2011/11/30 FIO Technology Inc. confidential 1

FIO Technology Inc.

Contact: Itsuro Yoshimotoiyoshi@fiotechnology.comPhone: 408-315-4187

Product: FIO-KeyBO

Flexible Indoor and Outdoor KeyBOard for 10-key text entry devices such as mobile phone, remote controller, game controller, etc.

Product: Product: FIOFIO--KeyBOKeyBO

FFlexible lexible IIndoor and ndoor and OOutdoor utdoor KeyBOKeyBOardard for 10for 10--key key text entry devices such as mobile phone, remote text entry devices such as mobile phone, remote controller, game controller, etc.controller, game controller, etc.

Our Mission: To provide compelling, universal user interface designs for mobile products using creative ideas and innovative technologies.

2011/11/30 FIO Technology Inc. confidential 2

Summary…SummarySummary……

FIO can provide a superior text entry method, which enables a 10-key device within a 40 to 50mm device to function as a full PC keyboard and replace the multi-tap input method

FIO can provide a superior text entry method, which enables a 10-key device within a 40 to 50mm device to function as a full PC keyboard and replace the multi-tap input method

FIO is interested in licensing its FIO-KeyBO technologies to potential partners such as Huawei or accepting an equity investment to further develop its products.

FIO is interested in licensing its FIO-KeyBO technologies to potential partners such as Huawei or accepting an equity investment to further develop its products.

FIO can provide an innovative idea for;

1. Feature phones such as Huawei U120

2. Input application for Huawei Android phones

3. Companion phone for Huawei MediaPad tablet

4. Multi-functional accessory Mobile WiFi for Huawei

5. IPTV remote controller for Huawei STB

FIO can provide an innovative idea for;

1. Feature phones such as Huawei U120

2. Input application for Huawei Android phones

3. Companion phone for Huawei MediaPad tablet

4. Multi-functional accessory Mobile WiFi for Huawei

5. IPTV remote controller for Huawei STB

2011/11/30 FIO Technology Inc. confidential 3

Huawei U120Huawei U120

Device width [45.5]mm

Device width [45.5]mm

Blackberry styleBlackberry style

fusedfused

Proposal to Huawei [1] - Huawei U120 -

Capture big market share with FIO-KeyBOCapture big market share with FIO-KeyBO

FIO-KeyBO featured entry model for Huawei

http://www.gsmarena.com/huawei_u120-2637.phphttp://www.gsmarena.com/huawei_u120-2637.php

2011/11/30 FIO Technology Inc. confidential 4

Cleverly achieves 10-key QWERTY keyboard in much narrower form factor.

Enables blind, one-hand touch input operation.

Align [RTY] to [$2%]. Keeps the same location between [alphabet] [number / Symbols].

Cleverly achieves 10-key QWERTY keyboard in much narrower form factor.

Enables blind, one-hand touch input operation.

Align [RTY] to [$2%]. Keeps the same location between [alphabet] [number / Symbols].

Increase usabilityIncrease usabilityIncrease usabilityIncrease usability

More accurate and faster than Swype, T9 trace..More accurate and faster than Swype, T9 trace..

“FIO-Pad” featured Smartphone Application

Proposal to Huawei [2] HUAWEI smart phone

2011/11/30 FIO Technology Inc. confidential 5

Tablets require a better companion Many smartphone and NotePC users will shift to iPad, Tablet, and 4G (LTE). A capable basic accessory phone is a better choice.

Accessory Phone for Huawei MediaPad• 4G dumb pipe• Basic Music phone• BT/USB accessory• Rugged• Longer battery• Small size(40~50mm width)

• QWERTY keyboard (FIO-KeyBO)

MediaPad companion

Proposal to Huawei [3] Accessory Phone for tablet

BT external keyboard for touch-panel devices such as ipad or tabletPC

PC mouse controll

BT Presentation controller with LED pointer and unique realtime text adding feature

IR universal remote controller

Mobile WiFi

BT external keyboard for touch-panel devices such as ipad or tabletPC

PC mouse controll

BT Presentation controller with LED pointer and unique realtime text adding feature

