mVerify Investor Overview

mVerify A Million Users in a Box ®

®

Investor Overview

Robert V. Binder, CEO [email protected]

312 881-7337 x1001 www.mverify.com

mailto:[email protected]

mVerify Corporation Confidential 2

The Mobile Testing Nightmare

Mobile is a hot sector

Mobile app configurations increasing exponentially

More testing necessary for competitive quality, reliability, performance

Billions in avoidable cost and lost revenue


The mVerify Solution

MTS

A Million Users in a Box ®

Architecture = 10 yrs custom + 2 yrs ATP R&D

Platform-agnostic, uniquely versatile Edge: RFID, WiFi, GSM, CDMA, …

Core: Web Services, RDB, Beans, …

Value Proposition

With MTS, solve the mobile testing nightmare

With MTS, slash time to market

With MTS, competitive reliability and performance


mVerify Customers


Current Pipeline

Microsoft: Model-based Testing, phase II

Harbison pitching C-level contacts at Boeing, Lockheed, Raytheon, BAE, …

1.6, MTS/NET: VOIP, multi-host, …

Exclusive Reseller of Imbus TestBench

Intelligent Decisions, Govt Sales Plan


MTS: Any App, Any Platform

Agent Host

Client Host Under Test

Agent HostConsole Host

MTS

Console

MTS Test

Agent/STE

MTS Test

Agent/STE

Host Under Test may be

TEST RUN

REPORTS

MTS Remote

Agent

Client

Under Test

Server Host Under Test

MTS Remote

Agent

Server

Under Test

ü Cell Phone, PDA

ü Desktop or Server

ü Embedded Processor

ü Comm Interface

ü Network Equipment

ü Access Point

ü Base Station

Client Host Under Test

MTS Remote

Agent

Client

Under Test

Server Host Under Test

MTS Remote

Agent

Server

Under Test

Plug In

Plug In

MTS Model

Editor MTS

Repository

Channel

Emulator


SAAS Offering

Patent Pending

Disruptive benefits: Minutes, not Months

Near zero incremental cost

Opportunities iPhone

Google Android

RIM

Verizon

mVerify Certification Facility

MTS Client

MTS Client

MTS Client

MTS Client

Channel

Emulator

Account

Management

Test Model

Editor

Test Suite

Generation

Test Suite

Execution

Virtualized

Hand Helds

Robotic

Hand Held

Harness


Intellectual Property

Automatic Test Generation Environment simulation 1000x over manual 100x over scripting Patent 7,339,891

Certification as a Service Test results in minutes, not

weeks Very low incremental cost World-wide enterprise

solution Platform/network agnostic,

adaptable framework Patent Pending

Automatic Model Generation Enterprise license for global

collaboration Create advanced tests from

simple lists Advanced reliability testing Patent Pending

Distributed Testing Platform High productivity, efficiency Platform/network agnostic,

adaptable framework Proven and stable


Competitive Landscape

Platforms

Test Technology

Legacy

Mobile

10x 1000x 100x 1X

Legacy Advanced

TestQuest

Mobile Complete

$6B

$7B

Mercury, Segue …

mVerify

Agilent, Ixia …


2008-09 Focus: Infrastructure

Total Market: Infrastructure 220 Manufacturers

128 Carriers

104 DoD Procurement Units

464 Mobile Service Providers

0

20

40

60

80

100

2008 2009 2010 2011

Addressable

Infrastructure

Market

MSPsDoDCarriersMfg

Accts


2009-11 Focus: Applications

Total Market, Apps: 1,000+ Independent Software Vendors

13,000+ Enterprise IT (U.S.,1000+ employees)

~90% CAGR to $2B by 2010

0

500

1000

1500

2008 2009 2010 2011

Addressable

Applications

Market

ISV

EIT ROW

EIT NA

Accts


MTS Road Map

Tester Edition Single user, 10 DUTs

1.6: GA Jun 08

1.7: GA Oct 08

MTS/NET (1.6)

