1. The Experts in Machine - Readable Authentication 1 Customized Security Solutions by InkSure Award Winner

2. The Experts in Machine - Readable Authentication 2 InkSure Technologies  Provider of covert, machine readable security solutions (“CMRT”) to definitively and quickly identify genuine branded products and documents for protection against counterfeiting  Our expertise in spectral detection of covert marks enables InkSure to provide the most advanced readers in the authentication industry  4½ years of commercial sales  Billions of consumer products protected with InkSure technology  Product and Image Security (“PISEC”) award winner: 2000,2003,2006  Member Document Security Alliance (“DSA”) and North America Security Products Organization (“NASPO”)  U.S. public corporation (INKS.OB)  Corporate Headquarters in Fort Lauderdale, FL; Global R&D Center at the Science Park in Rehovot, Israel

3. The Experts in Machine - Readable Authentication 3 Counterfeiting Facts  World Customs Organization estimates that counterfeiting accounts for 5% to 7% of global merchandise trade, equivalent to lost sales of $512 billion in 2004  World Health Organization says up to 10% of medicines worldwide are counterfeited, costing the pharmaceutical industry $46 billion a year  According to the Federal Trade Commission, counterfeiting costs the global automotive parts industry $12 billion a year; $3 billion of that total is in the United States  One third of all counterfeit products are cosmetics and perfumes – 10% of the total world trade for the personal care industry  Document fraud is estimated to cost the U.S. approximately $20 billion annually

4. The Experts in Machine - Readable Authentication 4 The Solution: Field Forensic, Machine- Readable Authentication

5. The Experts in Machine - Readable Authentication 5 InkSure’s Authentication Solutions – Highlights  Specializing in Covert Machine Readable Technology solutions to mark and authenticate products and documents  Optical detection of covert marks features the most advanced readers in the authentication industry  Technological flexibility ensures seamless integration in production and operations  To maximize user benefits, solutions are compatible with other security features (e.g. holograms) for a multi-layered approach

6. The Experts in Machine - Readable Authentication 6 How Does It Work?  Each item is invisibly marked with SmartInk during standard printing production  Although visually identical to regular ink or varnish, SmartInk includes a covert taggant code  The code is customer/application exclusive  InkSure’s range of proprietary readers are used to conclusively authenticate products and documents by detecting electro-optical material behavior, identifying the code and providing on-the-spot pass/reject indication

7. The Experts in Machine - Readable Authentication 7 SmartInk Covert Applications  SmartInk can be applied to almost any substrate – paper, plastic, foils, laminate, etc., – using most standard printing processes  SmartInk can protect variable information via commercial inkjet, thermal transfer ribbon and laser color-change

8. The Experts in Machine - Readable Authentication 8 CMRT Growth Factors & Customer Value  Field Functionality – Fast, Simple, “No Brainer” Anyone Can Be an Expert in One Minute Readings Take Only Two Seconds No Operator Error Green Light, Two Beeps - Good Red Light, One Beep - Bad  Brand owners challenged with global programs  Readers can be quickly distributed to people around the world

9. The Experts in Machine - Readable Authentication 9 SignaSure TM Handheld Readers  The most sophisticated optical authentication reader, analyzing complex spectral signatures  Each reader stores multiple codes, with one-to-many code identification  Custom configured for each customer/application  Simple & intuitive user interface; light weight, ergonomic design  Clear audible and visual confirmation/alert within a few seconds  Adaptable platform for easy code update  Rechargeable batteries; USB connectivity

10. The Experts in Machine - Readable Authentication 10  A new, pocket-size authentication reader Size: 5.5” x 1.1” Weight:2.5 ounces  Next generation reader for field authentication  Lower-cost for large channel distribution Warehouses Law Enforcement Retail Locations  Single code in memory  Audio tone and visual (red/green LED) only, no LCD screen  Replaceable batteries, no charging circuits New PocketSure™ Reader PocketSure SignaSure

11. The Experts in Machine - Readable Authentication 11 On-press Quality Control  Continuous Hands Free Feedback Upper and Lower Limits set to Assure Field Reader Performance  Effective Cost Monitoring Capability  Data Collection for Future QA Reference or Evidence

12. The Experts in Machine - Readable Authentication 12 Key Points  Covert Machine Readable Technology Growing Highly Secure – Forensic Level III Security Simple to Implement in Field / Training Simple to Implement at Converter Extremely Accurate  Custom Taggant Formulation (Codes) License to End-Users or Converters Guarantees Exclusivity Secures Chain of Custody