IR universal remote controller

Mobile WiFi

New product proposal

Single hand operationSingle hand operation

Multifunctional accessory device with FIO-KeyBOMultifunctional accessory device with FIO-KeyBO

Proposal to Huawei [4] Multifunctional Accessory

SMK introduced FIO-KeyBO featured remote controller for future IPTV at CES2011)

New remote controller for Digital STBNew remote controller for Digital STBProposal to Huawei [5]

Remote controller for STB

Huawei DC730 STB

2011/11/30 FIO Technology Inc. confidential 8

Large Market

FIO-KeyBO : Potential Market

Worldwide mobile device - over 1.6 billion units were sold in 2010, a 31.8% increase from 2009, according to Gartner. In addition to the 73% growth of smart phones, basic phones grew 25% with 1.3 billion units. Carriers are expecting to increase data revenue through messaging service such as email and SMS. FIO-KeyBO aims to replace multi-tap text entry method and become a new standard for basic phones with 10 keys in emerging markets. Game console – Worldwide sales by Jan/2011, total 170 mil units. Nintendo Wii (77M), MS Xbox360 (50M), Sony Play Station3 (42M) Motion sensor control is NOT suitable for quick search and text chat over the network community.

Over 5 billion target users (cellular phones, remote controllers, game controllers, etc)

Remote controller – In 2010, global annual television sales reached 242M (15%) [Source: Display Search]. The QWERTY keyboard has become a mandatory feature for IPTV remote controllers such as GoogleTV for direct content search.

Remote controller – In 2010, global annual television sales reached 242M (15%) [Source: Display Search]. The QWERTY keyboard has become a mandatory feature for IPTV remote controllers such as GoogleTV for direct content search.

2011/11/30 FIO Technology Inc. confidential 92011/11/30 9

How users are complaining?

FIO-KeyBO solves the fundamental problems of existing input method

Users are NOT satisfied with [multi-tap] nor T9word text entry methods.

Number keys are too small.Software keyboards are NOT accurate.

Customer

2011/11/30 FIO Technology Inc. confidential 10

Samsung Alias 2

Failures of existing approaches ~ QWERTY Phone

RIM 8220LG Lotus

Several companies have recently introduced phones with new ways to input text. Because these phones have largely failed, an opportunity remains to more easily provide QWERTY functionality in basic phones.

Competitors

Nokia Twist

2011/11/30 FIO Technology Inc. confidential 11

Heavy SMS, SNS, email users

Basic users

Potential new market

[ 2Abc ] Multi-tap method

Red OceanRed Ocean

FIO- KeyBO FIO-

KeyBO

With FIO-KeyBO’s innovative

keyboard, Huawei can capture many

of these customers

With FIO-KeyBO’s innovative

keyboard, Huawei can capture many

of these customers

An invisible blue ocean market exists.. Create a new

market

In 2010, the smart phone market grew 72% (297M) worldwide. In addition, basic featured phones also grew 25% (1.3B).

4 out of 5 units are basic phones,

and still growing…

4 out of 5 units are basic phones,

and still growing…

2011/11/30 FIO Technology Inc. confidential 12

[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 instead of one. Therefore, 11 unique characters can be generated from a single- click of the three numeric keys instead of multi-tap key presses.

Allocates two switches under each key instead of one. Therefore, 11 unique characters can be generated from a single- click of the three numeric keys instead of multi-tap key presses.

FIO-KeyBO can enable an existing 10 key device to function as a full PC keyboard within 40mm ~ 50mm device width

Simply split single silicon rubber switch into two pieces

Simply split single silicon rubber switch into two pieces

Our solution

2011/11/30 FIO Technology Inc. confidential 13

FIO-KeyBO Patents Filed (PCT)

QWERTY full keyboardQWERTY full keyboardQWERTY full keyboard [2abc] full keyboard[2abc] full keyboard[2abc] full keyboard

example【

Finnish / Swedish 】exampleexample【【

Finnish / Swedish Finnish / Swedish 】】

●3-key (11 letters) x 4 lines = 44 single-click direct entry ●88 characters with Shift+ operation supports multi-language keyboards ●Works as standard full size NUMBER keys when you dial, NOT like blackberry

