Brain fitness aims to improve and maintain cognitive abilities through cognitive training programs. These programs target normal aging adults looking to stay sharp as well as those with impairments or neurological damage. The brain fitness market is growing rapidly due to several trends, including positive scientific research on the benefits of cognitive training, baby boomers' fear of cognitive decline and Alzheimer's disease, increased industry funding, and public policy supporting cognitive health initiatives. Engaging gaming approaches to cognitive training are becoming more popular and effective than dull methods.

1. Brain Fitness
Trends and Initiatives
Health Care Unbound
Conference
June 22–23, 2009

2. Cognitive Interventions
TRAINING REMEDIATION REHAB
Brain Normal Impairments Neurological damage
Purpose Deferring decline Disease Acute Care
Staying sharp Management,
Chronic Care
Conditions Anti-Aging MCI TBI
Depression Stroke
Sports PTSD Alzheimer’s Disease
performance Chemo Fog
Behavior Disorders
On-the-job Others…
performance
2

3. Brain Fitness Defined
*
Cognitive
Science
Brain
Fitness
Physical
Gaming
Fitness
 What’s good for the heart is good for the brain
 Cognitive stimulation completes the picture
3

4. The Fun Factor: Dull ====== Highly Engaging
The Science: “Inspired by…...” ====== Evidence of Effectiveness
4

5. Achieving Brain Fitness with
Cognitive Training
Play - Measure – Monitor – Manage
 Personalized & Adaptive
 Challenging
 Variety & Novelty
 Engagement & Fun
 Evidence of effectiveness
5

6. Trends &
Growth Catalysts

7. Brain Fitness Trends
 Market Size
 2008 estimated at $265M
 35% CAGR 2005 2008
 2015 estimate is $1B - $5B
 2008 Data Points
 Fastest growing segment in the Casual Game sector
 Consumer & Health Care account for ~65% of the
market
 Independent & Assisted Living Facility deployments
increased ~100%
 Brain Gyms increased ~ 300%
?
7
Source: Sharpbrains 2009 Market Report

8. #1 Scientific Research is Positive
 Cognitive training improved cognitive abilities and effects
sustained 1
 Cognitive activities associated with reduced risk of cognitive
impairment 2
 Complex mental activities contribute to a lower risk of
cognitive decline 3
 A one-point increase in cognitive activity corresponded with
a 33% reduction in the risk of Alzheimer’s 4
 A cognitively inactive person is 2.6 more likely to develop
Alzheimer’s disease 5
 Cognitive Training improves targeted cognitive abilities 6
8

9. #2: Boomer Fear
 No known definitive cure for Alzheimer’s 1
 6th leading cause of death, on the increase
 5.3M Alzheimer's sufferers today
 10M Boomers will get Alzheimer’s Disease &
significantly more will experience MCI
 $174K - Average lifetime cost of care
 Top 3 Boomer fears relate to brain decline 2
 #1 running out of money
 #2 being a burden on family
 #3 loosing mental capacity
1. Alzheimer’s Association 2009 Facts & Figures 9
2. National Marketing Institute 2008 Health & Wellness database

10. #3 Industry Funding
2008
Capital Investment~$45M
First Product & Technology Acquisitions
Platform Investments
10

11. #4 Public Policy & Sector Action
 Mental Health Parity Act Amendment 2010
 Healthy Workforce Act
 (Harkin, D-IO, Smith, R-OR )(Udall, D-MN.,
Bono Mack, R-CA)
 Medicare emphasis on reduced hospital
readmissions
 U.S. Army policy requiring pre-deployment
cognitive screenings
 Corporate Education
11

12. #5 Pioneering
Institutions & Individuals
 Raising awareness
 Sharpening the competitive edge
 Focused on reducing cost
 Doctor’s Prescriptions
 Pre-tax expense / FSA / HSA
12

13. A note on public attitude…
 “Should cognitive and brain health be a
healthcare priority?”1
 “YES” 61% of survey respondents
 Do users care about the science?
 “No” younger healthy adults per Marbles the Brain Store
 “Yes” Individuals with a cognitive impairment
or the likelihood of one in the future.
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1. Sharpbrains 2009 Market Report

14. The very latest
public awareness….
Time Magazine
22 June 2009 14
Keeping brains healthy

15. PLAY Health & Wellness
and
Disease Management
Cross Training
or
Rem / Rehab
Program
MEASURE
MANAGE
15
MONITOR

16. Thank
You
Laura Fay, CEO
HAPPYneuron, Inc
laura.fay@happy-neuron.com
(650) 776-4352