Secure E-Mail Technology (“SET”)

1. Secure E-Mail Technology (“SET”)

2. Disclaimer Certain information contained in this Confidential Private Placement Memorandum (the “Memorandum”) regarding SET Ges.m.b.H. (“SET” or the “Company”) includes forward-looking statements. Any statements that express, or involve discussions as to, expectations, plans, beliefs, assumptions, projections, objectives or future events or performance (often, but not always, through the use of words or phrases such as “anticipates,” “expects,” “plans,” “projection,” “projects,” “believes,” “could,” “estimates,” “intends,” and “will”) are not historical facts and may be forward-looking and, accordingly, such statements involve estimates, assumptions and uncertainties, which could cause actual results to differ materially from those expressed in the forward-looking statements. Accordingly, there can be no assurance that actual results will match or even come close to the forward-looking statements, and such statements are qualified in their entirety by reference to, and are accompanied by, the factors discussed throughout this Memorandum. Neither SET nor any of their respective affiliates, employees or representatives makes any representation or warranty, express or implied, as to the accuracy or completeness of any of the information contained in the Memorandum or any other information (whether communicated in written or oral form) transmitted or made available to prospective investors, and each of such persons expressly disclaims any and all liability relating to or resulting from the use of this Memorandum or such other information by a prospective investor or any of their affiliates or representatives. Only those particular representations and warranties, if any, which may be made by the Company to an investor in a definitive written agreement, when, as and if executed, and subject to such limitations and restrictions as may be specified therein, will have any legal effect. This Memorandum is submitted to prospective investors on a confidential basis for use in deciding whether to proceed with a further investigation and evaluation of the Company in connection with their consideration of an investment in the Company. The disclosure of any of the information contained herein or supplied in connection herewith or the use thereof for any other purpose, except with the written consent of the Company, is prohibited. This Memorandum may not be reproduced, in whole or in part, and it is delivered to prospective investors with the understanding that it will be returned immediately on request if the recipient does not purchase the securities offered hereby. The financial projections presented in this Memorandum represent the views of the Company Management and their current estimates of future performance based on various assumptions which they believe are reasonable, but which may or may not prove to be correct. There can be no assurance that the views of the Company Management are accurate or that their projections will be realized. Industry experts may disagree with these assumptions and with managements’ views of the market and the prospects for the Company. Neither the Company’s independent auditors, nor any other independent accountants, have compiled, examined, or performed any procedures with respect to the projected financial information contained in the Memorandum for the Company, nor have they expressed any opinion or any other form of assurance on such information or its achievability, and assume no responsibility for, and disclaim any association with the Memorandum for the Company. This Memorandum has not been filed with or reviewed by, and the securities discussed herein have not been registered with or approved by, the Securities and Exchange Commission (“SEC”) or any securities regulatory authority of any state, nor has the SEC or any such authority passed upon the accuracy or adequacy of the Memorandum. This Memorandum does not constitute an offer to sell or solicitation of an offer to buy any securities. The sole purpose of this Memorandum is to assist prospective investors in deciding whether to proceed with a further investigation and evaluation of the Company in connection with their consideration of an investment in the Company. This Memorandum does not purport to contain all information that may be material to an investor and recipients of the Memorandum should conduct their own independent evaluation of the Company. Each recipient agrees, and the receipt of this Memorandum serves as an acknowledgement thereof, that if such recipient determines to engage in a transaction with the Company, its determination will be based solely on the terms of the definitive agreement relating to such transaction and on the recipient’s own investigation, analysis and assessment of the Company and the transaction. The Company reserves the right, in its sole discretion, to reject any and all proposals made by or on behalf of any prospective investor with regard to an investment in the Company, and to terminate further participation in the investigation and proposal process by, or any discussions or negotiations with, any prospective investor at any time. The Company does not intend to update or otherwise revise this Memorandum following its distribution and the Company makes no representation or warranty, express or implied, as to the accuracy or completeness of any of the information contained in this Memorandum after the date of the Memorandum.

