1. ® An Interactive Light company GDC ’99 1 Open Arcade Success Story and Case Study Joseph Deutsch President, Immersia Ltd. Email: joss@immersia.com March 19th, 1999

2. ® An Interactive Light company GDC ’99 2 Interactive Light / Immersia Develops Open Arcade Architecture, PC- based Game Platforms and games for Location Based Entertainment Develops Open Arcade Architecture, PC- based Game Platforms and games for Location Based Entertainment Has thousands of platforms installed worldwide Has thousands of platforms installed worldwide Utilizes proprietary software and hardware technologies Utilizes proprietary software and hardware technologies Provides tools for 3rd party development Provides tools for 3rd party development

3. ® An Interactive Light company GDC ’99 3 Coin-Op Market - Facts & Figures About 1.5 million games in locations About 1.5 million games in locations Number of arcades: 6,500 Number of arcades: 6,500 Number of FEC’s: 2,500 Number of FEC’s: 2,500 Other locations: 210,000 Other locations: 210,000 Industry gross annual income: $6.5 billion Industry gross annual income: $6.5 billion Games in locations: 1.3 million Games in locations: 1.3 million $750 million in equipment sales $750 million in equipment sales Overseas market is believed to be as large Overseas market is believed to be as large Source: Playmeter, 1998

4. ® An Interactive Light company GDC ’99 4 Coin-Op Market - Industry Players U.S. Coin Operated Video Game Market Source: Wedbush Morgan Securities

5. ® An Interactive Light company GDC ’99 5 Coin-Op Market - Economics Declining number of units sold Declining number of units sold Declining profits Declining profits Equipment gets more expensive Equipment gets more expensive Closed architecture Closed architecture Difficult ROI for operators Difficult ROI for operators Inefficient economic model

6. ® An Interactive Light company GDC ’99 6 Coin-Op Market - Current market state Large market dominated by small group Large market dominated by small group Declining profits Declining profits Narrow demographics Narrow demographics Closed architecture Closed architecture Expensive equipment - difficult ROI Expensive equipment - difficult ROI Need unique experience (action, graphics) Need unique experience (action, graphics) Need strategy to extend earnings Need strategy to extend earnings

7. ® An Interactive Light company GDC ’99 7 Open Arcade Architecture Overview Create a universal PC-based Coin-Op platform Create a universal PC-based Coin-Op platform Encourage hardware developers Encourage hardware developers Encourage software developers Encourage software developers Standardization Standardization Create marketing opportunities Create marketing opportunities

8. ® An Interactive Light company GDC ’99 8 Advantages of the PC platform Developers focus on content development and not hardware integration Developers focus on content development and not hardware integration Low-cost, multi source components Low-cost, multi source components Easy to maintain in the field Easy to maintain in the field Open - Floppy, CD, Internet Open - Floppy, CD, Internet Upgradable Upgradable Easy porting to consumer Easy porting to consumer Rapid technology improvements Rapid technology improvements

9. ® An Interactive Light company GDC ’99 9 Interactive Light’s Philosophy Develop enabling technology for OAA compliant PC-based Coin-Op platforms Develop enabling technology for OAA compliant PC-based Coin-Op platforms Launch platforms with unique experience Launch platforms with unique experience –Action –Graphics Customize and enable advertising Customize and enable advertising Upgrade platforms with new games Upgrade platforms with new games Network Network

10. ® An Interactive Light company GDC ’99 10 Traditional game income

11. ® An Interactive Light company GDC ’99 11 Strategy to increase earnings

12. ® An Interactive Light company GDC ’99 12 Interactive Light’s Products Swing-It - Bat swinging platform Current games: Current games: –Home Run Derby –Pitcher’s Duel –Louisville Slugger Tournament Future upgrades: Future upgrades: –Golf driving –Cricket...

13. ® An Interactive Light company GDC ’99 13 Interactive Light’s Product’s Kick-It - Ball kicking platform Current games: Current games: –Soccer –CarniBall Future upgrades: Future upgrades: –Field goal kicking –Kick Bowling...

14. ® An Interactive Light company GDC ’99 14 Interactive Light’s Product’s Slide-It - Puck sliding platform Current games: Current games: –Puck Bowling –Survive-It Future upgrades: Future upgrades: –Flash bowling –Soccer –Alien attack...

