BIRD FAccelerating Growth Through Strategic Partnerships

1 March 20101

www.birdf.com

NYTECH: Raising Capital in 2012February 15, 2012

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Joint fund, established in 1977 as a joint initiative between the US and Israeli governments

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BIRD = Binational Industrial Research and Development

Mission

To stimulate, promote and support joint (non-defense)

industrial R&D of mutual benefit to Israel and the

United States

Income from interest earned on $110 million endowment grant and from repayments from

successful BIRD projects

Funding

BIRD Foundation

BIRD’s Approach in a Nutshell

BIRD helps in finding strategic partners (“matchmaking”)

BIRD offers conditional grants for joint development on a risk sharing basis (private sector cost-share)

BIRD funds up to 50% of each company’s R&D expenses associated with the joint project

BIRD claims repayments as royalties only if commercial revenues are generated from the project (repayments: up to 150% of the original conditional grant, CPI adjusted)

As an example of mutual benefit: U.S. company benefits from access to innovation and IP; Israeli company benefits from complementary required capabilities and market access (other combinations are possible, e.g., complementary technologies)

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April 201144

$300M granted

830 projects approved

$91M repaymentsfrom projects

~$8B (Estimate)in sales generated directly and indirectly by BIRD sponsored activities

BIRD Performance Summary

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BIRD Projects by Industry 2006- 2010

5 Total # of Projects = 121, including “BIRD Energy” (9 projects)

March 20106

The BIRD Model

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Repayments Schedule

Years from Project

Completion

% of the grant to be repaid

1100%

2113%

3125%

4138%

5 & beyond150%

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Minimum repayment obligation : 100%

Maximum repayment obligation: 150%

Repayment rate: 5% of Sales

Semiannual repayments, indexed to CPI-U

The Pharma BIRD Model

In the event that Proposer or either Participant decides to continue further development of the Product either by Proposer, either Participant or together with any other third party, beyond the _____ stage, the Conditional Grant and Other Sums provided to the Proposer by the Foundation shall be repayable by the Proposer.

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Submitting Process:

Executive Summary of the Proposal - March14, 2012

Final Proposal – April 24, 2012

External Evaluation – Evaluators appointed by NIST &

Chief Scientist Office

Board of Governors – June 21, 2012

Company to Company Agreement

Cooperation and Project Funding Agreement

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November 201110

Leveraging BIRD’s Success

and

Experience

“BIRD Energy”

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“BIRD Energy”:Leveraging BIRD’s Success and Experience

InInEnergy Energy Independence Independence and Security and Security Act (2007)Act (2007)

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““BIRD Energy” ImplementationBIRD Energy” Implementation

“BIRD Energy” uses the same principles and similar procedures as BIRD

Scope: Renewable Energy and Energy Efficiency projects

Management by the BIRD team, with minimal overhead

Executive Committee for oversight: Assistant Secretary EERE*, Director General MNI* and a member of the BIRD Board of Governors (or their designees)

Project reviewers appointed by DOE/EERE and by MNI

* EERE: Energy Efficiency and Renewable Energy, U.S. DOE* MNI: Ministry of National Infrastructures, Israel

BIRD Energy Call for Proposals

The U.S. Department of Energy (DOE), the Israel Ministry of Energy and Water Resources and the BIRD Foundation have established “BIRD Energy”: a program for

U.S. - Israel joint renewable energy developments

To be considered, a project proposal should include:R&D cooperation between two companies or cooperation between a company and a university/research institution (one from the U.S. and one from Israel).Innovation in areas such as: Solar Power, Alternative Fuels, Advanced Vehicle Technologies, Smart Grid, Wind Energy or any other Renewable Energy/Energy Efficiency technology.Significant commercial potential; the project outcome should lead to commercialization.

The maximum conditional grant is $1M per project.

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04/07/23

Call for Proposals Timetable and deadlines:

The maximum conditional grant is $1M per project.

Timetable and deadlines:Executive Summaries (using BIRD’s template) – May 3, 2012Full Proposals (following BIRD’s detailed instructions) – June 28, 2012Decisions – September 6, 2012 For further inquiries please contact:In Israel: Ms. Limor Nakar-Vincent, [email protected], Tel: 972-3-698-8315In the U.S.: Ms. Andrea Yonah, [email protected], Tel: 609-356-0305

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BIRD GranteesExamples of US Companies

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BIRD GranteesExamples of US Companies - continued

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BIRD GranteesExamples of US Companies - continued

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3 Decades of collaboration

More about BIRD -

Specific Project Examples

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Medical Devices

ACMI (American Cystoscope Makers, Inc.; Now: Gyrus ACMI, an Olympus company), is a leader in the development and production of the world’s finest endoscopy instrumentation for the medical industry.

