VaporStream value proposition. A new way to communicate. Learn what makes VaporStream the only way to communicate with privacy online.

1. A New Way to Communicate… July 6th, 2009 www.vaporstream.com

2. Corporate Communication Email is the tool of choice for corporations Easy to use Informal One or many recipients Integrates with workflow Enhances collaboration between co-workers and superiors Communicate now or later 2

3. What started out as an easy way to communicate has become a “universal” filing system. Email was really invented as a transitory electronic messaging system. Lower storage costs and faster broadband speeds have made the archiving and transmission of email almost limitless People now keep everything! Yet… Email is an electronic “time stamped” perfect record of a communication Email can live forever… in your system… or someone else’s… or in someone’s whom you don’t even know 3

4. Why this matters… 4

5. 5 85% of employees say they now prefer communicating by e-mail rather than phone E-mail use went up 55% between 2003 and 2006* 92 billion Corporate emails are sent a day in 2009; expected to double by 2013** *Source: The e-Policy Handbook, second edition, Nancy Flynn, p. 34*, 2009 **The Radicati Group, Inc., March 2009

6. Further…email is not free! Corporate cost to create/send each email is $.02 An average user sends an estimated 50 emails a day A company with 5000 email users will spend… $1,200,000 a year just to send email* *This does not include the costs of records management and e-discovery. 6

7. In fact, email is too costly Though storage unit costs are at historic lows, the amount of data being produced by employees is increasing. Consider that a 1MB email creates 52MB of downstream storage use!* Greater total cost Growing archival costs 43% of surveyed companies read internal email and 96% read external email** e-Discovery costs are even greater With each e-discovery request, there are costs on IT and Legal departments on a per message basis 7 *Source: General Counsel conference, NYC, June, 2009 **The e-Policy Handbook, second edition, Nancy Flynn, p. 65, 2009

8. And, email is too risky User’s do not perceive email as a permanent record In today’s litigious environment, risk to the enterprise must be better managed Improved records management practices can help: Defend the enterprise Minimize misuse of e-mails that make headlines daily The corporate image is harmed Many times, careless/casual e-mails/IMs become critical evidence, if not now, sometime in the future Reduce already rapidly growing search costs 8

9. 9 43% of employees don’t adhere to rules or don’t know if they’re compliant Source: The e-Policy Handbook, second edition, Nancy Flynn, p. 6, 2009

10. 10 Nearly 1in5 outgoing e-mails contains content that poses a legal, financial or regulatory risk Source: The e-Policy Handbook, second edition, Nancy Flynn, p. 57, 2009

11. 11 Employee Email Subpoenaed: 2001 – 9% of companies2006 – 24% Source: The e-Policy Handbook, second edition, Nancy Flynn, p. 5, 2009

12. Introducing…. A system that – Reduces email (storage) and archival (future storage) costs Works within the corporate governance framework Allows employees to talk freely with one another enhancing collaboration and privacy 12

13. VaporStream is a recordless messaging system that combines the benefits of text with the confidentiality of a conversation. Ensures privacy for both sender and recipient Informal like a conversation Integrates everywhere that e-mails are sent and received Easy for everybody to use Is NOT e-mail or IM 13

14. VaporStream Recordless Messaging Unlike email or IM, it does not leave a record First recordless electronic communication Patent pending technology Uses your email address Cannot be intercepted in transit or queuing Secure closed system Cannot forward, edit or save 14 ONCE THE MESSAGE IS READ, IT IS GONE

15. A few uses of VaporStream 15

16. 16 The Real Cost of Email (Conceptual)

17. Take the average company… 17 According to EDRM for every $1 you spend on email, it will cost you $3-$5 in e-discovery.

18. It only takes a small reduction in the number of emails for VaporStream to break even. *Based on each email costing $.02. and VaporStream costing $5.00 per month. 18

19. 19 The real savings of VaporStream *Based on a 25% reduction in email volume.

20. You need VaporStream The current costs of email are high and increasing So are the risks, the challenges of: Surveillance Loss of privacy e-discovery In response to those costs and challenges, VaporStream changes the landscape Why keep anything that is supposed to be transitory? VaporStream is what email was supposed to be! Now is the time to act 20

21. IF YOU NEED A RECORD, USE EMAIL. FOR EVERYTHING ELSE, USE VAPORSTREAM. 21 visit: www.vaporstream.com

22. Appendix 22

23. How to bring VaporStream into your life Revisit Records and Information Management Policies Simple enough to be understood and used Consistent enough to be defensible Incorporate VaporStream into company policies Easy to install and operate 23

24. Addressing Frequent Questions Concerning VaporStream 24