1 TraceTrack Technology, Limited

The Opportunity Immediate commercialization of an advanced technology for ETD in cargo and baggage. Follow on opportunity in mail, parcels, containers, nuclear and biological agent detection.

The Company Incorporated in 2002 by Ornath and Kostelitz for the development and commercialization of AUTOMATED EXPLOSIVE TRACE DETECTION technology. Supported by the Israeli Security Agency (ISA) and the US TSWG.

The Technology Unique trace collection which extracts samples from inside as well as outside of baggage. Compatible with existing analytical instruments. Low cycle times estimated at <20 seconds. May integrate into in-line systems. A scalable concept for cargo as well as baggage. False positives less than 1%.

Prototypes Mark 2 Mark 3 Mark 4 in development

Current Performance Challenge conditions: – External multi-generation C4 fingerprints. – Internal bulk C4 and TNT. – Unperturbed clean room prep. – Simulated shock and vibration Periodic evaluations by the ISA. Report of results follows:

Manual and Automatic Detection FINGERPRINT GENERATION Inside surface Fingerprints on Steel pipe TNT Block Manual Sampling **** * Manual sampling results assume skill and adherence to procedures. EXTERNAL INTERNAL TraceTrack

TraceTrack Features Manual Automated TraceTrack Detection rate: External Fingerprint Depends on operator and procedures. 99% Detection rate: Internal traces and bulk explosive 0%85% to 99% Operation costManpower and training intensive. Reduced headcount. FootprintLargeSmall or integrated Reliability/RepeatabilitySubject to fatigue induced errors. No operators Proven performance

TECHNOLOGYDISDVANTAGES CT-EDSComputed TomographyHigh cost and large footprint. ETDManual external trace detection. Manual; Fatigue and error prone technique. QRQuadrupole resonanceNot certified. Limited sensitivity. X-RAYX-ray imagingFatigue and error prone. No direct explosive detection. Competitive Technologies

Competitive Environment No other automated trace sampling method is imminent. The competition is seen as human screeners, estimated to cost $50,000 per shift per year. The long-term threat is a totally integrated “most common threats” detection system, but none are seen as imminent or cost- effective at this time.

Market Potential

The Broader Market Global targets: Airports Seaports Government Facilities High Profile Office Buildings Rail and bus transit Military bases Sports stadiums “Sensitive sites” (amusement parks, malls, etc.)

Summary Need exists Technology works Value proposition on target Resource requirements minimal relative to potential gain Return can be fast, attractive, sustainable Time to confirm all is minimal A window of opportunity exists.

Major Milestones Develop and test prototypes. Obtain ISA/TSA validation of the technology. Partner with an established supplier. Obtain TSA certification. Penetrate the domestic airport cargo market. Address carry-on screening. Address other markets.

Near term objectives Additional investment – Fully automated, pass through prototype. – Certification by the TSA. – A cargo scale product. – A domestic US presence. Market development – A domestic US partner. – Integrated product offering(s). – Marketing – Manufacturing as required. Development of additional products

The TraceTrack Team Dr. Fredy Ornath – CEO, Inventor and Entrepreneur, Avi Kostelitz – VP, former CEO, Israel Airports Authority – Major General (Ret.), Israel Security Agency