3. Executive Summary The SET Concept SET Optimises E-Mail Traffic Security … … and Empowers the Sender to Actively Monitor the Entire Information Flow • SET is an integrated E-Mail and messaging system providing maximum security and the sender with full control and authority over the information embedded in and such attached to messages • SET core target customers are foremost information-sensitive corporate clients - such as finance-related services and applications -, but also retail clients • SET user-friendly graphical user interface enhances productivity and facilitates awareness of access rights and document security • SET combines proven technologies and in-house innovation • An operational “proof of concept” application is available The SET Team • Christian F , 41, CEO • Andreas W, 44, CTO The Intended Transaction • Raise EUR 150,000 of equity from private investors to complete the EUR 1.2m finance requirement according to the business plan Use of Proceeds • Finalise product development and … • … prepare SET for market launch in 3Q2008 • Anticipated Exit • As of 2012, SET is expected to serve approximately 13,300 customers combining a total of 200,000 accounts, to generate ca. EUR 3.5m of revenues and more than EUR 1.0m of EBIT … • … with a very dynamic growth momentum … • … which should provide the basis for an exit opportunity via sale to a strategic investor or to the private equity markets The SET Alpha Version has been tested successfully since November 2005

4. “A typical E-Mail message is no more secure than a holiday postcard sent through the public postal system … ” Christian F , CEO, SET

5. The SET Concept SET Optimises E-Mail Traffic Security … … and Empowers the Sender to Actively Monitor the Entire Information Flow • SET is an integrated E-Mail and messaging system providing maximum security and the sender with full control and authority over the information embedded in and such attached to messages • Messages and confidential content – once submitted - cannot be amended, forwarded or processed without the sender´s authorisation and / or knowledge • The entire message flow can be actively monitored by the sender • Optimal E-Mail traffic security because of full integration • SET core target customers are foremost information-sensitive corporate clients, but also retail clients • SET user-friendly graphical user interface enhances productivity and facilitates awareness of access rights and document security • SET combines proven technologies and in-house innovation • Secure document access control software technology based on proven open-source systems • Every user is enabled to (remotely) access, write or annotate documents over an encrypted Internet connection • Documents are stored on a secure central server and access can easily be set by authorized users even without involvement of the IT department SET Secure Mail Server System Secure Line

6. Unsecure Lines Secure Lines SET Optimises E-Mail Security Traditional E-Mail Traffic SET Numerous Moderately Secure Mail Servers SET Secure Mail Server System The Issues The SET Solution Once sent, E-Mail content can be manipulated or amended by recipient without the sender either being aware or having any control • SET ensures that an E-Mail – once sent – cannot be manipulated or amended by any recipient Manipulation SET ensures that the information embedded in or attached to an E-Mail can only be distributed to “authorized” third parties and E-Mail traffic can be actively monitored by the sender Once sent, E-Mail with confidential content can be forwarded to any third party without the sender either being aware or having any control Monitoring E-Mails and attachments are transmitted over the lines (xDSL, cable, WiFi, backbone) without any protection 100% secure E-Mail transport over encrypted SSL-Connections (like bank transactions over the Internet) Secure Transmission

7. The SET Team Christian F , CEO Strategy, Finance, Sales Andreas W, CTO Research & Development Christian F , 41, is an expert in the field of electronic data transmission and acquired his experience in the course of nearly 20 years' involvement in the field of electronic data processing and networking. In 1995 Andreas W and Christian F set up Alternative Telekom AG, the first publicly listed telecom company on the Austrian Stock Exchange. In 2000 Alternative became the second largest alternative telecommunication company in Austria. Within Alternative Christian F was Speaker of the Board and - among others - responsible for strategy. He was involved in various successful capital markets transactions. • Andreas W, 44, a typical entrepreneur, founded his first company in 1983 to develop electronic equipment for the polygraphic industry. • He has extensive experience in managing complex software development projects: • 1991: ERP (Enterprise Resource Planning) Software (still in operation) • 1995: Logistic Software (with Web-Interface) for waste management (still in operation) • Within Alternative Telekom AG he was Member of the Supervisory Board and Member of the Management Board of CyberSoft, alternative’s voice and data billing system company. Founding Shareholders SET Founding Shareholders are: Alfa AG (Christian F and Andreas W); Andrea G-S and Christian S

