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Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan Bradley, Chief Technology Officer

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Page 1: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

Investor Presentation – January 2012

Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan Bradley, Chief Technology Officer

Page 2: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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§  This (“Presentation”) is being furnished to you for information purposes only. The circulation of this Presentation or the disclosure of its contents to any other party is expressly prohibited. No copies should be made without the prior written consent of Augme Technologies, Inc. (the “Company”), and no excerpts or summaries thereof may be distributed, reproduced or included in any documents without such consent.

§  This Presentation does not constitute an offer to you, any other person or to the general public to subscribe for or otherwise acquire any of the Company’s securities.

§  The information contained in this Presentation has been prepared by the Company in good faith. While the Company is not aware of any inaccuracy in the information set forth in the Presentation, it does not warrant the accuracy of such information. The information in the Presentation is subject to updating, revision and further amendment.

§  The information contained herein does not purport to be complete. In all cases, interested parties should conduct their own investigations and analyses of the Company and the data set forth in this Presentation. The Company has not made any representation or warranty as to the accuracy or completeness of this Presentation and shall have no liability for any representations (expressed or implied) contained in, or for any omissions from, this Presentation or any other written or oral communications transmitted to the recipient in the course of its evaluation of the Company.

§  This Presentation includes certain statements, estimates and projections provided by the Company with respect to the Company's anticipated future performance. Such statements, estimates and projections reflect various assumptions by the Company concerning anticipated results, which assumptions may or may not prove to be correct. No representations are made as to the accuracy of such statements, estimates or projections.

§  By accepting this Presentation, the recipient acknowledges and agrees that: (1) this Presentation is made available to the recipient for information purposes only; (2) none of such information will be used by the recipient or any of its employees or representatives in any manner whatsoever, in whole or in part, other than in connection with its evaluation of the Company; (3) the recipient will not reproduce this Presentation, in whole or in part, and will not distribute all or any portion of this Presentation to any person other than a limited number of the recipient's employees or representatives who have a clear need to know such information for the purpose set forth above; and (2) who are informed by the recipient of the nature of such information; and (4) if the recipient does not wish to pursue this matter, it will immediately destroy this Presentation of the Company together with any other material relating to the Company which the recipient may have received; and (5) any proposed actions by the recipient which are inconsistent in any manner with the foregoing agreement will require the prior written consent of the Company.

§  In addition, the Company reserves the right to terminate, at any time, further participation in the investigation and proposal process by any party and to modify data and other procedures without assigning any reason therefore. The Company intends to conduct its business in the ordinary manner during the evaluation period; however, the Company reserves the right to take any action, whether in or out of the ordinary course of business, which it deems necessary or prudent in the conduct of such business.

§  All inquiries regarding the Company should be made through the Company. For further information, please call: Paul R. Arena, CEO, 855.423.5433

Disclaimer

Page 3: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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Investment Highlights

Market leader at the forefront of hyper-fast growing mobile media market

•  Mobile marketing has reached explosive growth

•  With recent acquisitions, Augme is positioned to be the preeminent US mobile marketing and advertising company

•  Superiority in key vertical industries including automotive, consumer packaged goods, pharma/health and media/broadcast

•  US leader in mobile CRM

•  Cloud-based platform enables rapid growth, including international

•  Patented technology produces faster sales & implementations

•  Valuable patent portfolio

•  Ad Network superiority – post-click engagement

•  Best of breed tracking and analytics

•  Strong mobile DNA

Page 4: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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Over Two Dozen Industries Served 50 of the Fortune 500 are existing customers

Events  and  Entertainment  

Broadcast  and  Media  QSR  

Miscellaneous  

Retail   Consumer  Package  Goods   Agencies  Healthcare  /

Pharma  

Page 5: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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“The Preferred Provider” and “Industry Powerhouse”

“Key reasons for its strong performance include strength of its product portfolio, strong service and support capabilities, exceptional speed of

execution, and overall strategic acumen of its leadership team.

“Hipcricket has emerged as the preferred provider of high-impact mobile marketing solutions in the United States.

“Its recent acquisition by Augme Technologies is expected to further consolidate the company’s position as an industry powerhouse in mobile marketing.

“Frost & Sullivan opines that the combined Hipcricket-Augme entity will have one of the most innovative and complete sets of mobile marketing and advertising

solutions in the industry.” 

