2. eMerge Interactive: Sustainability and Success Jacob AcMoody Michael Gunderson Whitney Oliver Peake 2005 American Agricultural Economics Association Graduate Student Case Study Competition

3. eMerge Interactive a technology company serving the U.S. beef production industry

4. Service Line and Product Line CattleLOG™ Individual animal data collection VerifEYE™ Improving food safety with cutting-edge products

5. CattleLOG™ Weaknesses  Dependent  Tarnished  Riveted Opportunities  Branded beef  Traceability  F2P value chain Threats  Commodity competition  Government delays  Fragmented industry Strengths  Aligned  Reliable  Approved

6. CattleLOG™ Strengths  Aligned  Reliable  Approved Opportunities  Branded beef  Traceability  F2P value chain Threats  Commodity competition  Government delays  Fragmented industry Weaknesses  Dependent  Tarnished  Riveted

7. CattleLOG™ Strengths  Aligned  Reliable  Approved Weaknesses  Dependent  Tarnished  Riveted Threats  Commodity competition  Government delays  Fragmented industry Opportunities  Branded beef  Traceability  F2P value chain

8. CattleLOG™ Strengths  Aligned  Reliable  Approved Weaknesses  Dependent  Tarnished  Riveted Opportunities  Branded beef  Traceability  F2P value chain Threats  Commodity competition  Government delays  Fragmented industry

9. VerifEYE™ Weaknesses  Unknown  Limited  Constrained Opportunities  Alliances  Hand hygiene  International markets Threats  Benefit difficult to quantify  High costs  Export slowdown Strengths  Innovative  Exclusive  Efficient  Committed

10. Strengths  Innovative  Exclusive  Efficient  Committed Opportunities  Alliances  Hand hygiene  International markets Threats  Benefit difficult to quantify  High costs  Export slowdown Weaknesses  Unknown  Limited  Constrained VerifEYE™

11. Strengths  Innovative  Exclusive  Efficient  Committed Weaknesses  Unknown  Limited  Constrained Threats  Benefit difficult to quantify  High costs  Export slowdown Opportunities  Alliances  Hand hygiene  International markets VerifEYE™

12. Strengths  Innovative  Exclusive  Efficient  Committed Weaknesses  Unknown  Limited  Constrained Opportunities  Alliances  Hand hygiene  International markets Threats  Benefit difficult to quantify  High costs  Export slowdown VerifEYE™

13. Quarterly Financials

14. Strategic Direction eMerge Interactive: a technology company serving the U.S. beef production industry

15. Strategic Direction eMerge Interactive: a technology creation company serving the U.S. meat processing industry

16. Who Is The Target Market?

17. Beef Processing Industry

18. Value of Brand Protection  Hudson Foods, Inc.  25 million pounds of beef recalled

19. Values of Food Safety  Marginal WTP for Traceability = 8%  Marginal WTP for Food Safety = 21% “Individuals in the US and Canada are willing to pay even more for food safety guarantees than for traceability alone”

20. Implementation establishing sustainability, aiming for long term success

21. Sell CattleLOG™  No sustainable competitive advantage  Existing customer value

22. Product Development eMerge Present and Future New Current Market Development Penetration Unrelated Diversification CurrentNew Products Market Expansion Grid Customers or Markets

23. Sales Growth of VerifEYE™ $200,000 for capital lease $450,000/year for three years

24. Pro Forma Financials millions of revenues millions of operating margin

25. Hand Held VerifEYE™

26. Sustainable Competitive Advantage  Technology development  Early contaminant detection systems  Growth in technology budget

27. eMerge Interactive  Refocusing for sustainability  Using experience to deliver reliable food safety solutions for processors  Enhancing shareholder value by innovating detection technology

28. Questions?