Selling the MX Solution Presented by Jeff Wakefield and Erik Vlugt

MX870 Introduction

The MX870 Opens New Doors! Check-out counter Banking Quality of Consumer Facing Device makes a lasting impression Communicate brand, advertising, information Convey powerful messages with quality graphics Grab attention with animations or video Screen savers, videos, banners, pop-ups Re-use online content and commercial images Applications: Check-out counter Banking Information terminals Flexible Platform – Unlimited Applications

MX870 Feature Overview Modularity ¼ VGA TFT, active, 16 bit color Contactless RFID ¼ VGA TFT, active, 16 bit color capacitive touch screen Blue LEDs under MSR Overlay. LEDs can be controlled in software to create “runway” effect. Connectivity Options Ethernet/IP, USB, Serial Tailgate, Audio Out MSR with optimized lead-in angle. Key Encryption Master Session,DUKPT, Secure Scripts Full Motion Video For Advertising Switchless Design Stylus. No moving parts New black textured case design to match other POS equipment and allow for creative faceplates Durable rubber stylus holster Brandable faceplates Many design option through IMD process Smartcard (Factory Option) Crytography DES, 3DES,AES,RSA, SHA-1 Speakers With Digital Stereo Sound

Software Architecture VeriFone or Customer Application IBM EFT NCR EFT FormAgent Graphical User Interface System Libs System Mode Mx Operating System Linux VeriFone Enhancements

MX870 Solution Selling Market Overview Market Segmentation Tier 1: > 1,000 Lanes Tier 2: > 100 Lanes Tier 3: > 5 Locations US Market Facts Tier 1: 250 Companies Tier 2: 750 Companies Tier 3: 10,000 Companies Retail segments Grocery Drug Stores Specialty Stores Department Stores Value Retail Ticketing/ Event Non-Traditional Value Propositions Capacitive touch makes it easy for consumers to use Chemically hardened glass results in long life Stylus with no moving parts insures reliability Brandable trim plate allows customization Open Linux Operating System allows easy device integration Form Agent Tool allows easy software customization Complete Software Offerings with Visual Payments Buyer Protection Plan offers superior customer satisfaction VeriFone R&D Investment results in continuous new products VeriFone Payments Focus insures continued success VeriFone Retail Vision provides multiple retail solutions Signature Solutions reduces charge backs and expenses Device Solutions lowers support and deployment costs Content Solutions offers numerous marketing opportunities Payment Solutions reduces cost of accepting electronic payments Hardware MX870 Software Content Solutions Signature Solutions Device Solutions Payment Solutions RiTA Services Buyer Protection Plan Priority Exchange Program Deployment Services Installation Services Training Help Desk Partners POS ISV’s Distributors Software Developers

Competitive Advantages

Full Screen Terminal Comparison

Video Features Benefits Competitive Positioning Technical Ability to play full-motion video Video may be stored locally or on a network or USB drive Benefits Advertising Re-purpose commercials Product demonstrations Movie rental preview Competitive Positioning MX870 remains the only device that supports playback of full-motion video to help customers be prepared for tomorrow’s content needs Technical Video capable due to Fast 200MHz processor can decode video real-time Built-in media player High quality TFT display No full-motion video support Full-motion video support

Linux Features Benefits Competitive Positioning Technical Runs open-source Linux operating system Benefits Stability – proven in many embedded platforms Global Acceptance – reduces programming learning curve and time-to-market Reliability – Continuous improvement Feature rich – inherent support for high-end functionality Competitive Positioning MX870 is the only device that uses Linux and will reduce time-to-market due to reduced learning curves and availability of open-source software. Additionally feature additions/enhances can be made faster as existing Linux functionality can be leveraged. Technical Uses Embedded Linux for ARM9 Kernel version is 2.6, very recent and up-to-date Incorporates rich GUI environment based with support for media, images, animation, audio Proprietary O/S Linux

Dual Speakers and line-out port Audio Features Built-in speakers and ability to drive external powered speakers Benefits Voice prompting Unlimited possibilities for tones Play audio along with video Use in kiosk-environment Competitive Positioning As the only true Multimedia device, the MX870 supports a wide array of audio options while the competition is limited to single-purpose buzzers Technical Dual speakers mounted in case Line-out port on multiport block Ability to play wave files Software volume control Buzzer Dual Speakers and line-out port

Touch panel Features Benefits Competitive Positioning Technical Hardened glass Inherently secure Benefits Holds up to years of use without wear & tear PCI PED approved for PIN entry Does not need to be replaced Competitive Positioning Today’s only PCI PED approved touch panel for PIN entry. Does not cloud the clarity of the screen due to wear & tear, and therefore does not need to be regularly replaced. What quality image does the customer what to convey? Technical Capacitive vs Resistive Complexity of touch panel signals allow for secure PIN entry Glass is chemically treated to make it even more robust, and holds up extremely well unlike tempered glass on Ingenico terminals and resistive panels on Hypercom terminals. Capacitive, pin entry issues Resistive, pin entry issues Inherently secure, robust, capacitive

