IDO Security Investor Presentation

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description

IDO Security (OTCBB: IDOI.OB) develops solutions for shoes-on weapons metal detection – filling a critical void in the market by extending security screening to the lower body and feet. Our flagship solution, the patented SSD (Shoe Scanning Device) Magshoe™ system, instantly and accurately detects metal items concealed on or in footwear, ankles or feet without requiring the removal of shoes.

Transcript of IDO Security Investor Presentation

Page 1: IDO Security Investor Presentation
Page 2: IDO Security Investor Presentation

Safe Harbor Statement

Forward Looking Statements: A number of statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended. A safe-harbor provision may not be applicable to the forward-looking statements made in this press release because of certain exclusions under Section 27A(b). These forward-looking statements involve a number of risks and uncertainties,including the sufficiency of existing capital resources, uncertainties related to the development of IDO's business plan, and the ability to secure additional sources of financing. The actual results that IDO may achieve could differ materially from any forward-looking statements due to such risks and uncertainties. IDO encourages the public to read the information provided here in conjunction with its most recent filings on Form 10-KSB and Form10-QSB.

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Executive Summary

World wide supplier, inventor and manufacturer of MagShoeTM Shoe Scanning Device (SSD)

Several Hundred units deployed globally in over 30 countries

Existing Backlog & Strong Pipeline

Proven Technology & Cost Differentiation

Large & Growing Target Markets

Strong Patent Portfolio

On going Product Development to Answer Growing Market Needs

25 Partners on Seven Continents

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Company Overview

IDO is engaged in the design, development and marketing of devices for the homeland security and loss prevention markets for use in security screening to detect metallic objects.

IDO Security Inc (USA) began trading on the OTCBB (Symbol: IDOI) in March 2007. Their operating subsidiary IDO Security Ltd., Israel, was established in 2002 and acquired in March 2007 by the parent.

IDO's commercial product, "MagShoeTM" has been issued a patent by the United States Patent and Trademark Office in November 2005 covering various aspects of its unique technology. There is one patent application pending in Israel.

In January 2006, the MagShoeTM was approved for use by the Department for Transport in the United Kingdom, after field trials were conducted for the Home Office's Police Scientific Development Branch.

In December 2007, the MagShoeTM successfully completed a Pilot Program conducted by the Israeli Airport Authority at Ben-Gurion International Airport and has since early 2008 been fully deployed at their International terminal checkpoints.

IDO has been certified by the International Organization for Standardization ("ISO") under ISO 9001:2000 compliance for the design, development and manufacture of electronic, electro-optic and electro-mechanical systems.

MagShoeTM was awarded CE certification in July 2004 and TUV, UL, CAN/CSA certification in November 2008.

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Immediate Need

The recent wave of global terrorism calls for fast and effective shoes-on-metal-detection as a basic safety procedure in airports as well as many other venues.

The world’s current arsenal of metal detection tools has a serious security gap. Walk-though gate detectors do not reliably detect metals in shoes or on the lower body extremities.

As a result, individuals going through security check- in are required to remove their shoes to pass 'securely‘ causing; discomfort, anxiety, health risks, annoyance, access delays and most importantly, compromised security.

IDO is engaged in the design, development and marketing of devices for the homeland security and loss prevention markets for use in security screening to detect metallic objects in the shoes and lower body extremities.

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Product Overview

Shoes-On Metal Detector

Detects Metal Objects concealed in shoes in less than 2 seconds without removing shoes. MagShoe™ is fast, automatic and simple to use - performing a complete scan in no more than two seconds per person.

MagShoe™ detects threats reliably without the need to remove shoes.

MagShoe™ is a compact, affordable, portable, easy to deploy and user-friendly system that easily integrates into existing security procedures and is manned by the existing security personnel.

MagShoe™ reduces the cost of maintenance of existing security devices by lowering their workload.

MagShoe ™ reduces flight departure delays due to time consuming security procedures and grants more time for airport shopping.

