NEXT BIOMETRICS

NEXT management teamInc Board of Directors and Advisory BoardNEXTemployees:Seattle:12Taipei:2Shanghai:5Norway /Germany:3Tore Etholm-Idsøe, CEO (MBA)• CEO of NEXT Biometrics since 2004• Extensive experience as business architect andentrepreneur in a number of successful and fastgrowing IT, retail and marketing concepts• Former founding CEO of Binders AS• Co-founder of UNIC-Gruppen AS,Matias Troccoli, VP Technology (PhD)• Joined Next in 2006 and manages all technologyprojects from Seattle, where the engineering teamis based.• Matias has 12 years’ experience within the area oflow temperature poly silicon (LTPS) technology andsystems: NEXT’s core production processVincent Su, Manger Taiwan (MBA)• Prior to joining NEXT in 2013, he worked 2 yearsas manager for Authentec Taiwan (acquired byApple)• Vincent has 19 years of experience working forinternational companies like Phoenix, Sandisk,Insilicon and Seagate in the Taiwanese marketManagementBoard of DirectorsNgoc Minh Dinh, Chief Technologist (MS)• Inventor of the Active Thermal Principle and founder of theCompany• More than 20 years experience within the area offingerprint sensor technology• Focusing core sensor design research and developmentactivitiesRobert Muller, System Level Fingerprint TechnologyExpert (PhD)• Joined NEXT in 2009• Over 15 years experience within Biometrics, Smartcards,Data security and NFC-Payments• He has worked more than 10 years for Munich-basedGiesecke & Devrient - one of the world leading suppliers ofauthentication-related security solutionsDr Lunji Qiu, GM China Operations (PhD)• Dr. Qiu previously held positions as VP and GM ofAuthentec China, GM of Atrua China (acquired byAuthentec), GM of Broadcom China, and before thismultiple positions within Motorola in Singapore.• Dr. Qiu will oversee all aspects of NEXT BIOMETRICSChina, including business development activities and theexpansion of the customer support, logistics and salesteams in the largest world market.++10+ man-yearsoutsourced

The NEXT fingerprint opportunityFingerprint biometricsmarket set to take offProven technology atspecs with credible massmarket referencesNEXT BIOMETRICS GROUP ASESTABLISHED 2001$ 14 MILL RAISED 2004-2013$ 15.8 MILL RAISED SEPT 2013Significant costadvantageProduction cost reducedby 70 – 80% vssame qualityalternatives..Patents, Mobile & IPO

Credible mass market referencesVOLUMES(MILL UNITS)CHECK-IN AT AIRPORTSCORPORATE TIME & ATTENDENCECORPORATE/PUBLIC ACCESS CONTROLWORLD MARKET SYSTEM INTEGRATORSDO NOT MAKE COMPROMISES ON…-SENSOR SIZE-SENSOR RESOLUTION-SYSTEM ERGONOMICS-ENROLMENT PROCEDURE-USER GUIDANCE-QUALITY OF ALGORITHMMOBILE LAW ENFORCEMENT SYSTEMSSAFES, GUNS, ETC……SILICON AREA SENSORSSALES PRICES $ 15 -30COST PROBLEMMANYCREDIBLEEXISTINGREFERENCES

The new industry drivers…Mass market biometric user authenticationArea sensorlaunchedSeptember 10 th2013«Our intention is to obliterate UserIDs, Password and Pins, including inenterprises around the world»- Michael Baret, PayPal«We have investigated everybiometric trait, the only solidtechnology is fingerprint»«Swipe sensors are inconvenient andunreliable»THE FINGERPRING SENSORMARKET NOW ENJOYS THESTRONGEST POSSIBLEDRIVERSINDUSTRY LEADERSTATEMENTS AND ACTIONSALL CONFIRM THE UNIQUEPOSITIONING OFTHE NEXT TECHNOLOGY«We want to move away from swipesensors»