VOIP Quality

Multi-host

Channel Emulator

MTS 2.0

1000X Model-based

Symbian, LIMO, OHA

Q1 2009*

Enterprise Edition

Site License

Vertical solution bundles

Q3 2008 *

Testing as a Service Single User

Carrier Certification

Logo Testing

Q1 2009 *

Team Edition

Work group

Q1 2009 *

* Assumes Jun 08 funding


Core Team

Robert Binder, Founder and CEO 32 yrs software entrepreneur and technologist, internationally

recognized software test expert; MS, MBA

John Harbison, Acting Director A&D Sales 30 years exp., President Raytheon Commercial Ventures, Booz-

Allen Aerospace/Defense practice lead; MS, MBA, CPA

Tony Wasserman, Board of Directors CEO/Founder, Interactive Development Environments; VP of

Bluestone Software; Professor at Carnegie Mellon West; PhD


How Will Funds be Used?

Seeking $6M+, first institutional round

Allocation of Proceeds

45% Sales and Marketing

40% Production

15% Operations

Detailed monthly line-item budget

Forecast cash-flow neutral in 24-30 months


Forecast

2007

Actual

2008 2009 2010 2011

Customers 8 55 539 1,313 3,698

Revenue 80 1,023 3,135 10,340 29,809

Expense 664 1,822 4,627 7,635 17,253

EBITDA (471) (1,134) (2,394) 710 8,204

$ 000 omitted – Assumes 2009 Q1 Funding


Exits from Comparables

Market cap, all app test firms, ~$10B

Recent comparable exits

Dec 2002: IBM+ Rational= $2.1B (~$420M testing)

Feb 2006: Borland + Segue = $100M

June 2006: HP + Mercury Interactive = $4.5B

June 2007: IBM + Telelogic = $745M

All were start-ups

Possible acquirers

Agilent, IBM, HP, JDS Uniphase, Ixia, Spirent, …


Why Invest in mVerify?

Unique solution for mobile testing nightmare

IP for rapid growth, competitive advantage

Amazing achievements while bootstrapping

Proven traction

Disruptive value proposition in space growing 90% to $2B

Comparable exit multiple: 3.8


Q & A


Back Up


Strategy for Market Dominance

Continuous Disruption

Set the marketplace agenda

Tactical IP Initiatives

Limit competition, protect our position

Agile Marketing

Word of Mouth, Web 2.0 campaign

Compelling Innovations

High value, excitement, brand leadership

Optimal Development

Sustainable codebase, low cost, managed, agile


Sales Plan, Large Manufacturer

~15-20 big projects

~150 opportunities

Assumptions 5% initial penetration

60% saturation

15% Tester Ed @ $30K

35% Team Ed @ $80K

10% Enterprise Ed @ $250 K

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Y1 Y2 Y3 Y4

AnnualEnterpriseTeamTester

Sales Plan, Large Manufacturer


mVerify Background

RBSC

1994-2001: develop custom test automation for mission-critical apps National Security Agency, Naval Air Warfare Center,

JMPS Compatibility Lab, McDonnell-Douglas, NASA/JPL, Ford DAI, Lucent, Motorola Iridium, Nokia, Fannie Mae, Caremark, Exxon Production Research, Union Pacific, The Options Clearing Corp

Chicago Board Options Exchange

1999: Binder publishes definitive Testing Object-Oriented Systems: Models, Patterns, and Tools 1,098 pages

Translated to Chinese, Polish

10,000+ copies world wide


mVerify Background

March 2001: mVerify founded to productize approach for mobile systems

January 2002: Patent app: “Method and System for Evaluating Wireless Applications“

