Confidential

Secur communications for all

SecurDigital, Inc.July, 2010

                              

www.securdigital.com

SecurDigital, Inc.

Confidential

About SecurDigital, Inc.

» SecurDigital, Inc., on October 22, 2009, in Dover, Delaware as a ”C” corporation. The Executive Team has been working together on security solutions for four (4) years prior to SecurVoice© being developed (Project started on 9/19/2008) as a need for one of those projects championed by Steve I. Cooper, former CIO for White House and DHS, and now CIO of the FAA .

» SecurVoice© target markets include; Banking, Financial Services and Brokerage Institutions, Attorney/Client privileged communications, the World Health Organization and HIPPA regulations for voice and data electronic transmission of patients health records between Hospitals, Doctors, Nurses and other long term Health providers, and now by law, the health monitoring systems needing secure communications to comply with Federal Regulations and Emergency Manager’s crisis coordination between all State and Local Police and Fire Departments. The company licenses using a SaaS or Enterprise software model with types for commercial or government.

» Sales of cell phones are on pace to reach a billion annually by the end of the decade, when nearly 40 percent of the world's population will own a mobile handset, according to a Gartner report. Asian countries will continue to play a major role in increasing the number of cell phones in circulation to 2.6 billion by 2009, the research firm estimated in the report. Currently, 25 percent of all cell phones are sold in Asian countries; by decade's end, that number will be one in three.

» Consumers today are unaware of threats to them as they use their smartphones. Personal conversations, data, banking and health information; all are available to undesirables if the consumer is not protected.

» SecurDigital, is making secure communications technology available at a retail price point that is device, carrier, operating system and application platform independent to the general marketplace.

Note: This is unique in the world today.

SecurDigital, Inc.

Confidential

”SecurDigital has upped the ante considerably here. In a sudden leap, this innovative new product has shaken off the complexity of unified communications and has taken the lead in terms of ease of use, security and interoperability. Starting with simple encryption techniques in a Java-based application, SecurDigital has introduced SecurVoice© Privacy Edition, a next-gen secure digital data transmission solution, which takes the focus away from hardware or firmware centric smartphone offerings and provides a Solution that is application platform, operating system, device and carrier independent.

SecurVoice delivers encrypted voice, data or video transmission from any device to any device(s), with selectable encryption algorithms - allowing any companies to literally deploy “Secur Communications”.

Bruce F. Magown, CEO SecurDigital, Inc.

SecurDigital, Inc.

The Targets – Which one are you?

SecurDigital, Inc.

Confidential

Passive / Active Threats – The Targeteers!

• Spoofing• Espionage• Surveillance• Targeting• Collection• Tracking• Interfering• Manipulation• Spotting

SecurDigital, Inc.

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Multinational Forces Community of Interest

Multinational Forces (MNF) in both Iraq and Afghanistan have experienced an immediate need to enable open, yet secure communications with host nation Government, Law Enforce, Emergency Services and Military entities. However, difficulties range from policy and trust issues of providing MNF Radios to allowing access on Networks. Result: lack of coordinated operations, understanding, trust and cultural awareness.

SecurDigital, Inc.

Confidential

Law Enforcement Community of Interest

True of False?

• During a city-wide sweep for gang members and drug dealers, this Police Department confiscated several cellular phones loaded with an application that could stream the department’s police radio system. The software app is one of several available for iPhones and other smartphones that stream public safety radio audio obtained from scanner radios via the Internet. PD has not said if the apps were actually running on the smartphones, or if any suspects were able to avoid arrest from hearing police radio broadcasts. However, in a bulletin notice to officers, the department warned officers that criminals are able to monitor the city’s 800 MHz trunked radio system from smartphones, and to use caution when transmitting confidential information.

SecurDigital, Inc.

Confidential

Corporate Security Community of InterestMonitoring/Eavesdropping• While relatively few legal wiretaps are authorized

in the United States each year, improvements in technology have made it easier to illegally wiretap, record and eavesdrop on telephone conversations. People with sensitive jobs in business or government and those involved in high-stakes legal cases may have reason to be concerned about wiretapping and electronic eavesdropping.

• Eavesdropping on VoIP calls takes place when unauthorized third parties monitor call signal packets. Third parties may also gain access to confidential business and personal information by eavesdropping on actual VoIP based conversations.

