MEC MagicBus

IOTO International Inc.

April 2008

© 2008 IOTO International Inc. For IOTO client information only. Not to be copied or disseminated without the explicit prior permission of IOTO International Inc.

IOTO International Inc.269 West Keith RoadNorth Vancouver, BCV7M 1L7 Canada

Will SpatCEOwspat@ioto.ca

Jimmy AuBusiness Developmentjimau@ioto.ca

The Problems

Social Networking &

Hobby TribesCommunity building and ‘get together’ activities are diminishing. We trap ourselves in glass & metal boxes or in a virtual reality. Websites & blogs keep more and more people isolated at their keyboards and estranged from their environment.

Environmental ConcernsWe are deeply concerned with environmental and sustainability issues. We care about the planet and the future for our children – we want to act, but don’t know what to do.

Driving

Rising fuel costs, parking costs, congestions, and now carbon taxes – automobile driving is getting increasingly expensive and unpleasant for customers and retailers alike.

Technology

Wayfinding, navigation technologies, iPhone, and the ubiquity of location-enabled handheld devices. Everybody wants to reach out and be reached - without getting lost in the static.

Advertising

Traditional marketing messages are being filtered out by audiences. How to open the cocoon of cynicism so that people engage their values and each other?

© 2008 IOTO International Inc. For IOTO client information only. Not to be copied or disseminated without the explicit prior permission of IOTO International Inc.

The SolutionSocial Networking &

Hobby Tribes

Connecting the local community through the Internet.

Environmental Concerns

A collective form of transportation that is greener and more efficient than the private automobile. Educate people about the environment by getting them involved.

Advertising

Innovative impression-based & impact-based advertising all in one vehicle.

Technology

Enables trip reservations and aggregates users to their nearest store locations.

Driving

Reduce driving costs and traffic congestions. Give people their time back. Relax, read a book, and have a cup of coffee – leave the driving to someone else.

© 2008 IOTO International Inc. For IOTO client information only. Not to be copied or disseminated without the explicit prior permission of IOTO International Inc.

Comparative AnalysisMEC Print Advertising• Impression-based • Brand-awareness

MEC Connect• Interactive means of impact-based advertising• Encourages activity and connections within the community

MEC Environment Fund• Fosters environmental initiatives within the community• Supports an active social community less cyber-focused

MEC Magic Bus• Accessible and open to all demographics (teens, seniors)• Creates hobby tribes / social networks within the community• Supports common community goals• Provides a safe place for meeting the like-minded.• Gets people out into the environment we want to protect

Z Kilometers traveled Y number of impressions

X number of papers distributed Y number of impressions

300% Reduction in Carbon Footprint!

© 2008 IOTO International Inc. For IOTO client information only. Not to be copied or disseminated without the explicit prior permission of IOTO International Inc.

MEC Print Advertising• Impression-based• Brand awareness

Why MagicBus?• MagicBus is impression-based advertising. It can produce as many impressions

as a print campaign with a far smaller carbon footprint (200-300% less).

• MagicBus is impact-based advertising. Success is quantifiable and can be measured by how many users have participated and used the service.

• MagicBus creates community. Common trips and common goals are the most powerful experiences in collective consciousness: Think of the Odyssey. Think of a vision quest. Common trips foster belonging and create community.

• MagicBus is environment-friendly. Collective forms of transportation are many times more efficient than the private automobile in terms of energy consumed, emissions generated, time, and land use.

© 2008 IOTO International Inc. For IOTO client information only. Not to be copied or disseminated without the explicit prior permission of IOTO International Inc.

Billboards Vehicles

Retention rates ashigh as 97%, compared with 19%for stationary billboards.

MEC MagicBus

© 2008 IOTO International Inc. For IOTO client information only. Not to be copied or disseminated without the explicit prior permission of IOTO International Inc.

• MagicBus encourages pooled investment in collective transportation. It enables innovative technologies that would otherwise not be pursued singly because of their higher cost. (fuel cells, hybrids, alternative fuels, electrics, IT).