8. Intended Transaction Overview • Capital Raising • SET intends to raise an amount of EUR 150,000 of equity from private investors (“New Investors”) to complete the EUR 1.2m finance requirement according to the business plan • Structural Overview • Funding Strategy • SET might envisage potential additional funding rounds to accelerate market penetration, possibly as of 2011 • Anticipated Exit • As of 2012, SET is expected to serve approximately 13,300 customers combining a total of 200,000 accounts, to generate ca. EUR 3.5m of revenues and more than EUR 1.0m of EBIT … • … with a very dynamic growth momentum … • … which should provide the basis for an exit opportunity via sale to a strategic investor or to the private equity markets Structural Details • Structure • New Investors are envisaged to subscribe an amount of EUR 150,000 in Common Stock. • Common Stock • New Investors will contribute EUR 150,000 of equity capital and post-transaction combine a total of (xx.x)% of the shareholder capital • Present Commitments • Current Shareholders: LOI to contribute EUR 75,000 (in addition to EUR 35,000 already invested) • Venture Capital: LOI to contribute EUR 600,000 • ABC Consulting: LOI to contribute EUR 100,000 • Prerequisites • Bank LOI to grant a loan in Q3/2009 of EUR 210,000 (based on operational target achievement)

9. “The current architecture and mechanics of E-Mail traffic do not meet current requirements and even less future demands ….” Andreas W, CTO, SET

10. The postcard is sent off and the sender never really knows whether it will arrive safely … … will it ever arrive? … when will it arrive? … will the right person receive it? On its way, the postcard can be read by everyone … … the postman … the wrong recipient (if it gets to the wrong destination) … and be passed on to persons who should neither get the card nor become aware of the message attached And else … The message attached to the postcard can be further distributed on its way to the recipient and its content could make it as „gossip“ to ones „friends“ or as „rumours“ into the „press“ The postcard could even have been written and posted by someone else than the one who supposedly appears to be the sender … The E-Mail is sent off and the sender never really knows whether it will arrive safely … … will it ever arrive? … when will it arrive? … will the right person receive it? On its way, the E-Mail cannot quite be read by everyone, but … … after sending an E-Mail the sender has no further control about the mailed content: E-Mails and attached files can be read, printed, copied, destroyed, modified or forwarded without the sender ever realising And else … During its transfer an E-Mail and its attachments are stored on various servers making content vulnerable On any firm’s mail server the IT department has full access to every E-Mail and any attached file On the Internet a “false sender” can hide behind someone else´s identity and send E-Mails in that other person’s name And Spams … Even if incoming E-Mails have to pass a firewall or filters, still spam mail will be received daily; and … … one’s E-Mail account is an open entry point for viruses, worms and similar How the E-Mail Traffic Works: The Postcard Comparison • “A typical E-Mail message is no more secure • than a holiday postcard sent through the public postal system … ” • Christian F , CEO, SET The Postcard Traffic The E-Mail Traffic

11. How the E-Mail Traffic Works: Technical Basics Traditional E-Mail Traffic • Backbone Network • Even if E-Mails are transferred securely between the sender’s Computer and the Mail Server via “SSL” - there are currently no security mechanisms during the exchange of messages between Mail-Servers • Programs called “Sniffers” can trace E-Mails and read messages and attachments Numerous Moderately Secure Mail Servers • Mail Server • Corporate (in-house) Mail Server: • IT department has full access to every E-Mail and attachment • Mail Server operated by ISPs • During the transfer of a message numerous Mail Servers are involved – in the course of which each and every ISP can read, copy or even alter E-mails without the sender realising Unsecure Lines Core Threats Manipulation Once sent, E-Mail content can be manipulated or amended by the recipient without the sender being aware or having any control • Local Network and Internet Access line • Without SSL communication between the sender’s computer and the Mail Server, all transferred content is “free and available” within the local network and on the Internet Access line Once sent, E-Mail with confidential content can be forwarded to any third party or processed without the sender being aware or having any control Monitoring Secure Transmission E-Mails and attachments are usually transmitted via xDSL, cable, WiFi, backbone without any protection

