Pan X Imaging April 2009 Rev I

April 2009April 2009 11

PanX Imaging, Inc.PanX Imaging, Inc. …the perfect picture…the perfect picture

Revolutionary & BreakthroughRevolutionary & Breakthrough

Imaging Technology for Imaging Technology for

The XXXXXX Group WorldwideThe XXXXXX Group Worldwide

April XX, 2009April XX, 2009

April 2009April 2009 the perfect picturethe perfect picturePANX IMAGING, INC.PANX IMAGING, INC.

Meeting ObjectivesMeeting Objectives

Provide XXXX Group with an understanding Provide XXXX Group with an understanding of the PanX technologyof the PanX technology

Explore partnership opportunities, such as:Explore partnership opportunities, such as: Development, production and marketing of Development, production and marketing of

consumer ‘PanX’ camerasconsumer ‘PanX’ cameras Development of innovative ‘stitching’ software Development of innovative ‘stitching’ software

based on advanced PanX integration algorithms based on advanced PanX integration algorithms


Today’s AgendaToday’s Agenda What do we have? What do we have?

An overview of PanX Imaging technologiesAn overview of PanX Imaging technologies

Why are we here? Why are we here? Synergies with TPG companiesSynergies with TPG companies

What can be created?What can be created? Innovative and new imaging products for diverse markets Innovative and new imaging products for diverse markets

How large is the consumer market?How large is the consumer market? U.S. and Worldwide revenue and margin projections U.S. and Worldwide revenue and margin projections

When can they be available?When can they be available? Quick to market; technology timelineQuick to market; technology timeline

Discussion of possibilitiesDiscussion of possibilities


Overview of PanXOverview of PanX

Veteran-owned small business focused on design and Veteran-owned small business focused on design and development of innovative imaging technologiesdevelopment of innovative imaging technologies

Specializing in high quality, multi-ocular, digital Specializing in high quality, multi-ocular, digital cameras, sensors and imaging algorithms supporting cameras, sensors and imaging algorithms supporting consumer, professional and military useconsumer, professional and military use

Knowledgeable principals with strong reputation in Knowledgeable principals with strong reputation in worldwide photographic industryworldwide photographic industry

Headquartered in Hilton Head, SC with offices in Headquartered in Hilton Head, SC with offices in Palm Harbor, FL and Dayton, OHPalm Harbor, FL and Dayton, OH


What do we have? What do we have? Foundations of the technologyFoundations of the technology

Multiple sensors in Multiple sensors in geometric arrays / geometric arrays / formationsformations

Sectioning and Sectioning and quantizing of lightquantizing of light

Extensive parallelism for Extensive parallelism for speed of off-loadspeed of off-load

Clutter

Single sensor Multiple sensors

Smaller individual targets provide more constant light

For same FOV, 3X closer to subject

Multiple sensors reduce off-loadtime – shorter “bucket brigades”

Apertures


What do we have? What do we have? Foundations of the technologyFoundations of the technology

Error-free image Error-free image integration algorithm integration algorithm (Provisionally patented)(Provisionally patented)

Integrated “learned Integrated “learned object” modeobject” mode

Applicable with still Applicable with still images and streaming images and streaming videovideo

LOG

HPF

DISC

OOI

Corrector

Align 1

LOG

HPF

DISC

OOI

Corrector

Calc Object Distance

Sort Object into Bins

Select Ctrl Pts/Bin

Apply 4th order poly.

Align 2

Neural Network

Pi11

Pi21

Pi31

Pi32

Pi41

Pi51

Pi+111

Pi+121

Pi+131 Pi+132

Pi+141

Pi+151

Outline Filter (Laplacian on Gaussian)

Image from Ci

Image from Ci+1

High Pass Filter

Gross Object Discriminator

Objects of Interest Selector

Initial Corrector

Based on cross-correlation function

Conf. Of object pairs, calculation of object distances based on observed angle

Sort into objects/distance bins

Selection of control points based on representative objects/distance bin

Execute 4th order polynomial curve fitting algorithm.

Crop, resultant image

Confirmation and adjustment feedback to corrector

P(i,i+1)71 T(i,,i+1)71

P(i,i+1)81 T(i,i+1)81


How does this work?How does this work?

What you actually SEE at the yacht basin is what you get!What you actually SEE at the yacht basin is what you get!