15. ® An Interactive Light company GDC ’99 15 Interactive Light’s OAA Platform Technologies Intel’s OAA PC Interactive Light’s Game Control Interface Immersia’s Coin-Kit tm Immersia’s Game-Kit tm GSEAMGSEAM

16. ® An Interactive Light company GDC ’99 16 Game Control Interface Game Control Interface Smart interface board for arcade peripherals External controller connected via serial port to host computer External controller connected via serial port to host computer Contains proprietary control software on embedded EPROM Contains proprietary control software on embedded EPROM Supports most common arcade peripherals Supports most common arcade peripherals –Joystick, Trackball, Buttons, Lights, Coin Mech’s Computer interface: RS-232 at 115k Computer interface: RS-232 at 115k Inputs: 16 (digital and analog) Inputs: 16 (digital and analog) Outputs: 12 (including high-current) Outputs: 12 (including high-current)

17. ® An Interactive Light company GDC ’99 17 Coming soon ACT 2.0 Game Control Interface Coming soon ACT 2.0 Game Control Interface Supports additional peripherals: Supports additional peripherals: –Guns, Recoil, Pedals Computer interface: USB, RS-232 at 115k Computer interface: USB, RS-232 at 115k Watchdog timer Watchdog timer Digital inputs: 32 + 8 fast response inputs Digital inputs: 32 + 8 fast response inputs Analog inputs: 16 Analog inputs: 16 Outputs: 14 Outputs: 14 High current outputs: 16 High current outputs: 16

18. ® An Interactive Light company GDC ’99 18 Coin-Kit Coin-Kit Cross Platform software library for Coin-Op related aspects Peripherals Peripherals –Allows simple interface to all GCI features Operator menu Operator menu –Allows the operator to control entire game setup Statistics Statistics –Complete platform and game statistics engine Security Security –Prevents unauthorized use and distribution –File encryption

19. ® An Interactive Light company GDC ’99 19 Benefits Benefits All features derived from field experience All features derived from field experience Reliable, tested in thousands of locations worldwide for over 2 years. Reliable, tested in thousands of locations worldwide for over 2 years. Ready for use and deployment Ready for use and deployment Constantly updated and upgraded Constantly updated and upgraded Cross-platform (DOS, Win) Cross-platform (DOS, Win) –Linux in development Developers can concentrate on game content, instead of Coin-Op aspects Developers can concentrate on game content, instead of Coin-Op aspects

20. ® An Interactive Light company GDC ’99 20 Game-Kit Game-Kit Platform game SDK - enables easy development of new games for our existing platforms Presents a complete arcade platform Presents a complete arcade platform –Coin-Kit, Graphics, sound, arcade engine Supports all our platforms Supports all our platforms –New platforms introduced every year Arcade platform management Arcade platform management –Multiple games –Attract mode, hall of fame, game selection … Games are treated as plug-ins for Game-Kit Games are treated as plug-ins for Game-Kit

21. ® An Interactive Light company GDC ’99 21 Game-Kit - Benefits Game-Kit - Benefits Easy development of new games for our existing platforms Easy development of new games for our existing platforms Sell immediately Sell immediately –Take advantage of installed base Constantly updated and upgraded Constantly updated and upgraded Cross-platform (DOS, Win) Cross-platform (DOS, Win) –Linux in development Developers can concentrate on game content, instead of arcade platform aspects Developers can concentrate on game content, instead of arcade platform aspects

22. ® An Interactive Light company GDC ’99 22 Case study #1: Kick-It Investment in new game “Carniball”: ~ $300,000 Over 1,000 Kick-It platforms sold Soccer game used for launching platform Assuming 75% penetration at $1,000 per game = over $750,000

23. ® An Interactive Light company GDC ’99 23 Case study #2: Slide-It Investment in each new game up to: ~ $300,000 Over 4,000 Slide-It platforms planned to be installed in next two years. Many more planned in following years. Assuming 75% market penetration at $500 per game = over $1.5 million per game Profit margins on software upgrades are LARGE

24. ® An Interactive Light company GDC ’99 24 3rd party licensing programs 3rd party licensing programs Program 1: Coin-Kit & Game Control Interface –Receive tools to facilitate OAA PC as platform Program 2: Game-Kit –Develop new game titles for existing platforms Contacts Interactive Light Stuart Wallock Email: stuart@interactivelight.com Tel: (310) 581-8411 Immersia Joseph Deutsch Email: joss@immersia.com Tel: (+972) 3-639-3483