12. Why Secure E-Mail is a Necessity: Situations Common, Everyday Questions Special Situations “Did the Recipient Receive the E-Mail?” • Once an E-Mail has been sent, the sender does not know if and when the message actually arrived at the recipient’s destination • Note: The “request read receipt” function of MS Outlook does not (!) serve as confirmation The “Monday Morning Glitch” • As E-Mails are transferred through various Mail Servers, transmission errors are typically reported after several hours only and the sender receives no information if and when a E-Mail has successfully reached the recipient • Once the E-Mail has safely arrived, the recipient may decide to read (i.e. open) or ignore an E-Mail message and the information attached … • … with the sender not in a position to actively monitor recipients actions • Note: The “request read receipt” function of MS Outlook does not (!) serve as confirmation “Did the Recipient Read the E-Mail?” Remote E-Mail Access • If Web-Mail is used to access E-Mails (e.g. on a public Internet Terminal) then all E-Mail content information will be (temporarily) stored on a local server … • … opening opportunities to all sorts of breach and misuse of confidential information What Did the Recipient Do With the E-Mail?” • The sender has neither control nor can monitor the recipient’s actions in respect to the E-Mail sent and / or its attached information … • ... E-Mails and attached information can be copied, modified, forwarded or processed without the sender being aware or having control • In the current E-Mail configuration it is possible to hide behind a specific sender’s identity and – hence – E-Mails can be sent under a wrong name The “Identity Game” Simple Mail Transfer Protocol (“SMTP”) is the standard for E-Mail transmission … … which is a simple, text-based protocol, designed around 1970, and … … without any real improvements over the last 35 years …

13. Why Secure E-Mail is a Necessity: Legal Framework • Sarbanes-Oxley Act (“SOX”) • Identification and handling of information that must be kept confidential • Identification of individual message senders • confidential transmission of email • Hardening email and other servers that store confidential information • Tracking and logging message traffic • Auditing capabilities • Message indexing, archiving, and retention • Gramm-Leach-Bliley Act (“GLBA”) • In practice GLBA´s Safeguards Rule means that companies must implement policy enforcement tools that can encrypt or block E-Mail traffic based on message sender, recipient, and content as appropriate. • Health Insurance Portability and Accountability Act (“HIPAA”) • Under HIPAA everyone has the right to request the communication flow concerning personal health information through confidential channels • EU Data Protection Directive • Data protection is all pervasive in the European Union: The EU Data Protection Directive was drafted in October 1995 and member countries were required to legislate Directive provisions by October 1998. The Directive sets standards for protecting personal data within the European Union, and applies to any organization that processes personal data, in both public and private sectors. It also applies to foreign entities that process personal data within the EU • An organisation has the right and duty to retain data in order to protect itself in case of legal action. This can include personal or private E-Mails. These, however, must not be read by the organisation unless needed for a legal action. The organisation must simply ensure that records can only be used for prescribed purposes, and that it deletes any records that contain personal data once the required retention period has come to an end United States Europe „Approaching deadlines, regulatory enforcement actions, harsh penalties, along with the prospect of enormous civil damages and even criminal prosecution have made regulatory compliance and legal risk management a top priority for E-Mail/messaging managers and CIOs …“ „Regulatory compliance ranks #3 on the list of top concerns of CIOs, just behind viruses and spam …“ Ferris Research (2005)

14. Development of World-Wide E-Mail Traffic Statistics Trends • World-wide • By year end 2005 there have been more than 1bn online users world-wide, 95% of which use E-Mail • Europe • By year end 2005 European mailboxes will total 381m, 32% of all world-wide • E-Mail traffic is set to rise from 26bn messages per day in 2005, to 49bn in 2009 (17% annual growth) • E-Mail has proven to be the most used application for every device that operates on PCs, the Internet, interactive digital TV and – increasingly - mobile phones • Convergence is happening both in the application area with more media-enabled, network-based services and in the device world with technologies like the RIM Blackberry, which integrates mobile phone and palmtop functions • Convergence and the digital world represent a significant expansion of today’s technology marketplace • In Europe, the past years have demonstrated how the Internet transforms shopping (in 2004 17% of users have shopped online), banking (18 % bank online) and communication (E-Mail is a popular application on all interactive channels) • Various current and newly offered services will become significantly more popular when they are seamlessly and securely available anywhere through a user-friendly application Source: EITO 2005; Radicati Group 2005

