Customized Security Solutions by InkSure

1. Customized Security Solutions byInkSure Award Winner

2. InkSure Technologies • Provider of covert, machine readable security solutions (“CMRT”) to definitively and quickly identify genuine branded products and documents for protection against counterfeiting • Our expertise in spectral detection of covert marks enables InkSure to provide the most advanced readers in the authentication industry • 4½ years of commercial sales • Billions of consumer products protected with InkSure technology • Product and Image Security (“PISEC”) award winner: 2000,2003,2006 • Member Document Security Alliance (“DSA”) and North America Security Products Organization (“NASPO”) • U.S. public corporation (INKS.OB) • Corporate Headquarters in Fort Lauderdale, FL; Global R&D Center at the Science Park in Rehovot, Israel

3. Counterfeiting Facts • World Customs Organization estimates that counterfeiting accounts for 5% to 7% of global merchandise trade, equivalent to lost sales of $512 billion in 2004 • World Health Organization says up to 10% of medicines worldwide are counterfeited, costing the pharmaceutical industry $46 billion a year • According to the Federal Trade Commission, counterfeiting costs the global automotive parts industry $12 billion a year; $3 billion of that total is in the United States • One third of all counterfeit products are cosmetics and perfumes – 10% of the total world trade for the personal care industry • Document fraud is estimated to cost the U.S. approximately $20 billion annually

4. The Solution:Field Forensic, Machine- Readable Authentication

5. InkSure’s Authentication Solutions – Highlights • Specializing in Covert Machine Readable Technology solutions to mark and authenticate products and documents • Optical detection of covert marks features the most advanced readers in the authentication industry • Technological flexibility ensures seamless integration in production and operations • To maximize user benefits, solutions are compatible with other security features (e.g. holograms) for a multi-layered approach

6. How Does It Work? • Each item is invisibly marked with SmartInk during standard printing production • Although visually identical to regular ink or varnish, SmartInk includes a covert taggant code • The code is customer/application exclusive • InkSure’s range of proprietary readers are used to conclusively authenticate products and documents by detecting electro-optical material behavior, identifying the code and providing on-the-spot pass/reject indication

7. SmartInk Covert Applications • SmartInk can be applied to almost any substrate – paper, plastic, foils, laminate, etc., – using most standard printing processes • SmartInk can protect variable information via commercial inkjet, thermal transfer ribbon and laser color-change

8. CMRT Growth Factors & Customer Value • Field Functionality – Fast, Simple, “No Brainer” • Anyone Can Be an Expert in One Minute • Readings Take Only Two Seconds • No Operator Error • Green Light, Two Beeps - Good • Red Light, One Beep - Bad • Brand owners challenged with global programs • Readers can be quickly distributed to people around the world

9. SignaSureTM Handheld Readers • The most sophisticated optical authentication reader, analyzing complex spectral signatures • Each reader stores multiple codes, with one-to-many code identification • Custom configured for each customer/application • Simple & intuitive user interface; light weight, ergonomic design • Clear audible and visual confirmation/alert within a few seconds • Adaptable platform for easy code update • Rechargeable batteries; USB connectivity

10. New PocketSure™ Reader • A new, pocket-size authentication reader • Size: 5.5” x 1.1” • Weight:2.5 ounces • Next generation reader for field authentication • Lower-cost for large channel distribution • Warehouses • Law Enforcement • Retail Locations • Single code in memory • Audio tone and visual (red/green LED) only, no LCD screen • Replaceable batteries, no charging circuits SignaSure PocketSure

11. On-press Quality Control • Continuous Hands Free Feedback • Upper and Lower Limits set to Assure Field Reader Performance • Effective Cost Monitoring Capability • Data Collection for Future QA Reference or Evidence

12. Key Points • Covert Machine Readable Technology Growing • Highly Secure – Forensic Level III Security • Simple to Implement in Field / Training • Simple to Implement at Converter • Extremely Accurate • Custom Taggant Formulation (Codes) • License to End-Users or Converters • Guarantees Exclusivity • Secures Chain of Custody