Customized Security Solutions by InkSure

1. Customized Security Solutions byInkSure

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 • 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: The Magnitude of the Problem* • 5-7% of global merchandise trade is in counterfeit goods • $ 650 billion world wide economic cost • Counterfeiting costs US businesses $250 billion a year and 750,000 jobs • Up to 10% of medicines worldwide are counterfeited • almost $50billion a year • The FAA estimates 2% of 26m airplane parts installed each year counterfeit • ~520k parts a year • Counterfeiting costs global automotive parts industry substantial losses • $12billion a year, 25% in US alone • Document fraud is estimated to cost the U.S. : • $20 billion annually Source: International anti-counterfeiting association (IACC)& Pira International

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

5. InkSure’s Covert Machine-Readable Technology CMRT • Optical Taggants that Are Not Visible to the Human Eye • Mixed with the Brand Owner’s Own Inks & Varnishes • Flexo, Offset, Gravure, Screen, TTR, Pad, Hot Ink Roll, Inkjet • Authenticated By a Handheld, Battery Operated, Portable Reader • The Reader Gives a Positive Response – Not Subject to Human Interpretation • Many Custom Security Formulations Available • Enhances Overt Authentication Security • No Visible UV • No IR Up converters • No False Accepts

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. Why Covert Anti-Counterfeiting Technology??

8. InkSure’s Chain of Custodywith Custom Codes • Counterfeiters will take the Path of Least Resistance to attempt to copy a feature • Reverse Engineering through Advanced Chemical Analysis • Costly, time-consuming, no guarantee of success B. Identify Feature with Common Tool and Find a Material • Black Light - Get UV Material • IR Laser Pen – Get Upconverting Material • Target actual supply chain of known supplier • The Security Feature Supply Chain is Usually the Weak Link • InkSure’s Supply Chain is Solid • Readers will only read brand owner’s code • Only ship pre-mixed ink with brand owner’s chemistry to owner-specified authorized channels

9. 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 “If it can be colored, coated, printed, or packaged, InkSure can protect it”

10. 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 • CMRT gives field personnel proof positive authentication SignaSure™ Reader

11. SignaSureTM Handheld Readers • The most sophisticated optical authentication reader, analyzing complex spectral signatures • Each reader can store up to 10 codes to detect different mark applications • Forensic Level Authentication- up to 75 data points • Custom configured for each customer/application • Simple & intuitive user interface; light weight, ergonomic design • Clear audible and visual confirmation/alert within seconds • Rechargeable batteries; USB connectivity

12. PocketSure™ Readers • A new, pocket-size reader for field authentication • Size: 5.5” x 1.1” • Weight:2.5 ounces • Highly accurate 10 point data count • Lower-cost for high volume 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

13. 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

14. 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-No False Accepts • Fast-No Database Lookup • Custom Taggant Formulation (Codes) • License to End-Users or Converters • Guarantees Exclusivity • Secures Chain of Custody

15. 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

16. 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

17. 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

18. Introducing TrackSure™ For Covert Diversion Tracking

19. Why Covert Barcodes? • Track & Trace solutions address: • Diversion • Grey Market Distribution/Organized Retail Theft • Counterfeiting • Why Covert? • Enhanced Multi-Layer Security • Easily added to existing packaging without visual change • Overt tracking technology is easier to identify, erase, or cover • Why Barcodes? • Easily accommodates item level or batch level information • Can be printed on existing equipment • Data tracking based on universally accepted technology • Open architecture

20. The TrackSure™ Solution • A standard barcode reader with modified optics • Reads common matrix and linear barcodes • Near contact scanning • Common RS232,Keyboard Wedge, and USB interfaces • Operator friendly/Less than 9 oz. in weight • InkSure’s highly flexible SmartInk • Covert, machine readable authentication • Common barcode printing methods • Variable Data Printing • IIMAK Thermal Transfer Ribbons • INKJET (Solvent Based) • Thermal Ink Jet (TIJ) • Continuous Ink Jet (CIJ) • Fixed Printing • All common printing technologies

21. InkSure SARcode™ TechnologyLow Cost Chipless RFID • Initial proof of concept demonstration completed March 2006 at RFID Smart Label Conference • Three patents granted and four additional applications pending form the basis for InkSure chipless RFID • InkSure’s development vision for a low-cost chipless RFID tag: • Able to print directly and covertly on products or packaging • Deliver for a price less than 1¢ • Provide non-line of sight and multiple code reading • Recipient of 2007 Frost & Sullivan Product Innovation Award –Chipless Tag Market, Asia Pacific • Initial field tests begin in 2009, commercial availability planned for end of 2009

22. Summary • Covert Machine Readable Technology • Highly Secure – No Reverse Engineering • Highly Accurate-No False Accepts • Simple to Implement in Field / Training • Easy to Add for Layered Security • Custom Codes • InkSure is expanding its portfolio • TrackSure™ for Diversion Issues • SARcode™ :A New Low Cost Invisible Barcode Replacement • InkSure –Easy and Flexible to Do Business!