LabOnStripLabOnStripUser-Friendly and Cost-Effective User-Friendly and Cost-Effective

Medical DiagnosticMedical DiagnosticPackaging SystemPackaging System

Investor PresentationInvestor Presentation

June 2005June 2005

Strictly Confidential

What is What is LabOnStripLabOnStrip??

LabOnStripLabOnStrip is a: is a: Packaging conceptPackaging concept ““Zero-step” Zero-step”

diagnostic kitdiagnostic kit Activation mechanismActivation mechanism Entire packaging Entire packaging

systemsystem

……which provides:which provides: ConvenienceConvenience Handy packaging formats and Handy packaging formats and

sizessizes Ease of useEase of use

What is What is LabOnStripLabOnStrip’s ’s MissionMission??

To commercialize To commercialize the the LabOnStripLabOnStrip concept…concept…

… … in collaboration in collaboration with major with major diagnostics diagnostics companies, to…companies, to…

… … create a major create a major new diagnostic kit new diagnostic kit packaging-system packaging-system industryindustry

What is the OpportunityWhat is the Opportunity?? Medical diagnostics is a Medical diagnostics is a

steady high-growth steady high-growth sector:sector: Always looking for innovationAlways looking for innovation Trend: “More convenience…ease Trend: “More convenience…ease

of use”of use” Demand for “latest” productsDemand for “latest” products

Proprietary products:Proprietary products: IP strategyIP strategy Patents for productsPatents for products Patents for manufacturing Patents for manufacturing

systemsystem What can be achieved:What can be achieved:

Proprietary ownership of Proprietary ownership of complete packaging system complete packaging system technologytechnology

Penetration into existing marketsPenetration into existing markets Creation of new market Creation of new market

categoriescategories

The TechnologyThe Technology Core ConceptCore Concept

Fabrication using Fabrication using laminationlamination

Reagents sealed in Reagents sealed in capsulescapsules

Release-mechanismRelease-mechanism Integral liquid pathsIntegral liquid paths ““Virtual test tube”Virtual test tube”

Flexibility of SystemFlexibility of System Different TestsDifferent Tests

Multiple stagesMultiple stages Reagent combinationsReagent combinations Result read-outResult read-out

Packaging FormatsPackaging Formats Credit-card (face)Credit-card (face) Broad cardBroad card

AdvantagesAdvantages General Advantages:General Advantages:

ConvenienceConvenience Low-costLow-cost Ease of useEase of use Consistent reagent dosesConsistent reagent doses Suitable for clinic or homeSuitable for clinic or home

Advantages for Strep A Advantages for Strep A field:field: High-end item in terms of High-end item in terms of

convenience convenience Every card is independentEvery card is independent High-quality printing area High-quality printing area

for instructionsfor instructions Easy to handle, store and Easy to handle, store and

disposedispose

Engineering and Engineering and ManufacturingManufacturing

Exploitation of existing Exploitation of existing facilities:facilities: Based on existing, proven Based on existing, proven

technology (licensed from technology (licensed from Timestrip)Timestrip)

Use of prototyping lab at Use of prototyping lab at PantogramPantogram

Manufacturing Manufacturing technology:technology: Mass-production Mass-production

machinery proven and in machinery proven and in use for Timestrip productuse for Timestrip product

Pilot machine in Y2Pilot machine in Y2 Full scale production Full scale production

machine for first JV / OEM machine for first JV / OEM dealdeal

MarketMarket Overview:Overview:

o Market size - Market size - $15.5B for $15.5B for all medical diagnosticsall medical diagnostics

o For Strep A For Strep A – conservative – conservative estimate is $312mestimate is $312m

o Competitive factorsCompetitive factors – – ease of use, accuracy, costease of use, accuracy, cost

Market Approach:Market Approach: Market via existing Market via existing

channelschannels OEM or JV relationship OEM or JV relationship

with partnerwith partner Retain rights for additional Retain rights for additional

applications of technologyapplications of technology

Business ModelBusiness Model LabOnStripLabOnStrip is is technology-platformtechnology-platform company company

Will hold patents and trademarksWill hold patents and trademarks Specializes in manufacturing technologySpecializes in manufacturing technology Supports JVsSupports JVs Controls business strategyControls business strategy

Joint-Ventures (JVs) can be established for Joint-Ventures (JVs) can be established for specific markets where:specific markets where: LabOnStrip owns shares in JV in return for technology LabOnStrip owns shares in JV in return for technology

licenselicense JV partner brings finance and market accessJV partner brings finance and market access Advance from JVs provides ongoing finance to Advance from JVs provides ongoing finance to

LabOnStripLabOnStrip

Potential JVs / OEM relationships:Potential JVs / OEM relationships: Strep A diagnostic kitStrep A diagnostic kit Other medical diagnosticsOther medical diagnostics Non-medical applicationsNon-medical applications

Investment and ReturnInvestment and Return Q1-Q3:Q1-Q3: Prototype Prototype

design and proving, design and proving, machinery estimates, machinery estimates, full BP - full BP - samples samples delivered,delivered, $240K $240K

Q4:Q4: First strategic First strategic investment, investment, partner / partner / investors brings $3-5m investors brings $3-5m in financein finance

Y3:Y3: First JV enters First JV enters production production

Y4:Y4: “Exits” commence “Exits” commence From JVsFrom JVs From LabOnStripFrom LabOnStrip

LabOnStrip

StrategicPartners

JVs / OEM

relationshipMarkets

Current StatusCurrent Status Technical:Technical:

Technology licensed from TimestripTechnology licensed from Timestrip Basic design of “card” performed Basic design of “card” performed Material compatibility-testing Material compatibility-testing

startedstarted Subcontractors identifiedSubcontractors identified

Business:Business: Potential applications reviewedPotential applications reviewed Initial application specified: Initial application specified: Strep Strep

AA Additional applications include Additional applications include

diagnostic kits for diagnostic kits for mononucleosis, mononucleosis, HIVHIV and and cancer markerscancer markers; and ; and water water testingtesting..

Marketing partners identifiedMarketing partners identified..

The The LabOnStripLabOnStrip TeamTeam

Gideon Kahana CEO

Amir Genosar Medical Device Specialist

Ian SolomonBusiness Development

Proven management team, experienced in: medical diagnosticsthe packaging industrydeveloping innovative technologiesIP strategy venture creation “exit” realization industrial cooperation

Nili TamirDir. Marketing

Ilan SchragenheimDir. Development

LabOnStripLabOnStrip – Value – Value PropositionProposition

Proprietary systemProprietary system Proven base Proven base

technologytechnology High-profit categoryHigh-profit category Low initial Low initial

investmentinvestment Multiple “exit” pointsMultiple “exit” points Multiple applicationsMultiple applications