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ModViz, Inc.
The new leader in industrial visualization.




               Dr. Robert Jacobson, CEO
                Mr. Thomas Ruge, CTO
              Ms. Shing Pan, VP Marketing
              And Business Development

                    +1-650-670-9082
                 bjacobson@modviz.com
What ModViz Does
  • We serve industry’s need for affordable
    visualization of complex computer data
    used for critical business processes.

  • Our software products turn simple PCs
    into powerhouse visualization systems.

  • Visualization systems built with our software
    products are robust, portable, highly
    scalable, and inexpensive.

  • With our business partner HP, we’re going
    to market now.

                                                    2
Our Mission



 To become the leading vendor of software
for affordable high-performance, real-time,
          industrial visualization.




                                              3
Who We Are: Core Management
Dr. Robert        •   Entrepreneur, Researcher, Virtual Reality Pioneer
Jacobson          •   Worldesign Inc., HIT Lab, SRI Consulting
Co-Founder        •   Ph.D., Urban Design UCLA; MA, Comm Industry Mgmt. USC
CEO               •   25 years experience, online communications and virtual reality

Thomas            • Inventor of Renderizer software, patent co-author
Ruge              • Co-founder, Siemens Visualization Software Division
Co-Founder        • Siemens Virtual Reality Competence Center
CTO               • MS, BS, Physics, Technical University in Munich
                  •20 years of technology, product development experience

Yixin (Shing)     • Senior Marketing Manager, SGI: “Intrapreneur” responsible
Pan                 for PC-cluster business; strategist responsible for corporate
Co-Founder          manufacturing market strategy
VP, Marketing &   • MBA, Cornell ; MS, Mech.Eng., Northern Illinois
BusinessDev.      •14 years product marketing, business development experience

Brian Blau            •   Software Development Manager, Discreet/AutoDesk
VP Engineering        •   Co-Founder, VP Platform Technology, Intervista/Platinum
                      •   Founder of VRML Society, SIGGRAPH Events Organizer
                      •   MS, BS, Computer Science, Central Florida
                      •   17 years software development and virtual reality experience
                                                                                         4
Converging Trends Create
an Historic Business Opportunity

                        Open systems’
                          maturity



     Visualization’s
                                         PC technology
     widespread use
                                         improvements
     within industry

                           The
                          ModViz
                        Opportunity
         IT users                            Display
      increasingly                         technology
    are direct buyers                    improvements


                           Utility and
                        grid computing
                        developments




                                                         5
Visualization is Enterprise-wide


        Product                Manufacturing          Marketing       Sales   Distribution
      Development                                                             & Support




  Conceptual Modeling,                                                        Digital Training
                                  Assembly Review             Digital Sales   & Simulation
  Styling, Industry Design
                                                              & Marketing




Functional       Design Review,
                 Ergonomics           Factory Planning,                        After-Sales Service
Simulation,                                                                    & Maintainability
Performance                           Robotics, AEC,
                                      QA                                       Studies
Evaluation




CAE              Motion Simulation,                                                              6
Visualization    Kinematics
The Problem We Solve: We Make
Industrial Visualization Affordable
     The conventional solution:              The Viz Cluster
        $500,000-$2,500,000+.
Proprietary. Hard-wired. Centralized.          Alternative:
         Tough to upgrade.                $30,000-$100,000+.
      For most would-be users:           Open. Scalable. Portable.
   Unaffordable and inaccessible.
                                            Easy to upgrade.
                                           Better performance.




                                         High-end visualization
                                        everywhere it’s needed.

                                                                     7
The Addressable Market
  For Cluster-Based Visualization
                                   Military & Government R&D
           HIGH-END                 Fortune 500 Companies                      Target Industrial
              10%
              10%                        $500K-$50M+                              Markets
                                                                  ed
             $2.2B                          per system
                                                           derserv          (in order of priority*)
                                                          Un

