Tessa ten Tusscher, PhD- CEOTessa@LivingWellALAH.com

1-800-805-7104

Revolutionizing the way people age in this country

89% of us do not want to leave our homes…

Facilities

Fragmented and basic care

Feel like an institution

Home Care Agencies

Current Choices

Have Your Cake and Eat It Too… The Living Well Solution Have Your Cake and Eat It Too… The Living Well Solution

Current Choice 1 -Facilities Living Well Solution

Facility Entry Fee

Entry fee $9,000 to $1 M

Living Well Entry fee

$5,000 - 20,000

Facility Monthly fees

$5,000 $9,000

You give up your home, lose independence, and make a permanent decision

Living Well Monthly fees

$3,000 - 18,000

You keep your home and your choices

Current Choice 2 –Home Care Living Well Solution

Home Care fees: $3K-$18K Case Manager: $1K MDs Home visits: $1K Maintenance & $200 Housekeeping: $200 Other services: $500

Coordinated, comprehensive, all inclusive and exclusive services in the comfort of your own home while connected to your community

Home Care Monthly Fees:

$ 3,000 - $21,000

Living Well Monthly fees:

$ 3,000 - $18,000

Cutting EdgeTechnology

&Five-Star Services

Living Well Solution: Technology, real time reporting, and 5- star comprehensive services to keep seniors safe and pampered at home

24/7 Physician care

Five-star home care

Patented technology for home and medication monitoring

Wellness and social activities

Individualized assessment & care

24/7 Concierge services

Exclusive licenses

A la carte services includes financial planning, clerical, services, and bookkeeping

Exclusive License for No. CA Patent No. 11246556 f. 2005

Intellectual Property : Technology to Keep Elders at Home

Living Well Secure Server

Motion sensors track activities of daily living (ADLS)

Base station calls Living Well Secure Server every 2 hours

24 hour-a-day, seven-day-a-week early detection and early warning system to assure safety at home

The EMMA® System by INRange

Exclusive license to Living Well for senior home care

Regional exclusive license to move with us at expansion

•The first & only FDA approved medical device for remote medication management

•First commercial contract for this population

•Used by the military for returning veterans

•Delivers real time reports to MDs and Living Well Health Care Staff

Our Edge: 5 Star Staff

NO CONTRACTORS! well trained, full-time, benefited, and reliable, 5 star staff - an

astute way to reduce liability!

• Caregiver • Home Care Aid• Concierge• Medical Staff• Wellness Advocate

• Activity Coordinator

Retention and Recruitment of Our 5 Star Staff : Reducing Liability!!!

RecruitmentUse of quality assessment toolsThorough background and drug screening prior to employmentBehavioral and team panel-interviewing techniquesBuilding an effective employee referral program

Retention3-week team member orientation (1 orientation, 1 on-site training, 1

shadowing)Ongoing training (certification w/ Alzheimer’s association and re-certification)A strong positive culture and work environmentExcellent benefits and flexible hoursBi-annual team member satisfaction survey

Reducing liabilityTraining and selection as explained above plus;EPLI for workers comp, general liability, and EP insurance with a solid and trusted Co. e.g. Dewitt and Stern Conduct ongoing ergonomic training + working closely with insurance Co. to ensure the best, most up-to-date practices

Living Well 5 Star University™ Training Components

Dementia Care

Geriatrics

Documentation

& Reporting

Living Well Culture

Culture Sensitivity

Social & Language Skills

Customer Service

Wellness Programs

Safety at work

Caregiving Skills

Living Well 5 Star University™ f or 5 star reliable staff

Our Business Model = Joining Fees , Monthly Dues, and Services a la Carte

Level

Member Joining

Fee

Member Monthly Dues/hrs

A la Carte Services Avg/hrs

Total

Monthly Average

Total

Monthly Range

Average* Revenue Yr/Level

Average * Expenses Yr/Level

Gross Margin

Yr/Level

1

$5K

$7 5 0-15h

0

$7 5 0

$7 5 0

$4 6 5K

$2 5 0K

47 %

2

$10K

$3 K -33 h

$1 K -29 h

$4K

$3 -5K

$2 .8 M

$1 .4K

51 %

3

$12K

$4 K -40 h

$3 K -93 h

$7K

$4 -11K

$4 .7 M

$2 .2 M

52 %

4

$18K

$5 K -70 h

$6 K -17 7h

$16K

$7 -21K

$1 0 .3 M

$4 .5 M

56 %

5

$20K

$7 K -80 h

$7 K -18 7h

$16K

$9 -19K

$5 .3 M

$2 .3 M

57 %

* C alcu la tio n b a se d o n 47 5 m e m b ers / Y ea r 2

Profit•130 to be profitable•475 in 2 Yr= $21.2M

Needed Market Penetration to Reach

Capacity 3%

Our

Customers•70+ years of age

•Home Owners

•$1M assets

First 2

Markets

•7,000 in So.Marin

•9,200 in San Francisco

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

The US population is aging rapidly. The US Census predicts that the population of seniors will grow from 12.4M in 2000 to 19.7M in 2030

