BRIEFING - Hi-G-Tek

Validating Asset Integrity

BRIEFING

July 2013 CMC India

Key Facts •  Hi-‐G-‐Tek was incorporated in Delaware in 2006

•  Headquartered in Rockville, MD with R&D offices in Tel Aviv, Israel

•  25 global patents covering key technologies

•  Over 30,000 seals deployed across 14 countries including large-‐scale systems

•  Current management includes founder who has +35 years of experience in low power, baPery operated electronics design for severe outdoor environments.

•  Senior ExecuTves have 40 years of combined global Fortune 500 experience handling sales, markeTng and business development.

•  Total 20 employees.

Major Customers

Key Partners

Barrick US Dept. of Energy

Cubic

Customs Authorities: Ethiopia, Ghana, Kenya, Israel

Emco Wheaton


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•  Hi-‐G-‐Tek provides informaTon and asset integrity systems that validate the condiTon, use and handling of high value assets across the supply chain.

•  Combines physical security to deter theV and tampering with status informaTon to ensure proper handling, compliance, custody and supply chain efficiencies

–  Electronic chain of custody / Electronic audit trail –  Physical security –  Reliable, maintenance-‐free operaTon –  Long-‐life reusable seals and sensors –  Wireless connecTvity and visibility –  Comprehensive Enterprise SoVware Pla[orm

•  OrganizaTons seeking confirmaTon that assets arrive at their desTnaTon intact turn to Hi-‐G-‐Tek for the most cost-‐effecTve soluTon in the marketplace.


Solu%ons Overview

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Market Assessment

Three Op%ons 1. Zero Informa%on, Low Cost: Mechanical bolts, PlasTc Tags that are easily compromised. 2. Superfluous Informa%on, High Cost: ConTnuous monitoring with satellite communicaTons and advanced intrusion detecTon for assets that require immediate intervenTon in the event of theV/tampering. This soluTon is appropriate for a small, specialized applicaTons – e.g. weapons. 3. Fleet Management Systems: Do not provide asset integrity informaTon and focus only locaTon and condiTon of vehicle. InformaTon limited to:

•  GPS / Trip / RouTng informaTon •  Vehicle tracking / Mechanical diagnosTcs •  Driver behavior / Remote Vehicle Disabling systems


Exis%ng solu%ons either provide too much or too liJle security or address a different problem altogether. They lack appropriate and ac%onable informa%on needed to ensure asset integrity

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Hi-G-Tek Fills the Gap •  Hi-G-Tek fills the gap between manual

status-quo controls and over-kill monitoring solutions by providing:

•  Low-cost maintenance free operation •  Long-life reusable design •  Real-time, wireless visibility •  Reliable operation in severe outdoor

environments •  Monitoring of tamper and other parameters

•  Hi-G-Tek Solution includes: •  Intelligent Wireless Edge Devices

•  Fixed, hand-held and vehicular readers •  Enterprise Services Software Platform •  Technology Agnostic Connectivity Platform

(Hi-G-Connect) •  Turn-key system integration and support

•  Hi-G-Tek solutions deliver the asset integrity features that customers need and can afford

Hi-G-Tek focuses on the asset


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Hi-G-Tek Sets the Standard in 2 Key Market Segments

1.  Electronic Cargo Tracking System (ECTS) •  Hi-G-Tek Solution has been deployed in every Nationwide ECTS

System to date •  Current deployments: Kazakhstan, Kenya, Ghana and Ethiopia •  Customers are National Customs & Revenue Collection Authorities

2.  Tanker Truck Monitoring Systems (TTMS) •  Only wireless real-time monitoring solution in the market today •  Customers are large industrial fuel users and major oil companies •  Nationwide TTMS mandates in Colombia and Israel •  Rising fuel prices / Government fuel subsidies driving theft and cross-

border smuggling


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Hi-G-Tek is Pursuing New Market Segment

