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FIO Technology Inc.

   Our Mission: To provide compelling, universal
   user interface designs for mobile products using
   creative ideas and innovative technologies.
             Product: FIO-KeyBO
             Product: FIO-KeyBO
             Flexible IIndoor and Outdoor KeyBOard for 10-key
              Flexible ndoor and Outdoor KeyBOard for 10-key
             text entry devices such as mobile phone, remote
              text entry devices such as mobile phone, remote
             controller, game controller, etc.
              controller, game controller, etc.

                                                Contact: Itsuro Yoshimoto
                                                iyoshi@fiotechnology.com
                                                Phone: 408-315-4187
2011/11/30                FIO Technology Inc. confidential                  1
Summary…
Summary…
 FIO can provide a superior text entry method, which enables a 10-key
  FIO can provide a superior text entry method, which enables a 10-key
device within a 40 to 50mm device to function as a full PC keyboard and
 device within a 40 to 50mm device to function as a full PC keyboard and
replace the multi-tap input method
 replace the multi-tap input method

  FIO can provide an innovative idea for;
  FIO can provide an innovative idea for;
   1. Feature phones such as Huawei U120
   1. Feature phones such as Huawei U120
   2. Input application for Huawei Android phones
   2. Input application for Huawei Android phones
   3. Companion phone for Huawei MediaPad tablet
   3. Companion phone for Huawei MediaPad tablet
   4. Multi-functional accessory Mobile WiFi for Huawei
   4. Multi-functional accessory Mobile WiFi for Huawei
   5. IPTV remote controller for Huawei STB
   5. IPTV remote controller for Huawei STB

 FIO is interested in licensing its FIO-KeyBO technologies to potential
 FIO is interested in licensing its FIO-KeyBO technologies to potential
partners such as Huawei or accepting an equity investment to further
partners such as Huawei or accepting an equity investment to further
develop its products.
develop its products.
2011/11/30                  FIO Technology Inc. confidential               2
Proposal to Huawei [1]
                                                               - Huawei U120 -
FIO-KeyBO featured entry model for Huawei
Capture big market share with FIO-KeyBO
Capture big market share with FIO-KeyBO

                                           Blackberry style
                                           Blackberry style
          Huawei U120
          Huawei U120




                                      fused
                                      fused



              Device width
              Device width
               [45.5]mm
               [45.5]mm
http://www.gsmarena.com/huawei_u120-2637.php
http://www.gsmarena.com/huawei_u120-2637.php
 2011/11/30              FIO Technology Inc. confidential                            3
Proposal to Huawei [2]
                                                               HUAWEI smart phone

“FIO-Pad” featured Smartphone Application
More accurate and faster than Swype, T9 trace..
More accurate and faster than Swype, T9 trace..

                                                           Cleverly achieves 10-key
                                                           Cleverly achieves 10-key
                                                          QWERTY keyboard in much
                                                          QWERTY keyboard in much
                                                          narrower form factor.
                                                          narrower form factor.
                                                           Enables blind, one-hand
                                                           Enables blind, one-hand
                                                          touch input operation.
                                                          touch input operation.



                                                                Increase usability
                                                                Increase usability
                                                              Increase usability
                                                              Increase usability




                                                          Align [RTY] to [$2%].
                                                          Align [RTY] to [$2%].
                                                          Keeps the same location
                                                          Keeps the same location
                                                          between [alphabet]
                                                          between [alphabet]
                                                          [number / Symbols].
                                                          [number / Symbols].
 2011/11/30            FIO Technology Inc. confidential                                4
Proposal to Huawei [3]

Tablets require a better companion                       Accessory Phone for tablet


Many smartphone and NotePC users will shift to iPad, Tablet, and
4G (LTE). A capable basic accessory phone is a better choice.

                                                            MediaPad companion




                                                              Accessory Phone for
                                                              Huawei MediaPad
                                                              • 4G dumb pipe
                                                              • Basic Music phone
                                                              • BT/USB accessory
                                                              • Rugged
                                                              • Longer battery
                                                              • Small size
                                                               (40~50mm width)
                                                              • QWERTY keyboard
                                                                 (FIO-KeyBO)


2011/11/30            FIO Technology Inc. confidential                                5
Proposal to Huawei [4]
                                                  Multifunctional Accessory
New product proposal

Multifunctional accessory device with FIO-KeyBO
Multifunctional accessory device with FIO-KeyBO
                                              Single hand operation
                                              Single hand operation

                    BT external keyboard
                    BT external keyboard
                   for touch-panel devices
                   for touch-panel devices
                   such as ipad or tabletPC
                   such as ipad or tabletPC
                    PC mouse controll
                    PC mouse controll
                    BT Presentation
                    BT Presentation
                   controller with LED
                   controller with LED
                   pointer and unique
                   pointer and unique
                   realtime text adding
                   realtime text adding
                   feature
                   feature
                    IR universal remote
                    IR universal remote
                   controller
                   controller
                    Mobile WiFi
                    Mobile WiFi
Proposal to Huawei [5]
                                                          Remote controller for STB
New remote controller for Digital STB
New remote controller for Digital STB


SMK introduced FIO-KeyBO featured remote controller for future IPTV at CES2011)




                                                               Huawei DC730 STB
Large Market
FIO-KeyBO : Potential Market
Over 5 billion target users
(cellular phones, remote controllers, game controllers, etc)