15. The Global Internet and E-Mail Security Market Statistics Trends • World-wide • In 2005 the global Internet security market amounted to about US$ 27.7bn and is expected to grow at an annual 16% to reach US$ 58.1bn by 2010 • The global market for E-Mail security products and services is expected to grow from US$ 3.7bn in 2005 to US$ 5.5bn by 2010; the near-term annual revenue growth rate will hover near 25% • Europe • The European E-Mail Security market is expected to grow from about EUR 825M by year-end 2005, to EUR 1.4bn by 2009 • With E-Mail traffic increasing rapidly concerns have grown regarding security in terms of protecting against E-Mail-borne viruses, spams and a variety of potential information leaks and intrusion • Revenue generated in the European E-Mail Security Appliance segment is expected to grow at an average rate of close to 50% per year between 2005 and 2009, constituting the fastest growing segment. Installed base attributable to this segment will grow from 16m in 2005 to 73m by 2009 • Managed E-Mail Security services are also becoming increasingly popular, and are expected to grow at an average rate of about 25% per year • In Europe, the total installed base of mailboxes served by Managed E-Mail Security Service Providers is expected to grow from 14m in 2005 to 38m in 2009 and … • … companies are increasingly considering Managed E-Mail Security Services as a long-term solution, rather than just a quick-fix or transitional substitute Source: IDC 2005

16. Players in the Internet and E-Mail Security Market Proposition Major Players Comments Document Management • Enables organizations to create centralized repositories or libraries … • … containing all unstructured data generated • Powerful search and retrieval tools make information easily available for use and collaboration across the entire enterprise • Typically in-house solutions • Group-based but not document-based access control with need for administrator Group Collaboration • Enables customers to quickly and easily build secure and reliable messaging, calendaring and scheduling, and collaborative application solutions • Very complex software aimed at large organizations • Specialized training necessary to use the group collaboration and Web folder technology effectively • Implementation, installation and maintenance requires professional services • Comprise different types of Internet-based services which address specific needs for the active Internet user Internet Enabled Services • While Hushmail and Postini solved the specific addressed issues … • … global Internet Enabled Services appear to miss security features Assessment Closed Networks Product Focus Premium Price Focus of Major Players • Applications and security provided are usually limited to applications within a closed system (i.e. within an organisation) …. • … leaving the external messaging flow vulnerable • System complexity requires substantial in-house technology and IT teams … • … with only limited service provided by suppliers • Due to customers focused on, i.e. large organisations, positioned as premium price products

17. The SET Solution Key Features SET Secure Mail Server System Manipulation • SET ensures that an E-Mail – once sent – cannot be manipulated or amended by any recipient • Every SET user has a unique authentication - which assures that no spam or viruses will be sent via E-Mail • No one will be able to send an E-Mail using someone else’s identity Secure Line Monitoring • During the lifetime of an E-Mail the sender will have full control over all aspects of content distribution and can monitor all relevant E-Mail traffic • The sender allows or prevents further distribution (forward, redirect, copy, export), the print out, storage and the availability of the E-Mail and related documents • The owner has the right to pull back an E-Mail at any time • All E-Mails will be transferred using 100% secure Internet links (Secure Socket Layer) • There will be no unknown connections - only one secure point-to-point connection between the sender and the E-Mail server and the E-Mail server and the recipient Secure Transmission Positioning Focus of Major Players SET Focus • SET relies on open standards - transmitting data over Secure Socket Layer Technology Closed Network Open Standards • SET is not selling a software, but provides a unique secure E-Mail solution service ... Product Focus Service Focus • ... for a very competitive price Premium Price Competitive Price

18. SET E-Mail Traffic: Examples • Sender uses SET like standard E-Mail • Message, Subject and Attachments are encrypted and are transferred over secure lines • Receiver is allowed to copy, print and save the message • Receiver is allowed to reply and forward the message, but must not modify the original content • Sender receives status information about all actions of the receiver • Sender uses some of the SET security functions • Message, Subject and Attachments are encrypted and are transferred over secure lines • Receiver is allowed to make a print out of the message • Receiver is allowed to reply the message, but must not modify the original content • Receiver must not copy or save the contents and is not allowed to forward the message • Sender receives status information about all actions taken by the receiver • Sender sets maximal confidentiality for the message • Message, Subject and Attachments are encrypted and are transferred over secure lines • Receiver must not copy or save the contents • Receiver must not forward or reply to the message • Sender sets validation timeframe for the E-Mail between 14. Jan. 2006 08:00 and 15. Feb. 2006 20:00. The Subject-line will not be seen by the recipient before 14. Jan. 2006 08:00; the message can only be viewed until 15. Feb. 2006 20:00 • Sender receives status information about all actions taken by the receiver In addition: SET enables Users to transfer files without any file size limitation

