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.
2. 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.
3. 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
4. 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.
5. 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.
6. 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.
7. 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
8. 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
9. 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
12. Market Segments Served by MagShoeTM
Home Land Security Loss Prevention
Access Security: Preventing individuals Theft Prevention: Preventing
from entering a secured facility or individuals exiting a facility with stolen
secured area with concealed metallic merchandise/metallic valuables
weapons
Airports & Sea Ports
Industrial Plants & Warehouses
Border Crossings
Banks
Corporate Offices
Mints
Courts & Prisons
Mines
Government Buildings
Jewelry Stores & Manufacturers
Military Installations
Schools & Universities
Shopping Malls
Sports Stadiums
Theaters
Train & Bus Stations
13. 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.
14. 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.
15. MagShoeTM Product Evolution
V. 3G
V. 1.3 V. 2.0 V. 2.5 V. 2.7.2
2003 2004 2005 2006 2007 2008 2009 2010 2011
16. 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.
17. 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.
18. Description of US Strategic Partner: JEI
JEI Partial Client List
• US Army US Navy US Air Force
• US Marines US Coast Guard
• FAA FBI
Communications
Recording Systems • Dow Chemical
Voice Logging • IBM Motorola
Recorders & Audio
Products • Northrop Worldwide Aircraft
• Federal Reserve Bank Kansas City
• Michigan, Ohio and Wisconsin Air National Guard
• New York Fire Department
• NASA
19. Historical Survey of International Tenders
for Shoe Scanning Devices
Italy
Lithuania
China
Poland
Thailand
Philippines
Gibraltar
Serbia
Bosnia Herz.
Company Austria Thailand
Launch Spain Spain
Ireland Nigeria
Azarbizan
0! Spain
2003 2004 2005 2006 2007 2008 2009 2010 2011
20. 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.
21. 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.
22. 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.
23. 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.
24. 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
25. Contact Information
CEO Acting General Manager
Michael Goldberg Yaniv Beran
mg@idosecurity.com yanivb@idosgroup.com
IDO Security Inc. IDO Security Ltd.
17 State Street 20 Yakov Freiman Street
New-York, NY 10004 Rishon LeZion, Israel
Tel:+1-646-214-1234 Tel: +972-3-9523599
Fax:+1-646-285-0026 Fax: +972-3-9523604
www.idosecurityinc.com