Driving Customers IRAP Presentation March 4, 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  Inspire collective forms of transportation  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 US 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 market in the passenger transportation industry in Canada and US.

Trends  Continuance in traditional approaches to transportation industry  Increase in environmental concerns/ sustainable development  Introduction of carbon emissions tax  Increase in gas price and driving cost  Increase in demand for navigation technology Innovative Technologies and Environmental Concerns

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/ Future Platforms:  Kiosks  Handheld Devices

Timeline Pacific Coach Lines YVR-Whistler POI Business Model 2002 Incorporated BCIT, ESRI NCR Partnerships Whistler Kiosk SR&ED Program (‘03-’08) Kiosk Touch-screen Navteq LBS Challenge – Semi Finalists 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 Municipality of West Vancouver (Olympics) Established IOTO Network for Tourists PCL – Seattle SeaTac Int. US/CAN Airports with multiple transportation modes Standardized Platform for Sellers / Buyers with Multiple Modes 2012

Revenue Models Infrastructure Providers Transportation Service Provider (TSP) Point Of Interest (POI) Model

Infrastructure Providers Research In Motion – BlackBerry Handheld Devices NCR – Kiosks Navteq – Navigational Maps Bell, Telus, Sprint-Nextel – Carriers

PCL-TSP Showcase Pacific Coach Lines  Revenue of 9.2 million and 100 employees (2007)  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 service company Pacific Coach Lines VictoriaSeattle Whistler Squamish Cruise Ships IKEA Vancouver Airport

PCL-TSP Showcase Development and Progress  Three meetings (3-4 hrs in total)  Proposals (initial and revised proposals)  Letter of Intent  Points addressed: fraud, increasing points of sale, pricing flexibility, accounting  Enthusiasm from President, but litigation puts initiative on hold Application Demo

POI Model Initiative Encourage collective forms of transportation. Reduce private automobile use. Incentivise through free trips to POIs.  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 Application Demonstration POI Model Initiative

THANK YOU Will Spat Philip Lisenfeld Jimmy Au