09 qfor

Confidential | Copyright © Quadrant 4 System Corporation Confidential | Copyright © Quadrant 4 System Corporation

RedChip Conference

Quadrant 4

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Confidential | Copyright © Quadrant 4 System Corporation

Safe Harbor

This presentation contains forward-looking statements that reflect Quadrant 4 System Corporation’s plans and expectations. In this presentation and related comments by Company management, words like "expect," "anticipate," "estimate," "forecast," "objective," "plan," "goal", "position", "equate", and similar expressions are used to identify forward-looking statements, representing management's current judgment and expectations about possible future events. Management believes these forward-looking statements and the judgments upon which they are based to be reasonable, but they are not guarantees of future performance and involve numerous known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements.

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Quadrant 4 – What we do..

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Quadrant 4 – Stock Basics*

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* Q3 2013 numbers


Research Coverage

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Quadrant 4 – At a Glance

Statistics Technical Resources 650 21% Growth

Customers 130 17% Growth

Revenue $38mm (E – ‘13) 60% Growth

2013 Growth 64,000 Servers 400,000 Service Desk Users

74,000 Network Devices 22,000 Data Bases

6000 TBs Storage 1.5M Batch Jobs

20Mil hours of ADM Services 5Mil hours of IMS Services

9Mil hours of Consulting Services 300+ Content driven websites

Our Locations

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Quadrant 4 – Long Term Clients

Financial Services Media and Publishing Retail and Manufacturing Healthcare

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Opportunity to Fill “Big Spaces”

Serving Industries at cross road of digital disruptions


Technology Stack to Capitalize on Disruptions

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Quadrant 4 - Growth Plan

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2010 2011 2012 2013 2014 2015 2016

Consulting

SMAC Solutions

Platforms media/retail

Health Exchange

Growing Customer Base

Product Portfolio Expansion

Strategic Acquisitions

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Health Exchange Drivers and Trends

•  ACA and migration to fixed contribution model •  Aggregation and disintermediation

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Health Exchange Opportunity

Addressable Market

Over 100 million people looking to

buy insurance through Exchanges

QFOR aims for at least 5% share (5 million covered

lives over next 36 months)

Revenue Model

$2 - $6 per member per month (PMPM)

At ~$4 PMPM, 5 million covered

lives, potential to generate $240M/yr

Distribution Model

Private Label with 20 large insurance

brokers

Exclusive strategic arrangement with Health and Non-Health Insurance

Carriers

JV with HR, Payroll and Third Party Administrators

Opportunity to become Amazon.com of Healthcare Disruption

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QHIX- Overview & Key Exchange Components

Marketplace Template

Private Exchange

Plans

Subsidy Calculator

Engagement Framework

Payment Gateway

Qualified Health Plans

Decision Support

tools

Responsive Design

•  Allows employers & employees to plug in data (age, budget, etc) and shop for wide variety of benefits with ease and convenience

•  Members can choose from up to 20 different plans •  1invoice unified billing system (backed by 30 years technology experience) •  Market Place solution for both health and non-health products, similar to

Amazon & HotWire •  Fully compliant to HIPAA standards, SSAE 16, and other industry standards

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QHIX – Superior to Competition

�  QHIX is a “True Exchange“ platform available TODAY �  Not just market place platform on legacy Ben Admin system

�  Turn-key solution for all stake-holders �  Portals for Employers, Employees, Brokers, Health plans, Insurance companies and TPAs

�  Offers employer groups and individuals the most options �  Comprehensive “1invoicing”™ Financial portal and Payment Gateway �  Easy to use and Customizable for any size business �  “Live in Five”® implementation �  “Reach and Tech”™

�  No Legacy technology, SMAC enabled �  Fully secure, HIPAA standards and SSAE 16 compliant


Executing on Health Exchange Opportunities

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Continuing to Innovate and Launch New Platforms

Mobile Commerce

Store Check-in

Social Commerce

Quick Response TV

Location Aware Couponing

Marketing and CRM

AR Shopping

IQ Zone

IQ Vending

IQ Cart

Digital Content Management

Advertisement – Ad Blend

Rights Management

Recommendation Engine

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Management

�  Dhru Desai, Chairman of the Board and Chief Financial Officer !  25+ years of successful experience building IT and Telecom companies !  Founder & CEO of Cronus Technologies; later divested to Cisco, FastComm, & Advanced Fiber

�  Nandu Thondavadi, Ph.D., Chief Executive Officer, Director !  Founder Global Technology Ventures, operated portfolio of technology companies !  Prior roles include sr. management for 30+ years at EDS, Square D, Coleman & others !  Served as Clinical Professor of Management at Kellogg School of Management, Northwestern

�  Dr. Thomas Sawyer, Ph.D., Director !  40 year veteran with both public and private venture experience in Technology Sector (telecom, Energy) !  Technology advisor to prior US Presidents including President Regan and President Bush

�  Eric Gurr, CPA., Director !  25+ year successful career in building and leading publicly traded technology companies !  Executed successful JV with Shanghai Bell involving VoIP and Satellite technologies

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Executing on Growth Plan

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Gross Margin

Nine-Month Revenue (millions)

19.9 28.1

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9 mths '12

9 mths '13

22.7%

28.6%

0.0%

10.0%

20.0%

30.0%

40.0%

3Q12 3Q13

Financial Performance Expanding Client Base

Platform Expansion

Strategic Acquisitions

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Financial Highlights*

($ in 000s) Sept. 30, 2013 June 30, 2013 Mar. 31, 2013 Revenue $ 9,143 $ 9,098 $ 9,907

Gross Profit 2,616 2,416 2,364

Sales, G&A 1,028 1,956 1,077

Operating Income (Loss) 256 (883) 130

Net Loss (836) (1,463) (385)

($ in 000s) Sept. 30, 2013 June 30, 2013 Mar. 31, 2013 Cash & Equivalents $ 47 $ 68 $ 243

Receivables 6,048 6,573 6,661

Plant & Equipment 20 11 5

Total Assets 28,538 29,394 30,995

Current Liabilities 11,818 12,853 11,987

Total Liabilities 20,339 26,239 27,997

Total Stockholder Equity 8,199 3,155 2,998

Quadrant 4 (OTC: QFOR) 19

* Q3 2013 numbers


Investment Highlights

�  Focused on Social Media, Mobile, Analytics and Cloud (SMAC) technologies; four technologies that are shaping the future, SMAC projected to be worth $5T by 2020

�  Market size for e-commerce and cloud-based retail software projected at $3 billion for 2013 (source: Gartner); QFOR’s RetailSphere has already been implemented by dozens of retailers and franchises

�  QFOR’s healthcare exchange platform (QHIX) projected to reach over 5 million member over next 24 months with $2-$6 /member/month revenue model

�  Gross margin and EBITDA improvement from new SMAC products.

�  Record 3Q13 Revenue of $9.1 million (up 40% YoY) and EBITDA of $1.0 million (up 109% YoY)

�  Projecting over $50 million in revenue in 2014 (Organic growth)

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Confidential | Copyright © Quadrant 4 System Corporation Confidential | Copyright © Quadrant 4 System Corporation

Thank you

Dhru Desai Chairman / CFO Quadrant 4 System Corporation [email protected] 21

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