Customized Security Solutions by InkSure

1. Customized Security Solutions byInkSure Award Winner

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. 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 Solution:Field Forensic, 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. 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. 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. 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. SignaSureTM 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. New PocketSure™ Reader • 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 SignaSure PocketSure

11. Applicable Markets • Transportation, Ticketing & Access Control: • Event tickets • Bus/rail tickets (multi-ride, single-ride, passes, transfers) • Airline tickets • Brand Protection • Luxury brands, apparel and footwear • Pharmaceuticals • Health and beauty care • Food, drink, tobacco and fast moving consumer goods • Automotive • Consumer Electronics • Multimedia and entertainment

12. Applicable Markets • Government and Official Documents: • Passports, national ID cards • Drivers licenses, deeds and titles • Stamps, excise/tax stamps • Bill of lading, customs forms • Financial Documents: • Banknotes • Checks, money orders, travelers’ checks • Vouchers, meal and shopping coupons • Credit cards, debit and ATM cards • Lottery tickets and casino paraphernalia

13. Applicable Markets-Excise and Tax Stamps • SmartInk enables customs authorities to control the distribution and sale of products subject to tax such as tobacco and alcohol, to regain tax revenues and to prevent counterfeiting, diversion and re-importation • SmartInk can be applied to any of the following: • Background design by using SmartInk Intaglio or clear overcoat • for a yes/no authentication • SmartInk Inkjet for yes/no authentication of serial numbering • SmartInk Sequential for group level tracking (manufacturer, • designated markets, etc.) • Multiple reading configurations: • Field Forensic SignaSure for authorized customs personnel • Handheld PocketSure for supply chain authentication • High speed SortSure with counting capabilities for production

14. Next Generation - RFID • Proof of concept demonstration completed March 2006 at RFID Smart Label Conference • Patents awarded: • “Chipless RF Tags” • “Radio Frequency Data Carrier and System for Reading Data Stored Therein” • 3rd patent approval granted in February 2006 • Development effort managed by a dedicated RF team, with the support of a professional advisory board • R&D program partly supported by FP6, the 6th EU Framework Program for Research and Technological Development, along with European academic institutions and industry leaders • Additional financial support from recently completed finance round

15. InkSure Highlights • Products addressing large and rapidly growing markets • Technological superiority with strong commercial acceptance • Business model ensures recurring revenues with high gross margins • Increasing revenues with a significant growth rate • Continuously evolving technology, with next generation developments already in the works • Strategic marketing partnerships with key industry players serve as additional “door openers” and ensure support on a global scale