Empowering the next generation of builders

1. Build-It-Yourself seeks partners who can help bring our unique online learning environment direct to kids and their parents at home. Empowering the next generation of builders

2. What We Do Build-It-Yourself provides after-school and at-home workshops that inspire and empower kids to create, design, build and invent. We engage boys and girls in playful approaches to design, invention and scientific inquiry. We train kids to apply complex technology to solve problems. Empowering the next generation of builders

3. Value Proposition Consistent, high-quality high-value, engaging, technology instruction at half the cost of traditional instruction. • Large and growing demand for technology training and constructive, after-school activities. • Collaboration with MIT Media Lab. • Proven and acclaimed content. • Unique workshop delivery model. • Access to Harvard/MIT student specialists. • Experienced, talented team. Empowering the next generation of builders

4. The Product • Database of Content Elements: • Online database of: • Playful storylines and associated challenges • Building tricks and lessons • Functional building blocks that enable kids to build complex projects quickly. Content Specialists Collaboration Empowering the next generation of builders

5. The Product Content Specialists Collaboration • Seth Mastin – BA Computer Science, MIT • Rebekah Gendron – MEd, Rhode Island Univ • Max Seidman – Sophomore BB&N • Valeria Roman – Science Journalist, Argentina • Naseem Makiya – Junior Harvard • Michael Hsu – Sophomore, Choate • Liu Huan – Senior, Shanghai High School • Joan Tarud – MS Mechanical Engineering, MIT Network of Specialists: Graduates and students from the Harvard/MIT community who inspire and guide kids. Empowering the next generation of builders

6. The Product Effective Collaboration Tools: 2-way audio/video webcast platform enables kids to collaborate with peers and specialists in a global laboratory. Content Specialists Collaboration Empowering the next generation of builders

7. The Value Net Customers: Summer Camps After-school programs Parents Competitors: Teachers Local Museums Mad Science Bright Horizons Complementors: Publishers Manufacturers Retail Outlets Schools Build-It-Yourself Suppliers: Marratech / Google Craft Stores Radio Shack

8. The Demand Factors Kids Parents Corporations • 1) Kids seek rich, online experiences. • 2) Two-thirds of U.S. families are now headed by either two working parents or a single working parent. These families need after-school programs. • 3) Many parents want to position kids to get into good schools. • 4) Corporations are demanding a labor pool that is better trained in engineering and technology. Empowering the next generation of builders

9. Customer Profiles Camp Directors Camp Directors seek popular programs. 7.3 million kids attend 12,000 summer camps. After-School Program Directors After-school Program Directors seek educational programs. 3 million kids are enrolled in after-school enrichment programs. Parents Parents seek engaging, constructive activities for their kids when not in school. Sources: American Camp Association Institute for Educational Science, US Dept. of Education Digest of Education Statistics: 2005 Empowering the next generation of builders

10. Customer Market Segments • Opportunity: • Summer Camps • 7.3 Million Kids • 2. After-school Time • Organized by schools • 2.5 Million Kids • 3. After-school Time • Organized by families • 15 Million Kids 12,000 Camps 7.3M Kids Summer Camps Summer Camps 26,569 Schools 3M Kids Private School Private After-school 450K Kids (15%) 23 Million Kids Grades 3 to 8 71,270 Schools 20M `Kids Public School Public After-school 2M kids (10%) 5 largest for-profit organizations 160K Kids Commercial After-school Assume 65% of kids can afford a computer and $120/year 15M Kids @ Home Sources: American Camp Association Institute for Educational Science, US Dept. of Education Digest of Education Statistics: 2005

11. The Value Net Customers: Summer Camps After-school programs Parents Competitors: Teachers Local Museums Mad Science Bright Horizons Complementors: Publishers Manufacturers Retail Outlets Schools Build-It-Yourself Suppliers: Marratech / Google Craft Stores Radio Shack

12. Differentiation 1) Playful storylines appeal to a high percent of boys and girls. 2) Build-It-Blocks enables students execute complex ideas quickly. 3) Build-It-Yourself offers consistent, high-value technology instruction at low cost. 4) Build-It-Yourself projects are creative and artistic. Empowering the next generation of builders

13. Invent Now Kids Sports Programs Build-It-Yourself Local Museums ID Tech Camps Private Tutors Mad Science First LEGO After-School Enrichment Competitors Cost $25-$50/hr $10-$25/hr $2.50/hr Consistent Quality (Control over content + instructor)

14. Technology Program Competitors

15. The Value Net Customers: Summer Camps After-school programs Parents Competitors: Teachers Local Museums Mad Science Bright Horizons Complementors: Publishers Manufacturers Retail Outlets Schools Build-It-Yourself Suppliers: Marratech / Google Craft Stores Radio Shack

16. Potential Distribution Partners After-school Programs Retailers Publishers Manufacturers iRobot Leap Frog Mad Science Build-A-Bear Penquin Sunset • Add value to products. • Drive new product development. • Sell products. • Monetize web presence. • Expand curriculum. • Generate new revenue. • Monetize web presence.