Fingerprint sensor market - 2013 ChangesVOLUMES(MILL UNITS)100’EDS10’SExisting market sensorsx1’SSILICON SWIPE SENSORSSales price $ 2-5Poor quality & user experience2014SMALL AREA SENSORSSales price $ 8-10OPTICAL SENSORSSales price $ 4-30Bulky formatSILICON AREA SENSORSSales price $ 15 -35Mass market disqualified

Competitive positioning – Going forwardUnique value propositionVOLUMES(MILL UNITS)The NEXT sensor…100’EDSOpens new markets today using:Pin codes, passwords, signature,photo ID and/or physical keysDEMO…Production cost reducedby 70 – 80% vssame quality alternatives..10’SExisting market sensorsx1’SSILICON SWIPE SENSORSSales price $ 2-5Poor quality & user experience2014SMALL AREA SENSORSSales price $ 8-10OPTICAL SENSORSSales price $ 4-30Bulky formatSILICON AREA SENSORSSales price $ 15 -35Mass market disqualified

The core technologyArea sensor technologyThermal conductivityA heat pulse is generated and a response measured by everypixelCapacitive sensingAn electrical radio frequency signal is generated and responseis measured by every pixelMULTILEVELDEFENCE :5 APPROVED PATENTS(ALL MAJOR MARKETS)PlayersPlayers2 PENDING PATENTS+TRADE SECRETS+FIRST MOVERADVANTAGE=

The importance of sensor sizeNEXT sensor size is defined by leading system integratorsSmaller formatsConvenient and secure mass market proven formatsiPhone 5S64 mm22014:FPC & VALIDITY100 mm2FINGERPRINTC (FPC)AUTHENTEC (DP)148 mm2NEXT BIOMETRICS201 mm2AUTHENTEC ( DP)230 mm2NISTRECOMMENDATION256 mm2Its small size isoutside of historicsystem specSecurity level allowaccess control andpayments oniTunesForced into smallerarea sizes due tomarket verdict onswipe sensors+high cost of siliconSmallest sensorarea ever sold involumes to massmarket systemintegratorsSize defined incollaboration withmajor world playerin payments andpublic IDNo #1 in siliconarea sensormarkets10 mill + sold(and used)FIPS approvedRecommended sizefor one-to-onematchingapplicationsis 16.4 *16.4 mmSalesprice:N/AUSD 8 – 10(Expected)USD 15 - 20(Historic / Present)USD 28 – 35(Historic / Present)FPC – Q1 / Q2VALIDITY – Q2 / Q3

Q1/Q2/Q3 – 2013…case summary200.000ASIC’sproducedProduction ReadyMobile ModuleInvestment case summaryPCB Modules and USBSensorsFingerprint biometricsmarket set to take off$ 15.8 mill equityraisedJan Mar May Jul Aug Sep1’st SmartphoneProject Initiated

OCTOBER – 2013…First commercial PCBmodulecompletedFirst silicon of new costand space savingASIC received in SeattleFirst complete phonedemonstrated toNEXT in Asia(not this design)Investment case summaryWeek 1 Week 2 Week 3 Week 4Hunter Hu recruited as SalesManager of NEXT China.2 experienced FAE’s recruitedin ShanghaiFingerprint biometricsmarket set to take offSeattle staff with three newexperienced engineers.Out of 11 Seattle engineers, fivespeaks mandarin.Proven technology withcredible mass marketreferencesINNOLUX CORPORATION CEOand CTO pledges increased projectsupport

Significant “NEXT-enabled” growth opportunitiesMultiple applications identified for the sensor – the first contracts already in placeExisting sensor marketsNew sensor markets identifiedFlash drivesOTP generatorsSmartphoneaccessPCsSmartcard readerSales contract I• 4 million sensors• Grant support• Industry record sizeUSB sensors (e.g. mouseand keyboards)Time & AttendanceDoors & TurnstilesPayment terminalsUSB tokens (e.g. Chineseinternet banking)Biometric “Keyfobs”Smartphone basedMORE DEMANDING :PaymentsCloud accessPhysical accessSales contract II• 3.6 million sensors• 12 million sensor mintarget• Industry record sizeExisting fingerprint sensor markets represents thefastest route to sales and profitabilityReplacements of existing high cost capacitive areasensors are margin-attractive targetsGlobal market for fingerprint biometrics is projected toreach USD 10 billion by 2018

