEMONEYCO2(kg) FLIGHTPLANE 1/ FLIGHTHELI 1/ TAXI*2 3/ SOV*2 3/ PCL*3 1/ TRANSIT*3 3/ Deployable on:  Kiosks  PDAs  iPods  BlackBerries  Cell Phones

Timeline Pacific Coach Lines YVR-Whistler POI Business Model 2002 Incorporated BCIT, ESRI, NCR Partnerships Whistler Kiosk SR&ED Program (‘03-’07) Touch-screen Kiosk Navteq LBS Challenge – Semi Finalists (Mobile Version) Research in Motion & YVR *PCL – Pacific Coach Lines *Navteq LBS Challenge ‘ % increase in urban transportation solutions. IRAP YES PCL & BC Ferries - YVR-Victoria Resort Municipality of Whistler (Olympics) Establish IOTO Network for Tourists PCL – YVR - SEA Int. US/CAN Airports with multiple transportation modes Standardized Platform for Sellers / Buyers with Multiple Modes

Revenue Models Infrastructure Providers Transportation Service Provider (TSP) Point Of Interests (POIs)

Infrastructure Providers Research In Motion – BlackBerry Handheld Devices NCR – Kiosks Navteq / Nokia – Digital Maps / Devices Bell, Telus, T-Mobile – Carriers

PCL-TSP Showcase Pacific Coach Lines  Annual revenues of 9.2 million (‘07)  100 employees (‘07)  One of the largest coach services in Western Canada  Over 500,000 passengers a year between Victoria/Vancouver  Biggest customer of BC Ferries  Key operator for the 2010 Olympics.  Recently bought Cantrail – US coach company for SEA - YVR Vancouver Airport IKEA Cruise Ships Whistler Squamish Seattle Victoria Pacific Coach Lines

PCL-TSP Showcase Development and Progress  Three high-level meetings (3-4 hrs total - President & Key shareholder)  Good fit: local company with intl connections, & strong community.  Proposals (initial and revised proposals)  Demo meeting early Feb. w/ President, Marketing, & Accounting staff.  Led to knowledge of unforeseen potential platform benefits to PCL.  Points addressed: fraud, increasing number of points of sale, pricing flexibility, accounting, capturing greater % of ticket revenue, vouchers.  Great enthusiasm from President, suggestion of meeting leading to letter of intent, but litigation w/ key competitor puts initiative on hold. Application Demo

POI Model Initiative Encourage collective forms of transportation. Reduce private automobile use. Motivate through free trips to POIs. Advertise.  Cases: BC Ferries, IKEA, Queensborough Landing  Impression-Based Advertising - $3000-$4000 for a full page colored news ad - Cost per newspaper impression estimated at $ Fragmented customer segments - Ambiguity in advertisement effectiveness Shifts from Impression-based to Impact-based advertising

IOTO’s Impression-Based Advertising  Priced below cost of impression-based advertising  Integrated into company website store-finders  Promotes sustainability by reducing automobile use  Alleviates customer parking issues  Creates social network & hobby tribes POI Model Initiative

THANK YOU Will Spat Jimmy Au IOTO International Inc. 269 West Keith Road, North Vancouver, BC V7M 1L7 CANADA Tel: