Commerce originating from mobile phones is expected to see explosive growth by 2012. Mobile based transactions has relevance for both online transactions and especially offline @ POS transactions, since it is a device that is both with you and connected, most of the time. A neutral technology that allows both consumers and merchants freedom of choice is necessary for this explosive growth in m-commerce to be realized, much like what web technology did to e-commerce. This presentation walks through essential background and data to make this point.

1. ESSENTIAL BACKGROUND & DATA
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© 2011, Tyfone, Inc. All rights reserved. Patented and Patents Pending.

2. US Data
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Mobile technology adoption fastest in history.
>30% faster than computer adoption!
2 © 2011 TYFONE, INC - PATENTED & PATENTS PENDING.

3. ALWAYS CONNECTED = ONLINE COMMERCE
ALWAYS WITH YOU = OFFLINE @ POS COMMERCE
Can’t ignore!
Start with Online Informational Services (NOW)
of people will be managing finances via mobile by 20201
TYFONE Focus towards POS Transactional Services
(COMING SOON!)
of retail transactions happen offline at POS2. Online is <10%
Focus on ID security!
is how much your credit card and banking identity is worth online3
1.Future Foundation, 2009
2.US Census Bureau, 2009
3.Bloomberg Businessweek, 2010
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4. Astounding numbers, but…
Carriers
Device Payment
makers Assn
Chip Issuers +
makers TYFONE Perso bureau
OS/App Acquirers
vendors
Many stakeholders = potential disintermediation?
= distrust? = stalemate?
4 © 2011 TYFONE, INC - PATENTED & PATENTS PENDING.

5. History repeats: Learning from e-commerce…
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Merchant-consumer interaction freedom required for scale
Viewdata (videotex) to Amazon (web) took 11 years!
Mobile: >30% faster?
5 © 2011 TYFONE, INC - PATENTED & PATENTS PENDING.

6. Based on market launch dates MCOMMERCE EXPLOSION?
ECOMMERCE EXPLOSION!
Freedom of choice
AMAZON OPEN LOOP SE?
MOSAIC BROWSER CLOSED LOOP APPS
❷ ❸ ❺❻
Channel restricted
DOCOMO
AT&T VIEWTRON OSAIFU-KEITAI
TYFONE
❶ ❹ ~7.5 years ± 1?
~11 years ± 1 30% faster?
❶ ❷ ❸ ❹ ❺ ❻
6 © 2011 TYFONE, INC - PATENTED & PATENTS PENDING.

7. Secure ID Storage Options
Need Offline Access for POS payments
Hardware More secure – Hard to clone
Software
Easy to clone
Secure Element Required for scaled payments!
Embedded TYFONE
Removable / Add-on
Portable – Consumer friendly
SIM MicroSD Other
Neutral – Ecosystem friendly
Neutral solution is the most scalable and will coexist!
7 © 2011 TYFONE, INC - PATENTED & PATENTS PENDING.

8. Mobile channel communication modes
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• Mobile Web represented approximately 50% of all mobile transactions, while
SMS and APPs each contributed 25%.
• In addition, more than 40% of consumers of informational services use at least
2 out of the 3 modes in any given month.
Freedom of choice applies to comm modes too!
8 © 2011 TYFONE, INC - PATENTED & PATENTS PENDING.

9. MOBILE 75% COMMERCE
NEUTRAL
Always Online <10%
+ CHOICE
connected commerce
Always Offline >90%
with you POS commerce TYFONE SECURE
ELEMENT
Many Many
stakeholders stakeholders
TRANSACTION
High
Evolutionary PLATFORM
adoption rate
9 © 2011 TYFONE, INC - PATENTED & PATENTS PENDING.