Investor Presentation

1

• Investor Presentation
• July 2004
• Daniel Harpin
• Sowmya Kumblekere
• Matt Livesay
• Kyle Myers
• Rick Pesarchick
• Matt Ragas

2
About the Company

• Mailblocks was founded in 2002 by the late WebTV
  co-founder, Phil Goldman, with a simple idea
  improve the consumer email experience make it
  faster, more manageable andabove all elsefree
  from the aggravation of spam.
• Mailblocks uses a highly effective spam blocking
  and address authorization technology (called
  Challenge/Response 2.0) to protect consumers from
  unwanted mail. The Mailblocks service has been
  widely praised by its customers for its ease of
  use, affordable pricing and effectiveness.

3
The Mailblocks Opportunity

• Email is now the second most popular mode of
  communication today behind the telephone. The
  number of email boxes is expected to grow at a
  rate of 138 in the next five years. With this
  incredible growth, comes opportunities, but also
  problems, namely SPAM.
• Regular email users now finds themselves
  increasingly overwhelmed by the amount of SPAM
  mail they receive each day. Some estimates show
  that nearly half of all email received comes
  unsolicited. Viruses are increasingly being sent
  in SPAM mail as well.
• The explosion in the amount of SPAM mail has
  reached epidemic proportions, and business and
  consumers are hungry for a solution that will
  eliminate SPAM and put them firmly back in
  control of their inboxes again.

4
The Mailblocks Solution

• Mailblocks is a personal Web-based email service
  that gives users a new email address which they
  can use to block spam right away. Users can then
  set up this account so that messages sent to
  their other email addresses arrive in their
  Mailblocks Inboxspam free.
• Mailblocks will work with Hotmail, MSN, Yahoo!
  Mail, AOL, and a users POP3 account (i.e.
  Earthlink, RoadRunner, Bellsouth etc). This
  extends Mailblocks' spam-free benefits to all of
  a users other addressesso all the user ever
  sees is the email they want.
• Mailblocks has a very user friendly Web interface
  and users can even access Mailblocks through
  popular desktop email programs such as Microsoft
  Outlook, Outlook Express, Entourage, Eudora and
  Apple Mail.

5
The Mailblocks Service
6
Mailblocks Challenge/Response 2.0
7
The Experienced Mailblocks Team

• Phil Goldman late founder and CEO
• - Founder and SVP of Engineering, WebTV
  Networks
  
• - VP of Advanced TV Services, Microsoft
• - Author of 19 issued U.S. patents

Rich Landsman acting CEO/VP Engineering
- SVP of Technology and Operations, iUniverse
- Executive with InterTrust and Borland
International - Holds several patents as well

Phil Steffora VP Operations - Vice President,
Metromedia Fiber Network - Co-founder, MIBH (net
work services company) - Original architect of A
lta Vistas operational technology
Mailblocks Advisory Board - Andy Hertzfeld sof
tware artist and Macintosh forefather
- Rocky Pimentel partner, Redpoint Venture
Partners - Richard Scudellari partner, Morriso
n Foster LP - Bill Yont retired VP, WebTV Ne
tworks
8
Strong Business Momentum

• The Mailblocks service continues to gain momentum
  with subscription growth of 700 in the first
  quarter of 2004. We acquired EmailAccount.com in
  January.
• Mailblocks is on track to release an innovative
  new information management tool (calendaring and
  contact mgmt) called Maxwell in the second half
  of the year.
• Mailblocks continues to receive favorable media
  reviews and Maxwell received a coveted DEMOgod
  award at the recent influential DEMO 2004
  industry trade show.

9
Strong Intellectual Property

• Mailblocks was issued two patents in 1997
  (6,199,102) and 1998 (6,112,227) for its
  challenge/response system and several more
  patents are pending.
• The technology requires senders who are not
  listed on a person's accepted-recipient list to
  reply to a question before their message will be
  sent.
• Given the growing interest in anti-spam
  technology, we believe there are significant
  licensing opportunities for our patents and that
  this IP holds significant intrinsic value.

10
Strong Favorable Press

• We have generated an incredible amount of
  positive press for a company of our size due to
  the high quality of our technology and the huge
  demand for SPAM solutions.
• Weve received positive reviews this year already
  in
  
• - The Wall Street Journal - NextGen Electronics
• - PC Magazine - San Jose Mercury News
• Mobile PC - Forbes.com
• - PC World - USA Today

11
Mailblocks Target Market

• Current Target Market
• Mailblocks has focused its product development
  and marketing efforts on serving the consumer
  side of the anti-spam solutions field to date.
  We offer tiered levels of service via
  subscription.
• Our Mailblocks consumer service has been widely
  praised by consumers and the media, but it faces
  heavy competition by high profile rivals with
  competitive pricing plans Hotmail, Yahoo! etc.
• Future Target Market
• The Mailblocks team has a deep technology and
  engineering background. We are a pioneer and
  proven player in the anti-spam solutions field,
  but we face pricing pressures.
• A substantial opportunity exists to take our
  existing technology and expertise and focus it on
  new product and licensing opportunities on the
  enterprise and ISP side of the industry.

12
Mailblocks Capital Requirements

• Mailblocks has been entirely self-funded to date.
  The late Phil Goldmans family is currently our
  largest shareholder and has provided us with
  bridge financing.
• We are raising our first round of venture capital
  financing so that we can properly implement our
  transformation into a leading provider of
  anti-spam solutions to medium to large size
  enterprises and Internet service providers.
• We are currently seeking 3 to 4 million in
  equity financing with a targeted closing of
  September 2004.

13
Mailblocks Capital Usage

• Upon securing 3 to 4 million in new equity
  financing, Mailblocks plans to deploy this
  capital as follows
  
• 1 million ramp-up Research Development for
  new enterprise and ISP focused product
  licensing.
  
• 500k-1 million new Sales Marketing
  campaign focused on solidifying new enterprise
  market positioning.
  
• 1 million hire new permanent CEO, a new head
  of Marketing and ramp up new enterprise sales
  team.
  
• 500k-1 million working capital/dry powder.

14
Mailblocks Exit Strategy

• Red hot field with premium valuations Symantec
  recently acquired anti-spam solutions company
  Brightmail for 370 million in cash. Brightmail
  posted revenue of 26 million (up 100) and a
  profit of 1.1 million last year.
• Potential exits for Mailblocks investors within
  the next 18 to 36 months (our projected
  investment timeline) include
  
• Strategic acquisition
• Initial public offering
• Significant consolidation in the anti-spam field
  is likely within the next 18 months. With proper
  financing, we will be well positioned to create
  value in this consolidation.

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We would now be happy to take your questions.