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EZsmart

Jeremy Miller, CEO Pete Perlegos,CTOOscar Gee, VP Marketing Ryan Tang, CFO

Business PlanPresented by EZsmart

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EZsmartOur Company Concept

EZsmart Overview

Market Information

Financial Projections

Product Information

Objectives and Considerations

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EZsmart

EZsmart empowers retailers and suppliers

to supply interactive information and

instruction manuals to its customers.

Our Company Concept

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EZsmart

• Multimedia Content Provider– Using new and existing technologies– Work with industries to create specific content

• Ready to Assemble (RTA) furniture market.

• A branding expert

Who We Are

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EZsmartSmartStuff CD

SmartStuff CD

SmartStuff CD

SmartStuff CDR.T.A

Product

Packaging and Branding

Protective Case

Placed Inside or Outside of Product

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EZsmart

I make your product a Smart Product!

Meet SmartStuff CDs.

With EZsmart’s digital help, paper manuals are no match.

Product Branding- SmartStuff Mascot

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EZsmart

EZsmart Advantage

Consumers and Suppliers

Easier to understandIn depth Information

InteractiveUser-friendly

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Install the Smart tool into the screwand turn clockwise until screw is tight

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Consumers and Suppliers

EZsmart Advantage

Higher customer satisfactionImprove Market Share & SizeOpportunities for catalogs Reduce customer service costsMarketing Data Sales

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EZsmartProduct Information

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EZsmartProduct Capabilities

20 minutes of compressed video

40 megabytes of interactive multimedia

30 minutes of audio

Up to 900 Screens and photos

10,000 pages of text

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EZsmartHow Do We Develop Our Product?

• Manufacturers already create instruction manuals

• We work with manufacturers to translate this manual into an interactive presentation

• Bring in expertise from repairmen &

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EZsmartHow Do We Develop the Interactive Presentation?

• Macromedia Flash

• JavaScript

• QuickTime VR

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EZsmart

The presentation will incorporate multimedia

• Audio: .wav, .midi, etc.

• Video: MPEG, Quicktime, etc.

• Graphics: Adobe Photoshop, Flash, etc.

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EZsmart

What Can We Provide IKEA ?

•Ikea has products that need assembly.

•We make it easier for people to assemble Ikea’s products.

•People will be satisfied with their experience and return to purchase additional products.

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Product Links – Advertising

While installing the product

Sell them complimentary products.

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Bookshelf Books at Amazon

Entertainment Shelf Entertainment System

Third Party Advertisement

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EZsmart

More Product Components

DVD• larger capacity

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EZsmart

•Updateability on global scale–Update product information

•Cost efficiency

•Target distribution–Advertising

•Extend life of CD Presentations

CD-Updateable technology

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EZsmart

Market Overview

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Overall Market

Worldwide CD/DVD Rom Installed Base

0

200

400

600

1992 1994 1996 1998 2000 2002 2004

Year

Re

ad

er

Un

its

(M

illio

ns

)

CDs DVDs

CD-ROMS are installed in 90% of all computers

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EZsmart

01020304050607080

Men Women Ages 26to 35

Over 56

Multimedia PC Usage

Would You Use Your CD-Rom Drive for Multimedia?

Electronic Industries Alliance, 1998

Per

cent

age

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EZsmartTarget Markets: Primary

Ready to Assemble (RTA) Suppliers

3 Billion 1999

Bush Industries- 441,000,000Dorel Industries-

575,960,000O’Sullivan, Inc- 90,500,000

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Car Parts Installation

• BF Goodrich teaches how to change tires.

• Dennon teaches how to install speakers.

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• Creative Lab teaches users how to install a DVD drive.

• 3Com teaches customers how to install modems on their own.

Computer Peripherals

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Make Up Companies

Revlon teaches women how to apply

makeup on CD-ROMs!

Aveda teaches customers how to

brush all types of hair!

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EZsmart

Market Research

• Businesses spend 116 billion dollars a year on product support -Interactive Weekly

• “Manuals tend to come in two flavors, dull and unintelligible” -Mark Forseth, technical publisher

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EZsmartStrategy: Pricing

Presentation Creation Fee– $500- $100,000

Per CD Charge of $0.40-$.80

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EZsmart

Trade Shows

Direct Sales

Price Promotions

•Association to Suppliers in the Furniture Industry

•Start forming partnerships in Year 1

Strategy: Promotion

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EZsmart

• Digital Business Cards• iQrom• Digibizcard.net• Avomedia

Simply make promotional materials for companies placed on CD-ROMs.

