PROTECTION FROM THE

INSIDE OUT.TM

™

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We live on a planet that is made up of over 70% water.It is time to evolve.

INTRODUCING HzO

HzO conducted customer survey on Facebook

Do you worry about damaging your phone?

95%Yes

5%No

Would you pay an extra $99 when buying or replacing a smartphone (approximately $600 U.S.) that is protected from water damage?

36%No

63%Yes

There is no excuse for valuable electronics to be vulnerable to water, moisture or other liquids. The scientists and engineers at HzO have developed WaterBlock™, a cutting-edge technology that protects electronics from the inside out. No gaskets. No cover. No plugs.

Winner of the 2012 Innovations Design and Engineering Award from the International Consumer Electronics Show, The New York Times named HzO’s WaterBlock™ “one of the most astonishing products of the year.”

Why HzO?

Consumers know expensive electronics can be protected from water damage, humidity and moisture without bulky mechanical seals, unsightly plugs and gaskets that limit use. In fact, a wave of recent interest is creating demand for total protection—not just against an errant splash but from full submersion—as people want to use smart phones, cameras and tablets wherever they go and in all kinds of weather.

HzO offers the total solution with its revolutionary WaterBlock™ technology—cutting-edge science and engineering, capable of sealing sensitive electronics in a full range of applications, from in-house coating for small manufacturers to assembly line solutions forhigh-volume production.

Professional Academic Survey

Have you had a device fail due to water damage?

42%No

58%Yes

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WATERBLOCK™ GREEN TECHNOLOGYIs WaterBlock™ Eco-Friendly?

The proprietary formula includes a base formulation of organic polymer. All ingredients are non-toxic, inert and have received a Certifi cate of Conformancefor all toxicity testing for coatings on electronic devices

In addition, use of HzO technology reduces device and electronic assembly failure thus reducing e-waste currently fi lling land fi lls globally.

Is this new technology?

Building on vapor deposition processes that have been on the market for several years, HzO has innovated proprietary chemical formulations and application processes that pioneer a new standard in electronic water resistance.

How is WaterBlock™ applied to devices?

WaterBlock™ coating is applied through a chemical vapor deposition (CVD) process. Vapors wrap around every intricate part of the electronic assembly including tight passages and crevices in the device architecture. Proprietary equipment engineered by HzO enables application of the coating on a mass production scale to keep up with the demand of manufacturing.

HzO WaterBlock™ is Proprietary

The technology and business development teams at HzO continue to put a high priority on developing and protecting intellectual property. To this end HzO has fi led a series of patents around the process, system, and material. These patents encompass specifi c device applications of WaterBlock™ coating as well as protection involving additional water protection methods. Process patents are specifi c to HzO’s strategic market: mass production of electronic devices. Some techniques may be retained as trade secrets, however, due to HzO’s business model, most will result in a patent fi ling. HzO’s patents are and will be fi led in the USA as well as strategic countries throughout the world. In addition to the patent fi lings by HzO, HzO is the owner of three patents acquired previously.

To learn more about WaterBlock™, visit HzOInside.com.

WaterBlock™ Characteristics

• Pinhole free, conformal coating

• Hydrophobic properties

• Highly corrosion resistant

• Biostable and biocompatible

• Capable of adhering to various materials including metals, plastics, rubbers and more

• Effective barrier against moisture, acids and more

• Completely homogenous surface

• Low coeffi cient of friction

• Water protection performance equivalent of IPX7

• MIL spec STD-810 for salt and humidity resistivity

• Tested thermally stable from -50°C to 120°C

• Thermal conductivity 0.084 (W/(m·K))

What is WaterBlock™?

Like a transparent shield, HzO’s WaterBlock™ technology is an impermeable coating of bonded molecules sealed on electronic assemblies (PCB and peripheral components) to protect even the most sensitive devices from damage by water, moisture, chemical invasion, contaminating particles and humidity.

WaterBlock™ protects not only from drips and splashes, but from accidental submersion as well, allowing today’s consumers to use their electronics the way they want to—at the beach, by the pool, hiking, exercising or working in inclement weather. WaterBlock™ changes the paradigm from traditional mechanically sealed waterproofi ng. HzO allows electronics to be fully submerged without damaging valuable internal components.

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WATERBLOCK™ ADVANTAGE THE FUTURE OF WATERBLOCK™

Since its debut of WaterBlock™ at the Consumer Electronics Show (CES) in January of 2012, HzO has receive more than 500 inquiries from OEMs and other manufacturing parties interested in applying WaterBlock™ to their specific products. These 500 inquiries we’re not just from consumer electronics groups but from over 60 industries and product categories who wanted WaterBlock™ on their products and devices.

WaterBlock™ is not only for the consumer electronics industry but for virtually every other small electronics product category as well. HzO is continuing to seek to establish relationships with industry professionals across the vast spectrum of electronic industries including military, healthcare, aerospace, automotive, outdoor/recreation and more.

