Introducing: The Magic Doorman “Convenience & Safety for Homeowners”

– 2 – ©2006 Presentation Agenda Objectives & Approach Executive Summary How The Magic Doorman Works Value Proposition Marketing Strategy Partnering with Nottingham-Spirk

– 3 – ©2006 Objectives & Approach Approach “Brainstormed” solutions to our everyday frustrations Reviewed feasibility with several engineers Gauged demand through a dozen consumer interviews Research competitive landscape to develop marketing strategy Objectives Develop a “wow” idea that: “Eases pain” or “increases pleasure” Has mass market appeal Has patentable features or methods

– 4 – ©2006 The Magic Doorman can be a $100 million, mass market product –Mass market strategy –Educated consumers –$39.99 MSRP –Educated consumers –Product/market dev. opportunities abound Executive Summary Partnering with Nottingham-Spirk will afford us the battery, motor, and assembly capabilities we need to ensure our cost advantage. The Magic Doorman is an RF-based, remote door opener that provides unmatched convenience and safety to mass-market homeowners worldwide –Keyless access at home –Built-in safety alarm –Retrofit application –Door / bolt option –Easy to install –Cost effective High-end competitors exist, but the Magic Doorman will win on cost –$120+ niche products –Unattainable for masses –Difficult to install –Limited safety –Magic Doorman: $10.00 COGS We need $1 million in seed money to fund our production process –Plastic molds & design–Working capital–“Jockey” salary

– 5 – ©2006 How The Magic Doorman Works See our demo!

– 6 – ©2006 How The Magic Doorman Works Deadbolts, too!

– 7 – ©2006 The Magic Doorman’s Value Proposition Key Attributes Unlocks and opens doors hands free Relieves stress of fumbling for to find or straining to use keys ConvenienceSafety Provides safety via an optional alarm setting Relieves fear of potential intruders, while LEDs remind that door is locked Easy to Install Doors / bolts Retrofit Cost-effective Wow! That’s cool.

– 8 – ©2006 Competitive Landscape High Low Safety Low High Price $179 $120 $150 Niche competition exists, but the Magic Doorman will win the mass market on price and safety features. Can’t touch me!

– 9 – ©2006 Cost Analysis—Conservative Case $10.00 $2.00 $3.00 $1.00 $0.50 With Nottingham-Spirk’s battery, motor, and assembly knowledge we likely could lower our costs significantly. And those are retail prices!

– 10 – ©2006 Marketing Strategy—Price Suggested MSRP of $ Perfect for Impulse!

– 11 – ©2006 Marketing Strategy—Customer Size & Segmentation Automotive keyless FOB adoption widespread Understanding of keyless door opening will prime Magic Doorman adoption Educated Consumer Base Increasingly busy homeowners, parents, and workers looking for ease ‘Singles’, elderly, and others wanting more safety Target Demographics We’ve got the wind at our back! Addressable Market 26M families with children 10M single family homes 17M women living alone 37M age 65+ residents

– 12 – ©2006 Marketing Strategy—Distribution After our “soft launch” we will first rollout to 2,500 stores in the Midwest and West. Big Box Retailers 3,900 U.S. stores 1,440 U.S. stores DIY Retailers 2,000 U.S. stores 1,250 U.S. stores Distributors To the masses!

– 13 – ©2006 The Magic Doorman’s Can Be a $100M Product Even at our ‘moderate’ expansion level, we foresee meeting Nottingham-Spirk’s product sales criterion. 2.5 million Units/Yr ÷ $100 million Product Sales $39.99 Price = Promising growth opportunities exist as well: –International markets –Business-to-business market –Product development (light, garage door functionality) 2,500 Stores x 1,000 Units/Store/Yr = 2.5 million Units/Yr

– 14 – ©2006 Partnering with Nottingham-Spirk Partnering with Nottingham-Spirk will provide us with the capabilities we need to cost effectively market The Magic Doorman to the masses! To complete our “bootstrapping” of The Magic Doorman, we are looking to: Raise: –4 sets of 3 molds: $100,000 x 4 = $400,000 –Working capital = $400,000 –Design and development fees = $100,000 –“Jockey” and team salaries = $100,000 Optimize the Magic Doorman’s design and cost

– 15 – ©2006 The Magic Doorman—Discussion Thank you. Burma Shave.