Headquater : 4F Pyunhwa bld. 166-1 SamsungDong, GangnamGu, Seoul, South KoreaTel : +82-2-564-0744 / Fax: +82-53-326-0745Lab : 5F Mobile Techno Bldg., 573-13 BokhyungDong, BukGu, Daegu, South KoreaTel) +82-53-326-0744 / Fax: +82-53-326-0745

2009. 5

The next generation multimedia sales system which is able to sell demaded contents by clients not through PC but through the kiosk of the vending machine type eas-ily.

Agenda

2

Introduction

Market Trend

Necessity of Business

Business Outline

Business Strategy

Major Business Model

Business Plan

Service Expansion Strategy

Product Outline

Characteristics of Product

Intellectual Property

Product and Service

Roadmap

Reference : Overseas Case

Contacts

Introduction : Organization Chart

3

Company MOBILUS CO., LTD. CEO Cho, Byung-Ho

Address

Seoul : PyungHwa bld. 4th floor, 166-1, Samseong-dong, Gangnam-gu, SeoulDaegu : Mobile Techno bld. 5th floor, 573-3, Bokhyun-dong, Buk-gu, Daegu

Date of Estab-

lishment

January, 2005(July, 2000)

Main Busi-ness Software Development (Browser and DRM) Capital 2 million won

No. of Em-ployee

50 in total (2 Doctor’s degree, 10 Master’s De-gree)

Main Products

TouchDownTM, Mobile Full Browser & Widget, OMA DRM Server & Client, WMDRM-PD, Internet Service Solu-tion

DRM GroupResearch Insti-

tuteBROWSER Group

Administration Planning Group

TouchDown Group

OMA DRM TeamService Develop-

ment TeamWEB Browser Team

Administrion Sup-port Team

TouchDown Team

BCAST TeamPrior Technology Research Team

Web Runtime Platform Tea,m

GVM Team

CEO

Strategy Market-ing

Introduction : Technical Capacity

4

Service Supplier of Contents Vending Machine for Multimedia(expected due : 09.09)

Service for various multimedia such as music and moviesEnsured marketing networks such as Korail and Shinsegae I&CPrior Occupation of newly emerging market by sharing ETRI technology patent

Leading Company of Latest technology of Browser Solution

Possesses Browser Solution using WebKit browser enginePossesses Web Runtime Platform Solution based on WebKitApplied Netfront browser to SAMSUNG GSM terminalsMaintain and repair TSS, Netfront browser applied modelsPossesses unique experience of self browser developmentPossesses unique User Interface Technology

Leading Company of Latest technology of DRM Solution

Possess all tech. from OMA DRM v1.0 to v2.1Provides the tech to SAMSUNG Handset Platform through license contractCompleted compatibility test with DRM Server of Vodafone and Core Media

Discovering International Market and Promoting New business

Efficiently adopt to new tech. through OMA standardizationParticipated in 3GSMA Mobile World Congress 2009Participated in CTIA Wireless 2008 Discovering new tech. for technical changes of Web 2.0 and mobile terminals

Contents Vending Machine

WebKit adopted Browser

MOBILUS’s MUSICAL DRM applied models (OMA DRM 2.1)

Movie Drama Music Video AD

MOBILUSMUSICAL Browser ANDROID Nokia S60 iPhone

SGH-ZV60SGH-760v SGH-F700vSGH-J200SGH-I400v

Market Trend: Digital Contents Distribution Market Scale

5

2006 년2007 년

2008 년2009 년

2010 년

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

552 473

503

522

536

2,445 2,471

2,613 2,945

3,404

3,294 3,559

3,848 3,983

4,046

7,128 7,930 8,518

8,773 8,971

8,890 10,188 11,442 12,592 13,379

11,314 13,698 16,867

20,567 24,595 15,417 17,214 19,772 21,887 24,082 16,226 17,945 20,541 23,124 25,012

23,882 26,589 28,745 30,978 32,997

Contents trade and distribution market is expected to reach the scale of 2.5 zillion won through over 10% growth annually.

Digital Image

Digital Music

Information Contents

Information Contents

Digital Broad-casts

Solution

Contents trade and intermediation

Game

E-book

Market Trend: Market Scales according to Distributing Media

6

Game

25,000

20,000

15,000

10,000

5,000

0

Digital B

roadca

sts

GContents tra

de and interm

edi-

ation

Informatio

n Contents

Digital M

usic

Digital Im

-

age e-Book

6,388

11,557

Actual digital contents distributing media shows that the scale of the off-line media is 50% of that of the online media, which concludes off-line media hold a great deal of importance compared to other contents market scales.