Multiple images are recorded simultaneously and seamlessly integrated





Fan

Rich Devoss, Owner – Orlando Magic

5-lens

3-lens


Consumer benefits of the technologyConsumer benefits of the technology

Single lens, 28 mm focal length, no zoom, 3 MPixels

5 lens, 50 mm focal length,no zoom, 15 MPixels

50 mm lens, no zoom, 3 MPixels

3 lens, 50 mm focal length,no zoom, 9 MPixels

50 mm lens with flash, 3 MPixels

5- lens array, no flash, 15 MPixels

Available lightHigher resolution

Truer colors Up close perspective

Traditional technologies

PanX technologies


What are the competing technologies?What are the competing technologies?

CandidateCandidate DescriptionDescription PanX ComparisonPanX Comparison

Wide angle lensesWide angle lenses e.g. 28mm, 17mme.g. 28mm, 17mm Wider FOV, no optical Wider FOV, no optical distortiondistortion

Wide angle cameraWide angle camera Uses prisms, generally Uses prisms, generally not greater than 90not greater than 90oo FOV. FOV.

Wider FOV, higher densityWider FOV, higher density

Rotating cameraRotating camera Rotates while film pulled Rotates while film pulled throughthrough

Faster capture speed, Faster capture speed, stops action, digitalstops action, digital

Hyperbolic MirrorHyperbolic Mirror Maps a 360Maps a 360oo circular circular image onto one sensorimage onto one sensor

Higher density, less Higher density, less distortiondistortion

Stitched digitalStitched digital Uses “stitching” software Uses “stitching” software in a PCin a PC

Easier to use, faster, Easier to use, faster, higher qualityhigher quality

NTSC VideoNTSC Video Analog signal, 30 fps, low Analog signal, 30 fps, low resolutionresolution

More resolution, digitalMore resolution, digital


Why are we here?Why are we here?PanX Synergies with The XXXX GroupPanX Synergies with The XXXX Group

You claim…You claim… ““Nothing creates sales Nothing creates sales

like new technology”like new technology” ““No limits. No No limits. No

Boundaries.”Boundaries.”

PanX delivers…PanX delivers… A revolutionary imaging A revolutionary imaging

technology that adds a new technology that adds a new twist to the features and twist to the features and functionality of digital functionality of digital imaging – one that imaging – one that significantly expands the significantly expands the boundaries of today’s info-boundaries of today’s info-imaging/photo industryimaging/photo industry

An opportunity to be a An opportunity to be a first-to-market, category-first-to-market, category-creator in this exciting new creator in this exciting new spacespace


PanX Synergies with The XXXX GroupPanX Synergies with The XXXX GroupNew technology that attracts more customersNew technology that attracts more customers

You acknowledge…You acknowledge… ““Looking for Looking for

technologies that bring technologies that bring differentiated value to differentiated value to one or more of the one or more of the XXXX Group XXXX Group companies”companies”

““We’re players who We’re players who bring a win/win track bring a win/win track record … create more record … create more customers”customers”

PanX delivers…PanX delivers… Technology that clearly Technology that clearly

aligns and compliments aligns and compliments existing XXXX Group existing XXXX Group products and services products and services and that offers new and that offers new products and services products and services serving a broad spectrum serving a broad spectrum of digital imaging of digital imaging consumers from the consumers from the novice to the technophile novice to the technophile


PanX Synergies with The XXXX GroupPanX Synergies with The XXXX GroupNew technology that attracts more customersNew technology that attracts more customers

XXXX seek…XXXX seek… ““Technology … it’s the Technology … it’s the

“WOW” factor that “WOW” factor that attracts customers”attracts customers”

PanX delivers…PanX delivers… Innovative imaging Innovative imaging

technology that does just technology that does just that … What’s the first that … What’s the first thing you said when you thing you said when you saw a PanX image? saw a PanX image?

WOW !WOW ! ““Seen it” imaging with Seen it” imaging with

an alluring appeal, an alluring appeal, capturing the “scene” as capturing the “scene” as the eye sees itthe eye sees it


PanX Synergies with The XXXX GroupPanX Synergies with The XXXX GroupAn Opportunity at Every CornerAn Opportunity at Every Corner

SpringWorks - Getting emerging technologies to marketSpringWorks - Getting emerging technologies to market

Polaroid - Polaroid - Multi lens digital camerasMulti lens digital cameras

SoniqCast - SoniqCast - Image content management softwareImage content management software

QubicLightQubicLight - - Specialty projection and display devicesSpecialty projection and display devices

Symmorphix - Symmorphix - Rechargeable, thin battery packs & image displaysRechargeable, thin battery packs & image displays

SunBeam - SunBeam - Home security products and servicesHome security products and services

Appairent Technologies - Appairent Technologies - Wide field of view streaming videoWide field of view streaming video

