1. 2007 © Livescribe, Inc., Confidential Smartpen Components

2. 2007 © Livescribe, Inc., Confidential Binaural Recording – Binaural is to the ears what binocular is to the eyes –– Stereo recording, but better –– The highest fidelity recording system available Far field recording challenge –– Binaural summation produces a 10dB boost…which is the perceptual equivalent of asking someone to speak up Benefits of spatial audio –– 3-dimensional sound produces a strong sense of presence ––Allows the listener to distinguish voices based on location and to selectively tune out unwanted sounds –– Note: binaural microphones are required to record spatial audio, but any earphones can play the 3D recordings back

3. 2007 © Livescribe, Inc., Confidential Dot Positioning System Two-Dimensional Barcode – Camera in pen tip reads 6 x 6 dot region – Each dot can have 1 of 4 positions – 4^36 = 4.72 x 10^21 – Practically speaking, that’s > 7 trillion unique notebook pages