Capacity of success of new off-line distributing media

Online

Off-line

Market Trend: Characteristic of Digital Contents Media Usage

7

Considering that users usually use MP3 player, cellular phones and PMPs as the contents playing termi-nals, search for new business model is vital to reduce the inconvenience of purchasing and using con-tents and hence increase the usability.

Terminals for Digital Contents

Usage

Necessity of Business: Problems of Contents Distribution through Mobile Terminals

8

When buying contents using mobile terminals, users need to pay for data call fee, which is higher than the cost of the contents. This is the reason for why users try to avoid buying contents through their mo-bile terminals.

SKT (23.2%)KTF (15.2)

LGT (9.4)

NO Charge for Data Usage

Business Outline: Supplying New Contents Distribution Channel

9

Automatic Contents Providing Service for fast and east downloads of desired drama and broadcasts to cellular phones and laptops which could be provided to the customers any where such as streets, shops and airport, at any time.

At airport, before going on his business trip, Mr. Kim downloaded episode 21 of “Sejong, the great king’ from contents providing machine to his laptop and watched it during the flight. He was enjoying it so much that he didn’t even realize time flying.

Mr. Lee’s family went on a picnic on a weekend. Their way back home was full of traffic jam and his children were getting bored. He decided to download episode 3 of “Pororo” from the automatic contents providing machine to the navigation terminal at near resting place and play them for his children.

Despite high number of multimedia terminal owners such as cellular phones, PMPs and game consoles, methods to obtain contents are limited, and furthermore, mobile contents are provided only by communication companies, causing closed market structure, resulting ne-cessity of new solutions

12

New Contents Distribution Channel

Business Strategy: Focusing on Activation of Contents Distribution

10

In order to activate contents distribution, various contents need to be available and widely distributed through various distributing channels, based on new service system. Reliable supply of new service sys-tem by MOBILUS.

KioskSystem

Patent

DRMImageConverter

Edu. E-book

Movies Music

Vario

us D

istrib

utio

n C

han

nel

Variou

s Co

nten

ts

New Service System

Easy Payment Processor

User Interface

Various Terminal Supply

Various Contents

MetroCorp.

ShinsegaeI&C Korail… …

OperationManage-ment

Main Business Model : Contents Distribution

11

11

Movie, TV Contents

Music Video UCC Advertisement

E-book Newspaper Comic

Direct sales of music, movies, broadcasting contents, music videos, education(e-learning), e-books and many more

Business Plan

12

2009. 2. 16 MOU of ETRI and Shinsegae I&CTransfer of technology between ETRI-Shinsegae I&C and ETRI-Korail is due in mid May, 2009

Terminal andServer System Supply

Attempts to preoccupy newly emerging market of various business

Business Plan: Contents Service by Business

13

Contents Outsourcing by service business through cooperation with contents providing service companies

Main Business: Korail(Distribution), Shinsegae I&C, Metropolitan Rapid Transit Corporation

Maintain service compatibility by cooperating with preexisting service business and allow sole contents sourcing by forming Open Market or Customiz-ing Market

MusicMP3 : Music Portal(Bugs, Melon) and music possessing sites such as SoribadaPhone Bell : Provided by SVC

MovingPicture

Drama, News : Cooperation with Broadcasts(iMBC, SBSi )Movie : Movie site owners

Image Cooperation with communication companies with rights

GameCooperation with Communication company or Well known game developing companyCooperation with Game Publishing business

Cooperation of bundling products with KT(Mega TV) and Hanaro Communication(Hanaro TV)

Image

Service Expansion Strategy

14

Phase 1 : Specific Target Location

Metro Corporation: Specific location(subway station) and its neighboring location

Korail(Distribution): Cooperation marketing according to specific location(airport, rail)

Ebridge Co. Ltd. (airport), Korail(rail and subway), Phoenix Vending(nationwide)

Shinsegae I&C : Distributor targeted cooperation marketingAble to run simultaneously with PMP rental business

Rail Station 406Expressway Resting Place 119Airport 15

Seoul Metro 243

Service Expansion Strategy

15

Phase 2 : Contents Distributor

Cooperation with communication and online service companies that contem-porarily provide contents service

Development of bundling goods with terminal possessing company(comm. Companies) and wired comm. business(CATV, IPTV business)

Phase 3 : Recruiting Branches

Local position securing marketing for service market expansion estab-lished based on step 1 and 2.

Main Sales Locations : School, Academy, Coffee shop, Salon etc.