MagShoe ™ eliminates the threat of smuggling metallic weapons or certain contraband in shoes at border crossings, governmental buildings, prisons and schools.

MagShoe™ incorporates an optional internal backup battery which increases the system availability in case of a power failure, or for outdoor use.

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Product Benefits

Compliments existing metal detection systems by screening lower extremities.

High throughput, can comfortably scan 800 subjects per hour - eliminates bottlenecks

Cost Benefit – Rapid ROI

Advanced metal detection technology

Low false alarm rate

Easy Integration, Compliments existing security systems such as Arch and hand held metal detectors and other full body scanners.

Compact, portable and user friendly, Go/No Go concept

Cost efficient, Approximately $7,000 per unit

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MagShoeTM Current Customers

Israel: Ben Gurion International Airport, ISA (Israel Security Agency); President's Residence; Prime Minister’s Office; The Knesset; Ministry of Defense

Italy: Fiumcino International Airport - Rome; Italian Prison Service

Germany: Jewish Community Center in Frankfurt

Spain: Ciudad Real International Airport

Czech Republic: Prague International Airport

Poland: Gdansk, Bydgoszcz and Wroclaw International Airports

Slovakia: Bratislava International Airport

China: Shenyang, Jinan & Xingjiang Karamay Airports

Hong Kong: Hong Kong International Airport

USA: Royal Caribbean International Cruise Lines

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MagShoeTM Current Customers, cont’d

Thailand: Navy Airport in Utapo

Spain: Castelion Airport

Lithuania: Vilnius International Airport

Gibraltar: North End Airport

Andorra: Central National Prison

Nigeria: National Airport Authority

China: Yin Chuan International Airport & Chinese National Police

Azerbijan: HBaku International Airport

Kenya: Mombassa & Nairobi International Airports; Presidential Palace, Central Prison Service

Australia: Royal Australian Mint, Family Court House

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Official'Cer+fica+ons'

UK#Department#of#Transport#Cer1fica1on#

#Israel##Prime#minister#office#

Standards & Certifications

UL 61010-1:2004 R7.05 CAN/CSA-C22.2 61010-1:2004

ISO#9001>2000#Part#1#&#2##

#CE#2011#

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Intellectual Property

United#States#Patent#Number##US#6,970,087#B2#

Issued:#November#29,#2005#

Israeli#Patent#Number#150932#

Issued:#October#2009#

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Market Segments Served by MagShoeTM

Home Land Security Loss Prevention Access Security: Preventing individuals from entering a secured facility or secured area with concealed metallic weapons

Theft Prevention: Preventing individuals exiting a facility with stolen merchandise/metallic valuables

Airports & Sea Ports Border Crossings Corporate Offices Courts & Prisons Government Buildings Military Installations Schools & Universities Shopping Malls Sports Stadiums Theaters Train & Bus Stations

Industrial Plants & Warehouses Banks Mints Mines Jewelry Stores & Manufacturers

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MagShoeTM Competitive Advantages

A simple, proven and essential technology for maintaining high level security at secured facilities, while enhancing throughput of subjects.

Sparse competition - MagShoe addresses a specific niche with only one competitor; success in this segment will help us to establish a formidable reputation to extend our R&D activity to other products and systems.

Security veterans - A professional team of experts with hands on, field proven experience in a broad spectrum of security related fields, from military and intelligence to homeland security and the enterprise/business sector.

Knowledge base – MagShoe technology was developed in cooperation with Central Technical Branch of Israeli National Security Agency (ISA), and is continuously updated and improved based on thousands of MagShoe metal scans performed daily in operational venues throughout the world.

Unanswered Existing Need – the only other solution is taking off one’s shoes.

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International Market Size

1.  The MagshoeTM is a necessary compliment to every Walk Thru Metal Detector (WTMD) which fails to detect metals on or around the lower legs and feet.

2.  MagshoeTM fills a critical void in today’s detectors by extending screening to the lower body and feet. Magshoe’sTM ”shoes-on” design maximizes security, thoroughness, and accuracy while eliminating the need to remove shoes for increased convenience and safety.

