A Biometrics Technology Company

1
A Biometrics Technology Company Innovative
Provider of Infra-Red Finger Scan Identity
Authentication Technology Business
Overview White House Conference Center January
26, 2004
2
Highlights

• PosIDs patented Thermo-IDTM technology fulfills
  the promise of biometrics
• Innovative Infra-Red (IR) sensor analyzes skins
  underlying structures, which are unique,
  measurable, and enduring in every human
• Meets demands for high-security and widespread
  application
• World-class technology development team
• Performance of 20,000 initial tests far exceeds
  todays biometrics
• Partnering with leading semiconductor chip
  developers
• Thermo-IDTM Direct Contact Fingerchip

3
Corporate Overview

• Early Stage Company (Started Operations 2000)
• Southern Maryland Small Business
• Self-Financed Technology Proof-of-Concept/Prototyp
  e Development (2000-2001)
• End-to-End System Test Evaluation (2002)
• Industry Partnerships Demonstrations
• Homeland Security Expo (July 2002)
• Prototype Demonstration
• Senator Sarbanes Nomination (Maryland Small
  Business)
• Maryland TEDCO (July 2003)
• 50K MTTF Grant Award (Technology
  Commercialization)
• NSA Collaboration (Testing Evaluation)
• National Security Agency
• Technology Champion
• Identifying special applications
• Other Enabling Initiatives
• Thermo-IDTM selected as best biometric
  application for Firearm Safety Device (NIJ
  Report)
• Mossberg Industries Thermo-IDTM Technology
  Commitment (iGun Firearm Application)

4
Problem

• 1st Generation Biometrics fell short of
  expectations
• Diminished Field Performance
• Accuracy in highly controlled environments not
  replicated in the field
• High False Rejection Rates (FRRs)
• High False Acceptance Rates (FARs)
• High Enrollment Failure Rates
• Vulnerable to Deception
• Every system that uses externally-observable
  features (Face, Voice, Fingerprint, Iris) is
  inherently and unavoidably vulnerable
• Performance tests found 11 popular systems
  compromised (Source ct)
• Identity Fraud is the fastest growing crime in
  the U.S. Today
• (Source Secret Service)

• There is no compelling evidence that any current
  biometric scheme has been able to substantiate
  security, convenience, and cost benefits
  simultaneously.
• Dr. Armind Gruenich, Deutsche Bank

5
1st Generation Biometrics Performance Issues
Source Business 2.0 (September 2002)
6
PosIDs Solution
PosIDs next-generation biometric meets demands
of high-level security and widespread market
applications

• Secure Persistent Performance
• User Enrollment (Failure-To-Enroll (FTE) 0)
• Imposter Rejection (False Acceptance Rate (FAR)
  0.001)
• Convenience (False Rejection Rate (FRR) 0.001)
• Persistence of Biometric Artifact (gt8 months and
  counting)
• User Convenience
• Non-intrusive infra-red fingerscan operation
• Not a fingerprint system
• No requirement for user ID on central database
  (One-to-One Match)
• Cost Effective
• Leverages COTS components (smart cards, readers,
  etc.)
• Deployed through established industry channels

7
Technology Overview
8
Technology Overview
Processed Infrared Scan
One-to-One Match?
IR Sensor Array
Stored Template
Imaging
Processing
Authentication
Pattern Recognition
9
Technology Comparison
Source International Biometrics Group (IBG)
Authentication Performance Comparisons
10
Product Evolution
2000 2002 Self-Financed
In Process
2003 Today Maryland TEDCO MTTF Grant
2005 Exploring Options
11
Commercialization Plan
Phase I
Phase I
Product Development
Product Development
IR Camera on Circuit Board
IR Camera on Circuit Board
Infra
-
Red
Infra
-
Red
0
-
6 Months
0
-
6 Months
Today
Camera Chip
Camera Chip
Product Development
Product Development
Phase II
Partnership with
Phase II
Vendor Relationship
Independent Performance
Independent Performance
DRS Technologies
DRS Technologies
6
-
9 Months
6
-
9 Months
Assessment
-
NSA
Assessment
-
NSA
Phase III
Phase III
Commercial Market
Commercial Market
9 Months
9 Months
Penetration
Penetration
Phase IV
Phase IV
Broad Market Expansion
Broad Market Expansion
Low Cost IR Camera Chip
Low Cost IR Camera Chip
24 Months
24 Months
12
Product Line
PosIDs open product architecture enables the
flexible development and deployment of a wide
variety of access control applications
Infrared Biometric Authentication
Open Modular Product Components
Common Thermo-ID Sensor Card Common Tunable
Authentication Algorithm
Core Application Areas
Physical Access Control
Logical Access Control
13
Applications
Modular Form Factor Enables Broad
Deployment Compact Infra-Red Fingerscan
Semiconductor Solution
14
Why PosID...

• PosID fulfills the promise of biometrics for both
  high level security and widespread market
  applications.
• Patented Infra-Red technology scans underlying
  structures
• Performance far exceeds 1st generation biometrics
• User Enrollment
• Imposter Rejection
• Persistent Superior Authentication
• Growing demand for identity assurance
• World-class technical team

15
Contact Information

• PosID, Incorporated
• 46425 Rue Purchase Road
• Lexington Park, Maryland 20653
• [phone]
• www.posidinc.com

Raymond Nowak CEO/President rnowak_at_posidinc.com
Thomas Ball Director, Business Development tball_at_p
osidinc.com
Michael Willmore Chief Technology
Officer mwillmore_at_posidinc.com