                                              Mid-Range Companies
                                                                            1.Oil & Gas
    MID-RANGE                                 Educational Institutions
                        ModViz’s               Local Public Agencies        2.Manufacturing
       44%
       44%
      $9.8B               $5B+                $50K-$500K per system         3.Life Sciences
                         Market                                    rved     4.Entertainment
                                                               Unse
                       Opportunity                                          5.AEC (Architecture/
                                                      Small Businesses
                                                     Professional Offices      Engineering/
CONSUMER
                                                       Individual Users        Construction)
  46%                                                    $2K-$50K
 $10.3B
                                                                   rved     • Based on
                                                               Unse           importance of
            Total Visualization Market:                                       visualization to
                      $22B+*
                  Replacement                                                industry and
                  Expansion                                                  industry’s current
                  Universal                                                  ability to buy.
                * Sources: Peddie & Associates 2001
            Frost & Sullivan, 2001,IDC 2001, Giga 2002
            (includes hardware, software, and displays)                                               8
Immediate Target Markets:
Oil & Gas, Manufacturing = $2.7B




 Geo-Analysis, Interpretation,      Concept Design
      And Well Location                CAD/CAE
   Reservoir Management           Virtual Prototyping
      Facilities Planning        Sharing Information
       and Management               With Suppliers
Our Technology and IP Strategy
Our technology, the result of three years of
labor and $3M investment, is protected…
     -------------------------------------------------------------------------------------------                    …And four provisional patents
     United States Patent Application 20020002587
     Kind Code A1
     Kecik , Yalin Ahmet ; Ruge, Thomas; et al.                          January 3, 2002
                                                                                                                    in process will further protect
                                                                                                                    our unique technology:
     -------------------------------------------------------------------------------------------

     Method and Arrangement for Determining Current Projection Data for a Projection of a
     Spatially Variable Area

     Abstract

     In a method and the arrangement for determining projection data for a projection of a
                                                                                                                    Patent 1: Distribution of Scene
     spatially variable area, change data are determined in a first computing unit, where the
     change data describe a change in the spatially variable area from a starting state to an                       Graph Among Multiple Rendering
     end state. The change data are transmitted to a second computing unit and to a third
     computing unit, which are each connected to the first computing unit. First current
     projection data for a first projection of the spatially variable area are determined in the
                                                                                                                    Processors
     second computing unit using the change data and first previously stored projection data.
     Second current projection data for a second projection of the spatially variable area are
     determined in the third computing unit using the change data and second previously
     stored projection data.
     ------------------------------------------------------------------------------------------------------------
                                                                                                                    Patent 2: Dynamic Load
     Inventors: Kecik , Yalin Ahmet; ( Muenchen, DE) ; Ruge , Thomas; ( Muenchen,
     DE) ; Wiedemann , Claus Peter; ( Ottobrunn, DE)                                                                Balancing Among Multiple
     Correspondence Name and Address:
        Schiff Hardin & Waite
                                                                                                                    Rendering Processors
        Mark Bergner
        6600 Sears Tower

                                                                                                                    Patent 3: Dynamic Reallocation
        Chicago
        Illinois
        60606
        US
        mbergner@schiffhardin.com
                                                                                                                    of Multiple Processors for
        (312)258-5779
        (312)258-5700                                                                                               Rendering
     Assignee Name and Address: Siemens Aktiengesellschaft
     Wittelsbacherplatz 2
     Muenchen
     80333                                                                                                          Patent 4: Weighted Allocation of
     Serial No.:  652671
     Series Code: 09
     Filed: August 31, 2000
                                                                                                                    Computational Tasks Among
                                                                                                                    Multiple Processors
                                                                                                                                                       10
Our Technology
Synchronization of 3D data across a cluster in real-time
Proprietary network protocol (patent pending in Europe, America and
Asia)

Seamless migration of existing applications
Integration of existing 3D-API's (OpenGL Performer, Open Inventor) and
support of OpenGL

Support of high-performance display systems
Support of high-resolution single-screens, curved screens, CAVE's, and
displays with edge-blending systems. Display configuration
independent of application by ASCII file

Unlimited Linear Scalability
Image compositor enables huge datasets (>2 GB)

                                                                         11
ModViz-Managed
Visualization Cluster
              Master PC
             User interacts
         with application here.
                                  Desktop/Team Room




                          …
    1   2     3          N
    Nodes in Viz Cluster
   (w/ or w/o Image Compositor)
Our Product: Renderizer™
Software, Version 3.0
• Turns common PCs into powerful visualization
  clusters, harnessing the power of multiple PCs
  and graphics processors
• Generates real-time graphics that equal or
  exceed anything available today -- at a fraction
  of the cost
• Synchronizes and optimizes multiple PCs’
  rendering processes, in real-time, for an
  exceptional visual experience
• Is highly scalable and enables fail-safe operation
• Can transition to a grid-computing environment
                                                       13
We Make It Easy for Industrial
Applications to Run on Viz Clusters