Leading industry analyst firm

Hipcricket Receives North American Customer Value Enhancement Award

October 2011

Page 6: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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Augme is a Thought Leader

2010  

“The limitations of the iAd platform haven't really changed since day one,” said Eric Harber, chief operating officer at Hipcricket …“You're limiting your reach to users on iOS devices -- missing out entirely on the fast-growing Android user base … Additionally, Apple maintains a high level of creative control on iAd campaigns that some advertisers aren't willing to relinquish.”

A year ago we said that one way for brewers to emerge from their slump is to reclaim their cultural relevance through digital advertising … MillerCoors, meanwhile, recently signed a three-year deal with mobile marketing agency Hipcricket as the brewer seeks to gain more of a social-media presence.

Now, in the mobile age, every major player is battling for dominance, including Facebook, Google, Microsoft, Amazon.com and Twitter. But there is also an army of innovators, entrepreneurs, venture capitalists, business strategists and developers betting on the space.

Page 7: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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Mobile Marketing Spending to Grow

Mobile  Marke+ng  On  the  rise  From  2009  –  2010  mobile  MarkeFng  increased  by  75%  to  almost  $1.5  billion.  This  figure  is  expected  to  rise  as  smartphones  conFnue  to  expand  and  develop  

Number of existing iOS and Android Devices Number of new iOS and Android devices activated everyday

% Change in Advertising Spend (2009 - 2010)

Source: Comscore, 2011

Page 8: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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Mobile Efficacy Surpasses Internet, TV and Traditional Media

Efficacy of Mobile

Source: Chetan Sharma, January 2011

U.S. Mobile Marketing Spend 2010 v. 2015, US$ Billion Source: Mobitrove

Razorfish’s Paul Gelb: “Mobile Ad Spend Will Overtake TV “

Digital chief cites rocketing smartphone growth Source: ADWEEK

$6.2 $3

$15.8

$40.7

Page 9: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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Mobile Advertising – Ramping Quickly in all Geographies

Page 10: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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Case Study

o  Ford    is  projected  to  spend  $1.3  billion  on  adverFsing  in  2011  with  its  primary  purpose  to  create  leads  that  turn  into  sales  

o  Prior  to  aligning  with  Hipcricket  in  late  2010,  mobile  was  missing  from  naFonal  markeFng  programs  

o  Include  mobile  call  to  acFon  in  naFonal  ads  to  make  dollars  spent  work  harder  

o  Give  consumers  a  real-­‐Fme  opportunity  to  interact  with  Ford    

o  Measure  response  levels  across  markets,  models,  and  television  programs  

 

o  15.4%  conversion  rate  o  Leads  delivered  to  local  dealers  

and  followed  up  on  within  minutes    

SITUATION  

OBJECTIVE  

RESULTS  

Page 11: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

o  In  an  appeal  to  chic  consumers  in  North  America  and  Europe,  French  sparkling  water  brand  Perrier  launched,  "Le  Club  Perrier“  

o  Hipcricket  was  asked  to  bring  a  vital  mobile  component  including  a  mobile  website  in  English  and  French  and  calls  to  acFon  via  SMS  and  QR  code  

o  Promote  the  Perrier  nightlife  and  culture  portal  

o  ConFnue  to  evolve  the  U.S.  consumer's  percepFon  of  Perrier  into  one  that  is  more  in  line  with  global  percepFon  –  fun,  daring,  unique  and  modern  

o  Over  a  million  views    with  the  campaign  conFnuing  

 

SITUATION  

OBJECTIVE  

RESULTS  

Case Study

Page 12: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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Augme’s Saas Revenue Model

Average Cost

Comment

Marketing Campaign $ 25,000-40,000 Per Campaign

Hosting $7,500 Per Month Per Campaign

Website Mobilization $15,000-600,000+ Template Plus Custom Work

SaaS License $50,000-120,000 Annual Fee Per License

Digital Coupons 20-40% Print & Load Fees Upon Mobilization

of Augme revenues are coming from recurring software license fees 60%

Page 13: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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One Suite of Offerings with Modules for Each Stage of the Customer Lifecycle

CREATE  AWARENESS  WITH:  Mobile  Web  adverFsing  display  campaigns  QR  codes  Inserted  ads-­‐SMS  POS  mobile  acFvaFon  InteracFve/event-­‐based  Campaigns  Mobile/social  media  