Hypercom Excerpts Excerpts from Hypercom’s instructions for touch panel use

Stylus Features Benefits Competitive Positioning Technical No moving parts Robust design Ergonomically shaped Benefits Extremely durable Inexpensive to replace if necessary Comfortable and easy to use Competitive Positioning Offering the best of both worlds, the benefits of a capacitive panel stylus while having a low replacement cost Technical No PCB inside the stylus (no active electronics) No switch (moving parts), intelligent finger/stylus switching Expensive complex design with switch Simple plastic pen for resistive panel No moving parts, robust, low cost

Ingenico vs. VeriFone Stylus Ingenico Stylus VeriFone Stylus

Multiport Cables Features Benefits Competitive Positioning Technical All connectivity on single block Single cable to counter Benefits Reduce customer-visible cable clutter Customize block connectivity depending on customer’s needs Competitive Positioning The MX does not require individual cables to be plugged into the unit itself, which simplifies installation, cable clutter and trouble-shooting. Technical Single 41-pin connector on MX bundles all signals into single cable which are then broken out in Multiport block Depending on Multiport functionality, some pins may be used for multiple signals Multiple cables to counter Single cable to counter

Modularity Features Benefits Competitive Positioning Technical Field-upgradeable module for additional functionality Benefits Future-proof investment Upgrade to MX today, invest in future technology later Competitive Positioning Although the competition offers limited modular upgrade capability, none offer the flexibility and easy of installation that the MX does. Technical Most of the available digital interfaces are supported on the modular interface to allow for full flexibility for future enhancements No modules Limited module capability Field upgradeable module design

Compatible across MX line Compatibility Features Single O/S can run across MX line Single application can run across MX platform API compatible with legacy applications Benefits Use single O/S and application which works across MX line Mix hardware among stores and chains Competitive Positioning Reduce TCO, including qualification and pilot time by offering unmatched compatibility with previous and current platforms Technical Legacy APIs (MultiPay) integrated in FormAGT API Applications are written so single application can run on multiple hardware variants of MX product line (intelligent detection of capabilities) Varies by product line Compatible across MX line

USB Host Functionality Features USB Host port available on Multiport cable USB Mass Storage Driver built-in USB HID driver built-in Benefits Plug in memory stick for O/S and application upgrades Use memory stick (or HDD) for “unlimited” added storage Compatible with HID devices such as barcode scanners Competitive Positioning Building on its modular reputation, the USB host capability adds additional flexibility to enable current and future technologies without investing in them today Technical Depending on cable choice, USB host connector (Type A) provided on multiport Linux provides native support for USB host (MSD, HID currently implemented) No USB host support No USB Host support Compatible across MX line

Trimplate Features Benefits Competitive Positioning Technical IMD customizable trimplate Hard coat treatment Benefits If no customization required, MX870 arrives with attractive VeriFone branded silver-colored trimplate If desired, the trimplate background color and customer logo can be customized through the high quality IMD process Hard coat treatment allows the trimplate to hold up to the rigors of the retail world Competitive Positioning The extremely robust and highly customizable trimplate further builds on the MX870 high-end reputation to help drive and communicate the customer’s brand. Technical In Mold Decoration (IMD) creates robust graphics that do not wear like pad-printed customizations Hard coat is applied post molding and provides an extra layer of protection against wear No trimplate Non-IMD trimplate IMD Trimplate

Visual Payments Software Solution Features Payment Solutions Signature Solutions Device Solutions Content Solutions Benefits Single suite of modular solutions to help manage, maintain, and drive deployed devices, specifically tailored to the MX line of products Competitive Positioning The only full enterprise solution suite including the ability to manage device content Technical Highly scalable, platform independent server solution Browser-based access to all functionality PABP (Payment Application Best Practice) eN-Concert solution (no Content) No solution Full solutions suite

Are we better than the competition in every aspect?

YES!!! However… you might get challenged in the following areas…

The Myths Security “Linux is not secure because it’s open-source” Not accurate, Linux is extremely secure and has provided a great foundation to create a secure payment operating system Touch panel “Resistive technology is better because it’s cheaper” It is indeed initially cheaper, but it tends to wear quickly which reflects negatively on the customer and its brand, and ultimately results in a higher TCO. Multimedia “Who needs multimedia in a check-out lane”? Playing a 2 minute video for someone buying a Pepsi makes no sense, creatively using rich media to convey a high-end image and store brand does.

How Much Better is the MX870? Top 250 MX870 wins Children’s Place Zales Walgreens Stop & Shop Hobby Lobby PetsMart Spartan Stores American Eagle Rite Aid Bi-Lo Hypercom L4100 wins None Ingenico 6770 wins T-Mobile 4,000 8% 59,000 92% VeriFone has won 59,000 out of the 63,000 full screen terminal lanes since January 2005