                                      14
Our Product Roadmap
                                                    Utility and grid
  Ubiquity                                           visualization

                        Combined computation
                        and visualization cluster

          Universal product
          for use with any
            visualization
             application

   Scalable PC-based
     visualization
   For single-screen
        displays

 Scalable PC-based
   visualization
 for multi-channel
      displays



 2003                2004            2005                2006          2007   15
Competitive Matrix

                        Industrial               Open    Low
       Product                       Scalable                   Mobile
                        Strength                System   Cost

       MODVIZ
     RENDERIZER™
                                                               
         Graphics
    Supercomputers
   (SGI, E&S, Custom)       
     Visualization
       Systems
     (ORAD, CAE,                                                 
     Quantum3D)
     Open-Source
        Projects
      (Chromium,                                                 
     OpenGS, etc.)
      Embedded
     Applications
     (Landmark,             
    Dassault, A/W)

                                                                         16
Channel Sales Strategy
                                 Product Flow
                                 Revenue Stream
      Sequence


         1            PC
                   Hardware
                 Manufacturers




  M                                Value-
         3
  O                                Added
  D                               Resellers        End
  V                                               Users
  I
  Z

         2       Independent
                   Software
                   Vendors



         4                         Grid
                                 Computing
                                   Utility
                                                          17
Partners and Customers
               Partners
            Hewlett-Packard
          MechDyne/Fakespace
                 TGS

            Pilot Customers
            EADS (Eurocopter)
             Siemens Medical
         Siemens Transportation
                 3d Pixel

         Prospective Customers
              (Shing Pan)
                                  18
Current Pre-Sale Projects, 1

  Joint Proposals in       O&G ISVs Testing
  Process                  Renderizer

  •   Shell                • Shell (in-house
  •   Chevron/Texaco         application)
  •   BP                   • Schlumberger
  •   University of Utah   • Paradigm Geophysical
                           • Seismic Micro-Technology
                           • Staag Imaging




                                                        19
Current Pre-Sale Projects, 2

     Integrators            End-User Customers
     Evaluating             Evaluating
     Renderizer             Renderizer

     • Nissho Electronics   •   Petrobras
      (Japan)               •   TotalFinaElf
     • OFC plc (UK)         •   Lockheed Martin
     • IVSL Ltd.            •   Toyota
      (Singapore)           •   Brookhaven National
     • Holographic              Laboratory
      Imaging (Detroit)
     • VR Solutions Ltd
      (Australia)

                                                      20
Testimonials
 Leading ISV, Oil & Gas Industry: “ModViz’s Renderizer software
  offers a lower cost solution for intensive graphics applications.
  This technology is extremely important to our clients. It
  maximizes our applications’ potential in an industry where ROI
  is crucial.”
 Chief Engineer, Automotive Manufacturer: “We are
  encouraged with the potential of Renderizer to eliminate
  several steps in our current process that require multiple
  iteration of fiberglass and clay models. We have developed a
  request for a supplemental funding to acquire Renderizer.”
 Emerging Technology Director, Hewlett-Packard: “Renderizer
  is a cornerstone of our cluster management products.”
 Fakespace CEO: ”The partnership between ModViz and
  Fakespace takes immersive visualization one step further. It
  enables both companies to offer highest quality turn-key
  solutions."

                                                                      21
Go-to-Market Strategy

 1. Build Brand Recognition as…

   • The de facto software platform for low-cost,
     scalable, real-time, high-performance visualization.
   • The leader in distributed visualization software.

 2. Execute Push-Pull Strategy with channel and
    technology partners, and via programs and promotions
    directed at end-users.

 3. Create Market Awareness and Demand with our own
    and our partners’ coordinated marketing programs.
Sales Strategy
1. Partner with software and hardware vendors (ISVs
   and IHVs), integrators, and value-added resellers
   (VARs) to quickly penetrate key markets.

2. Integrate our products with our channel partners’
   software and hardware products and system
   solutions, to sell into the verticals they command.

