Slide 1

The Unbounded Home Audio Solution

LeapFrog#

RemotesWires

SpeakerSpeakerSpeaker SpeakerSub-Woofer

Speaker##Mark

One room is typically wired for good sound. Tied to stack of AV gear requiring three or more remotes to operate.2Todays Patchwork Home Audio

MEDIA RM.

LeapFrog

LeapFrogAV StackHome TheaterPCiPod DockSpeakersNothingAudio Console Clock RadioPC SpeakersWireless RouterClock RadioiPod DockSpeakersBoom BoxNothingNothingNothing#74% of people are planning to spend equal or more dollars in 2010 on home entertainment61% broadband34% LANStreaming content available20 May 20103

MEDIA RM. WiFiLeapFrogTM Integrated Home Audio

LeapFrog

LeapFrogLeapFrog Amplifier ModulesLeapFrog Speaker ModuleLeapFrog Amplifier ModuleLeapFrog Speaker ModulePC & Router

LeapFrog Speaker ModuleLeapFrog Speaker ModuleLeapFrog Speaker ModuleLeapFrog Speaker ModuleLeapFrog Speaker ModuleLeapFrog Speaker ModuleLeapFrog Speaker Module#74% of people are planning to spend equal or more dollars in 2010 on home entertainment61% broadband34% LANStreaming content available20 May 20104High Quality Wireless Whole Home Audio LeapFrogTM Value PropositionBasic implementation for $250 per roomModernize Existing Speakers$250 per pair

LeapFrog

LeapFrogPatchwork 2Br HomeLeapFrogTM SolutionMedia RoomExisting AV Gear + PCWireless ampsMaster BedroomSpeakers, Amp + iPod dockWireless ampKitchenClock RadioWireless speakersPatioBoom BoxWireless speakersDining RoomNothingWireless speakersBedroom 2iPod Dock, SpeakersWireless speakers$1,825 ##Mark5Market

LeapFrog

LeapFrog$3.9B Home AudioTrend shows 20% digital audio (2006) 3.5M customers in early adopter target demographicConventional home audio 2006Digital audio20%2006 70%Digital AudioConventional home audio 2009moving to 70% (2009) Component Audio Audio systems MP3 Player Docking Speaker Systems Clock/tabletop Radio70,000,000 Males 25-55

17,500,00College Educated, Middle Class

3,500,000Techno-Geeksw/ disposable income

#6Debra. See xls files for these pie charts24 May 20106End-userOnline Storefront

Box Store

OEM Partner

License & Sell OEM Assemblies

Distribution ChannelsLeapFrog

LeapFrog

LeapFrogGo To MarketLocal AudioResellersDistribution ChannelsEnd-userEnd-user##Debra no change7Competitive LandscapeSystemWiFiSurroundSoundNo base boxSmart Phone ConfigurableSupports existing speakers$250 solution per roomLeapFrogTM Apple AirtunesAcoustic ResearchSonosBose Bose-LinkKlipsch KlipschCastSony S-AirLogitech Squeezebox

LeapFrog

LeapFrog#Debra8LeapFrogTM Technology

LeapFrog

LeapFrogRound 1FoundationComponentRound 2FrameIntegrationAmplifier ElectronicsAR/S Box DesignSpeaker ModuleSub-Woofer ModuleAmp/Rcvr Modules Transport ProtocolTiming ElectronicsReceiver ElectronicsLeapFrogTM BoardDAC Electronics#Rick23 May 20109Execution

LeapFrog

LeapFrogProfitableRound 1$1.5MRound 2$2.0MRound 3$12M Staff all Key Marketing and Technical Positions FTO Analysis / File IP Demonstrate Core Technology

Staff all Key Commercial and Operations Positions Prototype Products OEM Partnership Mfg Partnership2010201120122013LaunchExpansionDebt Financing#23 May 201010Financials

LeapFrog

LeapFrog

#Need much better definition, obvious typosShow number of systems sold so people can get reality checkCOGS looks like includes all opex, not just mfg. COGs

RickFunding Need

LeapFrog

LeapFrog LeapFrogTM addresses large gap in $2B digital home audio market Asking for $1.5M funding to demonstrate key technologies##1st allow major SW on Embedded device1st to have both PC and Non-PC to co-workEngineering leads: can they be contract too, just need 1-2 architect/system design seniors1st to market with Open Standard Media Player1st to allow small screen to be a standard signage system

Rick12Appendix###20 May 201013

Mark PrattCEO 5 years with Ilumina Co-founder nLight Photonics 10 years start-up experienceTom HoltVP Engineering 007 years in EngDebra StaplesVP Marketing & Sales 15 years in Sales & MarketingRick SuminskiCFO 6 years Acct & Fin 15 years Eng Mgmt Rodolfo RodriguezVP Operations 25 years in SC & Mfg

Founding Team

LeapFrog

LeapFrog#14MarkCash Flow Model

LeapFrog

LeapFrog##24 May 201015

AudioOEMMfg HUB

CustomerCommonRMSpeakerModules

MfgHUB

ComponentVendorsLeapFrog Branded ProductsDirect ChannelOEM LeapFrog Inside ProductsIndirect ChannelRegionalized supplied modulesComponentVendors

DFx (leverage RM & Partner Mfg) Partner w/OEM Audio Mfg 50/50

Develop Direct & Indirect Go to Market model Develop & align IP royalty model

Amazon Storefront

RegionManufacturing Model

LeapFrog

LeapFrog# Huge Market Opportunity !! (Target audience) Techno-geek, technology savvy & college educated Male, 25-55 age (At least 10% of total population)Approx 3,500,000 customers in demographic

Demographic

LeapFrog

LeapFrog#17LeapFrog Technology$319 - $699OEM LeapFrogTM inside speakers by premium audio manufacturersProduct Target PricingLeapFrogTM WiFi Amplifier/Receiver AR2.0 AR2.1 AR3.1 $249$275$299LeapFrogTM WiFi Speaker Module$249LeapFrogTM WiFi Sub-Woofer$199

LeapFrog

LeapFrog##Rick20 May 201018