3.  There are 1.3 Million WTMD deployed globally.

4.  The Aviation Market alone includes 15,000 airports in the US, and 50,000 worldwide.

5.  500 US commercial airports have more than 10,000 checkpoints which all need the MagShoeTM.

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2003 2004 2005 2006 2007 2008 2009 2010 2011

V. 1.3 V. 2.0 V. 2.5 V. 2.7.2

V. 3G

MagShoeTM Product Evolution

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MagshoeTM Product Development cont’d

2011 Completion of New Generation of MagShoeTM 3G Based on accumulated experience and new EU requirements

In addition to current capabilities of the MagShoeTM, the MagShoeTM 3G series features increased detection height of up to 18 inches, based on EU and TSA requirements. It also features improved user interface, on board data collection, the ability to operate as part of a network and being managed and controlled remotely, as well as state of the art exterior design.

The MagShoeTM 3G series continues to undergo significant improvement in detection abilities and through PC based operations offers lower pre-sale and maintenance costs by enabling remote calibration of the MagshoeTM from headquarters based on the specific needs of the client.

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MagshoeTM Product Development cont’d

Network Management & Control System - NMC-3 For MagShoeTM 3G Series

Fully developed by IDO Security’s R&D Department. Used to remotely manage and control multiple MagShoeTM units from a central remote site. Gathers and stores data from MagShoeTM units for analysis and evaluation. Manages up to 300 units, divided into logical groups for ease of use and control. Real Time MagShoeTM status monitoring. Manages password controlled user rights on various levels, e.g. supervisor, operator.

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Description of US Strategic Partner: JEI

JEI Partial Client List

•  US Army US Navy US Air Force

•  US Marines US Coast Guard

•  FAA FBI

•  Dow Chemical

•  IBM Motorola

•  Northrop Worldwide Aircraft

•  Federal Reserve Bank Kansas City

•  Michigan, Ohio and Wisconsin Air National Guard

•  New York Fire Department

•  NASA

Communications Recording Systems

Voice Logging Recorders & Audio

Products

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Historical Survey of International Tenders for Shoe Scanning Devices

Company

Launch

0!

Spain Spain Austria

Ireland

Italy

Lithuania

China

Poland

Thailand

Philippines

Gibraltar

Serbia

Bosnia Herz.

Thailand

Nigeria

Azarbizan

Spain

2003 2004 2005 2006 2007 2008 2009 2010 2011

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Current US Market Trends

1.  Secretary of Homeland Security Janet Napolitano has said that she visualizes a time when travelers will not need to remove their shoes, but since TSA insists on both bomb and metal detection, the technology is not yet ready. IDO is currently incorporating bomb detection technology into the Magshoe with a US company in the process of TSA approval. Prototype expected Q2 2013.

2.  US Marketing efforts in 2012 will be focused on prisons and juvenile detention centers, where the primary threat is knives and other metallic weapons.

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Current European Market Trends

1.  European Union has Banned Full body scanners due to health concerns.

2.  IDO can capitalize on the new security regimen by offering information to increase effective “random” checks.

3.  Increased sales in Europe based on new policy developments.

4.  The MagshoeTM is neither invasive nor harmful to the body as some of the other screening devices currently used in the marketplace.

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Management Team

Michael L Goldberg, President - Former Assistant District Attorney in Philadelphia, PA. where he served in the Narcotics, Major Trial and Homicide divisions. Mr. Goldberg has served in Senior Executive positions in public companies as well as on the Boards of public companies and has been a member of both Audit and Compensation committees. Mr. Goldberg is also Managing Director of Monarch Capital LLC. a private company that consults to both private and public companies.

Yaniv Beran, Acting General Manager – Joined IDO in March 2011 to infuse the company with his energy and no-nonsense technical and international marketing expertise. Mr. Beran’s hand’s on approach to management, coupled with his technical background have shown immediate results in growing the company’s sales dramatically in the last two quarters. Prior to working for IDO, Mr. Beran served as the CTO of various companies active in the Homeland Security and medical device fields. Mr. Beran is the author of several patents in the field of particle collection for explosive detection devices.

