July 2014

“The Future of Interactive Music”

Beamz Interactive, Inc. (BZIC) Investor Presentation

Forward-Looking Information

This material is for information purposes only. The presentation may contain forward-looking

statements based on current assumptions and forecasts made by the management of Beamz

Interactive, Inc. Various known and unknown risks, uncertainties and other factors could lead

to substantial differences between the actual future results, financial situation, development

or performance of the company and the estimates given here. The company accepts no

obligation to continue to report or update these forward-looking statements or adjust them to

future events or developments. This material may not be reproduced, distributed or

transmitted to any other person or incorporated in any way into another document or other material without the prior written consent of Beamz Interactive, Inc.

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"Beamz Interactive is an emerging company that

aims to be the leading developer and marketer

of a revolutionary new laser controller and

interactive music technology in several multi-

billion dollar markets, including Education,

Health Care, Music, Gaming, Senior Care, and

other applications. As we roll-out our interactive

music apps and products, our long-term goal is

to be a major player in this multi-billion industry.”

Charlie Mollo, CEO

Mission Statement

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• Leverage Beamz Intellectual Properties

– Expand Strong Patent Portfolio and Extensive Software / Content

– Promote Beamz® Brand

• Directly Pursue Two Key Markets With Initial Music Product

– Education & Health Care Market

– Selected Consumer Markets

• License / OEM / Partner Beamz Hardware and Software

– License / OEM / Partner Beamz Products and Technology

in Key Strategic Markets

• Develop and Implement Broad Content Business Strategy

– Promote Beamz Apps to Create Brand and Product Awareness

– Develop & Promote Music, Education and Health Care Content

to Beamz Hardware and App Customers

Beamz Business Strategy

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• Beamz Interactive Laser Music System

– Includes Beamz PC/Mac Player Software and

iOS App for iPhone, iPad and iTouch

– Windows RT and Android App Coming Soon

– Recording Capability, Custom Touch Layout,

Custom Volume Mix, Vocal Mute Button, Playlist, etc.

• Includes Specialized Education & Special Needs Content

– 50 Songs Tailored to Education and Therapy

– Activity Guides for Schools and Special Needs Applications

– Compatible with Various Communication Products

• Additional Capabilities

– Adjustable Beamz Width for Therapy Use

– MIDI Mode to Connect to Any Software that Supports MIDI

– Numerous Additional Song Content “Downloads” Available

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Beamz Education & Healthcare Product

Education and Healthcare Market

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• Hospitals

• Rehabilitation

• Physical, Occupational,

& Recreational Therapy

THERAPY

• Retirement

• Assisted Living

• Nursing Homes

SENIORS

• 130,000 + US Schools (K-12)

• Special Needs

• Music Programs

• Learning Disabilities

• Cognitive Development

EDUCATION DISABILITIES WELL SUITED FOR BEAMZ

US Afflictions

Disability ($ Thousands)

Visually Impaired 6,600

Tramatic Brain Injury 5,000

Mental Retardation 6,500

PTSD 5,200

Other Physical Therapy 2,900

Autism/Asperger’s/Rett 800

Cerebral Palsey 800

Stroke/Aphasia 800

Down Syndrom 400

Spinal Cord Injuries (SCI) 300

Multiple Sclerosis (MS) 300

MD 50

ALS (Lou Gehrig's Disease) 30

Williams Syndrome 30

TOTAL US INDIVIDUALS WITH DISABILITIES 29,700

EQUALS MULTI- BILLION MARKET OPPORTUNITY

• Special Needs & Music Education

– Direct Outreach to Regional School Centers – Leverage Education Resellers

– Tech For Education -- S & S Worldwide

– Rehab Mart -- Enabling Devices

– Info Grip -- SteptimeWare

– Music in Motion -- Inclusive Technology

– Spectronics -- AT Link

– Westminster Technologies -- Dagesh

•Leverage Tobii Partnership – Communication and Eyegaze Bundles – 60 Worldwide Resellers, Over 25 US Sales Reps •Implement Digital Marketing Program – Occupational, Physical, & Recreational Therapists – Individuals – Parent and Strategic Organizations Such as Easter Seals, Autism Speaks, United Cerebral Palsy, etc.

•Pursue Senior Care Facilities – Retirement, Assisted Living and Nursing Homes – Leverage Music TheraPlay

Education and Healthcare Marketing Plan

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• Digital Song Content

– Currently 500+ Songs Across All Music Genres

– Extensive Licensing Rights (i.e. Disney, Warner, Sony, etc.)

– Original Music, Cover Songs, Karaoke, Music Videos

• Activity Guides

– Structured Activities with Tailored Music for Specific

Educational, Therapeutic, and/or Learning Programs

– Family and Group Play Activities

– Initial Content Developed with Lekotek, Future Additional Partners

• Ongoing Content & Annual Subscription Programs

– Ongoing Expanded Printed Activity Guides

– Video Education Units for Self-Guided Instruction

– Ongoing Song Library Expansion

– Music Theory Collaboration with Leading Content Providers

– Connected Learning Programs

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Education and Healthcare Content Strategy

• Texas School System (K-8)

– Public Schools: 20 Regional Centers, 1,241 Districts,

and 5,500 Schools – 49.5 Million Students

– Private Schools: 1299 Schools

– 5.3 Million Students

• Beamz Initial Hardware Sales Opportunity

– 2 - 6 Units per School

– ASP: $300

– $6 Million Initial Sales Opportunity – (Assuming Average 3 Units per School)

• Follow-On Content & Subscription Sales

– Annual/multi-year subscription option

– Specific content and module purchase options

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Texas School System Example

• Beamz Interactive Laser Music System

– Includes Beamz PC/Mac Player Software and

iOS App for iPhone, iPad and iTouch

– Windows RT and Android App Coming Soon

– Recording Capability, Custom Touch Layout,

Custom Volume Mix, Vocal Mute Button, Playlist, etc.

