ProblemProblem SolutionSolution

Retail Shoplifting– $37 Billion Lost

Each Year Current

Technology– Small Market

due to Cost– Uses a Direct

Sales force

Retail Shoplifting– $37 Billion Lost

Each Year Current

Technology– Small Market

due to Cost– Uses a Direct

Sales force

Tags Attached to Merchandise

Sensors at Doorway

Disruptive Technology– Lower Cost

explodes Market size and distribution method.

Tags Attached to Merchandise

Sensors at Doorway

Disruptive Technology– Lower Cost

explodes Market size and distribution method.

Comm-Engines Innovation STEAL WEB

Low Cost User Installed Marketed Through

a Distribution Channel

Huge Underserved Market of Small Retailers

Electronic Article Surveillance Electronic Article Surveillance

(EAS)(EAS) User Installed

– No Installation Cost Low Cost to Operate

– Low Power Consumption

Suspended Over Doorway– No Pedestals – Aesthetically

Pleasing

Market Small (Less than $10 million per year) Retail Clothing

Store– NAICS code 448 – 128,630 Stores in US per 2002 Census Data– ASP of Detector $1800, ASP of Tags $5000– 5% penetration is $43 million

Tyco/Sensormatic– $1 Billion sales Worldwide – ASP of Detector is $10,000. ASP of Tags $100,000– Payback is 12 months on average

Checkpoint– $770 Million Sales Worldwide– ASP of Detector is $6,000 ASP of Tags is $100,000– Payback is 12 months on Average

Scientific Merits of the Scientific Merits of the TechnologyTechnology Comm-Engines

– Revolutionary “Microware” Detector Design (patented)

Use ultra-narrowband filtering and digital signal processing to detect tags on merchandize

Low power consumption design uses components from Cellular Industry

Backwards compatible means we can detect existing tags in the Market

User Installed due to software and detector similar to cordless phone

“Microwave”, “RF” and “Acoustic-Magnetic” are industry names for the three technologies used in the EAS market worldwide

Scientific Merits of the Scientific Merits of the TechnologyTechnology Tyco/Sensormatic

– “Acoustic-Magnetic” Requires large pedestals Huge power consumption Custom Installed

Checkpoint– “RF” Technology

Requires large pedestals Medium power consumption Custom Installed

“Microwave”, “RF” and “Acoustic-Magnetic” are industry names for the three technologies used in the EAS market worldwide

Development Milestones

Key Milestones– Prototypes Installed ( 1H07)– Contract Manufacturer ( 1H07)– Wholesale Shipments ( 2H07) – High function Tags ( 1H 09)

FSU patent pending

– Capital Needed to Ramp and Fill Pipe

OpportunityOpportunity Soliciting $100K-$500K Uses:

– Initial Production for inventory– Prototype of secure tag and sensor– Marketing Assistance to Distributors

Exit: IPO or Acquisition

Thanks, Please Thanks, Please Contact Contact Todd Franklin, President

– Comm-Engines Inc– (850)559-0488

FSU contact Jack Sams – (850)645-0048

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