SUPPORT  CUSTOMERS  WITH:  Customer  alerts  Post-­‐purchase  surveys    Store  locaFon  &  direcFons  via  SMS  Mobile  websites  Mobile  apps  Context,  Relevance,    TargeFng  AnalyFcs  and  OpFmizaFon    

AQUIRE  CUSTOMERS  WITH:  Mobile  coupons  Gif  vouchers  Mobile  loyalty  clubs  Store  locaFon  &  direcFons  Context,  Relevance,    TargeFng  QR  codes  M-­‐commerce  

RETAIN  CUSTOMERS  WITH:  Mobile  CRM  Mobile-­‐based  loyalty  programs  Loyalty  clubs  Mobile  coupons  Mobile  websites  Preference-­‐based  coupons  Context,  Relevance,    TargeFng  AnalyFcs  and  OpFmizaFon  

Page 14: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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Combining Mobile Advertising & Marketing in One Platform

Services  

Plagorm  

Products  

“Mobile platforms are becoming as important — if not more so — than desktop releases” according to Erick Tseng, head of mobile products at Facebook.

“We are going to become a mobile company,” said Tseng.

Page 15: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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Augme Products and Services

Products  

Mobile  Messaging   QR  Codes   Mobile  

Adver+sing  Mobile  SiteBuilder  

Mobile  Applica+ons  

Mobile  SocialConnect  

SMS/MMS   2D/QR  Codes   Display/SMS   WAP/XHTML   Mobile/TV/Tablets   Facebook,  TwiPer  

•  Alerts  •  Consumer  

Interac+ons  •  CRM  •  SMS  coupons  •  MMS  Video    •  MMS  Coupons  

•  Go  to  website  •  App  download  •  Ini+ate  a  call  •  Send  an  SMS  •  Save  a  contact  •  Send  a  tweet  •  Facebook  Like  

•  Rich  Media  •  Video  •  Messaging  •  Hispanic  •  Display  

•  WAP  •  In  Apps  •  In  Game  

•  Site  builder  •  Content  

management  •  Content  handling  •  Content  rendering  •  Video  transcoding  •  mCommerce  

•  iOS  •  iPad  •  Android  •  RIM  •  WM  

•  Facebook  SocialConnect  

•  Applica+ons  •  Widgets  •  Database  building  

Analy+cs  

Dashboard  

•  Personalized  web-­‐based  reports  

•  Aggregated  and  summarized  views  

•  Mul+channel  Analy+cs  

PATENTED  

Services  

Strategic  Services   Crea+ve  Services   Integra+on  Services   Account  Management  

Mobile  Marke+ng  Strategy   Graphic  Design   Custom  and  API  Integra+on   Support  and  Service  

•  Opportunity  assessment  and  business  case  development  

•  Program  management  of  mobile  markeFng  execuFon    

•  Product  planning  

•  Graphic-­‐rich  content  and  mobile  web  sites  

•  Customized  QR  codes  •  Mobile  banner  ads  design  

•  Mobile  messaging  integraFon  •  Email  IntegraFon  •  Mobile  Website  IntegraFon  •  IVR  IntegraFon  •  Website  integraFon  

•  Day-­‐to-­‐day  account  support  •  MarkeFng  and  strategic  projects  management  

•  Plan  execuFon  

Page 16: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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Patented Technology Produces Faster Sales & Implementations

Product     Time  to  Market  

SMS   Hours  

MMS   Hours  

QR  Code   Hours  

Mobile  Coupons   Hours  

Mobile  Web   Days    

Mobile  AdverFsing   Days  

Mobile  ApplicaFons   Weeks  

Fastest  path  to  revenue  for  Augme  and                                    its  clients  

Time to market gives brands competitive advantage

Execution & Optimization

Sales

Implementation

Page 17: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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With Recent Acquisition of Hipcricket, Augme is The Preeminent US Mobile Marketing and Advertising Company

We’re convinced that the ability to reach our consumers via mobile is critically important and a natural step in our evolution, Hipcricket will be a great partner in this endeavor.

- Steve Mura, MillerCoors Director of Digital Media

The smartphone may prove to be the greatest instrument for marketing ever invented. Locally, companies like Microsoft, Amazon and Hipcricket are creating this new future.

