Prototype Productions Inc JHU APL Patents Pizza Prototyping

Prototype Productions, Inc. JHU/APL Patents & Pizza Prototyping for Commercialization September 6, 2007 © Copyright 2007, Prototype Productions, Incorporated. All rights reserved

Commercialization • Commercialization for APL means selecting and working with a commercial partner, often through licensing. • A successful prototyping effort will improve the value of the license and speed time to market. © Copyright 2007, Prototype Productions, Incorporated. All rights reserved

Risk Reduction • Licensing implies reduction in risk for the licensee and allows them to allocate their in-house resources to other projects or technologies. • In order to commercialize and bring technology out of the lab, it must be made readily accessible to the licensee. © Copyright 2007, Prototype Productions, Incorporated. All rights reserved

Best License Value • Best license value: – Most risk reduction – Most direct fit for commercial partner • License value can be negotiated based on maturity of technology and risks that have been addressed prior to licensing. © Copyright 2007, Prototype Productions, Incorporated. All rights reserved

Experimentation • Risk reduction requires experimentation in the most challenging areas of the design. • Effective prototyping is critical to effective experimentation. • Successful experimental results strengthen the license. © Copyright 2007, Prototype Productions, Incorporated. All rights reserved

Cost of Prototyping • Prototyping can be costly: – low volume – no ability to amortize NRE – High setup costs with traditional methods • Prioritize prototyping efforts: – Does it further the core technology? – Does it improve value of license? – Functional or Cosmetic? – Valuable experimentation? © Copyright 2007, Prototype Productions, Incorporated. All rights reserved

So, In Summary… • Prototype experimentally on the riskiest aspects of design first, to make best use of funds. • Keep the commercial partner in mind when deciding what needs to be prototyped. • Carefully consider the manufacturing methods used in their existing products © Copyright 2007, Prototype Productions, Incorporated. All rights reserved

Mechanical Prototyping Methods in Detail • Traditional metalworking methods are well developed and understood. • Rapid prototyping has recently become mature and widely accepted. The methods are well understood. • Both methods have their place and are often used in combination. © Copyright 2007, Prototype Productions, Incorporated. All rights reserved

Traditional Metalworking Methods Sheet Metal Pros • Accuracy • Widespread Use • Well Understood • Durable © Copyright 2007, Prototype Productions, Incorporated. All rights reserved Machining & Cons • Cost Related to Complexity • Lead Time in Weeks/Months • Resource Constraints • Limited Part Geometries

Recommendation • Alternative: Design for manufacture from plastic where possible, and utilize one of three primary Rapid Prototyping methods shown on the following pages. • Plastic is widely used for manufacture of fully commercialized (cost- reduced) product, and demonstrates sophistication, evolution of a design, and shows that cost was considered during initial development. © Copyright 2007, Prototype Productions, Incorporated. All rights reserved

RP with Stereolithography (SLA) • Liquid Resin • Photocured with Laser Pros • Lead time days, not weeks • Most widely used • Highly developed • Lowest cost © Copyright 2007, Prototype Productions, Incorporated. All rights reserved & Cons • Limited material properties • Brittle, non-functional parts • Poor chemical compatibility • Requires support structures

RP with Fused Deposition Modeling (FDM) • Continuous melting, extruded plastic filament Pros • Lead time days, not weeks • ABS, PC, PPS Materials • Office-friendly equipment • Lowest equipment cost © Copyright 2007, Prototype Productions, Incorporated. All rights reserved & Cons • Rough surface finish • Speed related to complexity • Poor chemical compatibility • Requires support structures

RP with Selective Laser Sintering (SLS) • Powdered material, fused together with a laser …This is what we use… Pros & • Lead time days, not weeks • Rugged, functional parts • Very good accuracy • Nylon, Titanium, Stainless Steel © Copyright 2007, Prototype Productions, Incorporated. All rights reserved Cons • Needs paint for best finish • Most expensive equipment • Needs coating for watertight • Industrial equipment install

Who is PPI? • In the last 10 years, PPI has completed 66 products in various industries including: • 13 Commercial and Medical – Immersion’s robotic surgical simulation training systems, including I. V. Catheterization, Pacemaker Implantation, and Endoscopy. PPI and Immersion Medical were the first commercially viable manufacturer of surgical simulators. • 11 Industrial and Consumer - Airak’s fiber-optic sensing systems for utility and shipboard applications, Privaris’ handheld biometric identification device, Power. Grid Fitness’ virtual reality exercise equipment, Wireless Ventures’ Set-top-box, and Keynetik’s ruggedized PDA. • 12 Biotech - Edge Biosystems’ automated preparation systems for PCR, JHU/APL’s intelligent sample processing systems for biological agent detection, Frito-Lay’s visual inspection systems for FDA food processing environments, and Bausch & Lomb’s contact lens manufacturing center. • 30 Aerospace and Defense - Sure. Scan solid-state CT-based baggage inspection system, ruggedized machine vision system for United Defense mobile Howitzer artillery platform, US Army ARL autonomous package delivery system, Special Forces remote monitoring and sensing platform. © Copyright 2007, Prototype Productions, Incorporated. All rights reserved

A Diverse Product Development Company © Copyright 2007, Prototype Productions, Incorporated. All rights reserved

Prototype Productions Ventures, LLC (PPIV) Investment and Commercialization © Copyright 2007, Prototype Productions, Incorporated. All rights reserved

PPI + PPIV Ø PPIV views PPI as IP/startup filtration engine Ø PPIV commercializes filtered projects ØPPIV primary screening criteria: ØPotential for VC-like return on investment ØPPIV owns a minimum of 50% upon investment ØDevice-base companies, web-based software but PPIV will be opportunistic (e. g. food tech) © Copyright 2007, Prototype Productions, Incorporated. All rights reserved

PPI/PPIV Model I. Internal (PPI )IP PPI • SBIRs • Design • Spot Opportunities • Prototyping • Manufacturing CONCEPT TO COMMERCIALIZATION II. Third-Party IP • Universities, Gov’t labs • Joint Ventures (Food Tech) • M&A (NPI) © Copyright 2007, Prototype Productions, Incorporated. All rights reserved • • • Seed Financing Business Plans Valuation Business Development Capital raising M&A PPIV • Liquidity events • Licensing Revenue • Dividends

Contact Information Ben Feldman Vice President, Product Development 703. 858. 0011 x 304 bfeldman@protoprod. com Prototype Productions, Inc. 21641 Beaumeade Circle Suite 301 Ashburn, VA 20147 703. 858. 0011 www. protoprod. com © Copyright 2007, Prototype Productions, Incorporated. All rights reserved