Mobile Coupons June 9, 2010 CONFIDENTIAL Achieving Scale – What it REALLY Takes

Biggest Secret in Mobile Couponing?

It is a RETAIL Technology Problem.

Why Retail Technology? Unique Identifier - Enter mobile number - NFC - Optical Scan I N T E G R A T I O N

Retailer Mindset Leverage existing retail technology stack Minimal cashier involvement Synergy with shopper card programs Maximize shopper participation (not just smartphones) Highest reach, number of consumer offers (coupons) Do it for me!

Leverage existing retail technology stack

Minimal cashier involvement

Synergy with shopper card programs

Maximize shopper participation (not just smartphones)

Highest reach, number of consumer offers (coupons)

Do it for me!

Retailer Mindset Leverage existing retail technology stack Minimal cashier involvement Synergy with shopper card programs Maximize shopper participation (not just smartphones) Highest reach, number of consumer offers (coupons) Do it for me! Do it for me!

Leverage existing retail technology stack

Minimal cashier involvement

Synergy with shopper card programs

Maximize shopper participation (not just smartphones)

Highest reach, number of consumer offers (coupons)

Do it for me!

Retailer Mindset Leverage existing retail technology stack Minimal cashier involvement Synergy with shopper card programs Maximize shopper participation (not just smartphones) Highest reach, number of consumer offers (coupons) NO: New hardware such as scanners, servers, PIN pads or RFID readers NO: Tactics that slow check-out NO: Poor user experience = Unhappy shoppers, abandonment NO: Narrow scope, technology available to a small fraction of shoppers Do it for me!

Leverage existing retail technology stack

Minimal cashier involvement

Synergy with shopper card programs

Maximize shopper participation (not just smartphones)

Highest reach, number of consumer offers (coupons)

NO: New hardware such as scanners, servers, PIN pads or RFID readers

NO: Tactics that slow check-out

NO: Poor user experience = Unhappy shoppers, abandonment

NO: Narrow scope, technology available to a small fraction of shoppers

Digital Incentive Life Cycle Breakdown at Point of Sale (POS) Fraud No Integration Proprietary New Hardware

Digital Incentive Life Cycle

Digital Incentive Life Cycle Seamless POS Redemption

Digital Incentive Life Cycle

Digital Incentive Network Secure, real-time, Transaction Network connecting Mobile and Internet based applications to retail Point of Sale (POS) systems. Known as “the final mile” in closing the loop for digital promotions. Complete pathway from promotion issuance to redemption, audit and fulfillment. A critical “NEW” set of “Rails” for retailers. Total “Coupon Ecosystem” alignment

Secure, real-time, Transaction Network connecting Mobile and Internet based applications to retail Point of Sale (POS) systems.

Known as “the final mile” in closing the loop for digital promotions.

Complete pathway from promotion issuance to redemption, audit and fulfillment.

A critical “NEW” set of “Rails” for retailers.

Total “Coupon Ecosystem” alignment

Retailers Like Networks Financial transaction processing network. Prepaid Gift Card processing network. Fraudulent Check verification network. In-Store targeted coupon network. Money order network. Gas rewards redemption network.

Analytics – Real Time Redemption Reporting (POS Integration Entry Point) Real Time Settlement Digital Incentive Network “ Digital Incentive Networks will enable the real-time settlement of many different types of media and stored value products.”

About the Industry… Networks: Mass-Market Enablement Mobile / LBS / Scan “ Redemption Codes” GROCERY/MASS focus, 80% of all coupon volume… Real-time multi item redemption for Grocery, Mass, Drug, C-Store. Specialized focus Single offer redemption for Merchants

How we Do it Point of Sale (POS) is highly guarded by retailers M-Dot is integrated with the 2 leading POS companies: - IBM (50% of terminals in US grocery) - Retalix (24% share of terminals in US grocery) Retailers update their POS 2X annually – creating a “natural” integration window Seamlessly integrated on POS base load, retailers don’t have to worry

Point of Sale (POS) is highly guarded by retailers

M-Dot is integrated with the 2 leading POS companies:

- IBM (50% of terminals in US grocery)

- Retalix (24% share of terminals in US grocery)

Retailers update their POS 2X annually – creating a “natural” integration window

Seamlessly integrated on POS base load, retailers don’t have to worry

>>>> YOUR APPLICATION HERE! <<<< Dynamic layer – API integration Frequent new products Open framework The API reaching POS Retail Tech standards Security & Compliance Configurable business rules POS vendor support Systematic distribution Base code How we Do It [integrate here]

>>>> YOUR APPLICATION HERE! <<<<

Dynamic layer – API integration

Frequent new products

Open framework

The API reaching POS

Retail Tech standards

Security & Compliance

Configurable business rules

POS vendor support

Systematic distribution

Base code

Macro-Level Ecosystem

Macro-Level Ecosystem

The Final Mile The “Final Mile” for mobile coupons is being built RIGHT NOW! The first EVER POS base code releases will be in July 2010 (IBM, Retalix) Installations = Scale for mobile coupons (More Retailers/Shoppers/Advertisers) Seamless process flow from Impression/Click to Redemption and Tracking The MMA is KEY to standardization and interoperability

The “Final Mile” for mobile coupons is being built RIGHT NOW!

The first EVER POS base code releases will be in July 2010 (IBM, Retalix)

Installations = Scale for mobile coupons (More Retailers/Shoppers/Advertisers)

Seamless process flow from Impression/Click to Redemption and Tracking

The MMA is KEY to standardization and interoperability

Thank you! Bill Catania CEO M-Dot Network (p) 814-244-1539 [email_address] Jeff Toewe EVP, Content M-Dot Network (p) 561-818-2772 [email_address] www.mdotnetwork.com