A Worldwide Computer Security Problem

1
A Worldwide Computer Security Problem

• Despite proliferation of computer security
  products - problem persists
• Disrupted operations and Expensive clean-ups
• Attacks multiply - Zero day Viruses, Bot nets,
  Cyber Terrorism, Spyware, Hackers, Intrusion
• 137 Nation States have a Cyber Warfare capability
  
• Security products (Anti Virus, Anti Spyware,
  Firewalls etc) are unable to protect themselves
  let alone customer computers

2
About Valt.X

• A High Tech fabless semiconductor and IP company
  based in Toronto, Canada
• Computer security semiconductors, security
  components, cyber secure solid state hard disk
  drives and ultra thin client terminals
• Focus provide for secure uninterrupted
  computing
• Ten People, Manufacturing outsourced
• 40 Patents Applications
• 12 issued patents
• ISSUED PATENTS
• Storage Firewall USA, Taiwan, Canada, Europe
• Communications patent Compress/ Encrypt files,
  video, music and send over an IP network - USA
• Data Center and Computer technology patents -
  USA, China and Taiwan issued

3
Storage Firewall Security Chip

• Hard Disk Drive is what gets attacked
• Software Security does not work
• SOLUTION
• Make a Security Computer on a Chip to Protect,
  secure, and with absolute certainty instantly
  recover computers from any attack eliminate
  downtime
• Used to manufacture Cyber Secure Hard Disk
  Drives, Adapters and Subsystems, Implement On
  Main Board
• Main Benefit Computer Users are safe if
  attacked simply push the reset button problem
  fixed zero downtime
• Additional benefits Full Disk Encryption Pre
  Windows Access Authorization Test Patches and
  Upgrades with Instant Rollback Multi User -
  Wipe Drives for disposal

4
Storage Firewall Markets

• 2006- 240 million new Computers Notebook,
  Desktop, Serv
• Retrofit - Over 500 million computers in use
• Test markets Education 75, SMB 125-150
• Market Strategy Absolute Security Kits
• White box manufacturers, system integrators and
  resellers focus on the 312 USA Federal
  Government Partners with GSA schedules and
  Education sector
• Market Strategy Licensing (Main Board
  Implementation)
• Seek Design wins at top PC manufacturers Dell,
  HP, Lenovo, Fujitsu Siemens, Toshiba, NEC,
  Gateway, Acer
• Design Houses Quanta, Compal, Wistron
• Intel, AMD, Main Board Manufacturers
• 500 million plus addressable market space

5
Secure Solid State Hard Disk Drives

• Digital Hard Disk Drives with no moving parts
• Incorporates Valt.X Storage Firewall technology
• Custom security available
• NAND Flash
• Faster than rotary hard drive
• Uses less power and runs cooler
• MTBF gt 2,000,000 power on hours
• Military, Industrial and Executive markets
• Samples ship to major notebook manufacturers,
  rugged notebook and USA military July 2006
• Estimated US4.5 billion market in 5 years
• 32GB model now 64GB and 128GB to follow

6
Traction

• We have received a licensing proposal from the
  third largest original design manufacturer of
  notebooks in the world Wistron of Taiwan
• Wistron manufactures over 11 million notebooks a
  year
• Major customers Dell, HP and Lenovo
• Potential Revenue and Net Income over 22 million
  annually
• We are engaged with Dell Computers the 1
  computer manufacturer in the world
• We are engaged with Lenovo the 3 computer
  manufacturer in the world and the 1 computer
  manufacturer in China
• USA Federal government channel primed 312
  system builders and resellers
• Partnered in China with Great Wall and Excelstor
  who in April won the innovation award in Germany

7
Market Ready
?

• Proven Management Team
• Critical RD Completed
• World Class Proprietary Products
• Market Validated
• Distribution Channel Primed
• Operational Financing

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• ?

8
Management Advisors

• Dennis Meharchand CEO (co-founder)
• Kwok Yan (Tony) Leung President CTO
  (co-founder)
• Mickey Masuda Acting VP Sales and Marketing
  Pacific region (Japan, Korea)
• James Anzaldua Director of Business Development
• Fred Peters Advisor and CFO candidate
• Brian Groh Advisor former CEO of XPLORE
  technologies (rugged notebook manufacturer)
• USA Federal Team Mike Mahoney (Retired USA
  Navy), Betty Armistead (War Games expert), Dr.
  Neil Birch (Advisor to National Security Agency)

9
Total Firewall

• Adds a Network Firewall component to our storage
  firewall portfolio
• A Platform Security, Management and Continuity
  technology combining Network and Storage Firewall
  technologies in a computer main board chipset
  implementation
• Facilitates integrated Security, Management,
  Continuous Backup and Instant Recovery Solutions
  and Services
• Eliminates the need to go onsite to fix non
  hardware related problems and to manage computers
  - Computers can be managed and repaired remotely
  from anywhere in the world
• Protects Desktop, Notebook and Server computers
  at both the Network and Storage (Hard Drive)
  levels
• Makes computers invisible to attackers,
  Implements central security policies
• Gives IT Administrators complete Control of
  Managed Systems

10
Markets we impact

• Commodity Computer Markets - Dell, HP, Lenovo/IBM
  
• Dell - market cap down 30 billion in the last
  year
• HP - market cap up 51 versus 52 week low
• Lenovo/IBM PC Division merge - coming to the
  NASDAQ?
• What impact will new technologies have on
  commodity MFRS?
• Computer Security Markets, Symantec, Microsoft,
  CA
• Symantec - market cap down 13.5 billion
• Microsoft - building a security suite
• Computer Chipsets Intel, AMD, VIA, SIS Intel
  undervalued by 75 Billion (19.61 P/E for a
  market leader?)

11
Dell

• Four Step Implementation Plan
• Make Valt.X Cyber Secure Products available in
  Dell Store for current Dell customers
• Offer Custom factory integration to key customers
• Factory offering on one Dell product line
• Factory offering on all Dell product lines
• Dell Computers has 18.6 worldwide market share,
  30 North American market share and ships some
  7.5 million computers a quarter

12
China Strategy

• Hard Drive Manufacturing Partner Excelstor of
  China
• Subsidiary of Great Wall Computer Company of
  China
• Subcontractor to Hitachi Global Storage
  Technologies
• Seek Standard for China Government Military
  Engaged
• Lenovo-IBM 35 computer market share in China
• USA Federal Government Strategy
• Partner with Prime contractors SAIC, Northrop
  Grumman (1 HP integrator) ,Intelligent Decisions
  (1 Dell Integrator), Anteon plus other Primes
  and 301 GSA Schedule holders
• Washington based advisory group
• Join and support INFRAGARD companies

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Dennis Meharchand, CEOValt.X Technologies,
Inc.471 Garyray Drive 1, Toronto, Ontario M9L
1P9 CanadaTel 416-746-6669 Fax [phone]
E-mail dennis_at_valtx.comWeb www.valtx.com