1. Sample Template for Pitching Angel Investors (Your Name, Your Phone, your@companyemail.com) Presentation to Big Money Investors/Strategic Partners May 2006

2. Your Name, Your Phone, your@companyemail.com Summary Team  5—each with 10+ years designing advanced widgets  Mostly engineers; two with extensive sales experience Product  Radical new widget:  costs 90%,  revenues 50% Market  $500M market today in 5 verticals, growing 20%/yr Regulatory (if applicable)  FDA 510k already in progress Competition  Current: large players with old technology; two small entrants  Future: large players will adapt, but will take 5 years to retool Financials  $10M in revenue in 3 years  Seeking $2M, will get to cash-flow break even

3. Your Name, Your Phone, your@companyemail.com Team Brings Sector, Startup Skills Widget Man, founder, CEO  10 years in widgets  Formerly VP Product Dev., Widge-R-us Widget Woman, founder, VP Engineering  MIT PhD, Aerospace Widgets Dept.  Dissertation: “This actually is Rocket Science…”  4 th Startup: 2 small successes; 1 going concern; 1 failure Three Others  Complementary engineering talent  Two with 7+ years sales & marketing experience

4. Your Name, Your Phone, your@companyemail.com Product Changes Market Dynamics Cuts Customer Costs  90% reduction in customer hard costs  Reduces widget consumption, increases performance Increases Customer Revenues  Plants currently at 100% capacity  Widget retooling #1 limiting factor  Can increase output, with higher quality  Customer can charge premium for more product  Estimate 50% increase in revenues [Add Real-World Examples; maybe 2-3 slides of case studies]

5. Your Name, Your Phone, your@companyemail.com Value Proposition to Customer ItemEconomics 1 Year Supply Our Widgets-$500,000 Cost Savings to customer+$5,000,000 Increased revenue through price increase +$5,000,000 Increased revenue through more sales +5,000,000 Total+$14,500,000 ROI30x Payback period12 Days

6. Your Name, Your Phone, your@companyemail.com Radical Design Changes Economics Widget Implant (25 patents: 5 issued, 20 pending) Outputs: Methane, etc. (2x increase, reduced impurities) Inputs: Grass, Hay, Business Plans (90% reduction)

7. Your Name, Your Phone, your@companyemail.com Business Model Software-as-a-Service  One-time fee for hardware: $100  Monthly subscription for continuous data updates: $4.95 Data Key to Business Model  Inputs, outputs in careful balance  Depends on climate, which is always changing  1M-record cow-output database by ZAG [Further discussion of microeconomics, show your math…]

8. Your Name, Your Phone, your@companyemail.com Market Growing, Easy to Reach $500M Market Today  Concentrated in 12 major customers  Distributed among another 100 minor ones No one customer has market power  Too many to collude  Minor players quickly expanding, threatening majors Prior customer relations  We have sold to 10 of 12 majors  Have personal contacts at 25 of next 100

9. Your Name, Your Phone, your@companyemail.com Regulatory Approval Likely Soon FDA In Final Review  510ks submitted 1 year ago  Handful of additional questions Medical Advisory Board Experienced in Area  Invented “Bull-o-meter,” approved in 1998  Received approval for other similar devices

10. Your Name, Your Phone, your@companyemail.com Competition Exists, Manageable Existing Players  3 Leaders: Widget Wampum, Widget Global, Widgmo  All hay-based technology New Entrants  New Widget Vision Transdermal approach Only 20% cost reduction, no performance increase  New World Widgets Unproven laser technology, possibly fatal Claims 95% cost reduction, 5x performance increase Our patents should block

11. Your Name, Your Phone, your@companyemail.com Financial Projections Exit Opportunities  Sell to incumbents within 3 years; already had one inquiry  Sell to new strategic: two big firms interested in this space  IPO possible but not capital efficient, better return with less $ Why You as Investor?  Right size investment, expertise in sector  Trusted partner 2006200720082009 Revenue$0$750K$3.0M$9.0M COGS$0$100K$400$1.2M Net Income($1.7M)$150K$500K$2.1M

12. Your Name, Your Phone, your@companyemail.com Conclusion Team experienced in sector Product changes market  costs 90%,  revenues 50% Market $500M, growing Competition manageable Low capital requirements, high growth Widget Man, CEO (617) GO-WIDGET widgetdude@widgetco.com