Identrus An enabling offering

1. Identrus An enabling offering Barcelona September 26th 2000 www.identrus.com John G Bullard, Identrus LLC

2. Market Opportunity- B 2 B and….

3. Suppliers Customers Enterprise General Motors From Islands of Trust to Global Trust Supply-chain management US Steel Avis Rental Car Plastics Co. AutoZone

4. Financial Institutions as Trusted Third Parties …….Trust and Risk are closely connected…….. • Systems of Trust are only as viable as the processes they are based upon… • Keys/certificates issued indiscriminately erodes trust • Certificate Issuers should know the recipients • Certificate Issuers should financially endorse Identities • Issuers recognized as trustworthy enhance the utility • A sophisticated technology capability is required • Processes and systems are required to initially validate personalities prior to issuance, validate & verify on an ongoing basis, and communicate changes in privilege Banks Already … • are positioned as trusted intermediaries in traditional commerce {Signature Guarantors; Payments} • have extensive experience in deploying and managing robust security solutions to customers {Funds Transfer; Online Treasury Workstations} • are beginning to deploy certificates for use when customers desire to access their banks’ payments network {Broadening the acceptability of bank certificates provides seamless connectivity between the buying process and the payments environment} • have broad customer reach {Large Corporate; Middle Market, Small Business}

5. IDENTRUS RELATIONSHIPS-Balance and level playing fields INVESTORS TEC. VENDORS COMPANY ASSETS IDENTRUS LLC SOL. PARTNERS PARTICIPANTS YOUR CUSTOMERS

6. Identrus Foundation • International trust infrastructure- a “scaffolding” • Based on Public Key Infrastructure (PKI) technology. • Leverages Financial Institutions for global distribution and local presence. • End-user certificates provide for Identity of transacting parties, Message integrity, and non-repudiation. • Financial Institutions globally are engaging to participate in the Identrus network • For FI’s the 4 “R”’s - RISK MANAGEMENT, REGULATION, RE-INTERMEDIATION & RE-INVENTION

7. The GIST of Identrus- • Global- in reach, local in presence, & no fudge factor • Interoperable-Business as well as Tech • Simple-In the eyes of the end Customer • Trusted- with full Regulatory backing

8. REGULATION-: United States Federal Reserve Board Order ... Proposed Activities Identrus is a joint venture among Notificants and other commercial banks and foreign banking organizations. Under the proposal Identrus would act as the global rulemaking and coordinating body for a network of financial institutions that would act as CAs and therby provide services designed to verify or authenticate the identity of customers conducting financial and nonfinancial transactions over the Internet and other “open” electronic networks. To provide these services, Identrus and its network of participating financial institutions (the “Identrus System”) would utilize digital certificates and digital signatures created through the use of public key cryptography. … Conclusion Based on the foregoing and all the facts of record, the Board has determined that the proposal should be, and hereby is, approved. … By order of the Board of Governors, effective November 10, 1999 Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley, Meyer, and Gramlich, USA.

9. HIERARCHICAL PKI COMPANIES COMPANIES AUTHORIZED EMPLOYEES AUTHORIZED EMPLOYEES Root Root Identrus Identrus Certificate Authority Certificate Authority Root Root Identrus Identrus Repository Repository BANKS REGULATED FINANCIAL INSTITUTIONS COMPANIES AUTHORIZED EMPLOYEES Business To Business Interactions Business To Business Interactions

10. GLOBAL LEGAL FRAMEWORK.:.INT’L CONTRACT LAW. Purchasing Sales Agent Manager Identrus Identrus to CA Identrus to CA System Rules & System Rules & Contracts Contracts { CA to Corp Contract { • Binds sponsor corporation to Sponsor system Sponsor Corporation • Define standard Corporation operating and liability rules for corporations Purchasing Sales Mgr. 2 Agent 2 Authenticated E - Commerce Transactions

11. RISK MGT: REAL TIME VALIDATION & WARRANTY. Purchasing Manager The Subscribing Customer Identrus Issuing Real - time Relying Participant Certificate/Identity Verification Participant Relying Participant Validation & Identity Sponsor Assurance $1,000/30days Corporation Real - time Sponsor Certificate/ Corporation Identity Verification Message/Offer Sales Agent The Relying Customer Firestone E - Bid Form Company: XYZ Corp Agent: John Jones Qty: 1,000 Price: $100/tire Total Value: $100,000 Delivery Date: 6/15/98

12. Layering of business and application rules on top of Trust to minimize duplication and extend reach as broadly as possible Partnering with providers worldwide to trust enable payments solutions globally with consistent standards Customer Services Individual members deliver competing applications to their Layer 3 customers. Service 2 Local Communities tailor Layer 2 Rules Layer 2 payments messaging to conform to local law and regulation. These services operate on top of Identrus Trust infrastructure Service 1 Identrus provides basic, global Layer 1 Rules Layer 1 e-trust infrastructure FI Community How e-Payments Fit with Identrus(Localising Global Systems)

13. Opportunity & Re-Invention: The customer wants simplicity, transparency and reliability EC Applications Financial Services • Online Auction Markets • Electronic Content Delivery • Insurance Sales & Contracts • Securities Trading • Government Filings, Procurement, etc. • ACH Payments • Corporate Purchasing • International Trade • Letter of Credit • Statement Delivery • Others Global Trust Identity Certificate

14. Bank Bank Traditional Trust Role Re-Intermediation: Where is Trust required? How much “certainty” is required at each stage? Find Trading Partner Bid/ Selection Obtain Credit Contracts/ Purch. Order Logistics Pay / Settle Buyer Emerging Online Trust Roles Find Trading Partner Offer/ Accept Assess Credit Contracts/ Purch. Order Logistics Pay / Settle Seller

15. Pilots underway: Cisco – Commercial Leasing Allianz – Insurance Contract Administration Siemens – Online Procurement/Computer Sales ComLease – Equipment Leasing SAP – MySAP – Single Sign-on and STP for ERP eBx – Bill Presentment and Payment Many others finalizing details with their sponsor banks Auction Sites/Online Markets/Exchanges Corporate Purchasing E-Letters of Credit E-Payments Where we stand: Customer Usage/Pilots

16. Identrus System Documentation Identrus System Documentation Policy documents Technical documents Legal documents Other documents Operational documents

17. Risk Management Approach • Allocation • Customer Agreements • Participant Agreements • Collateral Agreements • Claims and Dispute Resolution Procedures • Security/Technology • Infrastructure specifications • Security specifications • Exposure Management Risk Controls • Monitoring, Procedures & Practices • Controls and Practices • Minimum Operating Requirements • Collateral and Cap monitoring

18. Identrus Root Certificate Authority (CA) Root CA OCSP Resp. & Repository Risk Mgmt Module Transaction Coordinator OCSP Responder & Repository OCSP Responder & Repository Relying Participant Issuing Participant Risk Management Module Risk Management Module Certificate Authority Certificate Authority Transaction Coordinator Transaction Coordinator Relying Customer Subscribing Customer Business to Business Interactions Client App Client App Seller (Relying Party) Purchasing Manager (Certificate Holder) System-wide Roles & Responsibilities Contracts & Procedures

19. Identrus G I S T underpins the business model FI’s issue Digital Certificates for authenticating Businesses, Employees and Application Servers Identrus itself focuses on Identity risk management services – Validation, Warranty, Authorization, etc. Value-add lies in widespread Application enablement Partnership approach is key to building a robust highly interoperable business system Summary

20. www.identrus.com info@identrus.com