Fidelica Microsystems - Fidelica Microsystems - Facial recognition & screening devicesFacial recognition & screening devices

2j - 2j - Unique branded apparel & merchandiseUnique branded apparel & merchandise

Element Electronics - Element Electronics - Trend setting brandsTrend setting brands


What can be created? What can be created? PProducts envisioned for the consumer electronics roducts envisioned for the consumer electronics

marketmarket

Several camera models

Enhanced picture phones

Printers & visual displays


What else can be created? What else can be created? Advancements in other markets will lead to further Advancements in other markets will lead to further

commercializationcommercialization

WFOV Video

Homeland & personal security

Military / defense systems


How large is the domestic consumer How large is the domestic consumer market?market?

Digital market is just reaching mass market purchase maturity stageDigital market is just reaching mass market purchase maturity stage Key to attracting late majority is …Key to attracting late majority is …

Add capabilities without complexity – more useful, “Brownie” conceptAdd capabilities without complexity – more useful, “Brownie” concept Fit technology into current lifestyle – view on TV, easy to dock, print, transferFit technology into current lifestyle – view on TV, easy to dock, print, transfer Reduce overall cost of photo experience Reduce overall cost of photo experience

YearUS Digital

Camera SalesEstimated

PanX SalesPrice /

CameraEstimated Revenue

Estimated Gross Margin

2004 20,500,000 2005 25,000,000 2006 24,500,000 110,250 400$ 44,100,000 11,025,000 2007 23,750,000 106,875 350$ 37,406,250 9,351,563 2008 23,000,000 103,500 300$ 31,050,000 7,762,500 2009 22,000,000 99,000 250$ 24,750,000 6,187,500 2010 21,000,000 94,500 200$ 18,900,000 4,725,000

TOTAL 156,206,250 39,051,563 Source: InfoTrends & PMA Market Research


How large is the worldwide How large is the worldwide consumer market?consumer market?

Worldwide adoption of digital technology lags U.S. slightlyWorldwide adoption of digital technology lags U.S. slightly Estimates exclude significant increase in unit sales potential from cellular Estimates exclude significant increase in unit sales potential from cellular

camera phones, disposable digital cameras and professional/prosumer camera camera phones, disposable digital cameras and professional/prosumer camera salessales

Year

Worldwide Digital Camera

SalesEstimated

PanX SalesPrice /

CameraEstimated Revenue

Estimated Gross Margin

2004 50,000,000 2005 50,000,000 2006 51,500,000 231,750 400$ 92,700,000 23,175,000 2007 57,500,000 258,750 350$ 90,562,500 22,640,625 2008 60,500,000 272,250 300$ 81,675,000 20,418,750 2009 60,000,000 270,000 250$ 67,500,000 16,875,000 2010 57,500,000 258,750 200$ 51,750,000 12,937,500

TOTAL 384,187,500 96,046,875 Source: InfoTrends & PMA Market Research


When can the technology be available? When can the technology be available?

Systems DevelopmentSystems Development

Software DevelopmentSoftware Development

Hardware Development Hardware Development

Systems AnalysisSystems Analysis

PanX Consumer CameraPanX Consumer Camera

MM

11

MM

22

MM

33

MM

44

MM

55

MM

66

MM

77

MM

88

MM

99

MM

1010

MM

1111

MM

1212

Development time can be improved through leveraging of major Development time can be improved through leveraging of major supplier/purchaser of optical, electrical and mechanical components, access to supplier/purchaser of optical, electrical and mechanical components, access to advanced design engineering technologies and production facilities.advanced design engineering technologies and production facilities.

PanX has the technical expertise to design and develop the system but requires PanX has the technical expertise to design and develop the system but requires the right partner to capture first-to-market status with this technology.the right partner to capture first-to-market status with this technology.


What can a XXXX / PanX partnership bring?What can a XXXX / PanX partnership bring?Discussion of possibilitiesDiscussion of possibilities

Revolutionary and breakthrough technologyRevolutionary and breakthrough technology Multiple market opportunities; many inherent Multiple market opportunities; many inherent

synergies with TPG Companiessynergies with TPG Companies First to market category creatorFirst to market category creator Significant market sizeSignificant market size Quick technology timelineQuick technology timeline Hedge against price erosionHedge against price erosion Multiple licensing opportunitiesMultiple licensing opportunities

Pan X Imaging April 2009 Rev I

Documents

panx technology

panx image

panx synergies

customers panx

innovative imaging technology

xxxx group new technology

technology single lens

new imaging products