Competitors

Priced between $500-20,000

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Outsourcing and Barriers to Entry

Strategic Alliances with RTA supply leaders:

•Dorel, Bush, O’Sullivan

Action Benefit

Barriers to Entry

Product Branding- SmartStuff CDs

Customer awarenessClient loyalty

Outsource CD Production Economies of Scale

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Strategic Alliances

“Better than a patent!”Wade Dickenson

Video production partner- reduce large costsCD-ROM Partner- Best Product at lowest priceIndustry partners- Safety Net against competitors

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Ready to Assemble suppliers

Revenues of 441 million

Major Suppliers to:Office Max Sears

Best Buy Wal-Mart

Case Study: Bush Industries

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Value Proposition

• Customer Goodwill• Repeat Customers • Highly Targeted Marketing• Reduced Customer Support• Customer Information

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EZsmartTimeline: Bush Industries

Demonstrate Cost Savings

Enter into Contract for Production

Meet with Product Managers to Create Manuals

Create Presentation

Distribution and Logistics

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Tech n o log y &O p era tion s

S a les &M arke tin g

F in an c ia l &B u s in ess S u p p ort

C h ie f E xecu tive O ffice r

• Understand Process

•Work Closely with Client

•Build Do-It-Yourself Presentation

• Identify New Markets & Opportunities

•Sell Presentations

•Follow up on Clients

• Maintain Investor Relationships

•Determine Pricing

•Support Other Divisions

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EZsmartPosition Average Annual Salary Employees

Project Manager $100,000 3Presentation Developer $85,000 7Graphic Design Specialist $70,000 5

Marketing Strategist $62,000 1Sales Representative $53,000 + Commission 5

Top Executives $80,000 4Lawyer $100,000 1Accountant $50,000 1IT Engineer $50,000 1Human Resource $45,000 1Admin Assistant $35,000 2

31

Employees at End of First Year

7

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Revenues over First 12 Months

$0

$5,000

$10,000

$15,000

$20,000

In T

ho

us

and

s Annual RevenuesYear 1 $2.35 MYear 2 $14.36 MYear 3 $98.32 M

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EZsmartNet Income Over First 12 Quarters

($5,000,000)

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000Q

1

Q2

Q3

Q4

Q5

Q6

Q7

Q8

Q9

Q1

0

Q1

1

Q1

2

Annual Net IncomeYear 1 $309 KYear 2 $2.80 MYear 3 $29.7 M

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EZsmartValuing the Company

Company P/E Catalina Marketing 39.19ComDisco 7.83Dun & Bradstreet Co. 25.2InterPublic Group 40.63Reuters 24Sungard Data 33.43True North Comm 17.72

Median 46

Industry P/EComputer Services 55Bus Info Services 39Advertising 74

EZsmart P/EOptimistic 25Most Likely 10Pessimistic 5

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EZsmartValuing the Company

EZsmart P/E Year 1 Year 2 Year 3

Optimistic 25 $7.7 M $73.3 M $744 MMost Likely 10 $3.1 M $28.5 M $298 MPessimistic 5 $1.5 M $14.3 M $149 M

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EZsmartNeeded Funding

Round Date Funding OwnershipAngel December 2000 $50 K 30%Venture March 2001 $2 M 30%

Angel ROIOptimistic 1547%Most Likely 1114%Pessimistic 863%

Venture ROIOptimistic 386%Most Likely 268%Pessimistic 182%

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EZsmartFinal Overview

Great Product Uses

Great Strong Market

Great Financial Returns

$50,000

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EZsmartProduct D ifferentiation

M an u a l$ 0 .1 0 -0 .5 0

V id eo$ 1 .0 0 -2 .5 0

C D s$ 0 .6 0 -$ 1 .0 0

P erson a l$ 3 .0 0 -$ 5 .0 0

H ow -to -In s tru c tion s C os t

Manual Video CD’s Personal

Interactivity Level