19. SET - Functional Overview The Server The Client Secure Against Physical Attacks Secure Against Internet Attacks Full Control by Sender over Access Rights • SET servers will be operated in secure server-housing locations • At least two servers will be installed on two different continents with 100% redundancy • All data will be saved on hardware-encrypted storage systems • Hence: In the unlikely case that a server were “stolen”, stored data will not be readable • SET servers will be hidden behind state-of-the-art firewalls and only registered customers - with SET Client Application - will be able to pass the firewalls • Transmission of messages does take place in an absolute secure way using “Secure Socket Layer” encryption • Only secure point-to-point connectivity between sender and server or recipient and server are allowed • Only authenticated customers are allowed to send messages • All data will be saved with a customer related encryption key • Hence: Only the sender and the recipient of an E-Mail are able to read the content or the attached files … • … even SET employees will be unable to read anything • During the lifecycle of the E-Mail the sender will have full control over all aspects of content distribution • The sender allows or prevents any further distribution (forward, redirect, copy, export), print out and / or availability of information • Sender has the right to pull back an E-Mail any time Elimination of Local Filing • If requested, not a single file or piece of information is stored on local hard-disc • All client-related information is loaded directly from the server during startup of the application • installable on mobile storage devices like USB-sticks Full Control by Sender over Access Rights • SET avoids Spam and Phishing Mails, as only authenticated users have access

20. Investor Relations: An SET Application The Investor Relations Context The SET Solution Internal Communication • If a secure IT environment is already in place, then the established system will be used further on • If not, then SET will be used for all relevant communication between Supervisory Board, Board members, senior staff positions and Accounting, Treasury and Controlling to ensure absolute confidentiality in-house and tracking of document flow External Communication • All external communication of relevant documents will be executed via SET: • Shareholders • All documents to accomplish a company’s legal disclosure requirements (eg. Ad-Hoc Releases) shall be transmitted via SET to companies like DGAP, Hugin, Bloomberg, Reuters, etc. to guarantee confirmable, simultaneous delivery • Professional Services • All non-disclosed documents which have to be shared with Investment Bankers, Lawyers, Auditors, Advisors etc. shall be routed via SET to ensure verifiable transmission and authenticity - furthermore all parties are able to check the document flow at any time Shareholders CEO CFO Research Analysts Board Member Accounting IR Treasury PR Stock Exchange Board Member Controlling ….. Stakeholders Press Employees

21. Target customers Corporate Clients Retail Clients Direct Corporate Clients Retail Distributors Direct Retail Clients CFO Offices and Investor Relations Teams Telecom Service Providers and Internet Service Providers Service Package • SET E-Mail Client-Software • Consulting Service • “Branded” SET E-Mail Client-Software for customers of Telecoms/ISPs • If requested “SET Server”-Application • SET E-Mail Client-Software Maintenance and Support • Full operational services and maintenance provided by SET • SET-operated call centre and Help Desk • All operational services and maintenance provided by SET • All direct end user-related services provided by respective Telecom/ISP • Full operational services and maintenance provided by SET • Support through SET Web-Site Sales and Distribution • Direct sales - One-on-One • Direct sales - One-on-One to Telecoms/ISPs … • … whereby end user has contract with chosen Telecom/ISP • One-To-Masses • Internet-Sales via fully automated Sales-System Revenue per E-Mail p.m. • EUR 8.50 per E-Mail address • EUR 2.50 per E-Mail address … • … based on anticipated revenue split • EUR 5.00 per E-Mail address The SET Read-Only Function for E-Mails received via SET can be downloaded for FREE from the SET Website

