Automated Consumer Banking

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Automated Consumer Banking

• People all over the world are now using Automated
  Teller Machines (ATMs) and Point of Sale (PoS)
  terminals to access their bank accounts
• Developing nations are catching on to this first
  world phenomenon quickly
• The number of electronic financial transactions
  is continuing to explode

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Opportunity

• Hardware Vendors and Service Providers are
  reaping the benefit of this market that came into
  existence only a decade ago by selling Hardware
  and Software Platforms to run and monitor
  transactions for banking institutions
• Consumers pay for convenience in the form of
  service fees

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Current Market Limitation

• Conventionally, ATM and PoS terminals required a
  fixed line, hardwired infrastructure to be
  installed
• In developing nations, like Malaysia, this is not
  always available and limits the expansion of this
  technology only to metro areas
• Wireless Applications solve this dilemma and make
  this banking technology available to everyone
  that can access the GSM network (95 of Malaysia)

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Mycomms Objective and Outcomes

• Provide a low cost, secure and robust wireless
  communications technology for the financial
  services industry in Malaysia by using existing
  GSM networks infrastructure
• The outcomes of this objective are to extend the
  capabilities of financial institutions to offer
  secure and efficient account based transactional
  services to a wider base of retailers and
  consumers country wide, wherever there is GSM
  wireless coverage (95 of Malaysia)

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Mycomms Business Model

• Hardware Reseller Sell/Lease/Rent new fleets of
  wireless enabled ATM and PoS terminals through
  bank to retail merchants nationwide.
• Maintenance Upgrade existing fleets of ATM and
  PoS terminals to enable higher security and
  quicker transaction throughput for financial
  transactions over the Malaysian GSM network by
  licensing software and selling hardware to banks
  and retail merchants
• Mobile Virtual Network Operator (MVNO) Reseller
  of Data Communications Services to retail
  merchants providing financial transactions over
  the Malaysian GSM network. Mycomms taps into a
  growing recurring income base through a monthly
  subscription model with termed contracts

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Competitive Advantage

• Symstream Radio Module (SRM)
• Easily installed into any new or existing PoS or
  ATM to make it wireless on the GSM network.
  Proven to generate income by saving costs on
  each transaction
• Reduces session times and increases transaction
  volumes between the terminal and the banking
  gateway using a uniquely encrypted protocol
• Licensable Operational and Business Support
  System (software) already developed and tested
• End to End already being commercially deployed
  throughout telecommunication and banking sectors
  in Asia Pacific, India and South Africa

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Innovative Network Topology
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Why Malaysia?

• Government support for new Information
  Communication Technology (ICT) initiatives in the
  form of grants and tax rebates. Mycomms will
  apply for these during the trial term to protect
  investment capital
• Fast adoption of Eurocard / Visa / Mastercard
  (EMV) mandate to convert to Electronic Draft
  Capture chip based banking through national
  identity Mykad initiative making it the most
  advanced society for chip based banking. Mycomms
  offers an application to open the electronic
  banking network to both all citizens and
  merchants of Malaysia
• Mycomms partnerships already secured through
  shareholders existing business networks
• High prospects of global expansion exists through
  knowledge base exportation to neighbouring
  countries
• Strong emerging economy in Central Asia with
  progressive government with Islamic principles
  and values

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Market Prospect in Malaysia

• Population approx 18 million, all citizens over
  12 issued a Mykad ID with chip based electronic
  banking functions
• Currently ATMs are deployed by banks mostly at
  branch locations for after-hours banking
• At the end of 2005, there was a total of 5403
  ATMs in Malaysia
• PoS are mostly deployed by banks to their retail
  merchant customers
• The total number at the end of 2005 is 73 550
• The country is going through the process of
  privatization of these networks
• To allow for further consumer access in more
  locations
• To offload maintenance and risk from the banks
• To increase competition
• Source Malaysian Electronic Process Systems
  (MEPS) Malaysian banking consortium

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Competitive Analysis

• GLH Systems Bhd is the only non bank 3rd party
  vendor offering PoS terminals in Malaysia
• Reported a 645 increase in the total value of
  transactions while also showing an impressive 20
  growth per month in the number of actual consumer
  transactions in 2004-2005
• 2004 Revenue RM 64,172,248
• 2004 Profit RM 27,878,712.
• 2003 400 PoS units 2004 1600 PoS 2005 2000
  PoS Total 4400 machines installed
• From 2003 to 2005 GHL net profit grew by a total
  of 53.9
• Company sells 1 line of product (Verifone) and
  offer limited or no wireless solutions

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Competitive Technologies

• Symstream Wireless vs GPRS and CDMA
• Symstream uses GSM and is a point to point
  transfer. GPRS and CDMA are packet switched
  which is less reliable
• Symstream is a fast dialup and take down so in
  most cases the reduced session time completes
  before the other technologies have dialled in
• GSM has the widest coverage of any wireless
  technology, therefore units are commoditized and
  profit margins are higher in MVNO model
• Symstream is unique in the way it maps the voice
  channel its ability to send 3D symbols through
  the narrowband GSM network

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Mycomms Rollout
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Capital Requirements

• Mycomms Wireless Sdn Bhd requires 1.3 million to
  seed and capitalize on this opportunity to cover
  capital and operational expenses for the first 12
  months
• Existing shareholders have agreed to dilute
  equally and issue preferred shares for equity or
  convertible preferred shares for debt to raise
  capital to operate
• A detailed business plan, 1st year budget, 3 year
  pro formas and share subscription agreement are
  available for inspection upon request

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Shareholders Exit Strategy

• Over the next 3 years, Mycomms management
  anticipates building a strong income base on
  monthly subscriptions contracts for data
  communications service and recurring revenue from
  hardware sales and software licenses. The
  company will be
• An attractive acquisition for a national
  Telecommunications Service Provider or any
  institutional investor in part or whole
• Have a strong enough operational structure,
  income base and pioneering status to further
  capitalize through Malaysian or International
  public markets to venture into other attractive
  wireless applications opportunities

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Mycomms Corporate Structure

• Registered in Malaysia as Mycomms Wireless Bhd
  Sdn
• 49 Zeshan Holdings Ltd Represented by Zeshan
  Ahmad
• Employed by Symstream Technology Group in
  Business Development and Marketing, recently
  resigned to advance opportunity in Malaysian
  market through Mycomms www.zeshanholdings.com
• 26 Roy Joseph
• Largest shareholder of Camtech Asia ITT, an MSC
  status company, that is already a key partner
  with MEPS to offer electronic financial
  transactions applications to Malaysian Retailers.
  Achieved Best Financial Application and Prime
  Ministers Best of Best awards at the MSC and
  Asia Pacific ICT Awards 2005 www.camtech.com.my
• 24 Moganakumar Radhakrisnan
• Mycomms Wireless Sdn Bhd company secretary and
  administrator
• shares placed in trust to maintain a locally
  owned status for the purpose of government grants
  and tax rebates

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3 year Pro Forma
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Contact Zeshan Ahmad 971504983055
zsa_at_zeshanholdings.com