3. Our partners are our customers. Their customers
   are our end-users.

4. Evangelize among end-users and with application
   developers.

5. Become a resource for end-users seeking advice.
Revenue Model
                  Service
                    1%

                                       1
            Support
            & Main
              15%
                                           SW Apps
         HW                   SW           HW Sepia
       Partners             Partners       Support/Main

         25%                  59%          Services




                Margins
           Software 86-89%
           Support     50%
                                                          24
Pricing

                                                  Starting 2003   Starting 2003     Starting 2004  Starting 2005 Starting 2006
                                                 Manufacturing      Oil&Gas       Medical&Science Entertainment Construction
Vertical Application Market Size                  $1.75 Billion    $1.6 Billion       $1 Billion     $3 Billion  $500 Million
ASP of Applications                                 $12,500         $40,000           $35,000         $4,500       $10,000
Total Addressable # of Seats                        140,000          40,000            28,571        666,667        50,000
ModViz % of Install Seats                        5% in 5 years    5% in 5 years    5% in 5 years  5% in 5 years 5% in 5 years
Average ModViz Royalty per Application Seat          $4,500          $9,000            $4,500          $900         $1,800
ASP of ModViz SDK                                   $25,000         $50,000           $35,000        $15,000       $10,000
Support & Maintenance                                 15%             15%               15%            15%           15%

Royalty = 15-25% of Application Offering Price
18-Month Sales Projection
     Bottom Up Sales Projection for 18 months                      2003          2004
     Manufacturing
                                              SDK @$25K                0            4
                       Parallelation Service @$120K/Unit               1            2
                                          # of Install Seats           0           96
                                  ModViz Royalty Per Seat        $4,500       $4,500
                           Support & Maintenance @15%                $0      $64,969
                                                Sub-Total      $120,000     $838,094
     Oil & Gas
                                              SDK @$50K                0             4
                       Parallelation Service @ $120K/Unit              1             2
                                          # of Install Seats          10           150
                                  ModViz Royalty Per Seat        $9,000        $9,000
                           Support & Maintenance @15%           $13,500     $202,500
                                                Sub-Total      $223,500    $1,992,500
     Hardware
                                                 # of nodes           24           928
                                            Price Per Node       $3,000        $3,000
               Equivalent # of customers @ 8 node cluster              3           116
                           Support & Maintenance @15%           $10,800     $417,600
                                                Sub-Total       $82,800    $3,201,600
                                                       Total   $426,300    $6,032,194
Revenue Expectations
            by Product Line
            120



            100



             80
$Millions




                         Support and Maintenance
             60
                         OEM (with Hardware Partners)
                         Application Per-Seat Royalties

             40



             20



            -
                  2003               2004                 2005   2006   2007
                                                          Year




                                                                               27
Revenue and Income Statement,
2003-2007
                                     2003E          2004E           2005E             2006E              2007E
 Revenues
     Hardware Partners                   82,800     3,201,600      14,262,300        24,950,400         31,160,400
     Software Partners                  343,500     3,163,004      17,298,313        43,651,045         75,960,089
      Total Revenue                     426,300     6,364,604      31,560,613        68,601,445        107,120,489

 Cost of Revs                            48,030        748,269      3,969,886          9,018,634        14,532,228

     Gross Margin                       378,270     5,616,335      27,590,726        59,582,811         92,588,262
           % of revenue                      89%            88%             87%               87%                86%


 Operating Expenses

     G&A                                610,731        945,403      1,835,445          2,509,094         3,256,593
           % of revenue                      143%           15%                 6%                4%                 3%

     S&M                                815,183     3,241,021       5,984,792        10,758,880         15,922,267
           % of revenue                      191%           51%             19%               16%                15%

     R&D                             1,314,454      3,076,689       5,068,330          7,240,609        11,018,463
           % of revenue                      308%           48%             16%               11%                10%


       Total Op Exp                  2,740,369      7,263,113      12,888,567        20,508,582         30,197,324

 Operating Income                    (2,362,099)    (1,646,777)    14,702,160        39,074,229         62,390,938

     Interest                                 -              -              -                 -                  -

     Net income before taxes         (2,362,099)    (1,646,777)    14,702,160        39,074,229         62,390,938

     Taxes                     40%            -              -     (5,880,864)       (15,629,691)      (24,956,375)

 Net income                          (2,362,099)    (1,646,777)     8,821,296        23,444,537         37,434,563
           % of revenue                    -554%            -26%            28%               34%                35%