-Seattle Business Magazine

“One-stop” mobile marketing and advertising company that empowers brands agencies and media properties to engage customers, drive loyalty and increase sales

Industry-leading 150,000 campaigns since 2004 (for comparison, closest competitor Velti had just 2,700 in 2010)

Exclusive mobile marketing partner for MillerCoors with multi-year diversified platform deals with Ford, Nestle, Macy’s, CBS, Clear Channel and Dr Pepper

Over 300 total clients, including: •  ten of the world’s top twenty pharmaceutical companies; •  six of the largest media companies in the world; •  four of the largest advertising agencies in the world •  three of the leading quick service restaurant groups •  one of the largest food companies in the world.

Page 18: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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•  World's fourth-largest media conglomerate •  Owns MTV Networks Paramount Pictures •  US$ 9.34 billion

•  Owned by CBS Broadcasting •  Major US commercial broadcasting

television network •  US$14.06 billion

•  Owned by ABC •  Created in 1943 •  Worldwide presence

Augme Dominates the Media/Broadcast Vertical with Ample Room to Grow Sales in This Vertical and Others

Augme dominates this vertical in the US

Tremendous growth opportunity for Augme – more than 14,000 radio stations and

1,700 TV stations in US

•  Owned by Comcast •  10 owned-and-operated stations •  200 affiliates in the world •  US$16.9 billion

•  American media conglomerate •  largest owner of full-power AM, FM

radio stations •  US $6.82 billion

Only  10%  of  Media/Broadcast  companies  are  using  mobile  

Page 19: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

US Leader in Mobile Marketing and Mobile CRM

The global mobile industry is the most vibrant and fastest growing industry. We expect the total

revenue in the industry to touch approximately $1.3 Billion in 2011 – 47% is in messaging (Analyst

Chetan Sharma)

Augme has vast short code experience

December 2011: Over 150,000 campaigns executed

December 2009: 50,000 campaigns executed

Nov 2010: Millercoors Selects Hipcricket as Exclusive Mobile Marketing Partner

# of Campaigns executed

September 2011: Ford announces success with service powered by Augme

Page 20: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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Unique Cloud-based Platform Enables Rapid Growth

Why a SaaS platform? •  Service independent

•  Carrier independent

•  Rapid execution

•  Differentiates Augme from ERPs and other mobile companies

 Sales  Channels  &  Partners  (could  

include)  

Robust cloud-based SaaS platform can be monetized by a local office

anywhere in the world through partnerships or by Augme directly

Page 21: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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Superior Analytics: AD LIFE™ Platform Avoids Silos and Consolidates Data From ALL Mobile Marketing Campaigns

SMS   Web  Mobile  Web   Coupon  Ads   Mobile  

APP  MMS   Bar  Codes  

Social  Nets  

Plagorm  AD  LIFE™  

SMS & Web Analytics

1.  Consumers  engage  with  different  mobile  technologies  

2.  All  data  from  any  interacFon  is  capture  into  the  AD  LIFE™  Plagorm  

3.  Augme  clients  can  view  campaign  results  from  one  single  dashboard  

Page 22: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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Augme’s Post Click Engagement Platform is Superior

Banner   Web  Site  

Ad   Capture  Promote   Engage  

Limited  

Augme re-engages the user for re-marketing, resulting in better rates (higher eCPMs)

Limited  

Robust  

Augme’s competition has limited capabilities and loses the customer after the first

click

Page 23: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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•  Augme’s patents* that we believe are foundational cover:

  Content Targeting

  Content Rendering

  Device Detection

•  Partnered with world class IP professionals ipCapital Group and Goodwin Procter

•  Monetization opportunities include:

  Licensing, collaboration and litigation (7 patents issued, 18 pending)

  7 outstanding lawsuits

•  Yahoo and AOL lawsuits in discovery phase

•  Pandora and Gannett lawsuits recently filed

•  Recent favorable Markman rulings boost and have accelerated Augme’s IP

monetization strategy involving litigation and licensing

Valuable Patent Portfolio

•  Solutions protected under U.S. Patent #’s 6,594,691 / 7,269,636 / 7,783,721 / 7,831,690 / 7,958,081 / 8,069,168 / 8,069,169

Our  patents  are  affected  anyFme  a  mobile  device  connects  to  a  website  

Page 24: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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Over 600 Potential Infringers of Augme Patents Identified Across Multiple Sectors