OEMs may prefer this solutionOEMs may prefer this solutionOEMs may prefer this solution

Company Strength

WO/2009/123625 WO/2009/123625

2011/11/30 FIO Technology Inc. confidential 14

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

Comments from European Patent Attorney, Alec Messulam:

The invention of this application is concerned with how one can emulate the layout of a QWERTY keyboard, i.e. one with a conventional keyboard layout designed for use with ten fingers, using a telephone keypad or remote controller having three columns and four rows. It has previously been proposed to use one key to select more than one character but even if each key can select three alphanumeric characters, that still only allows for nine characters per row, whereas a QWERTY keyboard requires eleven.

The solution offered by the invention is to place characters between keys and to require two adjacent keys to be depressed simultaneously in order to record a keystroke. Nowhere in the prior art has it been suggested to use the tip of one finger to press two keys simultaneously. Shift, Alt and Ctrl keys on a keyboard are actuated at the same time as other keys but not using the tip of the same finger, indeed not even using two fingers of the same hand.

The invention offers for the first time, the possibility of one finger text entry using a keypad having the layout of a conventional telephone while allowing the operator to find all the characters intuitively in the same relative positions as they would occupy on a conventional ten-finger keyboard. Neither this objective, nor the method by which it has been achieved, is suggested by the prior art. .

Patent Application

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50-year-old person broke a world record of fast text entry

18-year old student holds world record of 41.4 Sec18-year old student holds world record of 41.4 Sec

160 characters with over 350 multi-taps required =

8~9 times / sec.

160 characters with over 350 multi-taps required =

8~9 times / sec.

FIO-KeyBO required ONLY 4~5 times / sec to beat this world record.

http://home.singtel.com/news_centre/news_releases/2008_02_25.asphttp://home.singtel.com/news_centre/news_releases/2008_02_25.asp

http://www.youtube.com/watch?v=D-5CmWSwQx0http://www.youtube.com/watch?v=D-5CmWSwQx0CLICK here !CLICK here !

Demo-1

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FIO-KeyBO ~ Strength

A cellular phone demo unit works as external keyboard to display text to any PC application

Why FIO-KeyBO is superior..?

Enables 10 keys as full PC [QWERTY] keyboard

Keeps Number keys as big as current basic phone

Supports full symbols of PC keyboard

No increased cost for hardware

Keeps the same width as an existing basic phone (40 to 50 mm)

Why FIO-KeyBO is superior..?

Enables 10 keys as full PC [QWERTY] keyboard

Keeps Number keys as big as current basic phone

Supports full symbols of PC keyboard

No increased cost for hardware

Keeps the same width as an existing basic phone (40 to 50 mm)

Summary

2011/11/30 FIO Technology Inc. confidential 17

JMAR Social Media usage report - March 2010 ~ 54% users want improved “text entry”

What do you want to be improved?What do you want to be improved?

67% of users are complaining about text entry method for both existing phone and touch panel smart phones.

67% of users are complaining about text entry method for both existing phone and touch panel smart phones.

Common Smartphone problems

Hard to type text entryHard to type text entry

Battery lifeBattery life

Availability of Infrared communicationAvailability of Infrared communication

Ability to use Felica (e-wallet)Ability to use Felica (e-wallet)Availability of One-Seg (Mobile TV)Availability of One-Seg (Mobile TV)

Reduce device sizeReduce device size

Increase screen sizeIncrease screen size

Availability of Keitai mailAvailability of Keitai mail

Use of emoticonsUse of emoticons

Ability to personalize e-mailAbility to personalize e-mailOverall designOverall design

Bluetooth capabilityBluetooth capability

N.AN.A

n=373 (smart phone users)n=373 (smart phone users)

2011/11/30 FIO Technology Inc. confidential 18

New input trend in Japan~ Apple i-Phone’s flick input is becoming a de-facto input method ~

