April 1, 2013

The Security Company for All Intellectual Property

© 2011 Piracy Control Technology, Inc.

Contact: Don Russell P: 800-742-2106

Piracy Control Technology Company Overview

•Provide Protection for all

Multimedia *IP & content from

Piracy & Unlicensed use

•Provide proprietary, disruptive

**DRM enforcement technology & a

new IP Security Platform

•Provide B2B QKD & MCV

Technology 100% secure

business environment

•Provide Non-Transferable

Intellectual Property beyond

consumer point-of-purchase

TM

*Intellectual Property **Digital Rights Management

Piracy Control Technology Vision

“This initiative is one of the things that will fuel the shift in the mindset of American consumers.”

- Glen Barros, chief executive, Concord Music Group

Restore revenue lost

to Intellectual

Property theft.

TM

Piracy is a Global Problem By 2020 approximately 80% of all intellectual property sold will be counterfeit

70% of Intellectual

Property sold in the U.S. is counterfeit or

obtained through unlicensed vendors.

76% of Consumers

who purchase unlicensed Intellectual Property are unaware of the consequences.

2011 Piracy Market

Source: U.S. Department of Commerce

Multimedia Industry Annual Losses due to Piracy…

MUSIC

$13 BILLION

Video games

$8 BILLION

$41 BILLION

Movies

$20 BILLION •$41B in lost taxable revenue in America

•2.7B in lost wages in America

•71,050 jobs lost in America

The Problem Digital Rights Management – Poorly Implemented, Reverse Engineered and Abandoned

6

• DRM developed by insiders (ex. Apple FairPlay) and not fully accepted by industry

• Poorly implemented (ex. Sony BMG CD rootkit scandal)

• No industry association or coalition in place focused on securing IP

• DRM completely abandoned and artists losing billions of dollars annually

Encryption/DRM has been based on classical (mathematical) techniques. Math-based approaches will always be vulnerable to raw computing power (brute force attacks) and to exploitation of flaws in the software.

CLASSICAL APPROACH

Nearly all classically-based DRM measures have been reverse-engineered, hacked or broken

entirely.

CLASSICAL FAILURE

Security in the Age of Big Data 100% Secure Transmissions with Quantum Key Distribution – a property of quantum physics that cannot be reverse engineered or tampered with.

The Solution QKD Used with Advanced Cryptography to Secure Intellectual Property

100% Secure Transmission

from the Studio to the

SafetyNET Admin Cloud

8

The SafetyNET System Combining Science, Technology and Engineering

Securing The Studio Securing Devices

Admin Cloud (Media Room)

Quantum Key Distribution Encrypted with AES-256

Workstation

SafetyNET Plugin

1. The Workstation is secured 2. QKD Connection is created to the Media

Room 3. Files are encrypted and stored remotely 4. The completed recordings are encoded

with the MCV file type.

SafetyNET Conversion

1. SafetyNet software contacts the Media Room

2. Global Device List is checked and the device is granted access to the user’s library

3. Downloaded MCV files are stored on the device

SafetyNET Plugin

SSL Encryption with AES-256

Media Store

Media Player

TM

The SafetyNET Products The SafetyNET “Eco-System” Secures Intellectual Property

SafetyNET Admin Software & QKD Hardware

•100% Secure B2B Platform

•MCV files sent securely to the Cloud

•Stored in encrypted database

SafetyNET Studio Plug-in

•Secures Workstation

•Authenticates User

•Initializes Connection

SafetyNET Conversion Software

•Export to MCV (Media Content fiVe)

•Proprietary codec that secures the file

SafetyNET Connect & Push •Quantum Keys Distributed (Qbits)

•100% Secure Connection Created

The SafetyNET System provides an end-to-end solution to

package, transmit, and securely store intellectual property.

TM

256 Multimedia Companies

IP/Content Providers

13,014,469 IP/Content

Licensed(2011) CD/DVD/Video Games

U.S. Niche Market Sizable Revenues Opportunity with Modest Integration

42,000 AV&D Studios

Innovate Content

42K IP/Content Providers &

Innovators need our technology

13M Products licensed annually that need to be protected, converted & pushed

$37 M Potential Revenue

Note: With only 5% integration

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The Current Landscape Where we fit in…

Source IFPI : “When piracy is controlled revenues increase”

“We all must improve the way we secure our most valuable assets.”

-Paul Rosenberg, manager of Eminem

IP Security

PC Tech will lessen the “friction” in the current landscape.

Competitive Advantage

PC Tech, will introduce a B2B security platform comprised of QKD & MCV

Technology to the multimedia industry to combat piracy, ending unlicensed use and

counterfeiting. Today, companies still rely on the "classical approach" of protecting

IP, which makes these products vulnerable to unlicensed use and

counterfeiting.

PC Tech Business Model

Products

Studio Plug-in

Audio, Video & Design Studios

Core Services

Risk Assessment

B2B Security Platform

File Conversion

Multimedia Industries

Distributors & Retailers

Upstream Customers

Downstream Customers

$ $

SafetyNET RISK ASSESSMENT

Basic Fee: $25K

PCTech Cost: $5K

Gross Margin: 80%

SafetyNET SECURITY PLATFORM (Design/Construction/ Integration/Training)

Sale Price: $2.5M

PCTech Cost: $875K

Gross Margin: 65%

(Plus % of New Revenue)

SafetyNET PLUG-IN

Sale Price: $1,100

PCTech Cost: $25

Gross Margin: 97%

SafetyNET CONVERTER/PUSH (AV Files to MCV Files)

Conv. Fee: $2 p/unit (IP/Content Provider)

Push Fee: $1 p/unit

(Distributors/Retailers)

PC Tech Revenue Model

Revenue Projections

Note: Revenue Projections do not reflect % from New Revenue generated for Multimedia clients.

