Blackboard ® IP Devices

1. Blackboard® IP Devices Presented By Duane Dalager, Blackboard Solutions Engineer April 13, 2005

2. And now 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. Blackboard IP Devices • Session Objectives: • The Networked Advantage • Introduction to Blackboard IP Devices • Benefits of IP Devices • Demonstrate ease of implementation • Innovation • Simplified Implementation • Enhanced Management • Results/Outcomes • Ease of Use • Secure Transactions • Follow Industry Standards • Reduce Implementation Costs

4. The Networked Advantage

5. The Networked Advantage • Higher data transmission speeds. • Eliminates extraneous equipment • Less equipment = Less connections = less points of failure • Utilizes common industry standard communication method of 10/100 Base T Ethernet.

6. The Networked Advantage • Provides secure method of data transmission. Blackboard IP devices utilize 128-bit AES encryption. • Enables institutions to leverage existing IP/network resources. • DHCP and Static IP Addressing is supported

7. Blackboard IP Devices

8. Blackboard IP Devices Focus IP Activity Reader (AT3000) Available for both the Blackboard Transaction System™ – Unix and Windows Editions. IP Copy Reader (CR3000) Available for both the Blackboard Transaction System – Unix and Windows Editions. Blackboard IP Devices

9. Blackboard IP Devices • Blackboard IP Devices Focus (continued) • IP Door Access (SA3032) • Available for the Blackboard Transaction System – Unix Edition. • Currently in Beta for the Blackboard Transaction System – Windows Edition. • IP Vending (VR/MDBMP) • Available for both the Blackboard Transaction System – Unix and Windows Editions.

10. Blackboard Activity Reader

11. Blackboard IP Activity Reader • IP Activity Reader Introduction • Terminal works with Blackboard Transaction Systems – Unix or Windows Editions. • Communicates to the host via RS-485/RS-232 or 10/100Base T Ethernet (IP). • Configuration through keypad/display: CONFIG port or telnet

12. Blackboard IP Activity Reader • IP Activity Reader Introduction (continued) • All IP communications encrypted and authenticated for data security. • Stores up to 14,000 offline transactions. • Prints receipts and includes printing options--on demand and duplicates. • Supports a cash drawer connected to the printer (Blackboard Transaction System - Windows Edition only).

13. Blackboard IP Activity Reader • IP Activity Reader Introduction (continued) • Supports Tip Line functionality (Blackboard Transaction System - Windows Edition only). • Removable\reversible mounting bracket that does not require screws. • Two Printer Models supported: • Ithaca (MW/RJP6) Also works with other Blackboard Readers. (Blackboard Transaction System - Unix Edition only) • Axiohm (PRT/TAX794) New model certified to work with the AT3000.

14. Blackboard IP Activity Reader • IP Activity Reader Key Benefits • Secure Transactions • All transactions are secured over IP utilizing government standard 128-bit AES encryption. • Multiple Transaction Types • Activity, Board (Count), and Debit/Credit functionality for both Blackboard Transaction System – Unix and Windows Editions (IP mode only for Blackboard Transaction System Windows Edition).

15. Blackboard IP Activity Reader • IP Activity Reader Key Benefits (continued) • Sub-second Transaction Processing • All transaction processing to the Network Processor or Host(s) are sub-second. • Remote Management • All IP Activity Readers have telnet capabilities in order to modify, monitor, and troubleshoot. This functionality can be turned off. • Follows 10/100 Base T Ethernet Standards • All IP cabling requirements are simplified to follow industry standard 568A or 568B wiring configurations.

16. Blackboard IP Copier Reader

17. Blackboard IP Copier Reader • IP Copier Introduction • Interfaces with most copy machines • Communicates to the host through RS-485 or 10/100Base-T Ethernet (IP) • Small size mounts easily on copier or on adjacent wall • Copy interface type is software selectable (no DIP switches)

18. Blackboard IP Copier Reader • IP Copier Introduction (continued) • Configuration through keypad/display, CONFIG port or telnet • All IP communications encrypted and authenticated for data security • Tracks cash sales

19. Blackboard IP Copier Reader • IP Copier Reader Key Benefits • Secure Transactions • All transactions are secured over IP utilizing government standard 128-bit AES encryption. • Follows 10/100 Base T Ethernet Standards • All IP cabling requirements are simplified to follow industry standard 568A or 568B wiring configurations. • Cash Tracking • All IP Copy readers have the ability to track cash if a 3rd party coin/cash tower is used.

20. Blackboard IP Copier Reader • IP Copier Reader Key Benefits • Sub-second Transaction Processing • All transaction processing to the Network Processor or Host(s) are sub-second. • Remote Management • All IP Copy Readers have telnet capabilities in order to modify, monitor, and troubleshoot. This functionality can be turned off.