                                               Worldwide mobile device - over 1.6 billion units
                                               were sold in 2010, a 31.8% increase from 2009,
                                               according to Gartner. In addition to the 73%
                                               growth of smart phones, basic phones grew 25%
                                               with 1.3 billion units.
                                               Carriers are expecting to increase data revenue
                                               through messaging service such as email and
                                               SMS. FIO-KeyBO aims to replace multi-tap text
                                               entry method and become a new standard for
                                               basic phones with 10 keys in emerging markets.
                                               Game console – Worldwide sales by Jan/2011,
                                               total 170 mil units. Nintendo Wii (77M), MS
                                               Xbox360 (50M), Sony Play Station3 (42M)
                                               Motion sensor control is NOT suitable for quick
                                               search and text chat over the network
                                               community.
Remote controller – In 2010, global annual television sales reached 242M (15%)
 Remote controller – In 2010, global annual television sales reached 242M (15%)
[Source: Display Search]. The QWERTY keyboard has become a mandatory feature
 [Source: Display Search]. The QWERTY keyboard has become a mandatory feature
for IPTV remote controllers such as GoogleTV for direct content search.
 for IPTV remote controllers such as GoogleTV for direct content search.

2011/11/30                 FIO Technology Inc. confidential                                  8
Customer

How users are complaining?

FIO-KeyBO solves the fundamental problems of existing input method




                                                       Number keys are too small.
                       Users are NOT                   Software keyboards are NOT accurate.
                       satisfied with
                       [multi-tap]
                       nor T9word text
                       entry methods.




2011/11/30                     FIO Technology Inc. confidential                       9
Competitors

Failures of existing approaches ~ QWERTY Phone
Several companies have recently introduced phones with new ways to input text. Because these phones
have largely failed, an opportunity remains to more easily provide QWERTY functionality in basic phones.

         Nokia Twist




                                                  LG Lotus                      RIM 8220
                                   Samsung Alias 2
 2011/11/30                       FIO Technology Inc. confidential                              10
Create a new
                                                                         market
An invisible blue ocean market exists..
In 2010, the smart phone market grew 72% (297M) worldwide.
In addition, basic featured phones also grew 25% (1.3B).



             Heavy SMS, SNS, email users
                                                                  4 out of 5 units are
                                                                  4 out of 5 units are
                                                                     basic phones,
                                                                     basic phones,
                                                                  and still growing…
                                                                  and still growing…

                         Potential new market
                                                                  With FIO-KeyBO’s
                                                                  With FIO-KeyBO’s
                                                                     innovative
                                                                      innovative
                                                                  keyboard, Huawei
                                                                  keyboard, Huawei
                                     FIO-
                                                                  can capture many
                                                                  can capture many
                                     FIO-
                                    KeyBO
                                    KeyBO                              of these
                                                                       of these
                                                                     customers
                                                                      customers
                         Red Ocean
                         Red Ocean


                       [ 2Abc ] Multi-tap method


                    Basic users
2011/11/30                     FIO Technology Inc. confidential                      11
Our solution


FIO-KeyBO can enable an existing 10 key device to function as a full PC
keyboard within 40mm ~ 50mm device width
       Standard [2Abc]
       Standard [2Abc]
           keypad
           keypad                                  FIO-KeyBO
                                                   FIO-KeyBO




                                                                                      Simply split single silicon
                                                                                      Simply split single silicon
                                                                                   rubber switch into two pieces
                                                                                    rubber switch into two pieces



                                                  [letter]:- position to press -
 Allocates two switches under
  Allocates two switches under              ◎◎◎ 【Q】: Left side of [1] key
 each key instead of one.
  each key instead of one.
 Therefore, 11 unique characters
  Therefore, 11 unique characters           ◎◎◎ 【W】: Center of [1] key
 can be generated from a single-
  can be generated from a single-           ◎◎◎ 【E】: Right side of [1] key
 click of the three numeric keys
  click of the three numeric keys           ◎◎◎ 【R】: Middle of [1]&[2]
 instead of multi-tap key presses.
  instead of multi-tap key presses.
                                            ◎◎◎ 【T】: Left side of [2] key

 2011/11/30                           FIO Technology Inc. confidential                                  12
Company
                                                                         Strength
FIO-KeyBO Patents Filed (PCT)
●3-key (11 letters) x 4 lines = 44 single-click direct entry WO/2009/123625
                                                             WO/2009/123625
●88 characters with Shift+ operation supports multi-language keyboards
●Works as standard full size NUMBER keys when you dial, NOT like blackberry




    QWERTY full keyboard
    QWERTY full keyboard                          [2abc] full keyboard
                                                  [2abc] full keyboard




  example【 Finnish / Swedish 】
  example【 Finnish / Swedish 】                   OEMs may prefer this solution
                                                 OEMs may prefer this solution

2011/11/30                FIO Technology Inc. confidential                          13
Patent Application

FIO-KeyBO patent has been filed to US, JP, KR, CN, IN & EU

Comments from European Patent Attorney, Alec Messulam:

The invention of this application is concerned with how one can emulate the
     layout of a QWERTY keyboard, i.e. one with a conventional keyboard
     layout designed for use with ten fingers, using a telephone keypad or
     remote controller having three columns and four rows. It has previously
     been proposed to use one key to select more than one character but even if
     each key can select three alphanumeric characters, that still only allows for
     nine characters per row, whereas a QWERTY keyboard requires eleven.
The solution offered by the invention is to place characters between keys and to
     require two adjacent keys to be depressed simultaneously in order to record
     a keystroke. Nowhere in the prior art has it been suggested to use the tip of
     one finger to press two keys simultaneously. Shift, Alt and Ctrl keys on a
     keyboard are actuated at the same time as other keys but not using the tip of
     the same finger, indeed not even using two fingers of the same hand.
The invention offers for the first time, the possibility of one finger text entry using
     a keypad having the layout of a conventional telephone while allowing the
     operator to find all the characters intuitively in the same relative positions
     as they would occupy on a conventional ten-finger keyboard. Neither this
     objective, nor the method by which it has been achieved, is suggested by the
     prior art.                                .
2011/11/30                   FIO Technology Inc. confidential                             14
Demo-1

50-year-old person broke a world record of fast text entry
              CLICK here !!
              CLICK here          http://www.youtube.com/watch?v=D-5CmWSwQx0
                                  http://www.youtube.com/watch?v=D-5CmWSwQx0



               http://home.singtel.com/news_centre/news_releases/2008_02_25.asp
               http://home.singtel.com/news_centre/news_releases/2008_02_25.asp

                 18-year old student holds world record of 41.4 Sec
                 18-year old student holds world record of 41.4 Sec
    160 characters with over
     160 characters with over
    350 multi-taps required =
    350 multi-taps required =
        8~9 times / sec.
         8~9 times / sec.


        FIO-KeyBO required
        ONLY 4~5 times / sec to
        beat this world record.




 2011/11/30                      FIO Technology Inc. confidential                          15
Summary

FIO-KeyBO ~ Strength
 A cellular phone demo unit works as external keyboard to display text to any PC application




 Why FIO-KeyBO is superior..?
 Why FIO-KeyBO is superior..?
  Enables 10 keys as full PC [QWERTY] keyboard
  Enables 10 keys as full PC [QWERTY] keyboard

  Keeps Number keys as big as current basic phone
  Keeps Number keys as big as current basic phone

  Supports full symbols of PC keyboard
  Supports full symbols of PC keyboard

  No increased cost for hardware
  No increased cost for hardware

  Keeps the same width as an existing basic phone (40 to 50 mm)
  Keeps the same width as an existing basic phone (40 to 50 mm)




 2011/11/30                       FIO Technology Inc. confidential                             16
Common Smartphone problems
         JMAR Social Media usage report - March 2010
          ~ 54% users want improved “text entry”

                     What do you want to be improved?
                     What do you want to be improved?
                           Battery life
                           Battery life
           Hard to type text entry
           Hard to type text entry
Availability of Infrared communication
Availability of Infrared communication
        Ability to use Felica (e-wallet)
         Ability to use Felica (e-wallet)
   Availability of One-Seg (Mobile TV)
   Availability of One-Seg (Mobile TV)
                     Reduce device size
                     Reduce device size
                  Increase screen size
                   Increase screen size
              Availability of Keitai mail
              Availability of Keitai mail
                      Use of emoticons
                      Use of emoticons
          Ability to personalize e-mail
          Ability to personalize e-mail                                   67% of users are complaining
                                                                          67% of users are complaining
                         Overall design
                         Overall design                                   about text entry method for
                                                                          about text entry method for
                   Bluetooth capability
                    Bluetooth capability                                  both existing phone and touch
                                                                          both existing phone and touch
                                                                          panel smart phones.
                                                                          panel smart phones.
                                    N.A
                                    N.A
            n=373 (smart phone users)
            n=373 (smart phone users)


      2011/11/30                            FIO Technology Inc. confidential                      17
New input trend in Japan
~ Apple i-Phone’s flick input is becoming a de-facto input method ~



  What is ““ Flick ”” input?
  What is Flick input?              Faster & more accurate than multi-tap
                                    Faster & more accurate than multi-tap

                                       Press and release[2]………Ka
                                       Press and release[2]………Ka
                                       Press and move left[2]….…Ki
                                       Press and move left[2]….…Ki
                                       Press and move UP[2]…….Ku
                                       Press and move UP[2]…….Ku
                                       Press and move right[2]….Ke
                                       Press and move right[2]….Ke
                                       Press and move down[2]...Ko
                                       Press and move down[2]...Ko
                                        Apple filed for patent in Apr/2008
                                        Apple filed for patent in Apr/2008
                                             US application No.(12/107,711)
                                             US application No.(12/107,711)
                                        However, prior art exists
                                        However, prior art exists
                                        (Hanabi [JPN], FIO-KeyBO [US: 2005]
                                        (Hanabi [JPN], FIO-KeyBO [US: 2005]

  2011/11/30                   FIO Technology Inc. confidential               18
“FIO-KeyBO” is the prior art in US
~ FIO posted this “Flick” concept image to Japanese SNS in Sep/2007 ~