• Includes 34 Interactive Songs and Music Videos

– Exclusive Flo Rida Song, Plus Several Flo Rida Hits

– Genres Include Pop, Rock, Country, EDM, etc.

– In the Style of Such Artists as Coldplay, Carrie Underwood,

Justin Timberlake, AC/DC, Katy Perry, Adele, Rihanna, etc.

• Additional Capabilities

– MIDI Mode to Connect to Any Software that Supports MIDI

– Optional Virtual DJ and DJ Player Software Download for Aspiring DJ’s

– Numerous Additional Song Content “Downloads” Available

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FLO RIDA

Beamz by Flo Consumer Product

• Kids (5 plus)

• Teens / Tweens

• Moms & Dads

• Grandparents

• Aspiring DJs

• Mobile DJs at Parties

• 18-35 Year Olds

FAMILIES

ASPIRING DJ’S

Consumer Market

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MUSIC

ENTHUSIASTS

• Recreational Music Making

• App Enjoyment

• Garage & Rock Band

Enthusiasts

• 80% of U.S. wish they played an

instrument

• Over 45 million people play an

instrument

• $7.5 billion music market with sizable

growth

• Over 100 Million VDJ home DJ

downloads

• Guitar Hero/Rock Band Achieved

Billions of Dollars in sales

($10.7 billion gaming market)

• Over 1 Billion target mobile devices

KEY STATISTICS

• Create Consumer and Industry Awareness

– Implement Targeted Digital Marketing Programs

– Leverage Education Market Awareness

– Pursue Select channels, including Aspiring DJ market

– Promote Beamz Free App

• Pursue Strategic Partnerships As Awareness Expands

– Consumer, Music and Gaming Partners

– OEM and Licensing Arrangements

Consumer Sales and Marketing Plan

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•Lekotek Top Five Product

•Best DJ Gear At Musikmesse – 5 stars

•Billboard.com Top Five “Coolest” Products at CES 2011

•Best of CES 2011 by Leo Laporte on ABC’s

LIVE! With Regis & Kelley

•Digital Trends - Best of Toy Fair 2011

•Dr. Gadget 2013 Must-Have Holiday Gift on

The Wendy Williams Show

•NBC’s Extra; CBS’ The Talk; ABC’s The View

•The Toy Man® Product Guide – 5-Star Rating

•Seal Of Approval 2011-2012; Recipient of:

– The Toy Man® Award of Excellence

– The Toy Man® eChoice™ Award

• Toy Insider 2010 Holiday Gift Guide

– Top Item for Tweens

Awards and Recognitions

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IP Portfolio Includes 5 Issued U.S. Utility Patents (Plus 2 Design Patents):

• Patent 6,960,715 - Has several independent claims covering various aspects

of a music instrument operable by using electromagnetic beam emitters

• Patent 7,504,577 B2 – Broader patent that covers the Beamz concept at a

very high level. Generally covers beam emitters, detectors, music, etc.

• Patent 7,858,870 B2 - Broader claims than ‘577 B2. Covers a device

wherein the triggers are generic, and music programs are a subset of a composition

• Patent 8,178,773 - Covers the Beamz Studio product, including a graphical

user interface that enables the Beamz product to be user-programmed

• Patent 8,431,811 - Covers a multimedia device allowing a user to play a song in association

with displayed video images

13 Pending Applications:

• International patents, DJ mapping patents, proximity and gaming patents

Extensive software, music engine, copyright, and music license rights

Intellectual Property Portfolio

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• Over $18 Million Invested

– Patents, Music Engine, Apps, Beamz Products, Music Production

and Licensing, Market Development & Testing, Infrastructure

– About $10 Million from Management / Directors

• 2013 Invested Heavily in 3rd Gen Products, Technology and Apps

– Includes Significant Non-Cash Expense

– Development Now Complete

– Now Need to Invest in Sales & Marketing

• Calendar Q4 2013 $170K in Sales

– About $70k Q1 2014, Followed by Expected Material Q3-Q4 and

2015 Growth

• Clean Balance Sheet

– Only Debt is $4.8 Million Convertible Debt

(Primarily with Management / Directors)

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Historical Financials

• Hardware Margins 50% plus

– Calendar Q4 2013 over 50% When Adjusted for

Warehouse Consolidation

• Content Margins 70-90%

– Includes Songs, Educational Content, Therapy

Content, etc.

– Long Term Razor Blade Opportunity

• Pre-Tax Margins 40% Plus With Sales Volume

• Current Cash Operating Expenses: $80 – 100k/ Month

– Break Even around 350-450 Units / Month

– Will Ramp Sales and Marketing Expense with Growth

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Financial Model

Common Stock 30,111,896

Preferred Stock (as if converted) 7,960,391

Convertible Debt (as if converted) 16,079,405

Options and warrants 1,250,330

FULLY DILUTED SHARES OUTSTANDING 55,402,022

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Capital Structure As of April 22, 2014

• Experienced Management Team

• Strategic Positioning Completed 2013

• Highly Leverageable Financial Model

• Significant Multi-Billion Market Opportunities

• Strong Product and Intellectual Property Portfolio

Investor Highlights

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Beamz Interactive, Inc.

Charlie Mollo, CEO

505.263.9707

charlie.mollo@thebeamz.com

Contact

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