CByond specialized in designing video-scopes for medical applications.

Joint development product:

Flexible endoscope with integrated miniature video camera and LED as a light source.

Project title:

Fox Electronic Video Camera

Slide Approved by Companies or Information is Public Domain19

Allied Orthotics & Prosthetics business is the design, custom-manufacturing, fitting, training of a complete range of orthotic and prosthetic products for disabled people.

Argo Medical invented the external wearable skeleton enabling the walking of paraplegic patients.

Joint development product: ReWalk is a motorized exoskeleton suit that enables patients with lower limb disabilities, including complete paralysis, to independently engage in ambulatory activities, including standing,

walking and in some cases climbing stairs.

Project title: ReWalk – Clinical Trials at MossRehab (Philadelphia)

Slide Approved by Companies or Information is Public Domain20 04/07/23

http://www.youtube.com/watch?v=IaiO8a1ZY5g

Medical Instrumentation

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USA Hockey, Inc. is the National Governing Body for the sport of ice hockey in the United States.

Joint development product: A software-based program that allows players to develop perception, short-term memory focus and decision-making skills, as well as enables coaches to fine-tune programs and follow up on each player's progress.

ACE (Applied Cognitive Engineering) develops software based "Brain-Gyms" to improve the performance of trainees in targeted tasks

Project title: The Hockey IntelliGym

Slide Approved by Companies or Information is Public Domain

Brain Training/ Software

Bionic Eye

Rainbow Medical: is a medical devices innovation house, already responsible for the successful launching of design and implementation of numerous medical devices.

Zyvex Labs exploits its predecessor company Zyvex Corporation’s technology for Micro-Electro-Mechanical-Systems (MEMS) microfabrication and 3D microassembly.

Joint development product: A nanotechnology approach for sight restoration based on an Artificial Retina which interfaces electrodes with living retinal cells (neurons)

Project title: : Nano Retina

04/07/23

Mountain View Pharmaceuticals, Inc. experts in protein chemistry and the synthesis of PEG derivatives.

Joint development product: Development of effective therapy for patients with severe and presently untreatable gout. The drug is called Krystexxa, marketed by Savient Pharmaceuticals

Bio-Technology General Ltd. had extensive expertise in production and purification of recombinant proteins for parenteral use (acquired by Savient Pharmaceuticals Inc.)

Project title: Development of PEG-Uricase for Treatment of Intractable Gout and Related Conditions

Life Sciences - Pharma

Life Sciences

The American Red Cross (ARC) collects ~6 million units of whole blood per year. One million liters of human plasma are derived to be manufactured into a variety of therapeutic plasma protein pharmaceuticals.

Joint Development:The project is to develop, scale-up, manufacture and market API (Alpha-1-Proteinase Inhibitor), which is a protein synthesized in the liver and

secreted into serum .

Kamada specializes in the manufacture of therapeutic pharmaceuticals from human plasma, using chromatographic separation techniques.

Project title: Development of the API Manufacturing Process

GLASSIATM

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Electro-optics

Opgal Optronic Ind. Ltd. is a leading supplier of highly sensitive cooled and uncooled Thermal Imaging Systems, infrared cameras engines for industrial, R&D, defense, security and paramilitary applications.

Kollsman, Inc. is a leading manufacturer of avionics and electro-optic systems supplying to commercial and military markets as well as a medical

instruments systems contractor

EVSView

Project title: Aircraft Enhanced Vision System (EVS)

EYE view

Joint development product: The EVS camera is designed to provide day/night improved orientation. It allows visual landing in reduced visibility conditions, such as fog, haze, dust, smog etc. The system provides a fused, visual and near-IR picture, and displays a video image,

superimposed on the pilot's Field-Of-View.


04/07/23

McGraw-Hill Higher Education, a unit of McGraw-Hill Education, is a premier provider of teaching and learning solutions for 21st century post-secondary and higher education markets worldwide.

Joint development product: Active access to students and instructors between multiple types and sources of learning objects (lectures, tutorials, sessions, etc.)

Tegrity Ltd. is the maker of Tegrity Campus, the leading class capture Web service, leading provider of platforms for e-learning content creation and distribution.