                       Sep/05: Filed as provisional patent in US
                       Sep/05: Filed as provisional patent in US
                                  application [US60/718,197]
                                  application [US60/718,197]
                       Jan/06: Introduced to Apple’s engineer
                       Jan/06: Introduced to Apple’s engineer
                       Sep/07: Introduced to Japanese SNS (Agoria)
                       Sep/07: Introduced to Japanese SNS (Agoria)
                       Dec/07: Printed the concept image of English
                       Dec/07: Printed the concept image of English
                           “Flick” on the back of my business card
                            “Flick” on the back of my business card
                       Apr/08: Apple filed the same input method as
                       Apr/08: Apple filed the same input method as
                           the gesture input patent application (“flick”)
                           the gesture input patent application (“flick”)
                       June/08: Apple released 3G i-Phone with “flick”
                       June/08: Apple released 3G i-Phone with “flick”
                       Jan/2010: Over 80M units has been sold with
                       Jan/2010: Over 80M units has been sold with
                                     “flick” input for i-Phone and i-Touch
                                      “flick” input for i-Phone and i-Touch
                            “Flick” became the de-facto input method for
                             “Flick” became the de-facto input method for
                           smartphones in Japanese market
                           smartphones in Japanese market
  2011/11/30            FIO Technology Inc. confidential                      19
Application

“FIO-Pad” wall paper Concept

New concept: Make Keyboard as a fun wallpaper
New concept: Make Keyboard as a fun wallpaper

                        [T]: Press Number[2] key and release
                        [T]: Press Number[2] key and release
                                without moving a Thumb
                                without moving a Thumb
                        [R]: Press Number[2] key and release
                        [R]: Press Number[2] key and release
                                a Thumb to the left
                                a Thumb to the left
                        [Y]: Press Number[2] key and release
                        [Y]: Press Number[2] key and release
                                a Thumb to the right
                                a Thumb to the right

                                                        Combine with
                                                        Combine with
                                                        word prediction
                                                        word prediction
                                                        Change Skin
                                                         Change Skin
                                                        like wall paper
                                                         like wall paper
                                                        Add more “flick”
                                                        Add more “flick”
                                                        variation
                                                        variation
 2011/11/30          FIO Technology Inc. confidential                 20
Market
IPTV Potential Market
Over 40 mil units (21%) of all TVs shipped in 2010 have the internet
connectivity (IPTV), and would grow 118mil units in 2014 (CAGR[30%]




                                               Source: [Display Search]
                                               Source: [Display Search]
Market
Digital STB worldwide Market
Worldwide Digital STB unit sales had reached 100mil units in 2007.
Grow even fasterer with CAGR[25%] in recent years, and 195mil units
have sold in 2010(source: Instat)




                                                    )
                                                 5 %
                                            (2
                                        R
                                    G
                               CA




Source: [Original graph: Strategy Analytics Connected Home Devices service]
Source: [Original graph: Strategy Analytics Connected Home Devices service]
Customer


Users’ complaint about existing remote controller
“Search” function become a mandatory feature for IPTV remote controller



                               • IPTV requires the text input function to
                               enable quick direct search of user’s target
                               content through out the various media and
                               the numerous cable TV channels.

                               • Roku(1mil+) & Game consoles (170mil+)
                               enables existing TV as the IPTV

                               ・Selecting each letter by pointing the
                               virtual keyboard on a TV screen is time-
                               consuming and hectic operation such as
                               selection by cursor (Roku) or motion
 Netflix: 26mil US household
 Netflix: 26mil US household   sensor controll (Wii remote) .
      users (22% in US)
       users (22% in US)
New remote
                                                                  controllers




New remote controllers for IPTV/STB comes with QWERTY keyboard to enables
users the quick “Content Search” by direct text entry
New trend of IPTV

Brian Roberts, a chairman of Comcast introduced new IPTV
remote controller at the CableSHOW2011
http://www.youtube.com/watch?v=KBnLCbzMR9Y&feature=player_embedded




                                   “Search” button & “T9word” 10-
                                   key text entry method is applied
Target segment


It is important to keep the existing remote’s UI and form
factor. FIO simply add “Search by QWERTY text input” feature


Most cable carriers are not
comfortable about GoogleTV
because it breaks their existing
eco-system and revenue model.
FIO-KeyBO enables soft-landing
add on “search” feature approach




      ( Current )
      ( Current )
Next step !


New IPTV remote controller proposal
Motion sensor like operation with new disruptive technology



 Press, move and release
 Press, move and release                                               Y



                                                                    Filed PCT
                                                        1. Allocate 6 switches in a single
                                                           line
                                                        2. Cover the whole switches with
                                                           a sheet cover
                                                        3. Silk print numbers and
                                                           alphabets
                                                        4. Combine with word prediction
                                                           or correction middleware
                                                           application for content search
About Me

                                       Founder


Itsuro Yoshimoto founded FIO Technology Inc in 2006, formerly Yoshimoto Inc. He filed FIO-
     KeyBO related patents to PCT and 6 regions (US, JP, KR, CN, IN, EU). Prior to Yoshimoto
     Inc, he led a web and mobile content division in US operations at Namco. He established a
     profitable wireless game business foundation in North America for Namco by managing five
     Independent Software Vendors.

Yoshimoto started his career at CASIO. He designed software for the Digital Audio Tape
   recorder (DAT). He mainly worked as an embedded software engineer for 11 years and
   developed many products. He also worked as a product planner for an additional 2 years.
   Then, he moved to CASIO US R&D center in San Jose for an additional 5 years to develop
   multi-application CD-ROMs for Windows CE based handheld PC and Pocket PC, and
   researched new technology trends. He invented many patents.

Yoshimoto majored in acoustic design at Kyusyu Institute of Design, Japan.
MBA from Kenichi Ohmae graduate school of business.