May 2003: $1.9M NIST/ATP award

May 2005: AMATE demo, ICSE 25

June 2005: MTS 1.1

May 2006: MTS 1.2

Oct 2006: MTS 1.3

July 2007: MTS 1.5

March 2008: US Patent 7,339,891

Mobile Systems

A Million Users in a Box™

Verification


Simulation, Testing, Monitoring

Synthetic

Output

SOI

Behavior

Model

Synthetic

InputResponse

AnalysisPredictions

Discrete

Event Input

Generation

SOI

Model

System

Under Test

Test

Pass/FailOutputsInputs

System

Under Test

Test

Pass/FailOutputsInputs

Input

Script

Check

Script

System

Under TestOutputs

Condition

CheckingAlarmsInputs

Real

World

InputsReal

WorldSystem Of

InterestOutputs

Simulation

Manual Testing

Monitoring

Scripted Testing


MTS Advanced Test Generation

InputsReal

WorldSystem Of

InterestOutputs

System

Under Test

Test

Pass/FailOutputsInputs MTS

MTS Expected Output

MTS/STE

Environment

Simulator

Environment

Model

System under test not simulated or emulated

1000x better productivity

1000x better effectiveness


MTS Tester Edition Features

Distributed Test Harness Edge to Core Object-Oriented Scalable

Test Objects Best practice One-click repeat Composable, Reusable,

Data-driven Open Source (Tcl)

Test Run Reports Generated in real time Browser XML test log Summary, detail, exceptions

Performance Monitoring Collect real-time metrics Plug-in + XML-schema Function & Performance test Trend graphics, data detail

Stochastic Test Engine Automatic test generation Accurate reliability analysis Simulation-based generation Millions of tests in minutes

Adapters (1.5) Win CE family Web Services, DBMS, *nix Bar Code Image, GPIB Framework – any GUI or API


MTS Tester Edition


MTS Tester Edition Capabilities

Simultaneously test up to ten handhelds per desktop

Record any user scenario for verbatim replay

Fully automatic analog or data comparators

Any Windows CE device or emulator

One-Click Repeat™, run unattended tests over 24+ hours.

Open Standard Tcl (Tool Command Language)

Advanced object-oriented testing framework

Automatic test object generation

Reuse or customize any test object in any test suite

APIs for web services, C#, C++, Java, XML, SOAP, databases, …

Monitor testing anywhere with instant email notification

XML test logging

Detailed test run reports viewed in any web browser


Applications and Benefits

Benefits

Up to 80:1 reduction over manual test time

Reliability metrics for release, accept/reject, compliance

Consistent and repeatable

Scalable to system of systems

Applications

Testing: functional, stress, load, stability, reliability, regression

Debug, tuning, calibration (retest after change)

Security evaluation – abuse case generation

End-to-end, Edge-to-core, mobile, wireless, multi-tier

Any embedded API, Server


MTS/NET Lab Configuration

IUT IUTRA IUTIUT

POWERFAULT DATA ALARM

Wired TCP/IP

USB

IPCWiFi

VOIP End Point

VOIP End Point

VOIP End Point

Channel

Emulator

VOIP End Point

RARA RA RA RARA

MTS Console

MTS Test Agent

MTS Test Agent

MTS Test Agent

MTS Component

CE Controller

VOIP End Point


MTS/NET Field Deployment

Cabin

Access

Point

Satellite

Data Link

Ground

Station

IUT

Wired TCP/IP

USB

IPCWiFi

VOIP

End PointVOIP

End PointVOIP

End Point

VOIP End Point

MTS Test Agent

MTS Test Agent

MTS Test Agent

MTS Console

MTS Test Agent

RARA RA RA RA

MTS Component

RA


MTS/RCT: Certification as a Service

The Pain: Logo and Certification Testing Manual, bottleneck, superficial Dev community resistance

Rapid Certification Testing: MTS/RCT Solution Test results in minutes, not weeks

Supports world-wide enterprise solution Platform/network agnostic, adaptable framework Patent pending

Straightforward extension Re-configure client and server deployment Add Account Management

Cooperation sought Business: Carrier designation Technical: Manufacturer stack support


MTS/RCT Overview

mVerify Certification Facility

MTS Client

MTS Client

MTS Client

MTS Client

Channel

Emulator

Account

Management

Test Model

Editor

Test Suite

Generation

Test Suite

Execution

Virtualized

Hand Helds

Robotic

Hand Held

Harness

mVerify Investor Overview

Technology

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