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Inovani as

Inovani as. Status: Products are fully developed. Key technology partnerships are established. Running commercial cervices NEXT: Commercialisation Establish business partnerships in selected countries world wide Expand the sales, marketing and service organisation. The company:

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Inovani as

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  1. Inovani as • Status: • Products are fully developed. • Key technology partnerships are established. • Running commercial cervices • NEXT: Commercialisation • Establish business partnerships in selected countries world wide • Expand the sales, marketing and service organisation The company: • Established April 2001 • Owned by the founders • 5 active founders • 2 on payroll • 3 affiliated part-time • Accumulated development costs is EUR 1.2 million Company representative: • Helge Bukkvold • +47 911 36 245 • helge@inovani.no • Main shareholder and member of the Board 1

  2. Inovani products - Let the technology speak for it self Inovani’s key technology is speech animation tools for automatic creation and efficient distribution of virtual life-like expressive characters. Inovani’s tools can be used to instantly create user friendly dialogues and compelling contents for cell phones, mobile devices, Web-pages, PC applications and auditorium screens. 2

  3. How do we create the animation? NO STUDIO production, the animation was created automatically in REAL-TIME from the following text with smilies. (can also take voice as input) :-) Inovani’s tools can be used to :-0 instantly create user friendly dialogues and :-? compelling contents for cell phones, :-j mobile devices, Web-pages, :-( PC applications and auditorium :-? screens. 3

  4. Our competitive advantages : • Animation quality and expressiveness (unique, no competitors) • Both highly realistic characters and speech motion combined with expressions • Easy and fast production in REAL-TIME (unique, no competitors) • NO-STUDIO production • The ability to tailor DIALOGs to each individual user • Standard video formats or Inovani proprietary format. • Inovani format : Extremely low bandwidth – reduces cost of distribution • Low requirements on CPU-power. (Like a Cell phones) • Heads are easy to create • Automatic from photos, or approximately 10 hours of 3D modelling. • Language independent • Covers every kind of screen from cell phones to auditorium screens. 4

  5. Patenting and what is unique ? • There are techniques that may be patented. • However: after careful considerations we have decided not to patent our technology because a patent will reveal our techniques more than it will protect it. • Inovani’s strength and uniqueness is very much linked to how we combine published techniques : • Multi-discipline: advanced mathematical techniques, data communication, software design, computer graphics, data compression and long time experience with high quality animation techniques. 5

  6. Market : mobile video messaging (MMS) • As easy as creating SMS messages, but much more compelling result • The video message is created on the fly as the result of a text received e.g. in an SMS, WAP-page or from voice. • Use standard mobile video formats i.e. NO need to install special software to view the animations. • Competitive advantages: • Easy and fast production of high quality animation • Instant creation on demandfrom end-user 6

  7. Market : mobile video messaging (MMS) • Inovani customers: • Content and Service providers • Revenue model: • Ticker or revenue sharing per mobile video message • Market size of Europe and UK2005-2009 Official statistics; • Cell phone penetration : 84%-88% / 88%-92% • Phones w/ mobile video : 20% - 75% • ARPU/year in EURO : 460-540 / 870-900 • Premium services : 7,5% - 15% of ARPU inovani projections; • “Talking head” services : 1%-2% of Premium services • Market share : 100% down to 40% • Market penetration : 30% up to 100% • Ticker/revenue sharing : 10% of the service price 7

  8. Market : Web-Virtual Guide • Inovani customers: • Companies, Public services, community owners e.g. Microsoft’s MSN • Web Publishing vendors • Revenue model: • License per conc. user with yearly support fee • Competitive advantages: • Instant creation of a true interactive DIALOG between the user and the virtual host • Quality of animation and face expressions. • Size of market: • inovani projections : on average 800-1.500 Web-pages per country • No official statistics. Sandra Customs Virtual host at Swedish Customs Customer quote : The Virtual Guide becomes a new employee on the web, representing the company with their own unique personality and competence. 8

  9. Market : Single user applications • Some application areas: • Tools for disabled, Information kiosks, Theme Park guides • Everywhere synthetic speech and talking characters can improve quality and service. • Revenue model: • License per CPU with yearly support fee • Competitive advantages: • Cover screens in all sizes from PDAs to auditorium screens • Extreme compression of stored video (sound and 3D-model ONLY since we are using Inovani proprietary viewer), • Speech animation tested for lip-reading with success. • Size of market: • N.A. 9

  10. Next phase of Inovani Business status • Mobile services : Business partnership with Eurobate ASA • Presence in Norway, Sweden, Denmark, Spain, Germany, England, Italy and more • Services are launched in NW. New countries are rolled out these days. • Mobile services : Business partnership with WapTheWeb AS • Presence in Norway • Services are launched in Norway What’s next ? • Develop a complete business strategy for target markets • Build a sales, marketing and service organisation to support the business plan • Penetrate large markets quickly with products for premium mobile services • Establish local presence, either alone or together with business partners Capital needed is EUR 1.0 – 1.5 million ROI : In 3 years the value of inovani is increased by a factor of at least 10 10

  11. Risk factors • Technical risks are minimal. The product is in production has been that for months. • KEY RISK : • The markets; timing and growth rate • Capacity to build a successful sales, marketing, service and support organisation 11

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