Project title: Lotus

Software/Education


Healthcare/Orthodontics

3M Unitek designs, manufactures and sells of orthodontic appliances, and it is the world’s largest supplier of these products (Acquired by 3M in 1987)

Joint development product:Computer-guided bracket placement system that calculates optimal bracket placement positions, saving time, reducing errors and increasing treatment efficiency

Cadent develops and sells proprietary 3D-based services to dental officesNote: Cadent established a significant U.S. operation as well (NJ)

Project title: 3D Imaging for Orthodontics (Presently marketed by Cadent only)

04/07/23

Electro-optics

Opgal Optronic Ind. Ltd. is a leading supplier of highly sensitive cooled and uncooled Thermal Imaging Systems, infrared cameras engines for industrial, R&D, defense, security and paramilitary applications.

Kollsman, Inc. is a leading manufacturer of avionics and electro-optic systems supplying to commercial and military markets as well as a medical

instruments systems contractor

EVSView

Project title: Aircraft Enhanced Vision System (EVS)

EYE view

Joint development product: The EVS camera is designed to provide day/night improved orientation. It allows visual landing in reduced visibility conditions, such as fog, haze, dust, smog etc. The system provides a fused, visual and near-IR picture, and displays a video image,

superimposed on the pilot's Field-Of-View.


04/07/2329

Manufacturing

TESCO Group Companies deliver a wide range of high quality agile manufacturing systems and services for today's global automotive market

CogniTens develops, manufactures and markets 3D vision measurement systems for industrial applications, mainly targeted at the automotive and the aerospace industries

Joint development product: Automated measurement systems designed for process control and quality assurance on the

production floor

Project title: Flexible 3D Measurement System for the Automotive Industry

I3 Measurement Cell


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Food Technology

Ciba Specialty Chemicals Corp. is a leading global company dedicated to producing high-value effects for its customers’ products.

Fresh-Point is a private company specializes in the area of smart packaging, such as novel organic crystal-based time-temperature indicator

Joint development product: novel printable & chargeable time temperature indicator

Project title: Novel Time Temperature Indicators.

Freshness check at a glance – OnVu™ time-temperature indicators show accumulated chill-chain history of perishables


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HLS/Disaster Recovery

EMC Corporation is a world leading developer and provider of information infrastructure solutions.

Joint development product: Designed to outlast extreme circumstances, the AxxBox will carry the data through disaster and then transmit it to the remote recovery site, eliminating the need to be physically found.

Axxana, provides solutions for data protection by recovering data with zero data loss over any distance.

Project title: An Advanced Disaster Recovery System – The AxxBox Solution


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Homeland Security

General Dynamics Armament and Technical Products (GDATP) an operating unit of General Dynamics, is a proven systems integrator of defense products

Joint development product: a comprehensive, portable solution for through-wall location and sensing. The Xaver™ 400 system will let one know in real-time whether people are present behind walls, how many and where they are situated.

Camero-Tech Ltd., founded 2004, focuses on through wall imaging and sensing devices

Project title: Through-wall Location and Sensing System

Xaver™ 400

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Solar Power

BP Solar International Inc., one of the world’s largest integrated energy companies focusing on new, cleaner technologies – including solar

Joint development product:

Digital power conversion to provideoptimal power harvesting

SolarEdge aims to transform the solar photovoltaic market by developing a unique power harvesting solution providing unsurpassed performance in real-life scenarios

Project title: Panel Integrated Power Harvesting Unit

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Ethanol from Waste Sources

Qteros (formerly SunEthanol) focuses on novel cellulosic ethanol technologies creating a platform capable of converting a wide array of cellulosic biomass directly into ethanol in one simple step

Joint development product: low-cost, high-yield, waste-to-ethanol industrial scale production process that will be superior to current processes technically and economically

Applied CleanTech (ACT) specializes in extracting & recycling valuable raw materials such as cellulose from waste sources and processing them into feedstock for cellulosic ethanol industry

Project title: Development of process for efficient ethanol production from municipal and agriculture waste sources


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Cleantech/Desalination

GE (Global Research) – one of the world's most diversified industrial research labs, providing innovative technology for all of GE's businesses

Joint development product: By combining the innovative closed-circuit reverse osmosis desalination scheme of Desalitech with next-generation capabilities developed by GE, the companies will productize an integrated solution that will dramatically reduce the capital expenditures and the energy consumption of saltwater desalination plants.

Desalitech pioneered a brand new approach to reverse osmosis desalination by implicating closed circuit desalination based on hydrostatic principles

Project title: Integrated Low-Cost RO Systems for Seawater Desalination


36 March 201036

www.birdf.com

Thank You!

Andrea YonahEast Coast RepresentativeBIRD Foundation [email protected]

Documents

BIRD FAccelerating Growth Through Strategic Partnerships