Validian. Next Generation Information Policy Management & Intrusion Prevention: Securing Mobile, Cloud & Distributed Computing

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Validian Next Generation Information Policy Management & Intrusion Prevention: www.validian.com Securing Mobile, Cloud & Distributed Computing

Validian Top Down IPMP & Cyber Security My name is Bruce Benn I am the President, CEO and one of the founders of the core technology of Validian Corporation I am also a significant investor And I am here to introduce you to and talk about Validian, which already has completed, and is in the process of launching, its radically innovative, next generation of cyber security technology Provides secure access of critical applications & secure access, transfer and storing of digital information On mobile & non-mobile devices On wired, wireless and mobile networks over the Internet And at a cost of more than $40 MM and several years of R&D it is not going to be easy to duplicate 2 Validian

Why Protect Digital Information Digital Information is where the value is Sensitive Government & business information, confidential personal banking & health information, and movies & music Even money is now digital Where there is value there are thieves with over $1.5 Trillion of annual losses from data breaches & theft All Digital Information is stored, accessed & transferred by applications: endpoint to endpoint Valuable Digital Information should do so securely However, while governments and corporations have state-of-the-art cyber security installations, we continue to read daily about successful major cyber security attacks Clearly there are Gaps that these other cyber security technologies are not able to secure The Best Filter technologies like Smart Firewalls, Intrusion & Threat Detection & Prevention Systems only have a 93%-97% success rate for known threats and significantly less for unknown threats Crypto technologies like SSL/TLS, PKI, PGP and IPSec were invented in the 1990 s & long before the smartphone was invented in Q4 2007 these have major security deficiencies and are not suited for mobile Validian works seamlessly with these other cyber security solutions to secure these gaps 3 Validian

Information Policy Management Platform - Features Validian s next generation of Cyber Security Technology is the First & Only Technology To: Authenticate Applications Which prevents, not just detects, hacking and unauthorized access of Applications, which is the root of approximately 90% of today s successful cyber attacks And Also Integrates Authentication of the Application, End User and Hardware Device, which is the holy grail of authentication With Unique Addressing that is IP Address Independent which is immune to Denial-Of-Service Attacks And Extended Encryption at the inception of the data byte to its final destination so that data is never in the clear Application to application, inside servers, data bases and memory and on mobile and non-mobile devices Prevents hacking, theft and improper access of data at any time from Data- At-Rest to In Transit and seamlessly back to Data-At-Rest and then again back to In Transit etc etc All other End-To-End & DAR Encryption methodologies leave data exposed before encryption and after decryption 4 Validian

Validian Top Down IPMP & Cyber Security Validian is first-to-market with the next generation Information Policy Management Platform (IPMP) This enables IT managers to change policies including algorithms, keys, key life time and level of compression And to distribute these automatically, immediately and transparently to all end points without having to re-develop or re-install the software Anytime, any # of times & anywhere for any combination of applications on mobile and/or non-mobile devices No other technology can do this they must hard code a choice of 1 current Information Policies include: Dynamic key and credential exchange for Authentication of Applications Choice of 26 Encryption Algorithms available to all mobile & non-mobile application endpoints Communicating devices need the same algorithm yet no other technology can even change one Dynamic Key Management for dynamically changing Encryption Keys, Key Length and Variable Compression for encryption & decryption of data so that keys are never stored & cannot be stolen All other crypto technologies, other than PGP, store the decrypting key 5 Validian

Information Policy Management Platform - Features Only technology to secure peer-to-peer data transfers SSL cannot secure peer-to-peer Can compress then encrypt same data transfer SSL can either compress or encrypt not both Can be integrated rapidly into any existing or new application By any developer, without any security experience or expertise Using C++,.Net or Java Within an average of only a few days All Other Crypto Technologies: Require one of the limited # of developers with security expertise Take from 6 to 24 months for each and every installation So Validian can enable more than 100,000 mobile and non-mobile applications in less time than it takes other technologies to integrate into one 6 Validian

The M&A Landscape Mobile is a Juggernaut the numbers are staggering More than 3 Billion smartphones, tablets & phablets More than 1.7 trillion mobile application endpoints Today's valuations for M&A of emerging technology companies are based on the # of endpoints These generate revenues licensing fees AND Advertising $$$ Each 1% of this market for each $0.25 per endpoint per year is worth $250MM+ in annual revenue to Validian and Validian is targeting up to $2 per endpoint versus $60+ per end point for end user authentication Huge Price Elasticity Large companies are buying smaller companies just for their endpoints! Non cyber security technology companies valued at $40 to $100 per endpoint Facebook bought WhatsApp for $19 Billion with 450 million endpoints in Jan 2014 Facebook bought Instagram for $1 Billion with 25 million endpoints in Apr 2012 but now valued at $100 per endpoint Blackerry s BBM with 82 million endpoints added $3.5 B to its market cap after the WhatsApp acquisition 7 Validian

The M&A Landscape But cyber security and mobile management companies are being bought at even higher premiums FireEye bought Mandient (intrusion prevention) in Dec/13 for $1 Billion with only 2 million endpoints Cisco bought Sourcefire (intrusion prevention & threat detection) for $2.7 Billion in Oct/13 at a significant premium because their cyber security technology portfolio is seriously outdated VMware bought AirWatch (mobile device management) in Jan/14 for $1.54 Billion which only had 30 customers & less than 2 million endpoints And emerging cyber security companies with no customers, installations or revenues are now being bought for $200 million Palo Alto acquired Cyvera for its technology (intrusion detection), in Apr/14 for $200 million Microsoft acquired the Israeli startup, Aorato, for its technology (intrusion detection), in Nov/14 for $200 million Validian-enabling 1 social media app or mobile messaging app could generate from 10 MM to 500 MM endpoints Validian-enabling several apps could generate > Billion endpoints To which end Validian will be launching this year to an estimated 250,000 independent mobile application developers that already have developed more than 1 million non-secure mobile apps but lack the technology to develop secure apps The secure mobile application market was projected in 2012 to be $250 Billion/year by 2015 but is still much less than $1 million because there is no other technology to secure mobile let alone to do it rapidly So Welcome To Validian 8 Validian

Validian Contact Info Corporate Information: U.S. public company quoted on OTC QB (VLDI) Offices in the U.S. & Canada www.validian.com Contact: Bruce Benn - President & CEO bbenn@validian.com 613.224.3535 9 Validian