• Government can tap mobile phones with the cooperation of the phone company. It is also possible for organizations with the correct technical equipment to monitor mobile phone communications and decrypt the audio.

SecurDigital, Inc.

Confidential

SecurDigital, Inc.

Confidential

Solution Overview

The internal software on your cell phone converts your voice in real-time into encrypted data which is then sent over your carriers infrastructure to the SecurVoice© Enterprise Server where it is de-crypted.

It is then re-encrypted and sent over your carrier’s infrastructure the receiving cell phone where it is de-crypted and is converted back to voice.

SecurVoice© also features a dual-layered encryption schema which provides full protection against covert listening devices. You may select different encryption algorithms.

For example, your outbound conversation may be AES 128 encryption, while your callers inbound conversation may be elliptical curve; making listening to your conversation impossible

SecurVoice© is ultra-strong encryption software.

SecurDigital, Inc.

Confidential

Solution Detail» SecurVoice© Privacy Edition is a completely new wireless communication solution and architecture which

provides secure communications interoperability with any cell, satellite, walkie-talkie, or VoIP phone system. You can download the 38k Java app from our secure locations world-wide and follow the simple instructions to install.

How it Works

The Java app communicates directly with our SecurVoice© Enterprise Server application as a hosted option or may be resident on your servers.

Additionally, we provide internet virus, internet firewall and voice authentication.

The solution is operating system, application platform, device and carrier independent.

Key Features

• HIPPA compliant privacy-grade strong encryption key (AES (128) asymmetric encryption) plus additional encryption combinations to provide a very unique Solution

• Data is encrypted when it leaves the sending device and is de-encrypted by the server. It is then re-encrypted (with possible other encryption selection) and sent to the receiving device and decrypted

• Software only Solution. No additional hardware required

• Implemented on regular smart phones and GSM cellular networks with circuit-switched data service

• Full duplex communications

• Superior audio quality and ultra low latency

• Resides on regular cell phones. Neither the encryption process nor the device is perceived by third parties

• The user may update the cell phone firmware or operating system. The cell phone keeps all its original features.

Solution Overview

ONE-TOUCH SWITCHING BETWEEN PRIVACY AND STANDARD COMMUNICATIONS

WMS AND VOIP SECURE COMMUNICATION OPTION

INTUITIVE, USER-FRIENDLY INTERFACE

AVAILABLE TO PURCHASE AND DOWNLOAD ONLINE

SOFTWARE BASED SOLUTION – NOT HARDWARE

Solution Interoperability

Multiple Platforms / Multiple Environments

SecurDigital, Inc.

Confidential

SatelliteVOIP/PSTN

CHAT/IM/SMS

Video/Collaboration

SW/MW/Trunked

HF/VHF/SDR

Cellular/Multiple Mobile OS’s

SecurDigital, Inc.

Confidential

• Provides our customers an Integration Portal which provides a simple, intuitive interface for them to register, select and downloads the applications they want.

• License management and subscription based billing is incorporated. Aria On-Demand can handle millions of transactions and customers.

• All applications are either off-the-shelf or open source based.

• The SecurVoice Master Enterprise server provides all updates, bug fixes, patches, etc. to our customer base with each version release.

• Multi-lingual, provides support required by customers around the world.

• Customers require information flow 24 hrs. a day — and SecurDigital Back-Office Portal delivers 24/7/365.

SecurDigitalSecurDigital: : Highly Scalable Back Office & Highly Scalable Back Office & Provisioning:Provisioning:

SecurDigital, Inc.

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Pricing ModelHow Much will this Security cost per device, and how long does a license last?*

What is the Enterprise Server Software Cost?What is the Enterprise Server Software Cost?

$2,500.00 per server = 10,000 devices

The 24 Month License Pricing does not include 10% per month for Maintenance and Up-Grades during your The 24 Month License Pricing does not include 10% per month for Maintenance and Up-Grades during your lease.lease.

LICENSE UNITSLICENSE UNITS COST PER MONTHCOST PER MONTH1 – 500 Licenses are $19.95 per month, per device.5001 – 5,000 Licenses are $14.94 per month, per device5,001 – 50,000 Licenses are $9.95 per month, per device50,001 – 1,000,000 Licenses are $4.95 per month, per device1,000,001 – 5,000,000 Licenses are $2.95 per month, per device5,000,001 – and up Licenses are $0.99 per month, per device

• Please note that a “device” may be a Smart Phone, Satellite Phone or Single user Dish, Radio Walkie-Talkies, or VoIP systems, Laptops, desktop VoIP Phones, and PC Tablets.

