Intelligent Automation, Inc.

1. Intelligent Automation, Inc. 15400 Calhoun Drive, Suite 400 Rockville, MD 20855 www.i-a-i.com Dr. Jacqueline Haynes: jhaynes@i-a-i.com / 301 294 5260 Shannon Beltz Mayhew: smayhew@i-a-i.com / 301 294 5230 David Mayhew: dmayhew@i-a-i.com / 301 294 5264

2. Intelligent Automation, Inc. • Woman-owned small business • Founded in 1987 • Located in Rockville, Maryland • 92 professional staff; Approx $18M revenue estimated for 2006 • Specialize in R&D; advanced artificial intelligence applications • Highly qualified scientists, educators, psychologists, engineers, and software developers with extensive experience in advanced technologies; most with advanced degrees

3. Intelligent Automation, Inc. • Six research groups • Education and Training Technology • Core expertise in Reading and Cognition, Adaptive Technologies, Multimedia Architecture, Artificial Intelligence, Electronic Learning Devices • Applications across diverse domains • Distributed Intelligent Systems and Robotics • Signal Processing • Sensors • Communications • Forensic Technology • Multi-disciplinary staff creates environment for unique innovations • Engineering from our electromechanical research made possible some compelling playware applications in education area

4. Multisensory Computing and Learning – “Playware” • Background/foundation of our technology • Idea began with graduate research at Harvard Graduate School of Education • Kids connect most strongly with their world through touch • Learners are especially likely to make new ideas when they are actively participating in building and manipulating an external artifact—e.g. a robot, story, or popsicle stick house—which they can reflect upon and share with others (Papert, 1980). • Learning tools need play appeal if you want kids to use them

5. Multisensory Computing and Learning – “Playware” • Background/foundation of our technology • StoryTiles • 4th round of funding from Department of Education ($935K total) on a family of projects within this line of research • 5th round of field tests • Kids like it!! • Tactile experience • StoryTiles was shown to foster language skills and motivate play • Kids using entire 45 minutes • Silly stories

6. StoryTiles™ • Consists of two components • “Cradle” • “Manipulatives” • Children use manipulatives (toys and pictures) to experiment with storytelling. • Manipulatives have code on bottom that can be read by cradle • Preprogrammed manipulatives • When manipulative or button is pressed, cradle will speak the word that corresponds to the manipulative • Programmable manipulatives • Child can record her own label or story to correspond with the manipulative

7. StoryTiles™ • Pressing green “story button” causes cradle to tell the story the child has constructed • Cradle can be plugged into computer to augment play possibilities with software • Animation of child’s story • Storybook that can be printed

8. Productizing StoryTiles • Versions • StoryTiles Basic: as a standalone toy that comes with a cradle and basic set of manipulatives • StoryTiles Deluxe: with animation and storybook software • Animation software sold separately • Storybook software sold separately • Other software can be created (interactive games between device and computer) • Could provide outlet / sales enhancer for licensed properties/characters • Expansion sets of manipulatives or manipulatives plus specific software • Package with book and specialized figurines • Trademark registration is in process • Patent process underway • Disclosure filed with USPTO