MARKET SEGMENTS CONTENT TARGETING

CONTENT RENDERING

DEVICE DETECTION

Search Market Players

Media Appliance Market Players

Ad Network & Platform Operations

Demand Side Destination Providers

Open Source Software Providers

Targeting & Retargeting Operations

Mobile Marketing & Software Providers

Internet Targeting Hardware Providers

Mobile Equipment and/or Chipset Manufacturers

FOUNDATIONAL PATENTS

Page 25: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

Mobile  Equipment  Manufactures  and/or  Chipset  Manufacturers  Internet  Targe+ng  Hardware  Providers  

Mobile  Marke+ng  &  So\ware  Providers  

     Augme  Clients  (Brand  Owners  and  Agencies)  

Consumer  Data  

Consumer  

Rendering  Engine  

Final  Rendered  Content  

   Site  builder  

SMS  Builder  

SMS  

Dynamic  Mobiliza+on  

2nd  Code  

Augme  Proprietary  Mark-­‐up  Language  (AML)  

Targe+ng  &  Retarge+ng  Opera+ons  Open  Source  So\ware  Providers  

Demand  Side  Des+na+on  Providers  Ad  Network  and  Pla_orm  Opera+ons  Media  Appliance  Market  Players                      Search  Market  Players  

                                                           Market  Players  

Browser  

Webpage  

1st  code  

Targeted  Content  Providers  

2nd  code  

Final  Rendered  Content  

Internet  

 Brand   Content  Development  Campaign  

Mobile  Device   Mul+media  Player  

Augme  “High  Touch”  Services  SaaS  Model  

Webpage  

1st  code  

Op+onal  Link  

Behavioral  

Geographic  

Demographic  

Mobile  engagements  

Brand  Associa+ons  

Retail  Environment  Associa+ons  

Analy+cs  

Media  

Reading  Text  

Consumer  Response  Tags    

Other  

Path  1  

Path  2  

Use  3rd  Party  So\ware  (Op+onal)  

$  

© 2011, ipCapital Group, Inc. All Rights Reserved.

Augme Technologies ipLandscape®

Page 26: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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Ranking uses the following logic: • Portfolio size is adjusted upward for each issued patent. The adjustment is tied to the patent score. • Match to ipLandscape® is considered alongside the adjusted portfolio size.

Who are the top companies generating IP relevant to Augme’s ipLandscape®

26

Top 15 Ranked Assignees Based on Score-Adjusted Portfolio Size and Strategic Fit

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

•  Solutions protected under U.S. Patent #’s 6,594,691 / 7,269,636 / 7,783,721 / 7,831,690 / 7,958,081 / 8,069,168 / 8,069,169

Page 27: Investor Presentation – January 2012a.aug.me/augmeimg/11000/10830.pdf · Investor Presentation – January 2012 Paul Arena, Chief Executive Officer Ivan Braiker, President Nathan

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Augme’s 2012 IP Strategy

27

IP Development •  Invention extraction •  Directed invention •  Inventing around •  Acquisition

IP Protection •  Patents •  Trade secrets •  Defensive publications

IP Communication •  PR Strategy •  Valuation

IP  Strategy  Goals  

Transactional leverage increased 100+ new patents filed “IP machine” established Defined metrics to measure IP value creation

2012  Success  Metrics  

•  Litigation •  ipCapital-led licensing initiatives

Use ipCapital Invention & IP Strengthening Tools •  Ongoing invention extraction across landscape (ipScan)

•  Directed invention to strategically extend portfolio (IOD) •  Ongoing invent-around on key Augme patents (ipNavigation) •  Schedule 10 full-day invention sessions over 10 months

Install Augme’s “Patent Factory” ipCapital serves as interim IP director in 2012 • Establish and run IP review committee process • Establish trade secret process • Manage disclosure and patent filing process • IP process mapping, training, and tracking ipCapital recruits permanent Augme IP Director to start 2013

IP  Por_olio  Expansion  Plan  

Dam

ages Sharing

Licensing Pool

Litigation

Grow IP Leadership &

Brand

Enhance Commercial Advantage

Future Licensing Cam

paigns

Ongoing  IP  Mone+za+on  

Tac+cs  Aligned  With  Goals  

1 2

Custom

er Capture

Maximize IP Monetization

3

•  Solutions protected under U.S. Patent #’s 6,594,691 / 7,269,636 / 7,783,721 / 7,831,690 / 7,958,081 / 8,069,168 / 8,069,169

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Patent & Trademark Enforcement 1. AOL / Tacoda. Augme filed a case in August 9, 2007 in Southern District of New York, the case was assigned to the Court of Hon. Judge Colleen McMahon. In this case, Augme charges that AOL acquired Tacoda for $275m for technology that infringes upon Augme’s ‘691 and ‘636 patents.

