MagIC ³ M-series Product presentation Matthieu Hameau

3 Summary Business & markets analysys MagIC³ M-series features Focus on the M-3 handset

Business & market analysys

5 Business environment & Markets trends Merchant’s interest –Turnover increase (Payment at the table, fast transaction acceptance) –Minimized costs (No network installation setup fees or network rationalization) –Small size devices Telecommunication Context –Pricing based on volume (and not duration) –Wireless Operator Market Penetration Standard & Mandates –PCI PED compliance for all terminals deployed since 1 st January 2008 –POS Terminal Security (Authentication & Encryption between terminal and host) for all terminals (even those deployed) since 1 st Jan 2007.

6 Markets Needs  Wireless  Accept transactions everywhere  Flexibility  Support easily peak sales periods by just adding equipment  “One-Stop-Shopping”  To minimize Support Teams Training, Software validation, Different software version support on the field and Spare parts management.  Security  To protect their transactions  Quickness  “Always-On” connectivity versus existing wireless products  Cost  Lower infrastructure cost (at the merchant premises)  Mobility  Access to merchants on the move

7 “Mobile Merchant” profile Merchants on the move Few transactions / day Carrying cash can be dangerous Hard environment (dust, temperature, chocs, …) Mobile communications only Autonomy Resistant & Reliable Home delivery Taxi Train controllers Fleet market

8 “High Profile Merchant” profile High number of transactions / day Complain on communications costs Wish serve many customers in shortest time No or minimum mobility Can not afford to not accept card payment Fast transactions & immediate availability Managed communication cost Other communication means in backup QSR Franchised shops Pharmacy

9 “Standard Merchant” profile Transactions concentrated in short period of time Wish to minimized telecom cost (installation, communications, …) Need mobility around a central point (charging) Need connectivity with other equipments (ECR, Check reader, …) Fast transactions Autonomy is not an issue Connectivity Restaurants Shops (Flowers, Clothing, …) In & Outdoor sales

10 Different functional modes Different profiles… Different needs… Speed Connectivity Charging base “Standard” profile “Mobile” profile “High End” profile Connecting base Car lighter “Performance” mode “Standard” mode “Autonomy” mode

MagIC³ M-series features

12 MagIC³ M-series, Anywhere, Anytime…

13 …and Smart Based on the Open&Sec technology –Dual 32-bit core architecture Main processor –32 bits ARM9 microprocessor –200 MHZ clock speed Secure processor –32 bits ARM microprocessor –Manages PIN security, encryption (3DES and RSA algorithm), screen prompts etc, –Manages sensors: temperature (attack by freezing), voltage (DPA), opening –Linux OS Robust and well-proven OS –Meets new PCI requirements Intrusion sensors Heat/freeze sensors Voltage consumption jamming Non PCI products will have the same hardware

14 An handset optimized for payment… Communication –GSM / GPRS modem, Class 10 –1 x USB Master (Possibility to fast download) –1 x Power jack adapter Memory –8MB flash, 16MB SDRAM Printer –18 lines per seconds –57*32mm or 57x40mm paper roll SAM reader –2 x SAM readers –1 x GSM SIM reader Ethernet PSTN RS-232 USB Master PSTN and Ethernet backups Connectivity to: –Check reader –Cash Register –Etc… …and a base for external wired communications

15 Simple and intuitive interface… Display –Graphical FSTN display –128 x 64 pixels –Title + logo / icon management –Scroll bar Easy navigation –User friendly usage Menu + 2 arrows « Mobile phone » navigation –Shortcuts –Quick access to favourite functions –Anybody can handle a payment Network & battery status available at idle screen …like mobile phones

16 MagIC³ M-series is also… Durable keypad –Protection caps on keyboard keys –Marking timelessness Average dimensions –Length = 184 mm –Width = 85 mm –Height: = 60 mm –Weight: 455g Environmental –ROHS compliant –Operating temperature: 0-40°C/32-115°F –Relative humidity 90% max

17 MagIC³ associated tools Local downloading via USB Remote downloading –Via GPRS or modem, Ethernet via the base. –Progress bar on the server (access server + session protocol) –Roll back mechanism Optional terminal management system –Online reports –Statistics

