Business Overwiew

By

The iBabel Project

The DNA of Global Communications Services &The Evolution of Internet Telefony

DNA of global communication services & the evolution of internet telefony

www.ibabel.com Always there.

• COMPELLING BUSINESS MODEL

• FIRST TO MARKET: Global on-demand Telefony Services in „the cloud”

• EXPLODING VIRAL MARKETING & USER GENERATED DISTRIBUTION

• MULTIPLE REVENUES STEAMS - from Telefony Services & Monetizing Video Broadcasts

• GLOBAL BUSINESS MODEL

• STRATIGIC BUYOUT OPPORTUNITY BY MAJORS Google, Skype, Microsoft, Nokia, Facebook etc.

The current Internet Telefony Industry Situation

• The current market has matured to the point where all providers are entering a pure price & user base war

• Internet Telefony Providers offer is the same- Similar quality of service, Service is only available when the software is installed. Users must download software, install & only connect to those within the providers network

• Trend of software is heading towards Software-as-a-Service (SAAS)model. None of the current internet telefony players have adopted. Most services today are migrating to the „Cloud” – Billing services, web hosting etc. Mention how Bill gates predicted MS Office will soon be provided in SaaS.. And how predictions are that Windows 7 could be the last OS to be installed.

• None of the providers have figured out how to monetize FREE conversations – iBabel is the first.

iBabel unique services breakdown

1. Next generation of Internet Telephony services

2. Interactive Live Video Broadcasting

iBabel will uniquely offer global telephony services and it is the first provider of telecommunications services to monetize user conversations on a global scale.Unlike Skype who’s is intangible and who’s conversations disapear once they are finished. iBabel enables users to generate interactive video content.

Overview of iBabel services & revenue streams

1. Next generation ofInternet Telephony services

2. Interactive Live Video Broadcasting

1. Next generation ofInternet Telephony services

2. Interactive Live Video Broadcasting

• Prepaid sales and quarterly plan sales for long distance calling to phones• Global Virtual Number • SMS Messaging & Notification

1. Google Advertising matched with video content. (Monetizing video confersations)

2. Licensing the technology to other Social Networks, Business Networks, Travel Sites & online Dating services

The Solution

Comparison of Value Proposition to Customer

• Excellent Quality• Good encryption during calls• Many people use Skype

• Household brand• Largest depository of online video• Not live – static

• Excellent Quality• Highly secure connection (2 person P2P) • Provides access to millions of users on

other chat networks: Skype,Gadu-Gadu, MSN Live Spaces, Yahoo! Messenger, Gizmo

• Service is always accessible from any computer or mobile device - does not require any software installation- Computer administrative rights not an issue- Windows, Mac or Linux Operating system versions or updates aree not relevant

• Store free voicemail / videomail• Global Phonebook: personal phone

numbers, Skype, Yahoo Messenger, Gadu-Gadu contacts

• Ability to broadcast live video on iBabel + Facebook, Myspace, YouTube, personal blogs etc.

• Own Profile page – Social Network

The Solution

Private Conferencing & Public Video Broadcasts

iBabel lets users create chat rooms (live video broadcast sessions) to host video conferencing broadcasts with 8 participants, 4 of which can be connected through mobile devices or from other networks such as Yahoo Messenger. User

generated chat rooms can be private conferences or public broadcasts.

• iBabel utilizes whats already on 98% of world’s computers and soon every mobile device: the Flash Player

• As a result the technology is transparent: and „IT JUST WORKS!”

• iBabel delivers an always accessible communications service that gives everyone a sense of „presence” among all participants

The Solution

Why use iBabel

• A professor from i.e.: Cambridge University being interviewed by someone in Canada (category: education or science)

• CNN interviews an individual across the world without having to send a crew on siteThe interview originates on iBabel but is also broadcast across the web on 20 different news sites

• Someone with an authority on stock investiments broacasts a live weekly show where people can call-in or ask a question and while they do they share the screen with the investiment advisor

• E-Learning – a professor can deliver live video broadcast and students may take turns to ask questions – the lecture is broadcast on iBabel and other sites live.