HzO WaterBlock™ technology offers an ideal shield for electronic devices by providing protection against accidental submersion while maintaining the aesthetics of the device. WaterBlock™ is applied from the inside out, leaving no coating or residue on external surfaces to damage visual appeal or touch. The coating process offered by other companies sprays a thin hydrophobic coating on both the interior and exterior of the device which can aid in driving away light splashes to the device, but leave microscopic gaps and openings that allow water, humidity and moisture to eventually seep through and damage the internal sensitive circuitry, especially when submerged.

Today’s consumers demand that electronic devices perform well in sustained submersion tests. Although waterproof cases can provide submersion protection, the consumer risks catastrophic failure if the case’s seals crack or become disjared from impact. By creating a physical barrier between the electronics and the invading water, the WaterBlock™ coating is capable of an IPX7 equivalent rating similar to waterproof cases, but instead of keeping water out of the device’s shell, it keeps it out of the electronic circuitry itself, acting as a protective case on the inside of the device. WaterBlock™ has even proven to be an effective redundant protection for traditional mechanical seals. HzO WaterBlock™ truly is the ideal protection solution against liquids, small debris and moisture on the market today.

Military

AutomotiveHealthcare

Outdoor/recreation

AerospaceTECHNOLOGY BY HzO

TM

TM

Water Damage Spectrum Accident Protection

Plasma Coatings

Silicone & Acrylics

No Coating

HzO = Protects even in sustained submersions, lowering corporate liability.

Splash resistant coating = Protects only against temporary water contact, increasing corporate liability.

Low Failure RiskHigh Failure Risk Accident Protection Protection Buffer

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CUSTOMIZED SOLUTIONSScalability is Key

HzO’s business model allows ample scaling to meet the demands

of both small and large manufacturers. Whether it be shipping

your product to HzO’s coating facilities located in Draper, Utah to

handle thousands of units, or having HzO’s proprietary machinery

installed on the factory floor to coat units on a mass scale, HzO

can help meet your water protection need.

Manufacturing Advantages

Devices are coated at ambient temperature, protecting electronics.

Other benefits include the following:

§ WaterBlock™ easily pairs with current high throughputproduction.

§ Equipment guarantee

§ No employee contact with any chemical agent

§ Equipment flexibility—scalable to multiple capacitiesand design characteristics.

§ Rapid masking processes for areas not to be coated

§ Documented quality assurance process (Operations,Maintenance, Safety, Quality Assurance, ProcessFlow Diagrams)

Turn-Key Innovations

HzO streamlines the integration of WaterBlock™ technology through a documented process and training focused on safety, production and quality. Members of the HzO team provide expertise in failure analysis from water damage, as well as quality assurance training, monitoring, additional start-up training and support.

§ Documented equipment specifications

§ Operating check list:

– Process flow diagrams to assure quality

– FMEA documented process

– Corrective action process

– Equipment maintenance process

– On-site supervision of installation and start-up

Major Historical Events

“The guiding principle of HzO is to provide our revolutionary WaterBlock™ technology to OEMs, allowing them to continue manufacturing the highest quality electronics that can now be used in a whole new way, and do this in a seamless and integrated way where a true partnership exists between the OEM and HzO.”

— Paul Clayson, President and CEO

Major multinational companies engage HzO to develop WaterBlock™

into scores of products

HzO innovates high throughput application machinery

ZAGG, Inc. acquires majority interest in WaterBlock™

technology

Continued technology advancements and completion

of target market studies

Base formula ready to commercialize

Aggressive technology development begins

HzO organized by ZAGG after acquisition

HzO wins CES Innovations Design and Engineering Award

Round of funding completed with highly respected and recognized venture capital firms and

Horizons Ventures Hong Kong

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THE HzO TEAMThe HzO WaterBlock™ Team

The HzO WaterBlock™ team consists of engineers, R&D scientists with extensive experience in coatings, electronics, micro-processing, vacuum deposition and other industry skills that ensure the highest quality and continued leadership in innovation.

§ President and CEO with extensive experience in scalable, industrial coating applications

§ R&D scientists in chemistry and material science

§ Engineering expertise in electrical, mechanical, chemical manufacturing, and process disciplines.

§ Strategic partners in source materials, application processes and equipment manufacturing

§ Research and characterization support

§ Field engineers to implement technology.

Corporate

HzO is backed by a number of respected institutional investors with a history of successful operation and growth of high-tech companies as well as an unparalleled background in consumer electronic devices and nanotechnology. HzO is a privately held corporation.

Accolades

HzO has received multiple awards including one of the prestigious 2012 CES Innovations Design and Engineering Awards as well as the 2012 Utah Innovation award in the Consumer Products category for their WaterBlock™ technology.

For more information about HzO and its innovative WaterBlockTM technology, please contact HzO at:

12637 South 265 West #300, Draper, UT 84020

Telephone: 801-268-1900

E-mail: info@hzoinside.com

www.HzOInside.com

CONTACT US

™