2011/11/30                     FIO Technology Inc. confidential                              28
About US
                            Board

Tsuyoshi Taira is the CEO of Tazan International Inc, a Venture Capital and Management
Consultancy Firm. Mr. Taira has been involved with a number of Silicon Valley startup
companies as founding investor/director including Atmel Semiconductor (NASDAQ: ATML),
Pico Power Technology Inc (acquired by Cirrus Logic), Junglee Corporation (acquired by
Amazon.com, NASDAQ: AMZN), Armedia (acquired by Broadcom, NASDAQ: BRCM), Apptivity
(acquired by Progress Software, NASDAQ: PRGS) and many others. He has been instrumental
in providing seed stage financing, management and marketing advice, especially f or the Far
Eastern market to the startup companies. Currently he serves on the boards of Silicon Storage
Technology Inc. (flash memory company), Nayna Networks, Inc. (networking products and
services), Ureach.Com (unified e-mail and voice mail messaging company), Asia-Links Media
(Semiconductor components e-commerce) and Teleweb (Call Center in China). In addition, he
is on the advisory board of Silicon Motion (Graphic Controller IC), CLCEO (Polarizer), Reveo
(Revolutionary Electro Optics Technology Company) and several other companies.
Previously, Mr. Taira was Chairman of Sanyo Semiconductor directing
Sanyo’s US marketing strategy. Most of his career was spent at Sanyo
Corporation except for five years when he worked at Fairchild
Semiconductor. Mr. Taira graduated from Tokyo Metropolitan University
with a BSEE. He also received an Honorary Doctor of Humanities from
Newport Asia Pacific University in March 2000. He has published a
number of books including “Audio Amplifier”, “Transistor physics And
application” as a Co-author and most recently a book on entrepreneurship,
“My fellow engineer, let’s challenge” from Nikkei BP.

