2011/8/3 FIO Technology Inc. confidential 1

Contact: Itsuro Yoshimotoiyoshi@fiotechnology.com

Phone: 408-315-4187

Product: FIO

-KeyB

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Product:

Product: FIO

FIO

--KeyB

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Our Mission: Provides an universal design concepts

of user interface to partners and end users with

creative ideas and innovative technologies.

FIO Technology Inc.

2011/8/3 FIO Technology Inc. confidential 2

SMK introduced FIO-KeyBO featured remote controller for future IPTV at CES2011 & The CableShow2011

Partnership with SMK Electronics

2011/8/3 FIO Technology Inc. confidential 3

“ Power of the thumb “ proved by the success of RIM’s blackberry ~ Human brains has the ability to control the small keys ~

RIM proved the tiny QWERTY keyboard is comfortably usable with 55mil (Dec/2010) subscribers

Penfield’s brain map

Intrinsic human’s ability

Acceptable minimum

key pitch is 5mm.. (Proved by failed products like MS Kin, Palm Pixi)

2011/8/3 FIO Technology Inc. confidential 4

[letter]：- position to press -

◎◎◎ 【Q】: Left side of [1] key

◎◎◎ 【W】: Center of [1] key

◎◎◎ 【E】: Right side of [1] key

◎◎◎ 【R】: Middle of [1]&[2]

◎◎◎ 【T】: Left side of [2] key

FIO-KeyBOFIO-KeyBOStandard [2Abc]

keypad Standard [2Abc]

keypad

Allocates TWO switches under each key top instead of ONE, 11 unique characters can be generated from THREE numeric keys by single click instead of multi-tap key press

Allocates TWO switches under each key top instead of ONE, 11 unique characters can be generated from THREE numeric keys by single click instead of multi-tap key press

FIO-KeyBO makes existing 10 key remote controller as a full PC keyboard within 40mm device width by keeping 6mm key pitch

Simply split single silicon rubber switch into two pieces

Simply split single silicon rubber switch into two pieces

Solution

patent has been filed to US, JP, KR, CN, IN & EU

2011/8/3 FIO Technology Inc. confidential 5

FIO-KeyBO ~ Strength

Why FIO-KeyBO is superior..?

Enables 10 keys as full PC [QWERTY] keyboard

Keeps Number keys as big as current remotes

Supports full symbols of PC keyboard

No cost up for switch

Keep the same width like existing remotes

Why FIO-KeyBO is superior..?

Enables 10 keys as full PC [QWERTY] keyboard

Keeps Number keys as big as current remotes

Supports full symbols of PC keyboard

No cost up for switch

Keep the same width like existing remotes

Strength

2011/8/3 FIO Technology Inc. confidential 6

Our Business ModelExplore the ultimate IP licensing business, and make BT accessory keyboard and FIO-Pad application for Android as the calalyst

Power of FIO-KeyBO

Licensing business

1. mobile phone

2. remote controller

3. game controller

Hardware development & sales

1. BT accessory keyboard

Application development & sales

1. FIO-PAD application for Android

2. FIO-PAD application for iPhone

Power of FIO-KeyBO

Licensing business

1. mobile phone

2. remote controller

3. game controller

Hardware development & sales

1. BT accessory keyboard

Application development & sales

1. FIO-PAD application for Android

2. FIO-PAD application for iPhone

Business Model

SMK exhibited FIO-KeyBO featured remote controller at CES2011

Expecting SMK sales team to convince US cable carriers within this year

Expand licensing business to mobile phone and game controller

Revenue... ($0.05~$0.10)/device

SMK exhibited FIO-KeyBO featured remote controller at CES2011

Expecting SMK sales team to convince US cable carriers within this year

Expand licensing business to mobile phone and game controller

Revenue... ($0.05~$0.10)/device

Initially, develop 10K units

Revenue... ($79~$99)/device

Initially, develop 10K units

Revenue... ($79~$99)/device

Initially, develop 10K units

Revenue... ($79~$99)/device

Initially, develop 10K units

Revenue... ($79~$99)/device

Aims de-facto input method for Android

Revenue... ($12)/year/device

Aims de-facto input method for Android

Revenue... ($12)/year/device

2011/8/3 FIO Technology Inc. confidential 7

Nokia1100Nokia1100

Sold-250mil units!!Sold-250mil units!!