18 Main values Efficient –Adapted to different merchants profiles –Part of the MagIC³ family –Optimised connectivity Easy –Ease to operate: plug and play philosophy quick software downloading (USB 2.0) –USB key is the best SW local downloading tool –Intuitive navigation User friendly usage Anybody can handle a payment Secure –Latest security standard implemented

19 MagIC³ M-series M-3 M-5 M-8

20 MagIC³ M-series M-3 GSM/GPRS Handset (Dark grey or Silver colour) Power supply Two printer covers (32 mm and 40 mm) M-5 GSM- GPRS Handset (Dark grey or Silver colour) Charging baseCharging base Power supply Two printer covers - 32 mm and 40 mm M-8 GSM- GPRS Handset (Dark grey or Silver colour) Charging and communicating baseCharging and communicating base Power supply Two printer covers ( 32 mm and 40 mm)

21 Maximum performance for unmatched security Powered by Open&Sec platform technology –Dual 32-bit core architecture Main processor Secure processor –Linux OS Robust and well-proven OS –Meets new PCI requirements Intrusion sensors Heat/freeze sensors Voltage consumption jamming

Focus on the M-3 handset

23 M-3 Handset1 Product characteristics 2 Getting started 3 Software configuration 4 Performance 5 PCI and accessories

24 M-3 Hardware characteristics Display Graphical FSTN display with backlit 128 x 64 pixels Title + logo / icon management Scroll bar Durable keypad Protection caps on keyboard keys Easy super fast software download via USB Environmental ROHS compliant Operating temperature: 0-40°C Relative humidity 90% max Communication Bi-band GSM/GRPS modem, Class 10 1x USB (fast software download) 1x Power jack adapter Memory 8MB flash, 16MB SDRAM Printer 18 lines per seconds 57*32mm or 57x40mm paper roll SAM reader 2 x SAM readers 1 x GSM SIM reader

25 M-3 Hardware characteristics Easy navigation – User friendly –Action Key + 2 arrows –« Mobile phone » navigation –Shortcuts European standardised keys –No ‘MENU’ key –Standardised ‘ENTER’, ‘CLEAR’ and ‘CANCEL’ buttons Network & battery status available at idle screen Menu structure remains the same –Initial menu navigation is now vertical rather than horizontal Alpha characters can be selected by repeatedly pressing associated key (like texting) …like mobile phones 1- Interface

26 M-3 Hardware characteristics 2- Getting Started Powering on the handset for the first time: Remove the back trap and connect the battery. Plug in the power supply and charge the battery for 1.5 hours. (Handset doesn’t boot if battery pack is not available) Powering up a charged terminal Press the down key button 2 seconds Place the Handset on the Base (Only with M-8 configuration ) Application can be then downloaded by external USB key. Application will have to be signed if the secure configuration is enabled. Terminal power off Selecting the option power from the AM Battery charge is low

27 M-3 Hardware characteristics 2- Getting Started Power stand by mode (waiting for transaction) AM in idle mode for more than 10 seconds. (Customizable) Wake up Pressing any key Connecting an external device Hard reset Disconnecting the main power supply (not the battery) Inserting a pin into the reset hole to press the Cut off button (this action will power off the Handset) Enable GPRS connectivity Power off the terminal Remove the back trap Insert the SIM card into the GSM slot (just under the battery pack) Power on the terminal

28 M-3 Hardware characteristics 2- Getting Started Easy paper loading

29 M-3 Hardware characteristics 3- Software Configuration Fill in your OS, FW versions application etc

30 M-3 Hardware characteristics 4- Performance Battery: Life in standby mode (hrs) 100 hours Life in continuous use (hrs) 10 hours 2 years Life expectancy Online transactions: With a battery fully charged and depending on the operator frequency At 900 Mhz: 200 transactions At 1800 MHz: 400 transactions Printer 18 lines per seconds 57*32mm or 57x40mm paper roll

31 M-3 Hardware characteristics 5- PCI and accessories PCI PED tamper detections: Intrusion sensors Environmental protections systems (voltage, frequency, UV and temperature) Keypad switches Secure box protecting the smart card reader and other sensible components Accessories Car lighter and holster