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FIO-KeyBOforHuawei

  • 1. FIO Technology Inc. Our Mission: To provide compelling, universal user interface designs for mobile products using creative ideas and innovative technologies. Product: FIO-KeyBO Product: FIO-KeyBO Flexible IIndoor and Outdoor KeyBOard for 10-key Flexible ndoor and Outdoor KeyBOard for 10-key text entry devices such as mobile phone, remote text entry devices such as mobile phone, remote controller, game controller, etc. controller, game controller, etc. Contact: Itsuro Yoshimoto iyoshi@fiotechnology.com Phone: 408-315-4187 2011/11/30 FIO Technology Inc. confidential 1
  • 2. Summary… Summary…  FIO can provide a superior text entry method, which enables a 10-key  FIO can provide a superior text entry method, which enables a 10-key device within a 40 to 50mm device to function as a full PC keyboard and device within a 40 to 50mm device to function as a full PC keyboard and replace the multi-tap input method replace the multi-tap input method  FIO can provide an innovative idea for;  FIO can provide an innovative idea for; 1. Feature phones such as Huawei U120 1. Feature phones such as Huawei U120 2. Input application for Huawei Android phones 2. Input application for Huawei Android phones 3. Companion phone for Huawei MediaPad tablet 3. Companion phone for Huawei MediaPad tablet 4. Multi-functional accessory Mobile WiFi for Huawei 4. Multi-functional accessory Mobile WiFi for Huawei 5. IPTV remote controller for Huawei STB 5. IPTV remote controller for Huawei STB  FIO is interested in licensing its FIO-KeyBO technologies to potential  FIO is interested in licensing its FIO-KeyBO technologies to potential partners such as Huawei or accepting an equity investment to further partners such as Huawei or accepting an equity investment to further develop its products. develop its products. 2011/11/30 FIO Technology Inc. confidential 2
  • 3. Proposal to Huawei [1] - Huawei U120 - FIO-KeyBO featured entry model for Huawei Capture big market share with FIO-KeyBO Capture big market share with FIO-KeyBO Blackberry style Blackberry style Huawei U120 Huawei U120 fused fused Device width Device width [45.5]mm [45.5]mm http://www.gsmarena.com/huawei_u120-2637.php http://www.gsmarena.com/huawei_u120-2637.php 2011/11/30 FIO Technology Inc. confidential 3
  • 4. Proposal to Huawei [2] HUAWEI smart phone “FIO-Pad” featured Smartphone Application More accurate and faster than Swype, T9 trace.. More accurate and faster than Swype, T9 trace..  Cleverly achieves 10-key  Cleverly achieves 10-key QWERTY keyboard in much QWERTY keyboard in much narrower form factor. narrower form factor.  Enables blind, one-hand  Enables blind, one-hand touch input operation. touch input operation. Increase usability Increase usability Increase usability Increase usability Align [RTY] to [$2%]. Align [RTY] to [$2%]. Keeps the same location Keeps the same location between [alphabet] between [alphabet] [number / Symbols]. [number / Symbols]. 2011/11/30 FIO Technology Inc. confidential 4
  • 5. Proposal to Huawei [3] Tablets require a better companion Accessory Phone for tablet Many smartphone and NotePC users will shift to iPad, Tablet, and 4G (LTE). A capable basic accessory phone is a better choice. MediaPad companion Accessory Phone for Huawei MediaPad • 4G dumb pipe • Basic Music phone • BT/USB accessory • Rugged • Longer battery • Small size (40~50mm width) • QWERTY keyboard (FIO-KeyBO) 2011/11/30 FIO Technology Inc. confidential 5
  • 6. Proposal to Huawei [4] Multifunctional Accessory New product proposal Multifunctional accessory device with FIO-KeyBO Multifunctional accessory device with FIO-KeyBO Single hand operation Single hand operation  BT external keyboard  BT external keyboard for touch-panel devices for touch-panel devices such as ipad or tabletPC such as ipad or tabletPC  PC mouse controll  PC mouse controll  BT Presentation  BT Presentation controller with LED controller with LED pointer and unique pointer and unique realtime text adding realtime text adding feature feature  IR universal remote  IR universal remote controller controller  Mobile WiFi  Mobile WiFi
  • 7. Proposal to Huawei [5] Remote controller for STB New remote controller for Digital STB New remote controller for Digital STB SMK introduced FIO-KeyBO featured remote controller for future IPTV at CES2011) Huawei DC730 STB
  • 8. Large Market FIO-KeyBO : Potential Market Over 5 billion target users (cellular phones, remote controllers, game controllers, etc) Worldwide mobile device - over 1.6 billion units were sold in 2010, a 31.8% increase from 2009, according to Gartner. In addition to the 73% growth of smart phones, basic phones grew 25% with 1.3 billion units. Carriers are expecting to increase data revenue through messaging service such as email and SMS. FIO-KeyBO aims to replace multi-tap text entry method and become a new standard for basic phones with 10 keys in emerging markets. Game console – Worldwide sales by Jan/2011, total 170 mil units. Nintendo Wii (77M), MS Xbox360 (50M), Sony Play Station3 (42M) Motion sensor control is NOT suitable for quick search and text chat over the network community. Remote controller – In 2010, global annual television sales reached 242M (15%) Remote controller – In 2010, global annual television sales reached 242M (15%) [Source: Display Search]. The QWERTY keyboard has become a mandatory feature [Source: Display Search]. The QWERTY keyboard has become a mandatory feature for IPTV remote controllers such as GoogleTV for direct content search. for IPTV remote controllers such as GoogleTV for direct content search. 2011/11/30 FIO Technology Inc. confidential 8
  • 9. Customer How users are complaining? FIO-KeyBO solves the fundamental problems of existing input method Number keys are too small. Users are NOT Software keyboards are NOT accurate. satisfied with [multi-tap] nor T9word text entry methods. 2011/11/30 FIO Technology Inc. confidential 9
  • 10. Competitors Failures of existing approaches ~ QWERTY Phone Several companies have recently introduced phones with new ways to input text. Because these phones have largely failed, an opportunity remains to more easily provide QWERTY functionality in basic phones. Nokia Twist LG Lotus RIM 8220 Samsung Alias 2 2011/11/30 FIO Technology Inc. confidential 10
  • 11. Create a new market An invisible blue ocean market exists.. In 2010, the smart phone market grew 72% (297M) worldwide. In addition, basic featured phones also grew 25% (1.3B). Heavy SMS, SNS, email users 4 out of 5 units are 4 out of 5 units are basic phones, basic phones, and still growing… and still growing… Potential new market With FIO-KeyBO’s With FIO-KeyBO’s innovative innovative keyboard, Huawei keyboard, Huawei FIO- can capture many can capture many FIO- KeyBO KeyBO of these of these customers customers Red Ocean Red Ocean [ 2Abc ] Multi-tap method Basic users 2011/11/30 FIO Technology Inc. confidential 11
