TEAM 4

New Business Venture:Closed Gift Card Recharging

and Exchange

The Opportunity

2011 # Cards (M) $B

Used Gift Cards 514 $22.2

Unused Gift Cards 128 $5.6

Total Cards 642 $27.8

The Pain

• Gift cards are often never used

• You don't always get what you want..• Cannot reuse them

Market Space

www.GiftcardBazaar.com

Gift Card PoS

Gift Card Exchange Gift Card Recharge

Gift Card PoS, Exchange and Recharge

Business Model

www.GiftcardBazaar.com

RechargeExchangeNew SalesTarget: 2 % of 642M Total Cards sold in 2011

Target: 2 % of 128M Cards unused in 2011

Target: 2 % of 128M Cards used in 2011

$1 Fee for each transaction type x number of cards

Customer

• Primary customer are vendors that need/desire to increase cash flow from Gift Card sales

• The secondary customers are those consumers that purchase gift cards, but often times are concerned about their use or lack of use

?

Value Proposition

• Easy to Use Web / Mobile Services• Increase retailer exposure and

revenue.

• Convenient Flexible Solution to Recipients and Donors

• Re-charging and/or Choosing Where They Can Redeem Their Gift.

• Convenience of doing it all at home

Startup

Startup Costs – Target 1 year on line

Development:• Applications – PC and Mobile• Trials/Fielding• Regulatory

$3M

Marketing/Sales:• Customer Development• Advertising• Vendor relationships

$1M

Total: $4M

Revenue

Target 2% of each card type

in GiftCardBazaar

transactions

Year % Cards in Bazaar Transactions

Revenue($1/trans)

EBITDA

1 - - -

2 0.25 $3.2M $1.2M

3 0.5 $6.4M $4.4M

4 1.0 $12.8M $10.8M

5 2.0 $25.7M $23.7M

514M Used Cards128M Unused Cards642M Total Cards

Barriers to Adoption

• Relationship with the vendors (Value Proposition)

• Connecting into vendor's infrastructure/transactions

Questions

Tim MancillasPresident/CEO

Scott ByrnesVP/CFO

Jean VendetteVP Marketing & Sales

Vishal Donthireddy

VP/CTO

Back Slides

Road Map

Tech/Business road mapYear 1 - in the market spaceYear 2 - Operating business, initial repayment to investors Year 3 - Consolidate market share Year 4 - Co-Op business development Year 5 - Launch Co-Op offering Year 6 - Sell market share to buyer Exit to Hawaii and drink mai-tai's!!

IP & Entry Barriers

• �Network Effect.o Capture information about customer for marketing

purposeo More retailer sign-in, more value

• �Ready to go technology - Stay aheado Improve on existing Web based technologyo Improve on existing Mobile technology

�• �Execution

o Agility, make product better and work smarter. Be a step ahead of the competition

Market Entry Plan

Provide the growing U.S. Gift Card market consumer and retailer with latest technology

• Entryo Easy to use technology – Relieving the paino Create user friendly Web and mobile app based technology

• Get buy-in from retailer / gift card provider on the benefit of our producto Access to a new pool of customero Latest Web / Mobile technology - Do not need to be Starbuck!o Data analysis for marketing purpose

• Marketing plano Low to no fee to consumer / Low fee to retailero Use of aggressive marketing through Web/social media, retailer

web site and gift card mall