NEXT Smartphone Project #1Shipping in volumes in Q1/14Competitors w/ potential solutionsNEXT’s sensor for smartphoneQ1-Q3 / 2014..FINGERPRINTCARDS& VALIDITYQ4-13/Q1-14NEXTNEXT SENSOR SMARTPHONELAUNCHES IN CHINA IN DEC-13USD 8 – 10(Expected)USD 5 – 8

TOTAL COSTASIC size and cost road mapContinuously working towards reducing size and costJuly 2013Demo Module:- ASIC- M0- Miscl.- Bias Ckt- Power ICPower ICRemoved &otherConsiderationsOct. 2013Module V0:- ASIC- M0- Miscl.- Bias CktCurrent SourcesRemovedDec. 2013Module V1:- ASIC- M0- Miscl.Multi-Die PackageMar. 2014Module V2:- SiP- Miscl.Module V3:- SiP-cs- Miscl.Jun 2014Lower Cost ASICASIC SIZE REDUCTION

Asset light business modelContracts in place with highly renowned manufacturers and system integratorsProduct development/Sensor designManufacturingAssembly andsystemintegrationSales &Marketing/ PartnerPartnerPartner/ PartnerNEXT team dedicated tosensor design,technology developmentand IPProduction of the NEXTsensors & ASICSoutsourced to leadingglobal manufacturingpartnersMarket leading systemintegrators will developa long range ofapplications based onNEXT technologyNEXT team dedicated tosensor sales andmarketing

Units (million)Significant “NEXT-enabled” growth opportunitiesBottom-up model on identified market opportunities350300Projected sales levelbased on existing andnew markets250Apple effect not included200SENSOR SMARTCARDS150KEYFOBS100MOBILE DEVICES50EXISTING MARKETS

Financial forecastsRevenues and gross margin ambitionsTargeting positive cash generation from Q3 2014USD million165150135Total RevenuesFirm contractsGross margin164Gross margin %60%55%50%USD million3025120105907560453745%40%35%30%25%20%15%201510530150020132014201510%5%0%0-5Q32013Q42013Q12014Q22014Q32014Q42014Q12015Q22015Q32015Q42015Estimated revenue from first two contracts as % of total forecasted revenue:2013 100%2014 25%2015 14%

Investment case summaryFingerprint biometricsmarket set to take off• Firm trends backing convenient security solutions that eliminates passwords and pin codes• Industry leaders’ (Apple, Microsoft, PayPal) statements and actions all support fingerprintrecognition as the superseding technology – iPhone 5S launched 10 September 2013• Already large existing markets such as Physical Access Control• Significant growth from new markets such as mobile phone expected from 2014Proven technology withcredible mass marketreferences• NEXT’s proprietary and patented technology a result of more than 15 years of research• NEXT utilize area (touch) sensors, which are proven to be superior to the nowcommonly used swipe sensors• The size of NEXT’s sensor is defined in collaboration with major global leaders inpayments and public ID – providing the required level of securitySignificant costadvantage overcompetitors• Production cost currently significantly below competitors with area sensors due toproprietary and patented technology• Capital light with manufacturing, assembly and integration outsourced to industry leaders• Clear cost road map with highly achievable goal of reducing cost by a further 66%Unique investmentopportunity• Highly talented and experienced management team and Advisory Board• 2 industry record sized sales contracts with revenues from Q4 -2013 signed• Smartphone development project with major Asian mobile phone producer• Opportunity to come in at attractive pricing level – IPO planned in Q2-2014