  • 12. Our solution FIO-KeyBO can enable an existing 10 key device to function as a full PC keyboard within 40mm ~ 50mm device width Standard [2Abc] Standard [2Abc] keypad keypad FIO-KeyBO FIO-KeyBO Simply split single silicon Simply split single silicon rubber switch into two pieces rubber switch into two pieces [letter]:- position to press - Allocates two switches under Allocates two switches under ◎◎◎ 【Q】: Left side of [1] key each key instead of one. each key instead of one. Therefore, 11 unique characters Therefore, 11 unique characters ◎◎◎ 【W】: Center of [1] key can be generated from a single- can be generated from a single- ◎◎◎ 【E】: Right side of [1] key click of the three numeric keys click of the three numeric keys ◎◎◎ 【R】: Middle of [1]&[2] instead of multi-tap key presses. instead of multi-tap key presses. ◎◎◎ 【T】: Left side of [2] key 2011/11/30 FIO Technology Inc. confidential 12
  • 13. Company Strength FIO-KeyBO Patents Filed (PCT) ●3-key (11 letters) x 4 lines = 44 single-click direct entry WO/2009/123625 WO/2009/123625 ●88 characters with Shift+ operation supports multi-language keyboards ●Works as standard full size NUMBER keys when you dial, NOT like blackberry QWERTY full keyboard QWERTY full keyboard [2abc] full keyboard [2abc] full keyboard example【 Finnish / Swedish 】 example【 Finnish / Swedish 】 OEMs may prefer this solution OEMs may prefer this solution 2011/11/30 FIO Technology Inc. confidential 13
  • 14. Patent Application FIO-KeyBO patent has been filed to US, JP, KR, CN, IN & EU Comments from European Patent Attorney, Alec Messulam: The invention of this application is concerned with how one can emulate the layout of a QWERTY keyboard, i.e. one with a conventional keyboard layout designed for use with ten fingers, using a telephone keypad or remote controller having three columns and four rows. It has previously been proposed to use one key to select more than one character but even if each key can select three alphanumeric characters, that still only allows for nine characters per row, whereas a QWERTY keyboard requires eleven. The solution offered by the invention is to place characters between keys and to require two adjacent keys to be depressed simultaneously in order to record a keystroke. Nowhere in the prior art has it been suggested to use the tip of one finger to press two keys simultaneously. Shift, Alt and Ctrl keys on a keyboard are actuated at the same time as other keys but not using the tip of the same finger, indeed not even using two fingers of the same hand. The invention offers for the first time, the possibility of one finger text entry using a keypad having the layout of a conventional telephone while allowing the operator to find all the characters intuitively in the same relative positions as they would occupy on a conventional ten-finger keyboard. Neither this objective, nor the method by which it has been achieved, is suggested by the prior art. . 2011/11/30 FIO Technology Inc. confidential 14
  • 15. Demo-1 50-year-old person broke a world record of fast text entry CLICK here !! CLICK here http://www.youtube.com/watch?v=D-5CmWSwQx0 http://www.youtube.com/watch?v=D-5CmWSwQx0 http://home.singtel.com/news_centre/news_releases/2008_02_25.asp http://home.singtel.com/news_centre/news_releases/2008_02_25.asp 18-year old student holds world record of 41.4 Sec 18-year old student holds world record of 41.4 Sec 160 characters with over 160 characters with over 350 multi-taps required = 350 multi-taps required = 8~9 times / sec. 8~9 times / sec. FIO-KeyBO required ONLY 4~5 times / sec to beat this world record. 2011/11/30 FIO Technology Inc. confidential 15
  • 16. Summary FIO-KeyBO ~ Strength A cellular phone demo unit works as external keyboard to display text to any PC application Why FIO-KeyBO is superior..? Why FIO-KeyBO is superior..?  Enables 10 keys as full PC [QWERTY] keyboard  Enables 10 keys as full PC [QWERTY] keyboard  Keeps Number keys as big as current basic phone  Keeps Number keys as big as current basic phone  Supports full symbols of PC keyboard  Supports full symbols of PC keyboard  No increased cost for hardware  No increased cost for hardware  Keeps the same width as an existing basic phone (40 to 50 mm)  Keeps the same width as an existing basic phone (40 to 50 mm) 2011/11/30 FIO Technology Inc. confidential 16
  • 17. Common Smartphone problems JMAR Social Media usage report - March 2010 ~ 54% users want improved “text entry” What do you want to be improved? What do you want to be improved? Battery life Battery life Hard to type text entry Hard to type text entry Availability of Infrared communication Availability of Infrared communication Ability to use Felica (e-wallet) Ability to use Felica (e-wallet) Availability of One-Seg (Mobile TV) Availability of One-Seg (Mobile TV) Reduce device size Reduce device size Increase screen size Increase screen size Availability of Keitai mail Availability of Keitai mail Use of emoticons Use of emoticons Ability to personalize e-mail Ability to personalize e-mail 67% of users are complaining 67% of users are complaining Overall design Overall design about text entry method for about text entry method for Bluetooth capability Bluetooth capability both existing phone and touch both existing phone and touch panel smart phones. panel smart phones. N.A N.A n=373 (smart phone users) n=373 (smart phone users) 2011/11/30 FIO Technology Inc. confidential 17
  • 18. New input trend in Japan ~ Apple i-Phone’s flick input is becoming a de-facto input method ~ What is ““ Flick ”” input? What is Flick input? Faster & more accurate than multi-tap Faster & more accurate than multi-tap Press and release[2]………Ka Press and release[2]………Ka Press and move left[2]….…Ki Press and move left[2]….…Ki Press and move UP[2]…….Ku Press and move UP[2]…….Ku Press and move right[2]….Ke Press and move right[2]….Ke Press and move down[2]...Ko Press and move down[2]...Ko Apple filed for patent in Apr/2008 Apple filed for patent in Apr/2008 US application No.(12/107,711) US application No.(12/107,711) However, prior art exists However, prior art exists (Hanabi [JPN], FIO-KeyBO [US: 2005] (Hanabi [JPN], FIO-KeyBO [US: 2005] 2011/11/30 FIO Technology Inc. confidential 18
