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2009. 5

The next generation multimedia sales system which is able to sell demaded contents by clients not through PC but through the kiosk of the vending machine type easily. 2009. 5. Agenda. Product Outline Characteristics of Product Intellectual Property Product and Service Roadmap

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2009. 5

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  1. The next generation multimedia sales system which is able to sell demaded contents by clients not through PC but through the kiosk of the vending machine type easily. 2009. 5

  2. Agenda Product Outline Characteristics of Product Intellectual Property Product and Service Roadmap Reference : Overseas Case Contacts Introduction Market Trend Necessity of Business Business Outline Business Strategy Major Business Model Business Plan Service Expansion Strategy

  3. Introduction : Organization Chart CEO Strategy Marketing Administration Planning Group TouchDown Group BROWSER Group DRM Group Research Institute Administrion Support Team WEB Browser Team OMA DRM Team Service Development Team TouchDown Team Web Runtime Platform Tea,m BCAST Team Prior Technology Research Team GVM Team

  4. Introduction : Technical Capacity Service Supplier of Contents Vending Machine for Multimedia (expected due : 09.09) Contents Vending Machine Service for various multimedia such as music and movies Ensured marketing networks such as Korail and Shinsegae I&C Prior Occupation of newly emerging market by sharing ETRI technology patent Leading Company of Latest technology of Browser Solution Movie Drama Music VideoAD Possesses Browser Solution using WebKit browser engine Possesses Web Runtime Platform Solution based on WebKit Applied Netfront browser to SAMSUNG GSM terminals Maintain and repair TSS, Netfront browser applied models Possesses unique experience of self browser development Possesses unique User Interface Technology WebKit adopted Browser Leading Company of Latest technology of DRM Solution Possess all tech. from OMA DRM v1.0 to v2.1 Provides the tech to SAMSUNG Handset Platform through license contract Completed compatibility test with DRM Server of Vodafone and Core Media MOBILUS MUSICAL Browser ANDROID Nokia S60 iPhone MOBILUS’s MUSICAL DRM applied models (OMA DRM 2.1) Discovering International Market and Promoting New business Efficiently adopt to new tech. through OMA standardization Participated in 3GSMA Mobile World Congress 2009 Participated in CTIA Wireless 2008 Discovering new tech. for technical changes of Web 2.0 and mobile terminals SGH-760v SGH-I400v SGH-ZV60 SGH-J200 SGH-F700v

  5. Market Trend: Digital Contents Distribution Market Scale Contents trade and distribution market is expected to reach the scale of 2.5 zillion won through over 10% growth annually. Game Contents trade and intermediation Solution Digital Broadcasts Information Contents Information Contents Digital Music Digital Image E-book

  6. Market Trend: Market Scales according to Distributing Media Actual digital contents distributing media shows that the scale of the off-line media is 50% of that of the online media, which concludes off-line media hold a great deal of importance compared to other contents market scales. • Capacity of success of new off-line distributing media 25,000 20,000 15,000 10,000 5,000 0 11,557 6,388 Off-line Online e-Book Digital Image Game Digital Music Digital Broadcasts Information Contents GContents trade and intermediation

  7. Market Trend: Characteristic of Digital Contents Media Usage Considering that users usually use MP3 player, cellular phones and PMPs as the contents playing terminals, search for new business model is vital to reduce the inconvenience of purchasing and using contents and hence increase the usability. Terminals for Digital Contents Usage

  8. Necessity of Business: Problems of Contents Distribution through Mobile Terminals When buying contents using mobile terminals, users need to pay for data call fee, which is higher than the cost of the contents. This is the reason for why users try to avoid buying contents through their mobile terminals. • NO Charge • for Data Usage SKT (23.2%) KTF (15.2) LGT (9.4)