Blackberry styleBlackberry style

fusedfused

Proposal to Nokia - Nokia1100 -

Regains the market share over 40% with FIO-KeyBORegains the market share over 40% with FIO-KeyBO

FIO-KeyBO featured entry model

2011/8/3 FIO Technology Inc. confidential 8

BT external keyboard

for touch-panel devices such as ipad or tabletPC

BT Presentation

controller with LED pointer and unique realtime text adding feature

IR universal remote

controller

(Motion censor controll)

BT external keyboard

for touch-panel devices such as ipad or tabletPC

BT Presentation

controller with LED pointer and unique realtime text adding feature

IR universal remote

controller (Motion censor controll)

Single hand operationSingle hand operation

Universal Remote presentation controller keyboard with FIO-KeyBOUniversal Remote presentation controller keyboard with FIO-KeyBO

New product proposalBT keyboard

2011/8/3 FIO Technology Inc. confidential 9

Press the [2] area, and;[T]: release

[R]: move & release to the right

[Y]: move & release to the left

Press the [2] area, and;[T]: release

[R]: move & release to the right

[Y]: move & release to the left

Application

New concept: Enjoy keyboard as a fun wall paperNew concept: Enjoy keyboard as a fun wall paper

“FIO-PAD” fun wall paper input method

* Download FIO-PAD for free, but pay $0.99 for additional new keyboard skin for fun!

Series (Flower, animal, face, Twitter&Facebook thumbnails)

* Add variation for the key layout, direction of flick, etc.

* Download FIO-PAD for free, but pay $0.99 for additional new keyboard skin for fun!

Series (Flower, animal, face, Twitter&Facebook thumbnails)

* Add variation for the key layout, direction of flick, etc.

Blind touch

Accurate & Fast !!

Fun ^_^

2011/8/3 FIO Technology Inc. confidential 10

☆ FIO is looking for the $1.5mil fund to

accelerate our goal !

☆ FIO is looking for the $1.5mil fund to

accelerate our goal !

Summary…SummarySummary……

FIO provides FIO-KeyBO, new text input solution to enables existing 10 key device as a full PC keyboard, without changing its original form factor with minimum cost up, to save 5 billions+ worldwide users from inconvenient multi-tap text entry method

FIO provides FIO-KeyBO, new text input solution to enables existing 10 key device as a full PC keyboard, without changing its original form factor with minimum cost up, to save 5 billions+ worldwide users from inconvenient multi-tap text entry method

FIO pursuits ultimate IP licensing business through FIO-KeyBO for IPTV remote controller & mobile phone with over 80% PER, and aims to exit in around 2016~2017

FIO pursuits ultimate IP licensing business through FIO-KeyBO for IPTV remote controller & mobile phone with over 80% PER, and aims to exit in around 2016~2017

3Q11 2016201620162016

2011/8/3 FIO Technology Inc. confidential 11

IPTV Remote controller IPTV Remote controller

Expecting 50mil IPTV and 240mil Digital STB would be sold in 2011 with CAGR(25~30%)

2011/8/3 FIO Technology Inc. confidential 12

Market

Source: [Display Search]Source: [Display Search]

ＣＡＧＲ（

30％）

IPTV Potential MarketOver 40 mil units (21%) of all TVs shipped in 2010 had the internet connectivity (IPTV), and would grow 118mil units in 2014 (CAGR[30%]

2011/8/3 FIO Technology Inc. confidential 13

Market

Source: [Original graph: Strategy Analytics Connected Home Devices service]Source: [Original graph: Strategy Analytics Connected Home Devices service]

Digital STB worldwide MarketWorldwide Digital STB unit sales had reached 100mil units in 2007. Grow even faster with CAGR[25%] in recent years, and 195mil units have sold in 2010（source: Instat）

ＣＡＧＲ（２５％

）

2011/8/3 FIO Technology Inc. confidential 14

Users’ complaint about existing remote controller“Search” function become a mandatory feature for IPTV remote controller

• IPTV requires the text input function to enable quick direct search of user’s target content through out the various media and the numerous cable TV channels.

• Roku(1mil+) & Game consoles (170mil+) enables existing TV as the IPTV

・Selecting each letter by pointing the virtual keyboard on a TV screen is time- consuming and hectic operation such as selection by cursor (Roku) or motion sensor controll (Wii remote) .