Press and release[2]………Ka

Press and move left[2]….…Ki

Press and move UP[2]…….Ku

Press and move right[2]….Ke

Press and move down[2]...Ko

Press and release[2]………Ka

Press and move left[2]….…Ki

Press and move UP[2]…….Ku

Press and move right[2]….Ke

Press and move down[2]...Ko

Faster & more accurate than multi-tapFaster & more accurate than multi-tap

Apple filed for patent in Apr/2008

US application No.(12/107,711)

However, prior art exists

(Hanabi [JPN], FIO-KeyBO [US: 2005]

Apple filed for patent in Apr/2008

US application No.(12/107,711)

However, prior art exists

(Hanabi [JPN], FIO-KeyBO [US: 2005]

What is “ Flick ” input?What is “ Flick ” input?

2011/11/30 FIO Technology Inc. confidential 19

Sep/05: Filed as provisional patent in US

application [US60/718,197]

Jan/06: Introduced to Apple’s engineer

Sep/07: Introduced to Japanese SNS (Agoria)

Dec/07: Printed the concept image of English

“Flick” on the back of my business card

Apr/08: Apple filed the same input method as

the gesture input patent application (“flick”)

June/08: Apple released 3G i-Phone with “flick”

Jan/2010: Over 80M units has been sold with

“flick” input for i-Phone and i-Touch

“Flick” became the de-facto input method for smartphones in Japanese market

Sep/05: Filed as provisional patent in US

application [US60/718,197]

Jan/06: Introduced to Apple’s engineer

Sep/07: Introduced to Japanese SNS (Agoria)

Dec/07: Printed the concept image of English

“Flick” on the back of my business card

Apr/08: Apple filed the same input method as

the gesture input patent application (“flick”)

June/08: Apple released 3G i-Phone with “flick”

Jan/2010: Over 80M units has been sold with

“flick” input for i-Phone and i-Touch

“Flick” became the de-facto input method for smartphones in Japanese market

“FIO-KeyBO” is the prior art in US~ FIO posted this “Flick” concept image to Japanese SNS in Sep/2007 ~

2011/11/30 FIO Technology Inc. confidential 20

[T]: Press Number[2] key and release without moving a Thumb

[R]: Press Number[2] key and release a Thumb to the left

[Y]: Press Number[2] key and releasea Thumb to the right

[T]: Press Number[2] key and release without moving a Thumb

[R]: Press Number[2] key and release a Thumb to the left

[Y]: Press Number[2] key and releasea Thumb to the right

Application

New concept: Make Keyboard as a fun wallpaperNew concept: Make Keyboard as a fun wallpaper

“FIO-Pad” wall paper Concept

Combine with word prediction Combine with word prediction

Change Skin like wall paper Change Skin like wall paper

Add more “flick” variation Add more “flick” variation

Market

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

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

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 fasterer with CAGR[25%] in recent years, and 195mil units have sold in 2010（source: Instat）

ＣＡＧＲ（２

５％）

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: 26mil US household users (22% in US)

Netflix: 26mil US household users (22% in US)

New remote controllers

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

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

New trend of IPTV

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

“Search” button & “T9word” 10- key text entry method is applied

It is important to keep the existing remote’s UI and form factor. FIO simply add “Search by QWERTY text input” feature

Target segment

( Current )( Current )

Most cable carriers are not comfortable about GoogleTV because it breaks their existing eco-system and revenue model. FIO-KeyBO enables soft-landing add on “search” feature approach

New IPTV remote controller proposalMotion sensor like operation with new disruptive technology

Next step !

Press, move and releasePress, move and release

1. Allocate 6 switches in a single line

2. Cover the whole switches with a sheet cover

3. Silk print numbers and alphabets

4. Combine with word prediction or correction middleware application for content search

Y

Filed PCT

2011/11/30 FIO Technology Inc. confidential 28

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 led a web and mobile content division in US operations 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. He designed software for the 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 an additional 2 years. Then, he moved to CASIO US R&D center in San Jose for an 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 Kenichi Ohmae graduate school of business.

FounderAbout Me

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 chal lenge” f rom Nikke i BP .

BoardAbout US