The Silver Tsunami - Growth of Population over 85

Low Hanging Fruit

2831

37

44

52

58

0

10

20

30

40

50

60

70

2010 2015 2020 2025 2030 2035

M

People age >70 People age 70+ in 2010  = 28M

40% w/ disability = 11,228,400

3% urban/>$1M assets = 340K

89% staying at home= 300K

LW member revenue= 22K/yr

Total market 2010= $6.5B

Total market 2015= $7.2B

Total market 2020= $8.5B

Living Well Assisted Living at Home Market Size

Market Entry

Synergistic joint ventures

Professional Referrals

Discounted Founder Memberships

Public Events in our target areas

Strong Web presence for boomer children

Marketing to independent elder

Personalized sales and excellent customer service

Market Entry

Barriers to entry

Unique linking of gerontology with hospitality and MD

Safe and pampered

Exclusive licenses to patented technology

Unique business model combining IP and JVs

First in class and first to market

Reliable and five-star trained staff non-existent in the industry

Management team expertise

Tessa Ten Tusscher, PhD -C.E.OSerial entrepreneur- Gero-psychologist

Sebastian Oghlidos - Venture Capitalist- Gardiner Capital

Jeffrey Kaye, MD - Director Oregon Center for Aging and Technology-Oregon University- Geriatric Neurologist

Tony Canini JD - VP International Wealth Merrill Lynch

Elizabeth Landsverk MD - Geriatric Physician

Sue Dibble, DNSc - Expert in chronic illnesses-UCSF

Leah Edwards, MBA - Marketing Consultant

Doris Bersing, PhD - PresidentSerial entrepreneur- Gero-psychologist

Christine Parini -VP SalesEli Lily, Pfizer, Inc., Imclone Rockefeller University, Columbia Presbyterian Hospitals.

Josiane Kristensen- C.P.OFormer VP Mandarin Oriental Hyatt McKesson -Coca Cola

The Winning Team

Beatriz Rincon -C.F.OFormer VP- CFO Social Venture Network- CIIS - PDVSA

Our Advisory Board

NO COMPETITION… but two possible runners:

2.Home Care Agencies

1.Facilities

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Billion $

Kindred Sun Healthcare Home CareAmedysis

Home CareGentiva

Gross Revenue Net Profit

FacilitiesHome Care Agencies

Competitors Market

FINANCIALS FIVE CLUBS

-1

9

19

29

39

49

59

69

79

89

$M

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5

Revenue COGS SG&A/OH EBIT Cash

0

100

200

300

400

500

600

700

M

*1 *2 *3 *4 *5 *10 *20 *30 *40Number of Clubs

Revenues Expenses Profit

FINANCIALS FORTY CLUBS

Market Analysis to match our demographics

Regions able to accommodate 4-5 Living Well clubs

First 5 regions in California before expanding nationwide

Aggressively continue JV’s synergistic marketing in each

region

Research/develop relationships with high-volume referrals

Hiring the right people from general manager through line-staff

Replicating the LWU training model

Upscale sales showrooms and sales office in each region

Replicating the LWU training model

Develop a roadmap and checklist to launch each club

Scaling outside the San Francisco Bay Area

Investment Opportunity

Prior funding = $ 165,000 Committed to Series A= $ 200K

Developed business model, secured technology licenses, hired C-level

staff, created marketing plan and collaterals, started sales campaign for

founding members.

Traction Today: 40 founding-members goal by July 2009

25% achieved within 1 month

Planned $2M ( $1M convertible notes to roll into 2M series A)

$1M = Hire and train operational staff - Fund sales to secure 135 members - Begin operations -

$2 M= Two communities fully operational - 475 members= Profitable

Seeking: $1M convertible note - 10% Interest + 10-30% Warrant/days

Planned: $2M in Series A in 6 months

Business Milestones

Deal Summary

Acquisition in 5 years - ROI 21X for Series A investors

Multiples for similar businesses: Home Care P/E 14 – Ass. Living P/E 13

Revenue multiples: 3X

Earnings (based on EBIT): Year 5 $31M + $40M cash reserve

Valuation projections at exit with only 5 communities $125M

Exit Strategy

Potential Acquirers

Facilities/Hospitality Home Care Agencies

Investment Opportunity