  • 19. “FIO-KeyBO” is the prior art in US ~ FIO posted this “Flick” concept image to Japanese SNS in Sep/2007 ~ Sep/05: Filed as provisional patent in US Sep/05: Filed as provisional patent in US application [US60/718,197] application [US60/718,197] Jan/06: Introduced to Apple’s engineer Jan/06: Introduced to Apple’s engineer Sep/07: Introduced to Japanese SNS (Agoria) Sep/07: Introduced to Japanese SNS (Agoria) Dec/07: Printed the concept image of English Dec/07: Printed the concept image of English “Flick” on the back of my business card “Flick” on the back of my business card Apr/08: Apple filed the same input method as Apr/08: Apple filed the same input method as the gesture input patent application (“flick”) the gesture input patent application (“flick”) June/08: Apple released 3G i-Phone with “flick” June/08: Apple released 3G i-Phone with “flick” Jan/2010: Over 80M units has been sold with Jan/2010: Over 80M units has been sold with “flick” input for i-Phone and i-Touch “flick” input for i-Phone and i-Touch “Flick” became the de-facto input method for “Flick” became the de-facto input method for smartphones in Japanese market smartphones in Japanese market 2011/11/30 FIO Technology Inc. confidential 19
  • 20. Application “FIO-Pad” wall paper Concept New concept: Make Keyboard as a fun wallpaper New concept: Make Keyboard as a fun wallpaper [T]: Press Number[2] key and release [T]: Press Number[2] key and release without moving a Thumb without moving a Thumb [R]: Press Number[2] key and release [R]: Press Number[2] key and release a Thumb to the left a Thumb to the left [Y]: Press Number[2] key and release [Y]: Press Number[2] key and release a Thumb to the right a Thumb to the right Combine with Combine with word prediction word prediction Change Skin Change Skin like wall paper like wall paper Add more “flick” Add more “flick” variation variation 2011/11/30 FIO Technology Inc. confidential 20
  • 21. Market IPTV Potential Market Over 40 mil units (21%) of all TVs shipped in 2010 have the internet connectivity (IPTV), and would grow 118mil units in 2014 (CAGR[30%] Source: [Display Search] Source: [Display Search]
  • 22. Market Digital STB worldwide Market Worldwide Digital STB unit sales had reached 100mil units in 2007. Grow even fasterer with CAGR[25%] in recent years, and 195mil units have sold in 2010(source: Instat) ) 5 % (2 R G CA Source: [Original graph: Strategy Analytics Connected Home Devices service] Source: [Original graph: Strategy Analytics Connected Home Devices service]
  • 23. Customer Users’ complaint about existing remote controller “Search” function become a mandatory feature for IPTV remote controller • IPTV requires the text input function to enable quick direct search of user’s target content through out the various media and the numerous cable TV channels. • Roku(1mil+) & Game consoles (170mil+) enables existing TV as the IPTV ・Selecting each letter by pointing the virtual keyboard on a TV screen is time- consuming and hectic operation such as selection by cursor (Roku) or motion Netflix: 26mil US household Netflix: 26mil US household sensor controll (Wii remote) . users (22% in US) users (22% in US)
  • 24. New remote controllers New remote controllers for IPTV/STB comes with QWERTY keyboard to enables users the quick “Content Search” by direct text entry
  • 25. New trend of IPTV Brian Roberts, a chairman of Comcast introduced new IPTV remote controller at the CableSHOW2011 http://www.youtube.com/watch?v=KBnLCbzMR9Y&feature=player_embedded “Search” button & “T9word” 10- key text entry method is applied
  • 26. Target segment It is important to keep the existing remote’s UI and form factor. FIO simply add “Search by QWERTY text input” feature Most cable carriers are not comfortable about GoogleTV because it breaks their existing eco-system and revenue model. FIO-KeyBO enables soft-landing add on “search” feature approach ( Current ) ( Current )
  • 27. Next step ! New IPTV remote controller proposal Motion sensor like operation with new disruptive technology Press, move and release Press, move and release Y Filed PCT 1. Allocate 6 switches in a single line 2. Cover the whole switches with a sheet cover 3. Silk print numbers and alphabets 4. Combine with word prediction or correction middleware application for content search
  • 28. About Me Founder Itsuro Yoshimoto founded FIO Technology Inc in 2006, formerly Yoshimoto Inc. He filed FIO- KeyBO related patents to PCT and 6 regions (US, JP, KR, CN, IN, EU). Prior to Yoshimoto Inc, he led a web and mobile content division in US operations at Namco. He established a profitable wireless game business foundation in North America for Namco by managing five Independent Software Vendors. Yoshimoto started his career at CASIO. He designed software for the Digital Audio Tape recorder (DAT). He mainly worked as an embedded software engineer for 11 years and developed many products. He also worked as a product planner for an additional 2 years. Then, he moved to CASIO US R&D center in San Jose for an additional 5 years to develop multi-application CD-ROMs for Windows CE based handheld PC and Pocket PC, and researched new technology trends. He invented many patents. Yoshimoto majored in acoustic design at Kyusyu Institute of Design, Japan. MBA from Kenichi Ohmae graduate school of business. 2011/11/30 FIO Technology Inc. confidential 28
  • 29. About US Board Tsuyoshi Taira is the CEO of Tazan International Inc, a Venture Capital and Management Consultancy Firm. Mr. Taira has been involved with a number of Silicon Valley startup companies as founding investor/director including Atmel Semiconductor (NASDAQ: ATML), Pico Power Technology Inc (acquired by Cirrus Logic), Junglee Corporation (acquired by Amazon.com, NASDAQ: AMZN), Armedia (acquired by Broadcom, NASDAQ: BRCM), Apptivity (acquired by Progress Software, NASDAQ: PRGS) and many others. He has been instrumental in providing seed stage financing, management and marketing advice, especially f or the Far Eastern market to the startup companies. Currently he serves on the boards of Silicon Storage Technology Inc. (flash memory company), Nayna Networks, Inc. (networking products and services), Ureach.Com (unified e-mail and voice mail messaging company), Asia-Links Media (Semiconductor components e-commerce) and Teleweb (Call Center in China). In addition, he is on the advisory board of Silicon Motion (Graphic Controller IC), CLCEO (Polarizer), Reveo (Revolutionary Electro Optics Technology Company) and several other companies. Previously, Mr. Taira was Chairman of Sanyo Semiconductor directing Sanyo’s US marketing strategy. Most of his career was spent at Sanyo Corporation except for five years when he worked at Fairchild Semiconductor. Mr. Taira graduated from Tokyo Metropolitan University with a BSEE. He also received an Honorary Doctor of Humanities from Newport Asia Pacific University in March 2000. He has published a number of books including “Audio Amplifier”, “Transistor physics And application” as a Co-author and most recently a book on entrepreneurship, “My fellow engineer, let’s challenge” from Nikkei BP.