232 Starbucks, 116 Coffee Beans, 500 Dunkin Donuts (2007,12)

7200 24hr Convenient Stores(2003)

175 Universities

Product Outline: User Centered TouchDownTM System

16

Various fees are not necessary unlike registration fees and usage cost of existing mobile service and the contents are easy and convenient to use – it can be used anywhere at any time just like purchas-ing a canned drink

Automatic Con-tents Providing

Machine

Any Con-tents Down-

loading

Contents Search Contents Selection Target DeviceSelection

Payment forContents

Playable in various mobile players

Characteristics of Product : Usability considered Kiosk System

17

MSR Reader

RF Reader

SD Card

Mini SD Card

Mini 5pin USB

I-pod/touch

Cellular 24 PIN

USB Herb

USB

USBSerial

Bluetooth

Provides easy-to-use system to provide successful service to customers

Various Inputs and Outputs(Wire, Wireless) and Payment Interface(T-money, Cellular Phone Payment, Credit Card)

Characteristics of Product : DRM Solution for Contents Protection

18

TransCoder: Mobilus Chameleon

DRM Packager:Provide same service as PC

etc

PDAPMP

TransCoder: Mobilus ChameleonDRM Packager:T-Sync Module Tech.Cooperation

TransCoder : Mobilus ChameleonDRM Packager : -SKT : Melon DRM Module Tech.-KTF : Dosirak DRM Module Tech.-LGT : MUSIC on DRM Module Tech.Phone

Appropriate DRM Solution is applied depending on the device and perfectly secure the contents

Application of MOBILUS’s sole DRM Solution and common DRM Solution

Registered Patent :Customized Contents Supply and related Equipments based on terminal information(10-0779089), Electronics and Telecommunications Research Institute

CI related approach

19

Intellectul Property: Technical Improvements through I.P.

Secure stable business based on business and technology patents

New Patent, Utiliy Model Patent, Trademark :

Accumulation of Know-How on Intellectual Property and Operation/Management

Secure stable business based on business and technology patents

Moving picture convert-ing system (Chameleon) related approach

Registered Patent :Moving Picture Converting System and its Method using publicized API(10-0781310), MOBILUS

DRM related approachPatent Pending: DRM Contents Playing Device and its Method(10-2007-0082948), MOBILUS

CI UI Management and Operation related ap-proach

Patent Pending: User Interface Management System and Method for Wired and Wireless Information Device and Wired and Wireless Information Device possessing User Interface Management Function(10-2007-0084819), MOBILUS

20

Various Designs

Product and Service Roadmap

21

2009. 2Q 2009. 4Q 2010

Service InfrastructureExpulsion

2009 3Q: Development of TouchDownTM for digital contents and wired kiosk 2009 4Q: Development of GVM(game vending machine) for digital games and wireless kiosk 2010 : Development of contents platform for mobile devices to activate integrated kiosk and wireless service and independent execution of contents service

Digital GVM GVM Terminal Kiosk + Docking Sta-tion

Integrated TouchDownTM

Kiosk + wireless AP + Contents Launcher

Contents Platform Advertisement, Independent Service Oper-ation

Digital TouchDownTM

Wired Kiosk

11

22

33

Reference: Overseas Case

22

Media Distribution Kiosk for Apple i-Pod-Recognized the importance of off-line in distributing contents-Shows Apple’s courage to take the initiative of off-line service

Media distribution kiosk : It is installed in many public places. The system allows i-pod users to download vari-ous music, moving pictures and applica-tions from i-tunes and app-store without us-ing PC. Patent pending in USA intellectual property office.

Virtual connector for inter-facing :It is the interface technology to connect i-Pod to me-dia kiosk system that allows downloading contents by connecting wirelessly, using close-range connect-ing communication technology such Wi-Fi and Blue-tooth.

Reference: Overseas Case

23

SonyEricsson Playnow Instant Entertainment 24/7- Service provided in 80 branches in Asia such as

Indonesia, Malaysia and Singapore by SonyErics-son- By paying fixed price, people using SonyEricsson cell phones can easily download latest DRM-free mu-sic, movies and TV dramas.- No additional communication fee is needed and download can be executed easily by connecting to kiosk equipment

- Brand ‘PoP’, Sony and Universal jointly devel-oped vending machine with the brand called ‘PoP’. The vending machine that sells music, moving pic-tures and games - DVD, Blu-ray Disk, PS3 GAME download.- MP3 and MP4 download using SD merory card.

Contacts

24

Mobile Techno bld. 5th floor, 573-3, Bokhyun-dong, Buk-gu, DaeguTel : 053) 326-0744 / Fax: 053) 326-0745

HeadquarterPyungHwa bld. 4th floor, 166-1,Samseong-dong, Gangnam-gu, Seoul (Across Trad Club)Tel : 02) 564-0744

ResearchInstitute

RelatedInquiries

Park, Moon-Keun, Director (010-2778-6904)

E-mail : jmchae@mobilus.co.kr

Bae, Jae-Hyung, Vice Director (010-9328-3958)

E-mail : bezant@mobilus.co.kr

Kim, Don-Hwan, Section Chief (010-9940-7007)

E-mail : paerang@mobilus.co.kr