1

inovani

Status:• Products are fully developed.• Key technology partnerships are

established.• Running commercial cervices

NEXT: Commercialisation

– Establish business partnerships in selected countries world wide

– Expand the sales, marketing and service organisation

Inovani as

The company:• Established April 2001• Owned by the founders • 5 active founders

– 2 on payroll – 3 affiliated part-time

• Accumulated development costs is EUR 1.2 million

Company representative:• Helge Bukkvold

– +47 911 36 245– helge@inovani.no

• Main shareholder and member of the Board

2

inovaniInovani products - Let the technology speak for it self

Inovani’s tools can be used to instantly create user friendly dialogues and compelling contents for cell phones, mobile devices, Web-pages, PC applications and auditorium screens.

Inovani’s key technology is speech animation tools for automatic creation and efficient distribution of virtual life-like expressive characters.

3

inovaniHow do we create the animation?

NO STUDIO production, the animation was created automatically in REAL-TIME from the following text with smilies. (can also take voice as input)

:-) Inovani’s tools can be used to :-0 instantly create user friendly dialogues and :-? compelling contents for cell phones, :-j mobile devices, Web-pages, :-( PC applications and auditorium :-? screens.

4

inovaniOur competitive advantages :

• Animation quality and expressiveness (unique, no competitors)– Both highly realistic characters and speech motion combined with expressions

• Easy and fast production in REAL-TIME (unique, no competitors)– NO-STUDIO production – The ability to tailor DIALOGs to each individual user

• Standard video formats or Inovani proprietary format. – Inovani format : Extremely low bandwidth – reduces cost of distribution– Low requirements on CPU-power. (Like a Cell phones)

• Heads are easy to create– Automatic from photos, or approximately 10 hours of 3D modelling.

• Language independent

• Covers every kind of screen from cell phones to auditorium screens.

5

inovaniPatenting and what is unique ?

• There are techniques that may be patented.

• However: after careful considerations we have decided not to patent our technology because a patent will reveal our techniques more than it will protect it.

• Inovani’s strength and uniqueness is very much linked to how we combine published techniques :– Multi-discipline: advanced mathematical techniques, data

communication, software design, computer graphics, data compression and long time experience with high quality animation techniques.

6

inovani

Market : mobile video messaging (MMS)

• As easy as creating SMS messages, but much more compelling result

• The video message is created on the fly as the result of a text received e.g. in an SMS, WAP-page or from voice.

• Use standard mobile video formats i.e. NO need to install special software to view the animations.

• Competitive advantages: – Easy and fast production of high

quality animation– Instant creation on demand from end-

user

7

inovaniMarket : mobile video messaging (MMS)

• Inovani customers: – Content and Service providers

• Revenue model: – Ticker or revenue sharing per mobile video message

• Market size of Europe and UK 2005-2009

Official statistics;

– Cell phone penetration : 84%-88% / 88%-92%

– Phones w/ mobile video : 20% - 75%

– ARPU/year in EURO : 460-540 / 870-900

– Premium services : 7,5% - 15% of ARPU

inovani projections;

– “Talking head” services : 1%-2% of Premium services

– Market share : 100% down to 40%

– Market penetration : 30% up to 100%

– Ticker/revenue sharing: 10% of the service price

inovani revenue in million EURO

0,00

2,00

4,00

6,00

8,00

10,00

12,00

14,00

16,00

18,00

2 005 2 006 2007 2 008 2 009

Premium services market in million EURO

0

5 000

10 000

15 000

20 000

25 000

2 005 2 006 2007 2 008 2 009

8

inovaniMarket : Web-Virtual Guide

• Inovani customers: – Companies, Public services, community owners e.g.

Microsoft’s MSN– Web Publishing vendors

• Revenue model: – License per conc. user with yearly support fee

• Competitive advantages: – Instant creation of a true interactive DIALOG between

the user and the virtual host – Quality of animation and face expressions.

• Size of market:– inovani projections : on average 800-1.500 Web-

pages per country

– No official statistics.

Sandra CustomsVirtual host at Swedish Customs

Customer quote : The Virtual Guide becomes a new employee on the web, representing the company with their own unique personality and competence.

9

inovaniMarket : Single user applications

• Some application areas: – Tools for disabled, Information kiosks, Theme

Park guides

– Everywhere synthetic speech and talking characters can improve quality and service.

• Revenue model: – License per CPU with yearly support fee

• Competitive advantages: – Cover screens in all sizes from PDAs to

auditorium screens

– Extreme compression of stored video (sound and 3D-model ONLY since we are using Inovani proprietary viewer),

– Speech animation tested for lip-reading with success.

• Size of market: – N.A.

10

inovaniNext phase of Inovani

Business status• Mobile services : Business partnership with Eurobate ASA

– Presence in Norway, Sweden, Denmark, Spain, Germany, England, Italy and more – Services are launched in NW. New countries are rolled out these days.

• Mobile services : Business partnership with WapTheWeb AS– Presence in Norway– Services are launched in Norway

What’s next ?– Develop a complete business strategy for target markets– Build a sales, marketing and service organisation to support the business plan

• Penetrate large markets quickly with products for premium mobile services– Establish local presence, either alone or together with business partners

Capital needed is EUR 1.0 – 1.5 million

ROI : In 3 years the value of inovani is increased by a factor of at least 10

11

inovani

Risk factors

• Technical risks are minimal. The product is in production has been that for months.

• KEY RISK : – The markets; timing and growth rate– Capacity to build a successful sales, marketing, service and support

organisation