2. Augme Technologies vs. Time Warner / AOL / Platform A. Augme filed Jan 26, 2009 a case against Time Warner Corp (TWX) / AOL / Platform A in the U.S. District Court, Central District of California. It was moved at AOL’s request to the U.S. District Court, Southern District of New York, Court of Judge Sweet. At issue is ongoing and past infringement upon the Augme ‘691, ‘636 patents, BoomBox® and BoomBox Radio® Trademarks

3. Augme Technologies vs. AOL, Inc. & 4. Gannett, Inc. originally filed on July 27, 2011 in the Eastern District of Virginia and the case was moved at AOL‘s request to U.S. District Court of New York. The case was filed by Augme charging that Gannett and AOL Infringe upon Augme’s ‘721 and ‘690 Patents

5. Augme Technologies vs. Yahoo! On November 16, 2009 Augme filed a case in the Northern District of California. In this case, Augme charges that Yahoo! acquired Blue Lithium for $325m for technology that infringes upon Augme’s ‘691 and ‘636 patents.

6.  Augme Technologies vs. Pandora On April 30, 2011 Augme filed a case US District Court of Delaware. In this case, Augme charges that Pandora that infringes upon Augme’s ‘690patent.

7. Augme Technologies vs Lucid Media originally filed on July 27, 2011 in the Eastern District of Virginia the case was moved at AOL‘s request to U.S. District Court of New York filed by Augme charging that Lucid Media Infringes Augme’s ‘721 and ‘690 Patents

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•  AD LIFETM revenue   Growing revenue dollars by:

•  Increasing scope of sale within each brand •  Increasing # of campaigns and brands served per customer

•  Annual SaaS AD LIFETM license plus fee model   Revenue recognized over license term   Receive recurring monthly service fees for:

•  Marketing campaigns •  Professional services

•  Recurring revenue includes software licenses and

royalties for associated intellectual property    

Shifting to Recurring Revenue Model

•  Solutions protected under U.S. Patent #’s 6,594,691 / 7,269,636 / 7,783,721 / 7,831,690 / 7,958,081 / 8,069,168 / 8,069,169

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 Note:  Fiscal  year  ends  February  29,  2012  

Rapidly Rising Revenue Visibility

*  Acquisi;on  of  JAGTAG  closed  on  July  22,2011,  Hipcricket  acquisi;on  closed  August  25,  2011,  both  during  Augme’s  Q2  ended  August  31,2011.    

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Strong Balance Sheet to Support Growth Initiatives

Fiscal Quarter Ended 2/28/2011 11/30/2011 Cash* $11,182.4 $16,947.4 Total Assets 32,030.9 108,141.9 Current Liabilities 740.1 29,369.8 Deferred Revenue 1,190.2 1,037.8 Debt --- 92.4 Shareholders Equity 30,100.6 78.679.6 Total Liabilities & Equity $32,030.9 $108,141.9

$(000s)

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Paul R. Arena, Chief Executive Officer & Director •  28 Years Executive Management Experience – Internet Technology & Mobile Phone Applications Entrepreneur •  Founder, Chairman and CEO of Cereus Technology Partners, brought it from a start-up to $350M+ market capitalization •  Performed various corporate finance, syndication and distribution functions totaling more than $2 billion of combined financings •  Finance background and Wall Street investment banker •  Key attributes: SEC requirements, general management, business dev’l, intellectual property portfolio execution, P & L responsibility Ivan Braiker, President & Director •  Pioneer in integrating new and traditional media •  Over 30 years of executive management experience in broadcasting and media •  Founded or led Satellite Music Network, Belo Broadcasting (Radio Division), New Northwest Broadcasters, and Olympia Broadcasting •  “Trendsetter of the Year” award from Billboard Magazine •  Key attributes: Vision, Sales expertise, staff leadership Eric Harber, Chief Operating Officer •  Over 20 Years Executive Management Experience – Technology, Internet & Mobile/Wireless Entrepreneur •  Stanford, Oxford, Duke trained executive with experience in general management, strategy, M&A, product development, sales & marketing •  Reputation for driving revenue growth, building effective teams and managing change in dynamic environments for companies at every stage of growth while with Amdocs, Qpass, Motricity, Nortel, Citigroup and Accenture. •  Key attributes: general management, business dev’l, P & L responsibility, operations mgt, product development, strategy, marketing Phil C. Rapp, Executive Vice President of Strategic Planning •  20 Years Executive Management Experience – Financial Services Technology •  Beginning in 1993, led a successful effort to build the broker-dealer sales desk into the largest within the NASDAQ market system into what is now one of the largest securities execution companies in the world •  Strategic Planning, led sales and marketing divisions, executive level technology planning and implementation leader •  Began his career in the financial services industry in broker-dealer sales at D.E. Shaw •  Key attributes: strategic planning, operations management, technology development Tom Virgin, Chief Financial Officer •  Former small private company “CFO of the Year” •  Nearly 30 years of experience •  Former SVP/Controller $22B (assets) commercial bank. Talyst, Seafirst Bank and Bank of America •  Key attributes: general management, P & L, systems and processes