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Intelligent Enclosures and Specialized Monitoring •  Delivers integrated wireless sensing and reporting on environmental variables

that impact asset condition and integrity •  Advanced wireless monitoring of temperature, humidity, vibration and tampering

across the entire supply chain •  Dept. of Energy - Global Threat Reduction Initiative (HAZMAT)

•  Expanding to 2,500 US Hospitals and Medical Facilities •  Securing medical radioactive materials and waste

•  Cold Chain Pharmaceutical, Medical, Human Tissue VALIDATING ASSET INTEGRITY ACROSS THE SUPPLY CHAIN


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Hi-‐G-‐Tek Solu%on

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DATA TRANSFER

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DATA UTILIZATION

Hi-‐G-‐Tek Readers Fixed/Handheld/Mobile

DATA AQUISITION

Hi-‐G-‐Tek Intelligent Edge Devices (Wireless, Maintenance Free)

Hi-‐G-‐Tek ESP SoVware Pla[orm (Enterprise Services Pla[orm) SaaS or Customer Hosted

Commercial Satellite, GPRS, 3G WAN

modems

INTERNET

Hi-‐G-‐Connect Pla[orm

Components – Intelligent Edge Devices Hi-G-Tek Locks, Seals and Sensors •  Wireless Connectivity

•  Full 2-Way short range (low frequency) and long range wireless connectivity (ISM band)

•  Sealed Units •  Resistant to wear, reusable, suitable for rugged

outdoor environments •  Battery Management

•  Sophisticated energy management technology, Long life, daily use, no recharging

•  Infrastructure •  Building blocks for multiple applications

•  Multiple Uses •  Internal Memory stores events and data,

reconfigurable, can monitor environmental parameters, easy to use


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Components – Fixed and Handheld Readers

•  Fixed Compact Readers send and receive data from the seals and are linked to the data center via Internet connection.

•  The Hi-G-Tek MicroReader allows authorized users to arm, disarm and verify status of edge devices

•  The Master Hand-Held Reader works with the dual frequency Hi-G-Tek RF card and allows users to read/write data to seals from long range and short range. Write manifests, configure, arm/disarm Hi-G-Tek edge devices.


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•  Hi-G-Way Reader is similar to the Fixed Reader but uses an internal GPRS/3G modem to communicate with the EPS software, thus making it ideal for remote locations.

Components – ESP Software Platform

Audit Trail

Geo-map w/Geo-fencing


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Hi-G-Tek Patent Portfolio


Patent Description

6,002,343 Electronic Tag with sealing indication, and Electronic seal

6,078,258 Electronic Filer sealed with elec. Tag and elec. Seal

6,281,793 An electronic Seal integrated with the carrying case or container

6,960,999 Communication protocol on the high frequency link

Patent Description

6,226,913 A system to electronically tag Weapons

6,255,958 Electronic Tag to secure valuable Pictures

Patent Description

6,116,298 Automatic Refueling System with elec. Tags by RF

6,394,150 A modular way to mount a reader on a nozzle

Patent Description

6,144,298 A secured net for sealing pallets

6,243,005 An embedded electronic lock to lock the seal wire

5,097,253 Electronic Seal.

6,069,563 Bolt and Elec. Sealing

6,778,083 Combined bolt with sealing wire

6,753,775 Smart Container Monitoring System

7,042,354 Tamper resist electronic Seal

Asset Security and Wireless Monitoring – Broad Application Use

Fuel Distribution and Supply Chain Trade Lane and Cargo Security

Other Application-Specific Patents

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Extensive Global Patent Filings

Global Technical Certifications


Proven product performance in severe outdoor environments

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Sales Objectives • US Market Focus

•  Specialty Transporters •  Pharma / Medical / Cold Chain •  Leverage ATA & Associations

•  Major Fuel Transporters •  Keenan Advantage Group •  Focus on efficiency/safety/theft •  Educate market on theft