17. (Partners) (Build-It-Yourself) (Retail) The Distribution Plan is Highly Leveraged Build-It-Yourself sells content branding to highly targeted strategic partners including publishers, after school programs manufacturers and distributors. 1 to 4 Leverage Strategic partners place highly valued content in retail outlets such as Home Depot, Radio Shack, Sylvan Learning Centers, Barnes & Nobel. 4 to 5,000 Leverage Retail outlets promote Build-It-Yourself memberships because they drive sales of their products, encourage family shopping and monetize their on-line presence. 5,000 to 300,000 Leverage

18. 16 schools schools served: 70% are repeat customers Include BB&N, The Park School, Concord Academy Growth via word-of-mouth More than 1,400 kids served More than 15,000 hours of workshops delivered More than $320K revenue generated “Clio was thrilled. She couldn't stop talking about what she did.” Parent “I never thought my son would give up soccer for anything.” Parent “Wow!” Program director sitting in on a webcast from China. Our Workshops Are In Demand Key Statistics Validation Empowering the next generation of builders

19. Validation "The goal is to highlight the 'powerful ideas' in the modules -- that is, the ideas that help you understand how the module works, and provide you with a foundation for building other things." Professor Mitchel Resnick, from the MIT Media Lab, directing the collaboration between MIT and Build-It-Yourself to develop a database of construction modules "Build-It-Yourself is a fascinating program that engages students in creative projects to design and build robots. Both of my children --ages 7 and 9-- have participated in Build-It-Yourself workshops and learned greatly from it. It's very interesting pedagogy." Dr. Fernando Reimers, Associate Professor and Director of HGSE's International Education Policy program, describing the Build-It-Yourself program to colleagues at the Harvard Graduate School of Education "Thanks for putting on one of the best Robotics workshops that I have been to." Science teacher at the Jamestown Middle School, RI commenting on a Build-It-Yourself workshop for teachers

20. Validation Collaborating on-line comes naturally to the next generation! Empowering the next generation of builders

21. Everyone Wins in the Build-It-Yourself Eco-system Parents - See their kids engaged and excited! - Collaborate and work with their kids. Kids Corporate Partners - Have fun! - Solve problems creatively. - Integrate multiple disciplines. - Reinforce core curricula. - Collaborate and share ideas. - Develop important tech skills. • - Deliver high-quality programs. • Reach kids and parents at-home. • Develop new revenue streams. • Differentiate. • Develop future employees. • Affiliate with a “do-good” program. Investors - Receive an attractive ROI. - Help solve a major social problem. Empowering the next generation of builders

22. The Build-It-Yourself team is experienced and dedicated to bringing our highly valued programs online. Responsibilities Team Members – Background Build-It-Yourself will recruit a business development team John Galinato – Project Management MEE, Cornell University. More than 25 years of software project management experience. Gabe Kooperman – Operations and Webcast Management BS Physics, Tufts University Liu Huan – Engineering Student MIT class of 2010, Computer Science and Electrical Engineering Barbara Ross – Business Development Advisor Co-founder WebCT acquired by Blackboard Manage business development Specify and manage product development. Manage network of workshop leaders and specialists Platform development and webcasting

23. Build-It-Yourself has a long history of attracting talented, highly skilled contractors. Responsibilities Contractors – Background Pete Buletza – Engineer BS in Computer Science, Harvard University. 10 years experience with the CIA, Intuit, and start-up companies developing Internet based technology. Seth Mastin – Engineer BS in Computer Science, MIT 2005. Rebekah Gendron – Teacher Masters Degree in Technology Education, University of Rhode Island. Technology Coordinator in Rhode Island School of the Future. Ann Butler – Content Advisor MEd, Harvard Graduate School of Education. 10 years experience in training and teaching. Presently writes for the Boston Globe. Platform Architecture and Development. Platform Architecture and Development. Content development and webcasting Lesson plan development

24. On-site Fee per workshop In-person specialists Word-of-mouth distribution New England area On-line Subscription based revenue On-line specialists Distribution partnerships National and international Scaling to a Global Market Current Model Going Forward Model Empowering the next generation of builders

