Founder Arjun Yetukuri, Ph.D.

Focus: Intellectual Property Development Patent Portfolio: Consumer Products Business Model: Recognize the “Need” Innovate and Patent License or Sell IP Founder: Arjun Yetukuri, Ph.D. Strength: Recognize the Need and Innovate Multiple Patents Pending 15 yrs of Diverse Research and Product Development Experience Thought Waves Inc. Intro

Focus: Intellectual Property Development

Patent Portfolio: Consumer Products

Business Model:

Recognize the “Need”

Innovate and Patent

License or Sell IP

Founder: Arjun Yetukuri, Ph.D.

Strength: Recognize the Need and Innovate

Multiple Patents Pending

15 yrs of Diverse Research and Product Development Experience

Invention: A Removable Storage Device with a Display US Patent # 7,451,262 Includes Flash Drive Devices Includes Touch Screen Display Includes External/Removable Memory Storage Devices Removable Storage Device with a Display What?

Invention: A Removable Storage Device with a Display

US Patent # 7,451,262

Includes Flash Drive Devices

Includes Touch Screen Display

Includes External/Removable Memory Storage Devices

Features of the Invention… Display to view contents without connecting to a computer Can also be a touch screen display Basic functions include: store, delete, cut, copy, paste Chargeable power source when attached to PC Removable Storage Device What?

Features of the Invention…

Display to view contents without connecting to a computer

Can also be a touch screen display

Basic functions include: store, delete, cut, copy, paste

Chargeable power source when attached to PC

Features of the Invention Multiple interface options Touch screen, digitizer, thumb wheel, joystick Multiple connections possible, USB or wireless Display on the exterior and/or interior of protective cover Use 2 displays as one continuous display for larger capacity units Removable Storage Device What?

Features of the Invention

Multiple interface options

Touch screen, digitizer, thumb wheel, joystick

Multiple connections possible, USB or wireless

Display on the exterior and/or interior of protective cover

Use 2 displays as one continuous display for larger capacity units

Typical Prices of Flash Drives How Does a Licensor Benefit…? How? Special Features Size Regular Brand* Name Brand* w/ 256-bit AES Hardware Encryption* w/ 256-bit AES Hardware Encryption and an Enforced Complex Password* Password Protection and Device Lockdown after a Specified Number of Invalid Attempts* 2GB $8 $10 $75 $85 $105 4GB $10 $14 $120 $130 $155 8 GB $15 $40 $210 $220 $265 16 GB $27 $44 $350 $375 32 GB $60 $80 $609 $630 64 GB $160 *Source: http://www.supermediastore.com/usb-flash-drive-usb-pen-drive.html 3/22/2009

Typical Prices of Flash Drives

Licensing Fee For Flash Drive Sales Based on Brand Name Pricing Based on Special Feature Premium Pricing Factor (PPF) Assumptions 1: Licensing Fee is 3% of Retail Price 2: Yearly Sales = 2008 Market (12.1 M Units*) 3: 20% Market Penetration for Flash Drive w/ Display 4: 10% Yearly Reduction in PPF How Does a Licensor Benefit…? How? * Source: Semico Research Corporation Study # NV105-04

Licensing Fee For Flash Drive Sales

Based on Brand Name Pricing

Based on Special Feature Premium Pricing Factor (PPF)

Assumptions

1: Licensing Fee is 3% of Retail Price

2: Yearly Sales = 2008 Market (12.1 M Units*)

3: 20% Market Penetration for Flash Drive w/ Display

4: 10% Yearly Reduction in PPF

Potential Revenue for the Licensor… For 1 Yr For 5 Yrs How Does a Licensor Benefit…? How? Details ► If Feature Demand Exists for 5yrs: Even If Premium Pricing Factor Reduces by 10% Per Yr 5 Yr Revenue: $69,638,305

Potential Revenue for the Licensor…

For 1 Yr

For 5 Yrs

Potential Revenue for the Licensor - Details How Does a Licensor Benefit? How? = 0.2*12,100,000 = 2,420,000*6.38*38 = 580,319,206*0.03

Potential Revenue for the Licensor - Details

Increased Memory Capacities of Flash Drives Increased number of files being stored Increased number of file types being stored Increased consumer need for more control of their data Increased difficulty in file management Relevance of the Invention… Why?

Increased Memory Capacities of Flash Drives

Increased number of files being stored

Increased number of file types being stored

Increased consumer need for more control of their data

Increased difficulty in file management

Flash drives are the #3 selling item In the U.S. and European promotional products market * Combined retail and promotional logo flash drive sales: Expected to reach 10 Billion USD in 2009 * Flash drive memory cost jumped 87% in early January 2009 * * Source: PRLog.org (Press Release) – Jan 19, 2009 Relevance of the Invention… Why?

Flash drives are the #3 selling item

In the U.S. and European promotional products market *

Combined retail and promotional logo flash drive sales:

Expected to reach 10 Billion USD in 2009 *

Flash drive memory cost jumped 87% in early January 2009 *

Ever Growing Flash Drive Market Consumer acceptance rate of this technology is high USB flash drive users own more than one device Increasing variety of flash drives Increasing difficulty in differentiating flash drives Not enough value features to differentiate flash drives Relevance of the Invention… Why?

Ever Growing Flash Drive Market

Consumer acceptance rate of this technology is high

USB flash drive users own more than one device

Increasing variety of flash drives

Increasing difficulty in differentiating flash drives

Not enough value features to differentiate flash drives

Some manufacturers using the form factor to differentiate Relevance of the Invention… Why? Some manufacturers using the function factor to differentiate

Some manufacturers using the form factor to differentiate

Some manufacturers using the function factor to differentiate

Consumer Benefits Interactivity: Ability to view & manage files anytime, anywhere Without being connected to a PC Flexibility: Convenience of receiving and sending data files Without being connected to a PC Relevance of the Invention… Why?

Consumer Benefits

Interactivity: Ability to view & manage files anytime, anywhere

Without being connected to a PC

Flexibility: Convenience of receiving and sending data files

Without being connected to a PC

Manufacturer Benefits Differentiation: Display is a functional & unique product differentiator Price Advantage: Added functionality of the invention Can justify a price premium Can generate higher profits Relevance of the Invention… Why?

Manufacturer Benefits

Differentiation: Display is a functional & unique product differentiator

Price Advantage: Added functionality of the invention

Can justify a price premium

Can generate higher profits

Flash drive market is growing at an enormous rate Capacity/drive is growing, making file management difficult Consumers want more control of their data IP covers removable memory devices Potential additional revenue source for a Licensor Licensing to manufacturers of removable hard drives Conclusions… Next?

Flash drive market is growing at an enormous rate

Capacity/drive is growing, making file management difficult

Consumers want more control of their data

IP covers removable memory devices

Potential additional revenue source for a Licensor

Licensing to manufacturers of removable hard drives

Conclusions Next?

If Interested in this IP, with serious inquiries contact Thought Waves Inc.: [email_address] Next Step Next?

If Interested in this IP, with serious inquiries contact Thought Waves Inc.:

[email_address]