Dani Werber, International Sales Manager - Following four years of service in the Israel Defense Force in an infantry unit, Dani joined the ISA, Israel's national security agency and served as a security officer with EL AL, at various international airports. Subsequently, Dani served as Regional Manager of ICTS (International Consultants for Targeted Security) for Eastern Europe based in Budapest, Hungary, and continued his work in the field of security and loss prevention for the major American Carriers, as well as Sara Lee and other multi-national companies. In 2005 Dani joined IDO Security to manage the setup of the worldwide distribution network, and to manage client relationships.

Igal Meller, CTO - a graduate of the Technion, worked as an engineer for Tadiran before joining IDO in 2004 to head the R&D team.

Avishai Rotshtain, MBA, International Marketing Manager – Mr. Rotshtain established Chile Interactive Ltd, an international marketing and sales consulting company. He was a lecturer of marketing at the Emek Yizrael Acadmey and graduated from the Peres Academic Center cum laude.

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Board of Directors

Amos Eiran, Director has been a major presence in the business, financial and political realm in Israel and the US for more than 40 years. After Decades in both private and public sectors, Mr. Eiran currently serves on the board of a number of major companies. His positions include: Chairman of the Investment Committee of Clal Insurance; Chairman and CEO of Tissera, Inc; a publicly traded biotech company, Chairman of Bio Light Ltd; Director of Delek Oil Explorations; Director of Medis El (NASDAQ:MDTL) and Determining Shares Trustee of the Herods Hotel Complex. He also serves as the honorary Consul of the Republic of Lithuania in Israel. Previously, Mr. Eiran held prominent government positions as the Director General of the Prime Minister’s office in Israel under Yitzchak Rabin and Chairman of the Government of Israel in the Industrial Cooperation Authority (RASHPAT). He also worked as a counselor at the Israeli Embassy in Washington D.C. In the financial world, Mr. Eiran has served as the Director General and Chairman of the Board of Mivtahim Pension Funds, Israel’s largest pension fund, and a Director on the Board of Bank Hapoalim and Bank Mizrachi(UMTB). He is also one of the founders of XTL Bio Pharma and a member of its Board. Mr. Eiran holds a BA from American university in Washington DC, an MA from Tel Aviv University a Diploma in Business Administration from Harvard University and a Diploma from the Wharton Business School.

John Mitola, Director - is a managing partner with Kingsdale Capital International, a private equity and capital advisory firm specializing in merchant banking, leveraged buyouts and corporate finance. Mr. Mitola also currently serves as Chairman of the Illinois Toll Highway Authority and was formerly CEO of Electric City Corp from January 2000 to February 2006.

Michael Goldberg, President & Director - With an extensive business and legal background spanning more than 30 years, Michael L. Goldberg is responsible for the strategic vision and direction of the company. He began his career in the US Attorney's Office (Criminal Division) in Washington, DC, and later served as an Assistant District Attorney in Philadelphia, PA in the Narcotics, Major Trial and Homicide Divisions. He then spent more than a decade in private legal practice in Philadelphia.

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Key Investment Considerations

Walk Through Metal Detectors (WTMD’s) suffer from well known security gap in lower extremities eliminated by complementing the WTMD’s with MagShoeTM;

Limited competition

Patent protection

Reliable, cost effective shoes-on weapons detection

Field Proven with hundreds of installation worldwide

Growing International Market as security standards increase

Dramatic growth in recent number of international tenders for shoe scanning devices SSD

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Contact Information

IDO Security Inc. 17 State Street New-York, NY 10004

Tel:+1-646-214-1234 Fax:+1-646-285-0026

IDO Security Ltd. 20 Yakov Freiman Street Rishon LeZion, Israel

Tel: +972-3-9523599 Fax: +972-3-9523604

CEO Michael Goldberg [email protected]

www.idosecurityinc.com

Acting General Manager Yaniv Beran [email protected]