Where Detection is Cutting Edge

1. Where Detection is Cutting Edge

2. “Over the next decade, $250B in healthcare spending will shift from disease treatment to diagnosis” – Jeff Immelt, CEO GE

3. Why Better Diagnostics Are Needed Imagine…………….. ..the blood bank used for your blood transfusion could better screen for newly infected HIV patients • 50,000 new infections/ yr in US alone • 14 to 30 day period post infection before detectable ..your blood test could detect a cancer at a lower level (and earlier) than can be detected today • Better mainstream detection systems are needed to make this a reality • Sword is introducing a simple, sensitive detection system • Enhances tests in the research market today • Will enhance clinical diagnostics in near future 3

4. Sword’s Next Generation Detection System All Diagnostic Tests Require a Detection System Sword is First Revolution in Mainstream Detection in 15 Years • Sword detection chemistry • Core patent issued October 2009 • Runs on large installed base of instruments • Joint product launch preparation underway with large instrumentation company • …without compromise in speed, performance or cost • Fast results • Comparable price to mainstream • Easily integrated into diagnostic instruments and tests • Provides key benefits… • Improved sensitivity for better detection of disease markers • Improved precision & accuracy for reducing misdiagnoses 4

5. Benefits of Sword Detection are Very Important to Researchers * Sword Detection improves many features of greatest importance to researchers without sacrificing other attributes PERFORMANCE WITHOUT COMPROMISE *Biocompare Researcher Survey -2008

6. Sword proprietary chemistry Color producing chemistry Product (Color) Product (Raman) Enzyme Enzyme How Sword’s Patented Detection System Works • Test protocol identical to current tests, except for final step • Easily integrated into existing tests and workflows • Uses standard instrumentation • Standard chemistry in final step replaced by Sword chemistry • Raman detection used for many applications e.g. airport screening • Improved test performance, independent of target Existing tests: Final test step Sword Modified: Final test step Chemistry added to create color signalChemistry added to create Raman signal

7. Improved Test Performance Example: IL-2 Assay (Inflammatory Biomarker) Sword Detection Standard Detection • Sword Detection System produces stronger signal across test concentrations • Results in improved sensitivity, accuracy and precision of tests

8. Competition Sword Unmatched for Sensitivity and Simplicity Anaspec – fluorescent dyes Invitrogen – Fluorescent dyes Simplicity & Cost Effectiveness PerkinElmer AlphaScreen Singulex – laser induced fluorescence MSD – electro-chemiluminescence Performance 8

9. Example: Sword vs Alphascreen Sword Generation 1 • Advantages • Sensitivity: Sword generally more sensitive even before optimizing assay for Sword chemistry • Ease of integration into existing ELISAs • Potential interferences are washed away before detection • Sword Disadvantage • Not homogeneous (but easily automated) Alphascreen with 15 years optimization • Alphascreen advantage • Homogeneous (but multiple steps) • Alphascreen Disadvantages • Laborious assay development (conjugate antibodies to beads and re-optimize assay) • Light sensitive (need to work in the dark) • Many interfering substances • Hook effect at high analyte concentrations • Significant temperature sensitivity • Laser excitation only (expensive instrumentation)

10. Extensive entrepreneurial & Fortune 100 experience Dave Dingott: CEO /Founder -Co-founder & President OpenReach (now Corente’) Mitch Gaver: Director, Business Dev. – Thermo Fisher, Amersham.. Top Scientists from Abbott Labs Diagnostics Division Dr. Neal Siegel- CSO – former Level 1 (highest rank) scientist at Abbott Labs Top R&D scientists from Abbott Experienced Board of Directors & Advisors Gail Page: CEO Vermillion- former COO, Luminex ( a $700M detection system company); former SVP LabCorp Dr. James Koziarz -former Abbott Labs Corporate VP R&D for Diagnostic Products, Mel Schatz –CEO, Crux Biomedical;Former VP, Abbott Labs, Medtronic Joe Falkenstein – Partner, NJTC Ventures, Former Partner at Andersen Team Overview 10

11. Achievements to Date • US core patent issued October ’09 • Cover article of IVD Technology Magazine June ‘10 • Outsourced manufacturing/ distribution of chemistry kits • Amresco: Contracted to manufacture, warehouse and ship kits • large custom manufacturing business for research and diagnostics with strong customer bases in both markets • Regulatory capabilities for MSDS production, world-wide shipping and import/export documentation • Frequent international shipments will include our products at low cost • First agreement in place with top instrumentation company • Planning and preparation underway toward joint product launch • Planned joint launch in Q4 ’10 11

12. Why is a Top Instrumentation Company Partnering with Sword? • Moves their detection instrumentation from commoditized product to holistic value added system • Can be implemented on their equipment with no product development cycle • provides significant differentiator immediately for new sales • without investment in instrument changes • can grow for use in additional markets / applications • Further information about this partnership with this public company is available under a confidentiality agreement

13. Likely Terms for Joint Partnership • Co-marketing of Sword chemistry to its existing and future customer base • Joint development of applications data, support packages, & marketing collateral • Lead sharing, joint sales calls, trade shows, seminars, and promotions • Sword to certify and promote its detection chemistry on their instruments • Sword sells reagent kits and supports reagent sales • Benefit to Instrumentation Company: • Market differentiator of innovative detection reagents for their instruments generating increased sales • Referral revenue

14. Attractive Business Model • Recurring revenue stream • Chemistry kit consumables (high recurring margins) • Licensing revenue (ongoing revenue stream) • Proven business model for detection systems • Licenses for research-use only • Licensees are large suppliers to research market • Applications ready to become diagnostics require additional license • Similar revenue model to Luminex, a successful Nasdaq listed detection system company 14

15. Commercialization Plans • Near term sales to do-it-yourselfers in research market • 40% of research market • Sword will exploit partner brand • Dramatic decrease in customer acquisition cost • Leverage instrumentation partnership for next phase partnership with kit manufacturers • 60% of research market • Instrumentation partner facilitating next step • Additional opportunities in clinical diagnostics market • Longer sales cycle/ later stage • Additional applications of Sword’s IP creates market opportunity of $1.7B 15

16. Financial Projections • High margin consumables business • Co-marketing with instrumentation company reduces sales and marketing costs while controlling our own destiny • Licensing to assay companies ramps up product adoption in short time frame

17. Funding Status • $7M raised to date • NJTC Ventures, Calvert Group, Heartland Angels, others.. • Currently raising $1M • Funds for joint launch of product with strategic partner • Commercialization 17

18. Strategy Creates Strong Exit Opportunities • Sword positioned to build sizable platform company over next few years based on comparable companies in space • Opportunity also exists to exit at earlier inflection point • Precedent valuations strong in either case • Lumigen (Acquired ‘06 by Beckman, 2 transactions, $210M at 7X revenue) • BioVeris (Acquired ‘07 by Roche; $600M at 25X revenue) • Luminex ($650M market cap; 7X Revenue) 18