• MagicBus provides trip information. 21-28% of trips are not taken through collective modes of transportation because of an information deficit. MagicBus gets people comfortable with the collective trip.

• MagicBus is a catalyst for change. Getting people comfortable and familiar with traveling together plays an extremely important role in moving society to more sustainable forms of transportation. Besides, driving is getting expensive, and that by its very nature is exclusionary.

How it Works

The number of destinations and capacity of the service are determined by the size of the MagicBus fleet. The frequency and days on which the service can be offered (weekends, weekdays) is also determined by the extent of the fleet.

Step 1

SMS subscribers or visitors to a website such as MEC are presented with a list of possible destinations to be reached during a given time.

Step 2

Members indicate their interest in reaching that goal by clicking on that destination, or via an SMS response. The first destinations that fill up are the MagicBus destinations.

Step 3

In return, a SMS or E-mail is sent to ‘pilgrims’ with a code for boarding, instructions on where to board, what to bring, and when they can expect to return.

© 2008 IOTO International Inc. For IOTO client information only. Not to be copied or disseminated without the explicit prior permission of IOTO International Inc.

Costs

© 2008 IOTO International Inc. For IOTO client information only. Not to be copied or disseminated without the explicit prior permission of IOTO International Inc.

Benefits

Belonging - Common trips foster strong communities by providing social connection through group activities and increased contact with like-minded people.

Image – MagicBus is a unique concept that generates a far stronger viral presence than other forms of advertising. Areas where traditional forms of advertising are limited or unavailable may be accessed. Achieves retention rates 5 times that of stationary billboards. Carbon footprint and environmental impact is many times smaller than other advertising forms.

Joy - With MagicBus, MEC can link the pleasures of environmental sustainability, community activity, and journeys to the brand.

Knowledge - MagicBus provides easy access to parks, social events, and the outdoors. This increases knowledge and awareness of these treasures and thus impacts future behaviours.

Are a function of destinations visited, frequency of service, targeted demographics, vehicle types, and livery selected. Costs are comparable to print, TV, radio, and outdoor advertising campaigns.

Next

© 2008 IOTO International Inc. For IOTO client information only. Not to be copied or disseminated without the explicit prior permission of IOTO International Inc.

Week 1: Preliminary discussions

• MagicBus frequency, destinations, target demographics, vehicle type and livery • Web implementation, belonging, security, and Q&A. *Of importance to marketing, environnmenal, and SR personnel

Week 2: Agreement in light of preliminary discussions

• Settles Terms & Conditions, rates, roles and responsibilites• Works from documents arising from preliminary discussions• Revisions*Of importance to marketing, environmental, accounting and legal staff

Week 1 Week 10

Week 8: Lead up to the start of voting• Promotion and awareness• Viral marketing

Week 9: Voting site goes live• Moderated voting site goes live. Members decide on MagicBus

destinations for initial four-week odessey.

Week 10: The first MagicBus rolls• First MagicBus rolls to top destination at media event. Voting begins for

next odessey in accompanying media splash.

Who we are: A local green technology firm dedicated to providing urban transportation options competitive to the automobile.

IOTO International Inc.

Our locally-developed technology was declared an Americas finalist in the 2007 NAVTEQ Global Location Based Services (LBS) Challenge in Orlando, USA.

What we do: Our focus is to improve human connectivity between destinations while respecting the environment.

We offer a multi-platform, mode-independent standardization of different forms of urban transportation into a time, money, CO2 decision matrix for easy trip comparison and optimization.

Data generated from passenger selections defines focus areas.

Our

Foc

us

Reduce Traffic

Congestion

Reduce Parking Demand

Create Hobby Tribes

Minimize Carbon

Footprint

Generate Impressions

Increase Location Traffic

© 2008 IOTO International Inc. For IOTO client information only. Not to be copied or disseminated without the explicit prior permission of IOTO International Inc.

THANK YOU FOR YOUR TIME! PLEASE FEEL FREE TO CONTACT THE IOTO TEAM WITH ANY QUESTIONS.