•  Dept. of Defense •  DLA Energy (Afghanistan) •  US Army RIF Proposal

•  Dept. of Energy •  GTRI •  Sandia National Labs •  Convergint

• Grow International Markets •  Customs & Revenue Collection

•  Expand Ethiopia / Djibouti •  Develop Tanzania •  Expand Ghana •  Expand into Eastern Europe

•  Tanker Truck Transport •  National TTMS Mandates

(Colombia/Israel/Ecuador) •  Expand Emco Wheaton •  Develop Civacon Relationship •  Leverage Fleet Mgmt. Channel

•  Specialty Carriers •  Focus on high value cold chain •  Develop Syst. Integrator Channel •  Develop Fleet Management

Channel


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Channels/Partners


System Integrators Emco Wheaton UK (Global)

Summitec Colombia/Ecuador/Peru

CTF* Brazil

NTC Kazakhstan

GCS Ethiopia

Ammy S.A.* Chile

Neotek Paraguay

Soliflo South Africa

Datum & Ways Argentina

UTRACK Tanzania

Fleet Management Providers QUALCOMM USA (Global)

Rastrac USA

Scope Technologies* South Africa

Starcomm Israel

Arvento* Turkey

Rastreo Satelital Colombia

Novacom* France

* Negotiations Underway

Resellers Navisat Kenya

Magnate Technologies Ghana

Kaba Mas* USA (Global)

US Federal System Integrators Aquila Technologies Dept. of Energy - GTRI

Cubic* DLA Energy / DoD

Convergint* Dept. of Energy - Sandia

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Channels/Partners


* Negotiations Underway ** Proposal submitted

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Monday, July 23rd, 2012 Sales and Customers Status Existing International System Expected

orders Backlog Expected 2012

Sales / Required cash

Paz / Sonol Israel TTMS 0.1 0.1 / 0 Ethiopia - GCS ECTS 1 M 0 1 M / 0.35 Ghana ECTS 2.0 M 1.2 1 M / 0.30 Kenya ECTS 0.5 M 0 0.1 M / 0 Kazakhstan ECTS 0.3 M 0 0.3 M / 0.12 Emco Wheaton TTMS 0.5 M 0.15 0.5 M / 0.20 ERCA Phase II Exp 10 sites

ECTS 0.5 M 0 0.5 M / 0.15

Summitec Colombia TTMS 0.5 M 0.15 0.5 M / 0.2 Existing North America Barrick TTMS 0.25 M 0.12 0.15 M / 0.06 Cavallier Logistics C3M 0.25 M 0.15 0.15 M / 0.06 Aquila GTRI 0.65 M 0.5 0.5 M / 0.17 New North America Keenan Advantage C3M 1.5 M 0 / Q2-4 0.2 M / 0.08 Panther Logistic C3M 1.0 M 0 / Q2 0.1 M / 0.04 Cardinal Logistics C3M 1.0 M 0 / Q2 0.1 M / 0.04 Cubic Partnership Army – DLA TTMS

TTMS 1.5 M 0 / Q2-4 0.2 M / 0.10

Kaba Partnership CVS C3M 0.25 M 0 / Q2 0.2 M / 0.10 US Army Rapid Innovation Fund **

R&D 2.8 M 0 / Q3-4

New International UTRACK Tanzania ECTS 0.1 M 0 /

Q2-3 0.1 M / 0.04

Novacom France TTMS 1.0 M 0 / Q2 0.1 M / 0.04 LR Angola * TTMS 1.2 M 0 / Q2-3 Colombia expansion TTMS 1 M 0 / Q4 Djibouti Expansion * ECTS 0.5 M 0 / Q3 Israel Fuel Administration expansion

TTMS 1 M 0 / Q3-4

0.5 M / 0.2

Ecuador * TTMS 5 M 0 / 2013 EW Venezuela * TTMS 3M


Hi-G-Tek, Inc. 1445 Research Blvd, Suite # 150 Rockville, MD 20850-6153 Phone: 1(888)9 HIGTEK www.higtek.com

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Documents

BRIEFING - Hi-G-Tek