Customer

Netflix: 23mil US household users (21% in US)

Netflix: 23mil US household users (21% in US)

2011/8/3 FIO Technology Inc. confidential 15

New remote controllers for IPTV/STB comes with QWERTY keyboard to enables users the quick “Content Search” by direct text entry

Competitor

2011/8/3 FIO Technology Inc. confidential 16

Brian Roberts, a chairman of Comcast introduced new IPTV remote controller at the CableSHOW2011(June)

New trend of IPTV

http://www.youtube.com/watch?v=KBnLCbzMR9Y&feature=player_embedded

“Search” button & “T9word”

2011/8/3 FIO Technology Inc. confidential 17

We can learn from mobile phone industry. * T9 canNOT support unique name entry, and requires multi-tap together. * QWERTY took over the multi-tap as the smartphone. * However, QWERTY keyboard is hard to fit in limited spaces. ( Swype has the same problem as T9.)

IPTV

Layer of text entryLayer of text entry

What is the intrinsic problem for text entry? Intrinsic problem

Channel & title search

There is NO ultimate input solution as of today…

2011/8/3 FIO Technology Inc. confidential 18

FIO’s licensing business modelMobile phone Market：

Licensing to Nokia, Samsung, LG… Aim 22% Market Share in 2017 with $30mil licensing income

Business Model

2011/8/3 FIO Technology Inc. confidential 19

Short term necessary funds ($1.5mil) ( Q3/2011[$1mil]、Q4/2012[$0.5mil] )

Necessary Funds

2011/8/3 FIO Technology Inc. confidential 20

Long Term Financial Plan (2010-17) Establish high profit ratio business through licensing

Long term Financial Plan

Exit model would be

acquired by Nuance Corp.In 2017 w/

$200~$500mil

2011/8/3 FIO Technology Inc. confidential 212011/8/3 FIO technology Inc. confidential 21

Tsuyoshi Taira is the CEO of Tazan International Inc, a Venture Capital and Management Consultancy Firm. Mr. Taira has been involved with a number of Silicon Valley startup companies as founding investor/director including Atmel Semiconductor (NASDAQ: ATML), Pico Power Technology Inc (acquired by Cirrus Logic), Junglee Corporation (acquired by Amazon.com, NASDAQ: AMZN), Armedia (acquired by Broadcom, NASDAQ: BRCM), Apptivity (acquired by Progress Software, NASDAQ: PRGS) and many others. He has been instrumental in providing seed stage financing, management and marketing advice, especially f or the Far Eastern market to the startup companies. Currently he serves on the boards of Silicon Storage Technology Inc. (flash memory company), Nayna Networks, Inc. (networking products and services), Ureach.Com (unified e-mail and voice mail messaging company), Asia-Links Media (Semiconductor components e-commerce) and Teleweb (Call Center in China). In addition, he is on the advisory board of Silicon Motion (Graphic Controller IC), CLCEO (Polarizer), Reveo (Revolutionary Electro Optics Technology Company) and several other companies.

Previously, Mr. Taira was Chairman of Sanyo Semiconductor directing Sanyo’s US marketing strategy. Most of his career was spent at Sanyo Corporation except for five years when he worked at Fairchild Semiconductor. Mr. Taira graduated from Tokyo Metropolitan University with a BSEE. He also received an Honorary Doctor of Humanities from Newport Asia Pacific University in March 2000. He has published a number of books including “Audio Amplifier”, “Transistor physics And application” as a Co-author and most recently a book on entrepreneurship, “ My fe l low eng ineer , l e t ’s cha l lenge” f rom Nikke i BP .

BoardInitial investor

2011/8/3 FIO Technology Inc. confidential 22

Itsuro Yoshimoto founded FIO Technology Inc in 2006, formerly Yoshimoto Inc. He filed FIO- KeyBO related patents to PCT and 6 regions (US, JP, KR, CN, IN, EU). Prior to Yoshimoto Inc, he lead a web and mobile content division in US operation at Namco. He established a profitable wireless game business foundation in North America for Namco by managing five Independent Software Vendors. .

Yoshimoto started his career at CASIO in 1983. He designed software for portable Digital Audio Tape recorder (DAT). He mainly worked as an embedded software engineer for 11 years and developed many products. He also worked as a product planner for additional 2 years. Then, he moved to CASIO US R&D center in San Jose for his additional 5 years to develop multi-application CD-ROMs for Windows CE based handheld PC and Pocket PC, and researched new technology trends. He invented many patents.

Yoshimoto majored in acoustic design at Kyusyu Institute of Design, Japan. MBA from Kenich Ohmae graduate school of business.

FounderAbout Me