Into the Breach: Preventing Data Theft

1. Into the Breach: Preventing Data Theft Strong Bear LLC Palisade, Colorado June 2010

2. Data Theft – A Real Security Threat Sensitive laptops stolen from Fla. health insurance providerFebruary 11, 2010 Thief steals 57 hard drives from BlueCross BlueShield of TennesseeFebruary 10, 2010 Missing Army external hard drive could affect 60,000 November 16, 2009 Average total cost per data theft incident in 2009: $7.3 million.

3. Student Loan Data Missing Student Loan Company: Data On 3.3M People Stolen By STEVE KARNOWSKI, Associated Press Writer March 26,2010 A company that guarantees federal student loans said Friday that personal data on about 3.3 million people nationwide has been stolen from its headquarters in Minnesota. Educational Credit Management Corp. said the data included names, addresses, Social Security numbers and dates of birth of borrowers, but no financial or bank account information. The data was on "portable media" that was stolen sometime last weekend, ECMC said in a statement. Company spokesman Paul Kelash wouldn't specify what was taken, citing the ongoing investigation, but said there were no indications of any misuse of the data. www.channel4000.com/news/22971519/detail.html

4. DOD lifts ban on USB drives Department again allows use of removable media By Kevin McCaney Feb 18, 2010 The Defense Department has lifted its 15-month-old ban on USB drives and other portable media, a restriction that had made life difficult for DOD personnel. The ban was issued in November 2008 by the U.S. Strategic Command after a virus, a variation of the SillyFDC worm, was found to be spreading through military networks by copying itself from one removable drive to another. The ban covered all forms of USB flash media, such as thumb drives, memory sticks and cards, and camera memory cards, as well as some other removable media. gcn.com/Articles/2010/02/18/DOD-lifts-USB-drive-ban.aspx

5. About Strong Bear • A technology development company based in Palisade, Colorado (outside Grand Junction) • Developer of Device Detection System (DDS), a security software product that monitors and reports all drive activity IN REAL TIME on all devices that are connected to an organization’s network. Strong Bear is seeking an asset sale of its Device Detection System technology.

6. Device Detection Systems (DDS) • DDS is a client-server security software application that: • Protects proprietary company data from theft, loss and intrusion through a removable media device. • DDS is scalable and easily integrated into the existing PC environment. • DDS will not interfere with anti-virus, firewall, or spyware protection software. • DDS runs on OS platforms Windows XP and above. • DDS has been tested on all Windows Server software.

7. DDS Client and Server The server software monitors media devices attached or removed at client workstations. DDS is transparently downloaded to all client workstations. Its operation is invisible to the user.

8. DDS Alerts When an unregistered device is detected by the client monitoring software an alarm is generated by the server. DDS logs the intrusion of this unauthorized device and reports it IN REAL TIME to the IT department.

9. DDS PC Tracker DDS can track lost or stolen computers and notify the IT department when that computer connects to the internet.

10. DDS Threat Prevention • Monitors all media devices attached to a computer such as hard drives, flash drives, cell phones, digital cameras, etc. • Tracks file activity on media devices. • Creates history file of all client activity. • History file may be used to comply with Sarbanes-Oxley Act (SOX.) Can be saved in customizable formats. • Tracks lost or stolen client computers and laptops.

11. DDS Market Readiness • DDS is market-ready. • Product manual written. • DDS code has been internally tested. • DDS has an estimated 12-month head start. • DDS is patent-pending.

12. Security Market: Multi-billion and Growing • Gartner Group estimated that the global market for security software was $14.5 billion in 2009. • Gartner also estimated that it will grow to $16.3 billion in 2010 based on 13% predicted increase. • Source: http://www.scmagazineus.com/gartner-finds-it-security-spending-up-eight-percent/article/149366/ • Gartner also predicts that security spending will rise more than 5% in 2010: • Source: http://blogs.gartner.com/adam-hils/2009/12/22/security-spending-to-rise-more-than-5-in-2010/ • IDC believes the worldwide IT security market will grow to  $37.8 billion by 2013: • Source: http://www.enterprise-security-today.com/news/Security-Firms-Await-Spending-Surge/story.xhtml?story_id=013000YEXFZ7 • Forrester predicts that 40% of companies will increase their IT security spending in 2010: • Source: http://www.eweek.com/c/a/Security/IT-Security-Spending-Expected-to-Increase-for-Enterprises-SMBs-532369/ • Strongest vertical market: Government 

13. Endpoint Protection Magic Quadrant Gartner Group defines all PC security as “Endpoint Protection”. DDS will help niche players advance one quadrant.

14. DDS is Different • Symantec Endpoint Protection offers a complete package of anti-virus and spyware protection. Symantec also closes off USB ports and drives. No part of this package is similar to DDS since DDS does not close off ports or drives, but instead monitors them and reports any access as it occurs IN REAL TIME. • Sophos Safeguard provides data encryption for PCs. DDS DOES NOT ENCRYPT DATA but will operate seamlessly with Safeguard to monitor all media devices attached to the PC.

15. DDS is Different McAfee Device Control protects company data by defining security policies which dictate what data can be transferred to removable media and what cannot. DDS tracks the media devices and pinpoints users who have accessed this data. Panda Security for Business offers a complete anti-virus protection. DDS in addition tracks the media devices attached to a workstation for even better layeredsecurity.

16. DDS is Different Microsoft Forefront is identity management software. This product only allows properly identified users access to a computer system. DDS gives additional security tracking by logging all removable devices attached to the client computer even if the user is pre-authorized. Eset’s Smart Security provides extensive anti-virus protection. DDS augments that protection by monitoring removable media devices and alerting the network admin when an unauthorized device is used, which could potentially infect the network.

17. DDS is Different CA HIPS provides intrusion detection and prevention in a software suite. DDS augments this by continuous tracking of removable media. eEye’s Blink anti-virus is breaking new ground with their new methods of virus detection. DDS provides intrusion detection to this service by alerting network authorities of unauthorized media devices used by authorized clients.

18. Management Team • Suzan Bernhard – CEO • Co-Owner, Strong Bear LLC, Palisade CO • Owner, Tax Etc. Inc., Tucson AZ • Manager, Executive Tax Office, Tucson, AZ • Industrial Real Estate Broker, Robert A. Polachek Co., Milwaukee, WI • Teacher, Continuing Education and Advanced Tax Preparation, H & R Block, Tucson AZ • Teacher, Business English, Roosevelt University • BA, MA in Sociology, Roosevelt University, Chicago, IL • Rodney Roberts – CTO • Co-Owner, Strong Bear LLC, Palisade CO • IT Manager, Endovascular Technologies, Menlo Park, CA • Civil Engineer, Polydyne Engineering, AK; Alaska Engineers & Surveyors, AK; M&R Surveying, AK • Ron Gardner – Chief Engineer • Teacher, Computer Programming, IntelliTec Colleges • Software Engineer, Ametek/Dixon, Grand Junction CO; Ada Business Computers. Ada OK; Jarman Technologies L.L.C, Paul’s Valley OK

19. Asset Offering • Strong Bear intendsto sell its patent-pending technology as part of a strategy to monetize its IP portfolio and find the right vehicle for its solution to be represented in the market.

20. Robert FerriPrincipalNagle-Ferri555 Florida StreetSuite 220San Francisco, CA 94110 bob.ferri@nagle-ferri.com (415) 575-1589 Karla TrippePresidentTrippe & Company10955 Westmoor Drive4th FloorWestminster, CO 80021 ktrippe@trippecompany.com (970) 389-3672 Contact