25. Financials 5-year Target: 300,000 customers => $60M revenue Annualized #'s based on month 12 of each year. Conclusions Yr 1 Yr 2 Yr3 Yr4 Yr5 Revenue $ 924,000 $ 2,323,750 $ 7,415,000 $ 23,928,750 $ 60,625,000 Expense $ 1,373,980 $ 2,388,825 $ 7,466,440 $ 18,258,683 $ 38,696,647 EBITDA $ (449,980) $ (65,075) $ (51,440) $ 5,670,067 $ 21,928,353 % Earnings / Revenue -49% -3% -1% 24% 36% Profile Yr 1 Yr 2 Yr3 Yr 4 Yr 5 # Online Members 6,000 15,000 45,000 135,000 300,000 Revenue / Member $ 154 $ 155 $ 165 $ 177 $ 202 # Employees 6 9 25 50 87 # Webcasters (tutors) 40 67 200 667 1,533

26. Cash Flow Year 1 Expenses Revenue will equal expenses in month 24. Worst case cash flow is $1.25 million.

27. Investment of $1.5 million is required to grow the team, shrink wrap the product, expand infrastructure and develop distribution partnerships. • Large and growing demand for constructive, after-school activities. • Consistent, high-quality instruction at ½ the cost. • Collaboration with MIT Media Lab. • Proven and acclaimed content. • Unique workshop delivery model. • Access to Harvard/MIT student specialists. • Experienced, talented team. www.build-it-yourself.com 617-547-9705 Empowering the next generation of builders

28. Support Slides

29. Potential Strategic Partners Strategic partners are key to growing quickly! Build-It-Yourself will invest significantly in developing partnerships that address our distribution, infrastructure and fulfillment needs. Strategic partners are central to our exit strategy!

30. Potential Fulfillment Strategic Partners On-line Fulfillment of Parts, Tools and Supplies Build-It-Yourself is exploring a partnerships with fulfillment centers and retailers that would enable our customers to order project materials on-line. A Build-It-Yourself after-school program must order $1500+ in parts, tools, supplies and software to start. New Build-It-Yourself members may order from $50 to $300 in parts, tools, supplies and software. After initial investments, Build-It-Yourself projects will drive customers to restock supplies and buy new tools and construction sets.

31. Potential Fulfillment Strategic Partners On-line Fulfillment of Parts, Tools and Supplies

32. Potential Infrastructure Strategic Partners Webcast Infrastructure Google purchased Marratech in early 2007. Marratech has been judged best in class among numerous Webcast platforms including WebEx, Horizon Wimba and Elluminate. Marratech provided free service to Build-It-Yourself for over a year. Build-It-Yourself was a valuation/reference account for Marratech because of the research it is doing in collaboration with MIT. Build-It-Yourself will explore development and distribution agreements with Marratech/Google to integrate products like Google Talk and ThinkTank.

33. Potential Distribution Strategic Partners Software publisher Build-It-Yourself is exploring a partnership with Microsoft. A senior scientist at Microsoft is an investor in Build-It-Yourself and has offered to make introductions to several groups at Microsoft whose interests would be advanced by the Build-It-Yourself program including: • Xbox • MS Robotics Studio • The Gates Foundation • MS HR Dept

34. Potential Distribution Strategic Partners Manufacturer Build-It-Yourself is exploring a partnership with iRobot to develop projects around the iRobot Create. The Create ($200) is a robotics platform based on the Roomba for the hobby market. iRobot asked Build-It-Yourself to build a copy of the Robotic Receptionist we developed at the Greater Lawrence Technical School which they said they would like to put in their lobby.

35. Potential Distribution Strategic Partners Publisher McGraw Hill asked Build-It-Yourself to write a proposal for a robotics book as part of their successful Evil Genius series. Build-It-Yourself explored a partnership with McGraw Hill to publish a robotics project of the month POS booklet which would drive online memberships.

36. Value to Sales Ratio Sources: Fidelity as of Sep 2007 http://publications.mediapost.com/index.cfm?fuseaction=Articles.showArticleHomePage&art_aid=31345 http://www.thealphamarketer.com/2007/08/club_penguin_has_grown_329_fro.html

37. Subscription-based Web Clubs/Services

38. Organization Chart – Year 1 President Develop distribution partnerships. Manage budget and admin. Board of Directors Board of Advisors Operations Mgr Hire, train and manage webcasters + workshop leaders Product Mgr Spec and manage product evolution. IT Mgr Set up and maintain hardware + software Development Contractors Workshop Contractors Empowering the next generation of builders

39. Build-It-Yourself seeks partners who can help bring our unique online learning environment direct to kids and their parents at home. Empowering the next generation of builders