DRM(Digital Rights Management)

2009. 5The 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 easily.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

Agenda2

IntroductionMarket TrendNecessity of BusinessBusiness OutlineBusiness StrategyMajor Business ModelBusiness PlanService Expansion Strategy

Product OutlineCharacteristics of ProductIntellectual PropertyProduct and Service RoadmapReference : Overseas CaseContactsIntroduction : Organization Chart3CompanyMOBILUS CO., LTD.CEOCho, Byung-HoAddressSeoul : PyungHwa bld. 4th floor, 166-1, Samseong-dong, Gangnam-gu, SeoulDaegu : Mobile Techno bld. 5th floor, 573-3, Bokhyun-dong, Buk-gu, DaeguDate of EstablishmentJanuary, 2005(July, 2000)Main BusinessSoftware Development (Browser and DRM)Capital2 million wonNo. of Employee 50 in total (2 Doctors degree, 10 Masters Degree)Main ProductsTouchDownTM, Mobile Full Browser & Widget, OMA DRM Server & Client, WMDRM-PD, Internet Service SolutionDRM GroupResearch InstituteBROWSER GroupAdministration Planning GroupTouchDown GroupOMA DRM TeamService Development TeamWEB Browser TeamAdministrion Support TeamTouchDown TeamBCAST TeamPrior Technology Research TeamWeb Runtime Platform Tea,mGVM TeamCEOStrategy Marketing3Introduction : Technical Capacity4Service 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 patentLeading Company of Latest technology of Browser SolutionPossesses 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 TechnologyLeading Company of Latest technology of DRM SolutionPossess 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 MediaDiscovering International Market and Promoting New businessEfficiently 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 MachineWebKit adopted BrowserMOBILUSs MUSICAL DRM applied models (OMA DRM 2.1)Movie Drama Music Video ADMOBILUSMUSICAL BrowserANDROID Nokia S60 iPhoneSGH-ZV60SGH-760vSGH-F700vSGH-J200SGH-I400v

Market Trend: Digital Contents Distribution Market Scale5Contents trade and distribution market is expected to reach the scale of 2.5 zillion won through over 10% growth annually.Digital ImageDigital MusicInformation ContentsInformation ContentsDigital BroadcastsSolutionContents trade and intermediation

Game

E-book

Market Trend: Market Scales according to Distributing Media6Game25,000

20,000

15,000

10,000

5,000

0Digital BroadcastsGContents trade and intermediationInformation ContentsDigital MusicDigital Imagee-Book6,38811,557Actual 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 mediaOnlineOff-lineMarket Trend: Characteristic of Digital Contents Media Usage7Considering that users usually use MP3 player, cellular phones and PMPs as the contents playing terminals, search for new business model is vital to reduce the inconvenience of purchasing and using contents and hence increase the usability.

Terminals for Digital Contents Usage

Necessity of Business: Problems of Contents Distribution through Mobile Terminals8When 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 mobile terminals.

SKT (23.2%)KTF (15.2)LGT (9.4)NO Charge for Data UsageBusiness Outline: Supplying New Contents Distribution Channel9Automatic 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 didnt even realize time flying.Mr. Lees 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 necessity of new solutions12

New Contents Distribution ChannelBusiness Strategy: Focusing on Activation of Contents Distribution10In 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 system by MOBILUS.KioskSystemPatentDRMImageConverterEdu.E-bookMoviesMusicVarious Distribution ChannelVarious ContentsNew Service SystemEasy Payment ProcessorUser InterfaceVarious Terminal SupplyVarious ContentsMetroCorp.ShinsegaeI&CKorail OperationManage-ment

Main Business Model : Contents Distribution1111

Movie, TV ContentsMusic VideoUCCAdvertisementE-bookNewspaperComicDirect sales of music, movies, broadcasting contents, music videos, education(e-learning), e-books and many moreBusiness Plan122009. 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 businessBusiness Plan: Contents Service by Business13Contents Outsourcing by service business through cooperation with contents providing service companiesMain 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 Customizing MarketMusicMP3 : Music Portal(Bugs, Melon) and music possessing sites such as SoribadaPhone Bell : Provided by SVCMovingPictureDrama, News : Cooperation with Broadcasts(iMBC, SBSi )Movie : Movie site ownersImageCooperation with communication companies with rightsGameCooperation with Communication company or Well known game developing companyCooperation with Game Publishing businessCooperation of bundling products with KT(Mega TV) and Hanaro Communication(Hanaro TV)