Build Laboratory

Day 30

R&D Product

Day 120

Build Model Eco-System

Day 150

Testing

Day 180

Integration/

Training

Day 260

Relationship w/Leading Quantum Physicists

Agreement w/Chapman University

Agreement w/Sony Music Entertainment

Relationship w/Universal Music Group & Warner Music

Relationship w/State & Federal Agencies

Milestones & Timeline

Investment Opportunity Resources to develop Beta and commence testing

Seeking $2 Million over

a 12 month

period

Year

Investment Highlights How we benefit the current landscape…

“We are doing all we can to provide consumers with…alternatives to piracy”

-Rob Wells, Universal Music Group

100% IP Protection

100% Secure Admin Platform

Modern DRM

Enforcement

Increased Sales Revenue

Secures Royalties 100%

100% Non-transferable content

“Ultimately, if nothing is done, we just won’t be here”

–Eminem, Hip Hop Artist

Sources: Pollstar.com, IPIF.org, RIAA.com, Grabstats.com, Go-gulf.com, Anythingresearch.com, Havocscope.com, The-numbers.com, Geek.com

New IP Watchdog

Experienced Management Team

Nathan Tumulty, MCSE Chief Technology Officer

Co-Founder

Don Russell President/CEO

Co-Founder

David E Ubeda, M.S. VP/Business Development/

Investor

June Barrett Investor Relations/ Business Relations

Jamie Colon Financial Strategist/

CPA

Sean Mulroney Legal Counsel

•Attended Columbia College and Univ.

of Phoenix Chicago •Owner of PM Records w/Distribution thru Universal/Fontana •Director of Marketing for Rockstar •Director of Technology for Expo Theater Productions Mr. Russell has owned and operated several companies, and worked closely with some of the industry’s top talent.

•Successful Entrepreneur • Philanthropist •Educator •Speaker Mr. Ubeda owns and operates World Class Acquisitions a real estate development and investment company, in the Northwest Suburbs

•Founder iDFX Studio •Attended Westwood College •Co-Founder of Viridis Group •Proven record of success designing and developing systems for top tier companies such as AON, Anheuser-Busch, and numerous small businesses.

•BSBA at Roosevelt University •Business Developer Consultant with over 30 years of business experience •Worked with over 20 businesses developing business strategies. •Possesses organizational qualities, endless resources and commitment to achieve perfection.

•Loyola University of Chicago School of Law •Entrepreneur – Licensed and owned several tech/entertainment based startups. •Owner of law practice specializing in litigation, corporate startups, city business licensing and entertainment

•BS in Accounting from Southern Illinois University (SIU) •Financial Accounting and Bookkeeping services for GVW Corporation •Provides quality service in an integrity filled, team-oriented environment

Expert Development Team

Dr. Yakir Aharonov

Implementation Quantum Computing

Dr. Jeff Tollaksen Research & Development

Quantum Engineering

Dr. Fred A Wolf Director of New Media

Quantum Studies

Dr. Joan Daemen Research & Development

Cryptography

•AKA Dr Quantum •Member of Lawrence Berkeley Labs •Awarded the U.S. National Book Award in Science •Metallic Vapor Lasers •White-light Photometric Measurement System

•Director, Center of Excellence in Quantum Studies, Chapman University •Principal Investigator: Office of Naval Research & National Institute of Standards & Technology •Founder & Director , Center for Quantum Studies, George Mason University

•1998 Wolf Prize • Received 2008 Medal of Science •Director of Computational Science & Engineering •Co-discovered the Aharonov –Bohm Effect •Advisor to Stephen Hawkins

•PhD from Katholieke Universiteit Leuven, Belgium •Co-designed the Rijndael Cipher with Vincent Rijman •Author of The Design of Rijndael: AES - The Advance Encryption Standards and Analysis and Field Test of The Hydraulic Performance of Cement Grout Borehole Seals

•Chapman University is ranked the 6th Best Regional University in the nation in the US News and World Reports' 2013 Ranking of Best Colleges. •National Demonstration Site to showcase the components of the initial SafetyNET Security Platform. The complete eco-system will be on display in Chapman University ‘s Computational Science building on the campus.

Strategic Relationships/Advisors

Robert Steele Cook County Commissioner/

President Pro Tempore

Kerry Gordy

Motown Records

Craig Nobles Swagg Digital Media Interscope Records

George Daniels President of Independent

Retailers

Griff Morris Legal Counsel Amazon

Former VP of Grammy Foundation

Clyde El-Amin

Educator/

Former College President

Keith Lee President ADR Technology

Chairmen Farther Reach

Dick Durbin US Senator / RIAA Activist

47 West Polk St. Suite 135

Chicago Ill 60605

Contact: Don Russell, CEO

Phone: 312-454-7313 Fax: 312-454-7346

Email: Info@piracycontroltechnology.com

www.piracycontroltechnology.com

Thank You

© 2011 Piracy Control Technology, Inc.