22. Product features “Single Client- Application” Standard E-Mail Functions Advanced E-Mail Functions Application Functions • The application consists of just one file, which can be stored easily on mobile devices like USB-sticks (no complicated Install-Mechanism) • Sending “New”, “Reply-To” and “Forward” messages • Receiving already “filtered” and (individually-defined) category-sorted by selected criteria • SET direct respond: when E-Mail sent to an unknown E-Mail Account, sender receives immediate response from server • If E-Mail is “forwarded” or “replied to” original message content cannot be modified and a visible timestamp will be set in the E-Mail • Sender has the possibility to withdraw an E-Mail at any time • Timed E-Mail: Set exact time for E-Mail message to appear in recipient’s E-Mail box • Temporally Available E-Mails: Set time frame for E-Mail message to appear in recipient’s E-Mail box • Message Status: Sender can trace entire E-Mail circulation and the current location • Received Notification • Received Subject Line • Received Message • Received Message-Counter • Current Location • Forwarded To • SET active communication: Server able to establish client connection actively notify user (e.g. “New Message has Arrived”-note is actively sent by server) • All relevant parts of the E-Mail and its attachments are encrypted • Server-side address book • Unlimited attachment file size • Drag and drop support • Live resizing of windows • Support for long file names

23. SET - Product Building Blocks Product Development Sales & Distribution Maintenance & Service Achieved • Market research • Detailed definition of SET E-Mail Client functionality • Detailed definition of SET E-Mail Server functionality • Sample Client- and Server Application for Windows, Mac OS X and Linux The SET Alpha Version has been tested successfully since November 2005 Next Steps • End-User Web-Site • Online registration for SET Service • Preparation of marketing materials for all sales channels • Setup and Implementation of international Sales (Telecommunication Companies and Internet Service Providers) • Setup and Implementation of “Professional Services” Sales (CFOs and Investor Relation Departments of public listed companies) • Setup and Implementation of “public” Sales • Setup of Accounting and Billing • Definition of Quality of Service Agreement with Server Centers • Definition of Quality of Service Agreement with Hardware vendors • Setup of Call Center (German-speaking) • Setup of Call Center (English-speaking) • Coding of final SET Secure Mail Client Solution • Coding of final SET Secure Mail Server Solution • Internal documentation • Software Quality Assurance • In-House Beta Test Phase • End User documentation • Select final Hardware Platform for Servers • Select Server Centers (Europe, America, Asia) • “friendly” customers Test Phase • Final Release 1.0

24. SET - Implementation Time Table Product Development Sales & Distribution Maintenance & Service

25. Financial Overview - Assumptions Revenues Operations Development and SG&A Secure Mail Service – Corporate Customers Personnel Costs • SET will operate (rent rack space) one technical server center in Europe and one in North America • Billing will be outsourced • Commencing July 2008 with five business customers • Signing up five additional customers per month with an additional growth rate of 3% per month • Addresses business customers with at least 30 mail accounts • For each account SET charges EUR 8.50 per month • We do not assume any price decreases over time, as SET will provide more service to the customers • Nevertheless we assume a decrease in the average number of accounts per customer by -1% per month; stopping at 16 accounts per customer • Starting in 2007 SET will employ one software developers and one technical admin. After being fully operational two persons to be in charge of the Help Desk (US/EU), one administration secretary, one person Sales ISP and one person Sales Business will be employed • In line with growing account numbers additional personnel will be employed SET E-Mail Technology - ISPs • Commencing October 2008 with one ISP customer • Signing up one additional ISP customer per quarter • Address ISPs with at least 50,000 mail accounts in operation • For each new ISP 1% of its accounts will start to use the SET Secure Mail Service • Each month 1%+ of ISP’s accounts start to use SET Secure Mail Service, up to a maximum of 10% of all users per ISP • For each account (once in use) SET charges EUR 2.50 per month • We assume a price decrease of 1% per month, stopping at EUR 1.00 per month. Sales Expenses • ISP customer acquisition costs: EUR 5,000 per customer • Business customer acquisition costs: EUR 900 • Public customer acquisition costs: EUR 20 Secure Mail Service – Retail Customers • Commencing Juli 2008 with 500 customers • Signing up 100 additional customers per month with an additional growth rate of 3% per month • SET addresses everyone around the Globe for this service • For each account SET charges EUR 5.00 per month • We do not assume any price decreases over time, as we will give more service to the customers

26. Financial Overview – Income Statement

27. Financial Overview – Balance Sheet Note: The negative Equity position in 2009 is covered by a Bank Loan (EUR 210.000)

28. Financial Overview – Cash Flow Statement