• We can also use our SecurVideo© for direct streaming; for Conferences, to all Video Devices, and even from UAV’s.

• We can also customize our system to integrate with your existing hardware and software security systems. • Costs will be determined by your requirements that are stated and approved.

We pride ourselves in producing exceptional customer service andWe pride ourselves in producing exceptional customer service anddelivering technology beyond your expectations.delivering technology beyond your expectations.

*Presently our completed back-office by InterWeave; can in one day, accept payment, issue a license and download over 1,000,000 licenses per day; while invoicing, tracking, billing, and issue untold numbers of filtering reports that you require to maintain your system control, with automated profiling available for virtual colleagues.

SecurDigital, Inc.

Confidential

Value-Added Security

Optional Interoperable Components

• Multiple deployment options (flexibility)– SaaS hosting platform, hardened appliance, or custom integration– Inbound and outbound calling, or IP based / streaming audio

• Web-based administration (ease of use)– Includes setup, tuning, reporting, alerting, fraud rules, etc.

• Compliant data center designs (security) – PCI, FFIEC, HIPAA, CPNI, HEA supported

• Telephony and VoiceXML knowledge (experience) – Much back-end code and related processes to simplify integration

• Multiple voice biometric engines (suitability)– Free Speech (GMM / LBG), Passphrase (DTW), and Numeric (HMM)– Proprietary processes too, pursuing multiple U.S. patents– Rapid Speaker ID enabled for redundant security

Voice Biometric Engine

• Support for multiple modes: voice verification and voice identification• Minimum 2 minute enrollment with voice print provided immediately• Support for multiple use cases: random numeric, static passphrase, and

natural speech• Full-featured VoiceXML-based IVR system, including one toll-free number

for inbound calls, ASR, TTS, etc.• Support for outbound calling to any number in the US or Canada• Multiple developer options available: Java Object, .NET assembly, XML

RPC API, and VoiceXML API

• The VMM-1 decision engine can evaluate and use inputs from multiple algorithms and frequencies (i.e., 8 KHz, 16KHz, 32 KHz). We've incorporated DTW, LBG, and GMM algorithms so far – allowing us to support all common use cases: static passphrases, numbers, and natural speech. Further, we are in the process of adding an SVM algorithm which will allow us even greater flexibility to meet customer needs.

VMM-1 Engine Structure

VMM-1 Engine Pricing Model

• Production SaaS Hosting– $0.50 per enrollment– $0.35 per verification– Discount tiers after 50K requests/year, 500K requests/year, etc.– Monthly minimum fee of $500– No setup, configuration, or tuning/optimization fees– $150/hour + expenses for custom dialogs, voice recordings, etc.

• Premise-Based License– $18,000 for one-time, perpetual license– One server, supporting up to 50K active users (50K unique voice prints)– $3K per year maintenance … provides bug fixes, updates, and technical

support within product family– Discounts for larger user commitments, multi-server environments, support for

multiple languages, etc.– Professional services fees apply for setup, configuration, and

tuning/optimization

Conclusion

• SecurVoice is the world’s first totally secure digital communication software only solution.

– It protects voice, data, and video from being intercepted or scanned - it is an unrecognizable digital transmission.

– Its interoperable capability allows global connection to all types of cell, satellite, walkie-talkie, tactical radios (SDR), PBX or VOIP devices and networks.

• SecurVoice is operating system, application platform, device and carrier independent and works with all existing legacy systems.

– It operates on top of the existing network carriers.

• SecurDigital is a global leader in delivering system-level technology solutions to the advanced wireless markets.

• SecurDigital is focused on the globally accepted FIPS 140-2, level 2 validation and has begun the process for Secret and NSA’s Top Secret Certification – December 2010.

SecurDigital, Inc.

Confidential

Confidential

Secur communications for all

SecurDigital, Inc.July, 2010

                              

www.securdigital.com

Frank R. MitchellEVP Advanced ProgramsSecurDigital Inc.Phone: (928) 642-2262Email: fmitchell@securdigital.comSkype: mitchellfr_sd