  9. Business Outline: Supplying New Contents Distribution Channel Automatic Contents Providing Service for fast and east downloads of desired drama and broadcasts to cellular phones and laptops which could be provided to the customers any where such as streets, shops and airport, at any time. 1 At airport, before going on his business trip, Mr. Kim downloaded episode 21 of “Sejong, the great king’ from contents providing machine to his laptop and watched it during the flight. He was enjoying it so much that he didn’t even realize time flying. 2 Mr. Lee’s family went on a picnic on a weekend. Their way back home was full of traffic jam and his children were getting bored. He decided to download episode 3 of “Pororo” from the automatic contents providing machine to the navigation terminal at near resting place and play them for his children. Despite high number of multimedia terminal owners such as cellular phones, PMPs and game consoles, methods to obtain contents are limited, and furthermore, mobile contents are provided only by communication companies, causing closed market structure, resulting necessity of new solutions New Contents Distribution Channel

  10. Business Strategy: Focusing on Activation of Contents Distribution In order to activate contents distribution, various contents need to be available and widely distributed through various distributing channels, based on new service system. Reliable supply of new service system by MOBILUS. Metro Corp. Shinsegae I&C Korail … … Various Contents Music Movies Various Distribution Channel Edu. E-book Easy Payment Processor DRM Image Converter User Interface Kiosk System Patent Various Terminal Supply Operation Manage- ment Various Contents New Service System

  11. Main Business Model : Contents Distribution Direct sales of music, movies, broadcasting contents, music videos, education(e-learning), e-books and many more Movie, TV Contents E-book Newspaper Comic 11 Music Video UCC Advertisement

  12. Business Plan 2009. 2. 16 MOU of ETRI and Shinsegae I&C Transfer of technology between ETRI-Shinsegae I&C and ETRI-Korail is due in mid May, 2009 • Attempts to preoccupy newly emerging market of various business Terminal andServer System Supply

  13. Business Plan: Contents Service by Business Contents Outsourcing by service business through cooperation with contents providing service companies • Main Business: Korail(Distribution), Shinsegae I&C, Metropolitan Rapid Transit Corporation • Maintain service compatibility by cooperating with preexisting service business and allow sole contents sourcing by forming Open Market or Customizing Market MP3 : Music Portal(Bugs, Melon)and music possessing sites such as Soribada Phone Bell: Provided by SVC Music Drama, News : Cooperation with Broadcasts(iMBC, SBSi ) Movie: Movie site owners Moving Picture Image Image Cooperation with communication companies with rights Game Cooperation with Communication company or Well known game developing company Cooperation with Game Publishing business Cooperation of bundling products with KT(MegaTV) and Hanaro Communication(Hanaro TV)

  14. Service Expansion Strategy Phase 1: Specific Target Location Metro Corporation: Specific location(subway station) and its neighboring location Korail(Distribution): Cooperation marketing according to specific location(airport, rail) Ebridge Co. Ltd. (airport), Korail(rail and subway), Phoenix Vending(nationwide) ShinsegaeI&C : Distributor targeted cooperation marketing Able to run simultaneously with PMP rental business Seoul Metro243 Airport15 Rail Station406 Expressway Resting Place119

  15. Service Expansion Strategy Phase 2: Contents Distributor Cooperation with communication and online service companies that contemporarily provide contents service Development of bundling goods with terminal possessing company(comm. Companies) and wired comm. business(CATV, IPTV business) Phase 3: Recruiting Branches Local position securing marketing for service market expansion established based on step 1 and 2. Main Sales Locations: School, Academy, Coffee shop, Salon etc. 7200 24hr Convenient Stores(2003) 175 Universities 232 Starbucks, 116 Coffee Beans, 500 Dunkin Donuts(2007,12)

  16. Product Outline: User Centered TouchDownTM System Various fees are not necessary unlike registration fees and usage cost of existing mobile service and the contents are easy and convenient to use – it can be used anywhere at any time just like purchasing a canned drink Contents Search Contents Selection Target Device Selection Payment for Contents Any Contents Downloading Playable in various mobile players Automatic Contents Providing Machine

  17. Characteristics of Product : Usability considered Kiosk System Provides easy-to-use system to provide successful service to customers • Various Inputs and Outputs(Wire, Wireless) and Payment Interface(T-money, Cellular Phone Payment, Credit Card) Bluetooth USB USB Herb Cellular 24 PIN MSR Reader Mini 5pin USB Serial RF Reader USB I-pod/touch SD Card Mini SD Card

