Point of Sale Reviewing Your Options

1. Point of SaleReviewing Your Options Presented By Paul DuBois, Blackboard Solutions Engineer April 13, 2005

2. A word from our lawyers… • Any statements in this presentation about future expectations, plans and prospects for Blackboard and other statements containing the words "believes," "anticipates," "plans," "expects," "will," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the factors discussed in the "Risk Factors" section of our most recent 10-K filed with the SEC. In addition, the forward-looking statements included in this press release represent the Company's views as of April 11, 2005. The Company anticipates that subsequent events and developments will cause the Company's views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to April 11, 2005. Blackboard, in its sole discretion, may delay or cancel the release of any product or functionality described in this presentation.

3. Session Objectives • Introduce Blackboard® POS options • View footprint of hardware • Understand technology behind hardware • Innovation • Blackboard Family of IP POS • Results/Outcomes • Understand all options for POS • Variety of POS options used for many solutions on client campus

4. Point of Sale Devices Supports a wide variety of wired and wireless point of sale devices including sophisticated point of sale register systems with detailed reporting capabilities. In addition to partner-provided solutions, Blackboard also offers a full line of Blackboard manufactured point of sale devices that represent some of the most durable in the market today.

5. Micros Integration and Support Provides a scalable and robust Point of Sale (POS) solution with features designed for operational efficiency, advanced business analytics, maximum flexibility, and ease of installation and use. Integrated through Blackboard Building Blocks™, MICROS POS devices can authorize and settle a purchase in real-time against a campus debit account.

6. Micros WorkStation4 The newest Micros POS device revolutionizes hospitality transactions by dressing a smart client in a sleek design for high flexibility and reliability at a low cost. • Optional wireless capability for total transportability • Fully adjustable stand or mounting bracket • User-friendly ergonomic design featuring 25-70 degree tilt • “Personality Module” allows for quick replacement of devices • Specifications • 12.1” TFT Active LCD display (800x600) • 2-Micros Cash Drawer Ports • 2-Customer Display Ports • 5-Wire Resistive Touch Screen • Rugged, spill resistant enclosure • 13.7” W x 5.4” H x 11.7” D, 7.75lbs • 10/100 BaseT on-board networking • Integrated Magnetic Card Reader

7. Keyboard Workstation 4 • Based on WS4 architecture • Windows CE.net embedded device • Temperature/weather tolerant • 128 MB RAM • Client Application Loader • TCP/IP only • SAR only • Wireless capable

8. Micros Version 3.0 • Full adoption of relational database • Microsoft SQL Server 2000 • Oracle 9i • Multiple OS Support • Microsoft 2000/2003 • Red Hat Linux (DB Server Only) • Removal of Nutcracker • Removal of XVision

9. 3.0 Functionality Enhancements • Enterprise Management Console • RMC Replacement • Browser Delivered

10. NCR Integration and Support Provides a touch screen point of sale system that offers a combination of features including new embedded technology, tool-free serviceability and maximum configuration flexibility. The NCR Point of Sale (POS) solutions operate Blackboard developed software for dining services and POS transactions and directly interface to the Blackboard Transaction System™.

11. NCR RealPOS 70 Stereo Speakers • Pentium 4 Based Technology • Embedded ATX Form Factor • Intel Celeron 2.0 GHz Processor • 128MB, 256MB or 512MB Options • 40GB Hard Disk • 256MB Compact Flash • Front Side Bus - 400 MHz • Full Multimedia Standard • Integrated Stereo Speakers • On-Board AGP Graphics (2x faster) • Video Memory 8-64MB (User Define) • Powered USB 2.0 • 40x faster and backward compatible • Finger Print Biometric Option • Bright Dual Bulb, 350 NITS Display • Motion Sensor Standard Biometric Motion Sensor

12. Wireless Card Readers Allows the institution to expand points of service to encompass remote, non-wired locations. For example, special events that require approval for access are easily accommodated without the requirement for wiring.

13. Blackboard’sWireless Options Wireless Mobility: as a result of Blackboard Building Blocks partners using the Transaction Integration Agent (TIA): • Micros • Sequoia

14. Campus Card Validation v2.0 • Enhancements • Offline cardholder lookup table of up to 65,000 records can be downloaded to device • Device can be optionally configured to operate only in off-line mode • Barcode scanner can be activated for scanning tickets, parking passes, etc. • Transaction total reporting by profile • Support for both Palm OS® & Windows Mobile®

15. Offline Cardholder Lookup Table • Allows importing of offline card number lookup table into application • Reuse delay / anti-pass back options • Optional balance limit checking • Off-line table can be optionally referenced for each individual tender button • Valid transactions uploaded to Blackboard system when connectivity is restored

16. Now Supporting Windows Mobile® • Symbol MC 50 • Windows Mobile 2003®, color screen, large capacity battery, snap-on magnetic stripe reader or thermal printer with MSR • Supports additional wireless network security protocols: • WEP, TKIP, LEAP, PEAP, EAP-TLS, WPA (pre-shared key) • VPN Client Support • Same application functionality as Palm OS® version

17. Third Party Point of Sale options utilizing Building Blocks Transaction Integration Agent Point of Sale Bookstore FULL AES ENCRYPTION 128 bit – Government Standard Print/Copy Management “TIA Building Block”

18. Currently Available IP Native Blackboard and Third Party Hardware: • IP Converter, IPCONV (Unix Edition only) • IP Vending reader, VR/MDBMP • IP Copy reader, CR3000 • IP Access Control reader, SA3000 series • IP Debit/Activities Terminal, AT3000 • IP Blackboard One Reader • IP Multi Function Reader • NCR POS70, NCR POS20, NCR 7454, NCR 7453, NCR 7450 • Micros WS4, Eclipse WS, Keyboard WS4 • Bb/Sequoia Wireless Handheld Reader (uses TIA)

19. Native TCP / IP Card Readers Offers ease of connectivity as well as the security of fully encrypted data communication. These readers are easy to install, eliminating expensive wiring and services costs. Activity / Debit Vending Copy Access

20. IP Multi-Function Reader Reader devices can be required for many functions including purchases, access, authorization of eligibility, voting, etc. Blackboard’s IP Multi-Function Reader provides a single footprint and single device capable of meeting multiple needs on campus.

21. Blackboard IP Hardware currently “In Development” • IP Laundry Reader • Wireless connectivity option to washers/dryers • IP Value Transfer Station (VTS)/Card Management Center (CMC)

22. VTS / CMC These stand alone, self-service stations allow cardholders to add value to campus accounts using cash and credit cards, as well as inquire about account balances. Visitors to the campus have the ability to purchase cards at these locations for specific uses, such as making copies or using campus print services.

23. Web e-Commerce with Shopping Cart Provides an online storefront capability and allows administrators to create multiple online stores. For example, the campus Chemistry Department can have one online store that sells equipment and supplies needed for labs and Campus Parking can have another store that sells parking passes. This capability enables the creation of a unified online campus shopping environment where account holders can pay for goods and services with both their campus accounts as well as their credit cards.

24. Point of Sale Reviewing your Options • Innovating Together in ‘05: • Blackboard’s Family of IP Readers • Variety of POS options • Resources Available: • Behind the Blackboard • Regional Account Executives • Account Managers • Follow up Contact(s): • padubois@blackboard.com

25. Thank You!! Paul DuBois Solutions Engineer, Point of Sale Reviewing Your Options