• Political debate or interview with both people being in different countries – the debate is broadcast on iBabel and on each politicians website live

The Solution

Public Video Broadcasts

Public Live Video Broadcasts are created under pre-defined categories or „general topics” in order to:

1. Make it easy for visitors and users to browse through general topics of interest

2. Enable the iBabel system to inteligently match video content with advertising

The Solution

The Solution

Public Broadcasting... Describe purpose of Networks

Competitive Advantages

1. Benefits from FIRST to market advantage

2. iBabel.com services do not require ANY software installation. iBabel.com utilizes what is already on the users computer, the Flash Player. iBabel will be the 1st and ONLY video conferencing, broadcasting & telecommunications service provider that requires ZERO software or hardware.

3. iBabel.com is the first 100% web portal based global MVNO.(Mobile Virtual Network Operator)

4. Easier to access and easier to use than Skype or any other Internet Telecommunications service provider. Offers free voicemail/Videomail.

5. Provides access to other communicator networks totaling over 1 Billion active users.

6. Natural evolution of on-demand communication services and interactive video broadcasting available from a single platform.

7. iBabel.com is able to leverage revenues from telephony services and advertising from user generated online video content

FUNDING & DEPLOYMENT PLAN

$1.6M $5M to 10M

Alpha releaseAchieve a global presenceReach 5M to 10M users & Achieve Profitability Buyout by the Majors

In Pro

gress

TIMELINE: Now -------------------- 2 Years ---------------------------- Year 3 to Year 5 ------------------- Sale

Planned

PROTOTYPECompleted

Launch service. Achieve 500K to 1M users globaly

$100M SalePlanned

FUNDING & DEPLOYMENT PLAN

$1.6M $5M to 10M

Alpha releaseAchieve a global presenceReach 5M to 10M users & Achieve Profitability Buyout by the Majors

In Pro

gress

TIMELINE: Now -------------------- 2 Years ---------------------------- Year 3 to Year 5 ------------------- Sale

Planned

PROTOTYPECompleted

Launch service. Achieve 500K to 1M users globaly

$100M SalePlanned

Markets

Internet Telephony

Two years+ of stealth mobile mediatechnology development pre-launch

Online Video

Key team members from media leadersApple, Avid, Digidesign, MTV

Powerful IP FoundationFor First to Market Product

Provisional patent structured to serveas base for multiple patents

Strong Mobile and MediaTechnology Partnerships

Key partnerships with on-demandtranscoding, messaging leaders

Internet Telephony Market

• Internet telephony has been around for over 12 years

• In the first 2 years in business Skype had 50M users, today: 520M users.

• Skype has become the largest international voice carrier with 8% of world call routing through Skype.

• 23.6 billion skype-to-skype minutes in Q1, 2009

• 2.9 billion skypeout minutes in Q1, 2009

Backgrownder

• Przemysław Fedyczkowski – Founder- Born in Poland, grew up in Vancouver, British Columbia. - Studied Business Computing- Held positions: Marketing Manager at Superb – Then biggest Web hosting company in Canada (significantly increased market share and revenues by 18% of their SuperX business, and implemented web design dept. to complement existing service offereing) Director of Client Stratgies at Xplorex – worked on custom web solutions for larger clients & helped develop core product. - Created own Marketing firm (Creative Avenue Commnications) that operated successfuly for 3 years. Sold company in 2006, created Cleo Networks with an aim to build the iBabel.com - a global telefony service.

• Piotr Dworak – CFO & co-owner- Born in Poland - Studied Geophysics

- Worked at Europejski Fundusz Leasingowy S.A. for 13 years- Held positions Branch Director and Regional Director where continually lead his regional department to be the most successful of all other Polish regions within the company. Some of this success is as a result of implementing news procedures to streamline internal processes and designing simpler customer leasing applications across all departments and regions.

• The current VOIP market has matured, all providers offer similar services and deliver them via a downloaded and installed application and they all look very similar. Until someone comes up with the next generation of VOIP companies will start to compete mainly on price.

• Bringing many first-generation services together into a single service.