ImageService Expansion Strategy14Phase 1 : Specific Target LocationMetro Corporation: Specific location(subway station) and its neighboring locationKorail(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 406

Expressway Resting Place 119Airport 15Seoul Metro 243

Service Expansion Strategy15Phase 2 : Contents Distributor Cooperation with communication and online service companies that contemporarily 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 established 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 UniversitiesProduct Outline: User Centered TouchDownTM System16Various 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 purchasing a canned drink

Automatic Contents Providing MachineAny Contents Downloading

Contents SearchContents SelectionTarget DeviceSelectionPayment forContents Playable in various mobile playersCharacteristics of Product : Usability considered Kiosk System17MSR ReaderRF ReaderSD CardMini SD CardMini 5pin USBI-pod/touchCellular 24 PINUSB HerbUSBUSBSerial

Bluetooth

Provides easy-to-use system to provide successful service to customersVarious Inputs and Outputs(Wire, Wireless) and Payment Interface(T-money, Cellular Phone Payment, Credit Card)Characteristics of Product : DRM Solution for Contents Protection18TransCoder: Mobilus ChameleonDRM Packager:Provide same service as PC

etcPDAPMP

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.

PhoneAppropriate DRM Solution is applied depending on the device and perfectly secure the contentsApplication of MOBILUSs sole DRM Solution and common DRM SolutionRegistered Patent :Customized Contents Supply and related Equipments based on terminal information(10-0779089), Electronics and Telecommunications Research InstituteCI related approach19Intellectul Property: Technical Improvements through I.P.Secure stable business based on business and technology patentsNew Patent, Utiliy Model Patent, Trademark : Accumulation of Know-How on Intellectual Property and Operation/ManagementSecure stable business based on business and technology patentsMoving picture converting system (Chameleon) related approachRegistered Patent :Moving Picture Converting System and its Method using publicized API(10-0781310), MOBILUSDRM related approachPatent Pending: DRM Contents Playing Device and its Method(10-2007-0082948), MOBILUSCI UI Management and Operation related approachPatent 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), MOBILUS20Various Designs

Product and Service Roadmap212009. 2Q2009. 4Q2010Service InfrastructureExpulsion2009 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 Station Integrated TouchDownTM Kiosk + wireless AP + Contents Launcher Contents Platform Advertisement, Independent Service Operation Digital TouchDownTM Wired Kiosk123Reference: Overseas Case22Media Distribution Kiosk for Apple i-Pod-Recognized the importance of off-line in distributing contents-Shows Apples courage to take the initiative of off-line serviceMedia distribution kiosk : It is installed in many public places. The system allows i-pod users to download various music, moving pictures and applications from i-tunes and app-store without using PC. Patent pending in USA intellectual property office.

Virtual connector for interfacing :It is the interface technology to connect i-Pod to media kiosk system that allows downloading contents by connecting wirelessly, using close-range connecting communication technology such Wi-Fi and Bluetooth.

Reference: Overseas Case23

SonyEricsson PlaynowInstant Entertainment 24/7- Service provided in 80 branches in Asia such as Indonesia, Malaysia and Singapore by SonyEricsson- By paying fixed price, people using SonyEricsson cell phones can easily download latest DRM-free music, 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 developed vending machine with the brand called PoP. The vending machine that sells music, moving pictures and games DVD, Blu-ray Disk, PS3 GAME download. MP3 and MP4 download using SD merory card.Contacts24

Mobile Techno bld. 5th floor, 573-3, Bokhyun-dong, Buk-gu, DaeguTel : 053) 326-0744 / Fax: 053) 326-0745HeadquarterPyungHwa bld. 4th floor, 166-1,Samseong-dong, Gangnam-gu, Seoul (Across Trad Club)Tel : 02) 564-0744ResearchInstituteRelatedInquiriesPark, Moon-Keun, Director (010-2778-6904) E-mail : jmchae@mobilus.co.krBae, Jae-Hyung, Vice Director (010-9328-3958) E-mail : bezant@mobilus.co.krKim, Don-Hwan, Section Chief (010-9940-7007) E-mail : paerang@mobilus.co.kr