BleuKiSean Burke, Frank Dodge, Raffi

IsaniansKevin Hung, and Pao Ting Tu

Moving into the Moving into the Digital WorldDigital World

Physical Media is becoming obsolete.Physical Media is becoming obsolete.

BleuKi

Business Description

What does BleuKi What does BleuKi do?do?

Where the Where the problem?problem?

The BleuKi The BleuKi solution...solution...

How does it work?How does it work?

BleuKiBleuKiBleuKi available for 5 different phone BleuKi available for 5 different phone companiescompanies

Bluetooth software linking car & cell phoneBluetooth software linking car & cell phone

Open car doors and trunk and disengaging Open car doors and trunk and disengaging alarm with cell phonealarm with cell phone

Use of ProceedsUse of Proceeds

First Stage:First Stage:

developing software developing software

Seek a senior programmerSeek a senior programmer

Purchase components to test and verificationPurchase components to test and verification

Look into licensing patentsLook into licensing patents

Second Stage:Second Stage:

Find talent in accounting, law, sales and marketingFind talent in accounting, law, sales and marketing

Assuming initial investments of $500,000 dollars.Assuming initial investments of $500,000 dollars.

Use of Proceeds

EmployeesEmployees32%32%

PatentPatent40%40%

OtherOther28%28%

Target Customer: FordTarget Customer: Ford

16.1% (112,149 vehicles) in January 2010

Ford will be selling 1,140,000 Cars annuallyFord will be selling 1,140,000 Cars annually

Offers Bluetooth enabled automobiles.Offers Bluetooth enabled automobiles.

Apple, HTC, Sony Ericsson, Motorola, Palm and GoogleApple, HTC, Sony Ericsson, Motorola, Palm and Google

StrengthsStrengths

Offers convenience and functionality to busy Offers convenience and functionality to busy consumersconsumers

Competitive advantageCompetitive advantage

SoftwareSoftware

Indirect MarketingIndirect Marketing

SWOT AnalysisSWOT Analysis

SWOT AnalysisSWOT Analysis

WeaknessesWeaknesses

Need expertise in sales, accounting and law.Need expertise in sales, accounting and law.

Competitors have released similar products Competitors have released similar products (Apple and Denso). (Apple and Denso).

Use of Bluetooth will jeopardize our ability to Use of Bluetooth will jeopardize our ability to use other wireless transmissions.use other wireless transmissions.

OpportunitiesOpportunities

Affordable solution convenient for smartphone Affordable solution convenient for smartphone users (30 million iPhone users and growing) users (30 million iPhone users and growing)

Bluetooth 3.0 will allow more functionality Bluetooth 3.0 will allow more functionality

Work with Ford to develop BleuKi: they are Work with Ford to develop BleuKi: they are pushing the use of technology in everyday use pushing the use of technology in everyday use with their Ford Work Solutionswith their Ford Work Solutions

SWOT AnalysisSWOT Analysis

ThreatsThreats

Mercedes Benz and Hughes Technologies Mercedes Benz and Hughes Technologies “MBrace” system: incorporates our concept “MBrace” system: incorporates our concept along with other features along with other features

Patent 6,697,638 by Denso Corporation blocks Patent 6,697,638 by Denso Corporation blocks our creation of such a device and requires us our creation of such a device and requires us to license from themto license from them

Viper Technologies: leader in automotive Viper Technologies: leader in automotive security systems and auto-starting systems security systems and auto-starting systems

SWOT AnalysisSWOT Analysis

Competitors Competitors

Viper SmartViper Smart

BlueKey WirelessBlueKey Wireless

Competitive Competitive advantageadvantage

SoftwareSoftware

Indirect Indirect MarketingMarketing

Sales and MarketingSales and MarketingExclusive to Ford Motor Vehicles: Exclusive to Ford Motor Vehicles:

1.2 million yearly sales, most with Bluetooth1.2 million yearly sales, most with Bluetooth

Contract: initial factorsContract: initial factors

5 years5 years

Yearly minimum product sales: 250,000Yearly minimum product sales: 250,000

Individual product cost: $50 or .4% Individual product cost: $50 or .4% retail valueretail value

Included as part of the option package Included as part of the option package with Bluetooth with Bluetooth

Yearly revenue: $12.5 million for each of Yearly revenue: $12.5 million for each of the 5 years of our initial contract the 5 years of our initial contract

Risk FactorsRisk Factors

Ford not accepting the Ford not accepting the contractcontract

Ford finding a Ford finding a competitor who could competitor who could do it for cheaperdo it for cheaper

Competitors Competitors duplicating our duplicating our technology and technology and targeting a competing targeting a competing car companycar company

FinanceFinance

Initial production cost:Initial production cost:

Costs: $300,000Costs: $300,000

includes product and includes product and software development, software development, program program writing, and testing writing, and testing

DistributionDistribution Marketing Marketing OurselvesOurselves

Ford will take care of Ford will take care of any other problems any other problems that aren’t directly that aren’t directly connected to the connected to the softwaresoftware

We will support Ford’s We will support Ford’s customers.customers.

• Preinstalled in Ford vehiclesOnline web page; download from web page using PIN # given with purchase

After ContractAfter Contract

Pursue another Pursue another contract with Ford or contract with Ford or GM or multiple auto-GM or multiple auto-makersmakers

Look into also Look into also developing BleuKi for developing BleuKi for home security home security systems, etc.systems, etc.

Sell the company and Sell the company and the rights to our the rights to our product outrightproduct outright

Expected ValuationExpected Valuation

RF Micro Devices, a $250 million company acquired RF Micro Devices, a $250 million company acquired Silicon Wave for $10.8 million after 7 yearsSilicon Wave for $10.8 million after 7 years

Expected Valuation at $55 Expected Valuation at $55 millionmillion

Exit StrategyExit Strategy

Initial investment: $500,000Initial investment: $500,000

Percent Ownership by Investors: 20%Percent Ownership by Investors: 20%

Return at end of 5 year contract:Return at end of 5 year contract:

20% of what company is sold for 20% of what company is sold for ($11 million of the $55 million) ($11 million of the $55 million)

Management TeamManagement Team

Questions...Questions...Thank You!Thank You!

If the phone dies...If the phone dies...

Ford has keypad code Ford has keypad code access on the outside of all access on the outside of all their vehicles.their vehicles.

Charger in the car.Charger in the car.