1. inovani 1 Status: Products are fully developed. Key technology partnerships are established. Running commercial cervices NEXT: Commercialisation –Establish business partnerships in selected countries world wide –Expand the sales, marketing and service organisation Inovani as The company: Established April 2001 Owned by the founders 5 active founders –2 on payroll –3 affiliated part-time Accumulated development costs is EUR 1.2 million Company representative: Helge Bukkvold –+47 911 36 245 –helge@inovani.no Main shareholder and member of the Board

2. inovani 2 Inovani products - Let the technology speak for it self Inovani’s tools can be used to instantly create user friendly dialogues and compelling contents for cell phones, mobile devices, Web-pages, PC applications and auditorium screens. Inovani’s key technology is speech animation tools for automatic creation and efficient distribution of virtual life-like expressive characters.

3. inovani 3 How do we create the animation? NO STUDIO production, the animation was created automatically in REAL- TIME from the following text with smilies. (can also take voice as input) :-) Inovani’s tools can be used to :-0 instantly create user friendly dialogues and :-? compelling contents for cell phones, :-j mobile devices, Web-pages, :-( PC applications and auditorium :-? screens.

4. inovani 4 Our competitive advantages : Animation quality and expressiveness (unique, no competitors) –Both highly realistic characters and speech motion combined with expressions Easy and fast production in REAL-TIME (unique, no competitors) –NO-STUDIO production –The ability to tailor DIALOGs to each individual user Standard video formats or Inovani proprietary format. –Inovani format : Extremely low bandwidth – reduces cost of distribution –Low requirements on CPU-power. (Like a Cell phones) Heads are easy to create –Automatic from photos, or approximately 10 hours of 3D modelling. Language independent Covers every kind of screen from cell phones to auditorium screens.

5. inovani 5 Patenting and what is unique ? There are techniques that may be patented. However: after careful considerations we have decided not to patent our technology because a patent will reveal our techniques more than it will protect it. Inovani’s strength and uniqueness is very much linked to how we combine published techniques : –Multi-discipline: advanced mathematical techniques, data communication, software design, computer graphics, data compression and long time experience with high quality animation techniques.

6. inovani 6 Market : mobile video messaging (MMS) As easy as creating SMS messages, but much more compelling result The video message is created on the fly as the result of a text received e.g. in an SMS, WAP-page or from voice. Use standard mobile video formats i.e. NO need to install special software to view the animations. Competitive advantages: –Easy and fast production of high quality animation –Instant creation on demand from end-user

7. inovani 7 Market : mobile video messaging (MMS) Inovani customers: –Content and Service providers Revenue model: –Ticker or revenue sharing per mobile video message Market size of Europe and UK 2005-2009 Official statistics; –Cell phone penetration : 84%-88% / 88%-92% –Phones w/ mobile video : 20% - 75% –ARPU/year in EURO : 460-540 / 870-900 –Premium services : 7,5% - 15% of ARPU inovani projections; –“Talking head” services : 1%-2% of Premium services –Market share: 100% down to 40% –Market penetration: 30% up to 100% –Ticker/revenue sharing: 10% of the service price

8. inovani 8 Market : Web-Virtual Guide Inovani customers: –Companies, Public services, community owners e.g. Microsoft’s MSN –Web Publishing vendors Revenue model: –License per conc. user with yearly support fee Competitive advantages: –Instant creation of a true interactive DIALOG between the user and the virtual host –Quality of animation and face expressions. Size of market: –inovani projections : on average 800-1.500 Web- pages per country –No official statistics. Sandra Customs Virtual host at Swedish Customs Customer quote : The Virtual Guide becomes a new employee on the web, representing the company with their own unique personality and competence.

9. inovani 9 Market : Single user applications Some application areas: –Tools for disabled, Information kiosks, Theme Park guides –Everywhere synthetic speech and talking characters can improve quality and service. Revenue model: –License per CPU with yearly support fee Competitive advantages: –Cover screens in all sizes from PDAs to auditorium screens –Extreme compression of stored video (sound and 3D-model ONLY since we are using Inovani proprietary viewer), –Speech animation tested for lip-reading with success. Size of market: –N.A.

10. inovani 10 Next phase of Inovani Business status Mobile services : Business partnership with Eurobate ASA –Presence in Norway, Sweden, Denmark, Spain, Germany, England, Italy and more –Services are launched in NW. New countries are rolled out these days. Mobile services : Business partnership with WapTheWeb AS –Presence in Norway –Services are launched in Norway What’s next ? –Develop a complete business strategy for target markets –Build a sales, marketing and service organisation to support the business plan Penetrate large markets quickly with products for premium mobile services –Establish local presence, either alone or together with business partners Capital needed is EUR 1.0 – 1.5 million ROI : In 3 years the value of inovani is increased by a factor of at least 10

11. inovani 11 Risk factors Technical risks are minimal. The product is in production has been that for months. KEY RISK : –The markets; timing and growth rate –Capacity to build a successful sales, marketing, service and support organisation