21. Blackboard IP Door Access

22. Blackboard IP Door Access • IP Door Access Introduction • SA3000 controller consists of two separate boards Master Controller and Door Controller. • Card slots are separate from controller boards, providing greater implementation flexibility. • Supports 10/100Base-T communication with the Network Processor (NP) for faster high security (HS) downloads. • Supports two mag-stripe readers (with or without PIN pad) and 2 Proximity Readers, eliminating the need for the Weigand interface module.

23. Blackboard IP Door Access • IP Door Access Introduction (continued) • Includes more memory to manage greater cardholder capacity and offline functionality. • Supports IP connectivity. • Supports legacy SACS and SASPP readers to allow upgrading of existing SA2000 systems without the need to replace card readers. • Supports multi-plans and plan level effectivity in the downloaded card table for off-line operation (Requires Release 9.1).

24. Blackboard IP Door Access • IP Door Access Introduction (continued) • Supports an enclosure with a locking/hinged lid and a tamper switch. • New card readers can generate valid/denied tones. Tones can be enabled or disabled through configuration options. • Provides enhanced tamper reporting. Tamper conditions reported include controller enclosure opened and card reader tampered/removed (SE3/CS, SE3/CSPP, SASPP, and Proximity).

25. Blackboard IP Door Access • IP Door Access Key Benefits • Secure Transactions • All transactions are secured over IP utilizing government standard 128-bit AES encryption. • Follows 10/100 Base T Ethernet Standards • All IP cabling requirements are simplified to follow industry standard 568A or 568B wiring configurations. • Sub-second Transaction Processing • All transaction processing to the Network Processor is sub-second.

26. Blackboard IP Door Access • IP Door Access Key Benefits (continued) • Remote Management • All IP Door Access Readers have telnet capabilities in order to modify, monitor, and troubleshoot. This functionality can be turned off. • Built in Wiegand Interface • Eliminates the need for separate hardware when controlling Proximity Readers.

27. Blackboard IP Door Access • IP Door Access Key Benefits (continued) • Internal Display on Master Controller • The local display provides easier configuration and troubleshooting. • Enhanced Alarm Reporting • The Master controller now has multiple LED’s for alarm and tamper conditions as well as for troubleshooting. There are more detailed software reporting for alarm and tamper conditions.

28. Blackboard IP Vending Reader

29. Blackboard IP Vending Reader • IP Vending Reader Introduction • Reader works with Blackboard Transaction System - Unix and Windows Editions. • Interfaces with all NAMA MDB compliant vending machines. • Communicates to host via RS-485 or IP (10/100Base-T Ethernet). • Mounts easily in bill acceptor or comparable sized opening.

30. Blackboard IP Vending Reader • IP Vending Reader Introduction (continued) • Reduces interference problems associated with limited space inside machine • Two simple connections: machine controller/coin mechanism and the network • Displays are readable in all light conditions • Volume can be set to off, quiet, or loud

31. Blackboard IP Vending Reader • IP Vending Reader Benefits • Secure Transactions • All transactions are secured over IP utilizing government standard 128-bit AES encryption. • Follows 10/100 Base T Ethernet Standards • All IP cabling requirements are simplified to follow industry standard 568A or 568B wiring configurations. • Sub-second Transaction Processing • All transaction processing to the Network Processor is sub-second.

32. Blackboard IP Vending Reader • IP Vending Reader Benefits (continued) • Utilizes Multi-Drop Bus (MDB) standard • All IP Vending readers exclusively utilize the Vending Industry Standard Multi-Drop Bus to interface to vending machines. This significantly simplifies installation. • Cash Tracking • All IP Vending readers have the ability to track cash as long as the audit function is enabled on the vending machine.

33. Blackboard IP Vending Reader • IP Vending Reader Benefits (continued) • Multi-Function Interface (optional add-on) • The Multi-Function Interface is used in conjunction with an IP Vending Reader in order to activate a simple relay on a valid card swipe. The interface allows the reader to validate a card or charge a fixed rate and activate the relay. Typical applications for this are controlling parking gates or turnstiles.

34. Blackboard IP Devices Implementation Demonstration

35. Blackboard IP Devices Questions and Answers

36. Blackboard IP Devices • Innovating Together in ‘05: • IP Readers provide simplified implementation and management. • IP Readers provide secure transactions • IP Readers enhanced functionality. • Resources Available: • www.behind.blackboard.com – You will find Executive Summaries, Installation and Setup Guides, and Operation Guides. • Follow up Contact(s): • Duane Dalager, Blackboard Solutions Engineer – ddalager@blackboard.com, 800-528-0465 ext. 1145 • IF YOU ONLY REMEMBER 1 THING: • IP Readers are secure, easy to use, and easier to support.

37. Thank You!