Experienced Management Team

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Nathaniel T. Bradley, Chief Technology Officer •  15 Years Executive Management Experience – Internet Technology Entrepreneur •  Named inventor on several Internet technology patents issued and pending with the USPTO •  Recognized as a leading entrepreneur and innovator in the Internet Technology field •  Leads technology team - Capability Maturity Model Integration CMMI Level 3 Certified Developers in US and Off-Shore •  Key attributes: Product development strategy, intellectual property development and IT management expertise Doug Stovall, SVP, Sales and Client Services •  High-performing mobile executive for more than a decade •  Has won business from hundreds of major companies, including MillerCoors, Macy’s, Staples, Urban Outfitters, MGM, Conde Nast •  Previous mobile experience with Acuity Mobile, Navteq/Nokia and TeleCommunication Systems •  Key attributes: mobile experience, strategy, relationships Jeff Hasen, Chief Marketing Officer •  Mobile, agency and brand veteran – InfoSpace, Nestle, the Olympic Games and Publicis •  Co-creator of the certification program for the Mobile Marketing Association and member of Consumer Best Practices committee •  Named one of the top CMOs in social media •  Key attributes: relationships with brands, agencies and industry players; new media expertise; mobile experience; strategy Mark D. Baker, SVP of Product Development •  8 Years Product Development Experience – Internet Telephony and SaaS focused platforms •  Named inventor on an issued Internet technology patent with the USPTO •  Created an employee management system with SaaS distribution model, used by companies such as Hertz and Avis Budget Group •  Extensive experience working at a systems level with enterprise-class collocated server infrastructure •  Key attributes: software architecture, product implementation strategy, IT infrastructure and IT management Greg York, VP of Engineering •  Innovator in mobile local search, mobile payment, payment network solutions and business intelligence for telecom, retail & quick service restaurants among other industry categories •  Mobile veteran with experience at Voicebox, Cognos and AT&T Wireless •  Key attributes: product development, strategy

Experienced Management Team

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Unmatched Mobile DNA vs. Competitors

C-Level •  100+ years of combined Mobile DNA •  Breadth of experience in general management, strategy, M&A, finance,

product, sales and marketing •  Industry expertise in mobile, telecommunications, Internet, e-commerce,

media, advertising, pharmaceutical & consumer packaged goods (CPG)

Director -Level •  300+ years of combined Mobile DNA across over 30 employees •  Breadth of experience in leading product management, engineering,

Marketing and client services teams •  Industry expertise spans mobile, telecommunications, Internet, e-

commerce, media, advertising, pharmaceutical & CPG

Manager -Level •  400+ years of combined Mobile DNA across over 80 employees •  Industry expertise spans mobile, telecommunications, Internet, e-

commerce, media, advertising, pharmaceutical & CPG

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Investment Highlights

Market leader at the forefront of hyper-fast growing mobile media market

•  Mobile marketing has reached explosive growth

•  With recent acquisitions, Augme is positioned to be the preeminent US mobile marketing and advertising company

•  Superiority in key vertical industries including automotive, consumer packaged goods, pharma/health and media/broadcast

•  US leader in mobile CRM

•  Cloud-based platform enables rapid growth, including international

•  Patented technology produces faster sales & implementations

•  Valuable patent portfolio

•  Ad Network superiority – post-click engagement

•  Best of breed tracking and analytics

•  Strong mobile DNA