  18. Characteristics of Product : DRM Solution for Contents Protection Appropriate DRM Solution is applied depending on the device and perfectly secure the contents • Application of MOBILUS’s sole DRM Solution and common DRM Solution TransCoder: Mobilus Chameleon DRM Packager: Provide same service as PC TransCoder: Mobilus Chameleon DRM Packager: T-Sync Module Tech. Cooperation PDA PMP TransCoder : Mobilus Chameleon DRM Packager : -SKT : MelonDRM Module Tech. -KTF : DosirakDRM Module Tech. -LGT : MUSIC onDRM Module Tech. etc Phone

  19. Intellectul Property: Technical Improvements through I.P. Secure stable business based on business and technology patents Secure stable business based on business and technology patents Registered Patent : Customized Contents Supply and related Equipments based on terminal information (10-0779089), Electronics and Telecommunications Research Institute CI related approach Registered Patent : Moving Picture Converting System and its Method using publicized API (10-0781310), MOBILUS Moving picture converting system (Chameleon) related approach Patent Pending: DRM Contents Playing Device and its Method (10-2007-0082948), MOBILUS DRM related approach Patent Pending: User Interface Management System and Method for Wired and Wireless Information Device and Wired and Wireless Information Device possessing User Interface Management Function (10-2007-0084819), MOBILUS CI UI Management and Operation related approach New Patent, Utiliy Model Patent, Trademark : Accumulation of Know-How on Intellectual Property and Operation/Management

  20. Various Designs

  21. Product and Service Roadmap 2009 3Q: Development of TouchDownTM for digital contents and wired kiosk 2009 4Q: Development of GVM(game vending machine) for digital games and wireless kiosk 2010 : Development of contents platform for mobile devices to activate integrated kiosk and wireless service and independent execution of contents service Service Infrastructure Expulsion 3 • IntegratedTouchDownTM • Kiosk+ wirelessAP + Contents Launcher • Contents Platform • Advertisement, Independent Service Operation 2 • Digital GVM • GVM Terminal • Kiosk+ Docking Station 1 • Digital TouchDownTM • Wired Kiosk 2009. 4Q 2010 2009. 2Q

  22. Reference: Overseas Case Media Distribution Kiosk for Apple i-Pod -Recognized the importance of off-line in distributing contents -Shows Apple’s courage to take the initiative of off-line service Media distribution kiosk : It is installed in many public places. The system allows i-pod users to download various music, moving pictures and applications from i-tunes and app-store without using PC. Patent pending in USA intellectual property office. Virtual connector for interfacing : It is the interface technology to connect i-Pod to media kiosk system that allows downloading contents by connecting wirelessly, using close-range connecting communication technology such Wi-Fi and Bluetooth.

  23. Reference: Overseas Case SonyEricssonPlaynow Instant Entertainment24/7 - Service provided in 80 branches in Asia such as Indonesia, Malaysia and Singapore by SonyEricsson - By paying fixed price, people using SonyEricsson cell phones can easily download latest DRM-free music, movies and TV dramas. - No additional communication fee is needed and download can be executed easily by connecting to kiosk equipment • - Brand ‘PoP’, Sony and Universal jointly developed • vending machine with the brand called ‘PoP’. The • vending machine that sells music, moving pictures • and games • DVD, Blu-ray Disk, PS3 GAME download. • MP3 and MP4 download using SD merory card.

  24. Contacts PyungHwa bld. 4th floor, 166-1,Samseong-dong, Gangnam-gu, Seoul (Across Trad Club) Tel : 02) 564-0744 Headquarter Mobile Techno bld. 5th floor, 573-3, Bokhyun-dong, Buk-gu, Daegu Tel : 053) 326-0744 / Fax: 053) 326-0745 Research Institute Park, Moon-Keun, Director (010-2778-6904) E-mail : jmchae@mobilus.co.kr Bae, Jae-Hyung, Vice Director (010-9328-3958) E-mail : bezant@mobilus.co.kr Kim, Don-Hwan, Section Chief (010-9940-7007) E-mail : paerang@mobilus.co.kr Related Inquiries

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