INKSURE Technologies

Brand Protection & Authentication Solutions

Confidential Information

INKSURE Technologies

• Provider of covert, machine readable brand security solutions

• The verification process is based on proprietary authenticators that provide

instant, reliable, forensic-quality results

• INKSURE’s taggant technology is applied to tens of billions of consumer

items and high-value documents annually

• Established in 1999; U.S. public corporation (INKS.OB) - SEC regulated

• Corporate Headquarters in NYC; Global R&D Center at the Science Park in

Rehovot, Israel2

Brand Protection Solutions

Covert Machine Readable Technology

• Optical taggants that are not visible to the human eye– Mixed with the brand owner’s own Inks & varnishes

– Flexo, Offset, Gravure, Screen, TTR, Pad, Hot Ink Roll, Inkjet

• Authenticated by a handheld, battery operated, portable reader

• The reader gives a positive response – not subject to Human Interpretation

• Many custom security formulations available

• Enhances overt authentication Security

• No visible response to UV excitation

• No IR up converters

• No false accepts

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How Does It Work?

• Each item is invisibly marked with INKSURE’s SmartInk during

standard printing production

• Although visually identical to regular ink or varnish, SmartInk

includes a covert taggant code

• The code is customer/application exclusive

• INKSURE’s range of proprietary readers are used to conclusively

authenticate products and documents by detecting electro-

optical material behavior, identifying the code and providing on-

the-spot pass/reject indication5

SmartInk Covert Applications

• SmartInk can be applied to almost any substrate

– paper, plastic, foils, laminate, thermal transfer

ribbon etc.

• SmartInk utilizes standard printing processes &

infrastructure such as offset, inkjet etc.

“If it can be colored, coated, printed, or packaged, INKSURE can protect it”

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SignaSure Handled Readers

• A sophisticated optical authentication reader, analyzing complex

spectral signatures

• Each reader can store up to 10 codes to detect different marked

applications

• Forensic Level Authentication- up to 75 data points

• Configured for each customer/application

• Simple & intuitive user interface; light weight, ergonomic design

• Clear audible and visual confirmation/alert within seconds

• Rechargeable batteries; USB connectivity

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PocketSure Handled Readers

• A new, pocket-size reader for field authentication– Size: 5.5” x 1.1”

– Weight:2.5 ounces

• Highly accurate 10 point data count

• Lower-cost for high volume distribution– Warehouses

– Law Enforcement

– Retail Locations

• Multiple codes in memory

• Audio tone and visual (red/green LED) only,

no LCD screen

• Replaceable batteries, no charging circuits8

SortSure – In Line Process Control

• Continuous hands free feedback

• Effective cost monitoring capability

• Data collection for future QA reference or evidence

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CodeSure – Barcode & Taggant Reader

Detection of overt, covert and mixed

symbols printed utilizing tagged and

untagged inks

Will read 1D 2D barcodes, OCR etc.

Onboard database

Track & Trace data is stored locally

(USB/Micro SD attachments) for quick

lookup (eliminates the need for connectivity

to a remote server)

Target Market

INKSURE’s Targeted Verticals

INKSURE is focused on four distinct verticals:

– Security Integrators (government & security products)

– Hologram Manufacturers

– Label Manufacturers

– Security Printers

• In each vertical INKSURE has successful large scale

implementations & reference customers

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Security Integrator – Case Study

• The Ukraine Tax Stamp (2008 – Current)

– Ukraine Population: 50M

– Tobaccos & Alcohol consumption – several billions items annually

– Security Integrator – EDAPS Corporation (Ukraine Based)

• Introduction of INKSURE’s covert taggants + distribution of >1,300 readers to

tax inspectors

• Successful integration resulted in an immediate increase of ~30% in tax

revenues

• EDAPS distributed a case study detailing the project success

– The Secretary General of the World Customs Organizations singled out the

Ukrainian tax stamp project13

• SmartInk can be applied to a Tax Stamp via any of the following:

– Hotstamp hologram tagged by SmartInk

– Background design by using SmartInk Intaglio or clear overcoat for a yes/no authentication

– SmartInk Inkjet for yes/no authentication of serial numbering

– SmartInk Sequential for group level tracking (manufacturer,

– designated markets, etc.)

• Multiple reading configurations:

– Field Forensic SignaSure for authorized customs personnel

– Handheld PocketSure for supply chain authentication

– High speed SortSure with counting capabilities for production

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Security Integrator – Tax Stamp Applications

Hologram Manufacturer– Success Case

• European Partner (Italy)

– Insertion of INKSURE’s taggants into hologram base foils

– Producing over one million meters of tagged base foils annually

– Producing several billions of hotstamp holograms annually

– Tagged holograms are very durable and can provide accurate covert

results for several years

– INKSURE’s team works closely with manufacturer to ensure a seamless &

consistent process15

Label Manufacturer– Success Case

• US based partner – confidential

– Insertion of INKSURE’s taggants into label base foils

– Labels are applied to electronic products & accessories

– Producing several billions labels annually

– Label are being distributed globally (mainly to china)16

Security Printer – Banknote Project

• A Central Bank (OECD member)

– Addition of INKSURE’s taggant to a specific area in the banknote

– Taggant and & designated area – known only to the central banks

– Successful integration at the Security Printer’s facility in

Switzerland

– INKSURE implemented SortSure to automatically verify large

quantities of banknotes at the Central Banks safes

– Banknote rollout is expected during 2011

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INKSURE Brand Protection - Summary

• Highly experienced and execution-oriented management team

• Solutions protect tens of billions of consumer items and high-

value documents annually

• Proven large scale implementations of tax stamps, holograms

and security labels projects

• Strong & long term relations with local integrators especially in

Eastern & Central Europe18