                                                                                                                          28
Projected Revenues and Net Income
                                       Annual Projections

               120.00


               100.00


                80.00


                60.00
   $Millions




                                                                          Revenues
                                                                          Net Income
                40.00


                20.00


                  -
                         2003   2004        2005            2006   2007
               (20.00)
                                            Year
Wildcard Revenue Accelerators
  • Popularity of high-end
    holography

  • Pace of utility and grid
    computing environments

  • Improvements in displays
  • Greater visual literacy
    among industrial
    computer users across
    the board
ModViz’s First Year

    Company                Product & Market                        Product & Market
    Formation            Development, Phase 1                    Development, Phase 2

                                                          Fundraising               Company
                                                                                    Building
                            Houston Oil                                  Seismic
                            Industry     Houston Oil          HP Tests   Micro-Tech   Other ISV
                            Demos I & II Industry Demo III    HP Sales   Channel Deal Deals
Legacy Siemens’                         Renderizer for       Renderizer for      Begin OpenGl
Customers                               Open Inventor        Performer-Plus      Universal Product

                           HP Sepia             Renderizer IA-64 File New O&G Application
                           Prototype            for Windows Ports IP Apps Integrations
                                                             Hire Developer,
Co-founders/      Hire Senior          Hire VP                                     Recruit & Hire
                                                             Systems Engineer,
Executives        Developer            Engineering                                 First-Year Staff
                                                             Biz Dev Director
Funding/IP Transfer                                      Seed Round              Institutional
from Siemens                                             Investment              Funding


Oct Nov        Dec     Jan Feb          Mar     Apr       May      Jun    Jul       Aug      Sep
                                                                                                      31
2002                   2003
ModViz: A Short History of
Remarkable Accomplishment
 1.   ModViz incorporated in October     7.   New products ready for release
      2002                                    in April and May 2003 including
                                              Windows version of Renderizer
 2.   Headquarters located in San
      Mateo, CA                          8.   IP formally transferred from
                                              Siemens to ModViz, received
 3.   Currently, a team of nine               investment from Siemens

 4.   Several existing customers, with   9.   New IP (four provisional patents)
      more pending                            in process

 5.   Patent-protected product,          10. Projects in the pipeline with
      Renderizer, is in Version 3.0         prospective customers

 6.   Renderizer demonstrated at         11. Key partnerships with IT industry
      Daratech CAD Summit, SIGGRAPH,         leaders (including HP)
      SEG, Supercomputing, I/ITSEC,
      and Digital Energy conferences;    12. Receiving revenues from HP and
      more events scheduled for 2003         customers

                                                                                  32
Hiring Projections
            100
                90
                                                                    12
                80                                           12
                     General & Administrative

                70   Research & Development
                     Sales and Marketing
                                                      11
                60                                                  40
$Millions




                50                                           37
                                                8
                                                      30
                40
                30                              23
                       6
                20                                           34     39
                      17                              29
                10                              21
                       7
            -
                     2003                  2004      2005   2006   2007
                                                     Year




                                                                          33
VC Interest is High

               Azure Capital
             Battery Ventures
             Ignition (Seattle)
              Kleiner Perkins
              Mobius Venture
                 Sofinnova
              HP Investments
        Shell Technology Ventures
            Siemens Ventures
Our Funding Requirements
and Exit Strategy

  • Angel Forum capital takes us through
    institutional financing in Q3-4 2003
  • $2-3M in institutional financing powers
    company to profitability in Q4 2004
  • M&A in three to five years with one of
    our channel partners
  • Consistent value gains for our company
    generate wealth for our shareholders

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Mod Viz Angels Forum 050103

  • 1. ModViz, Inc. The new leader in industrial visualization. Dr. Robert Jacobson, CEO Mr. Thomas Ruge, CTO Ms. Shing Pan, VP Marketing And Business Development +1-650-670-9082 bjacobson@modviz.com
  • 2. What ModViz Does • We serve industry’s need for affordable visualization of complex computer data used for critical business processes. • Our software products turn simple PCs into powerhouse visualization systems. • Visualization systems built with our software products are robust, portable, highly scalable, and inexpensive. • With our business partner HP, we’re going to market now. 2
  • 3. Our Mission To become the leading vendor of software for affordable high-performance, real-time, industrial visualization. 3
  • 4. Who We Are: Core Management Dr. Robert • Entrepreneur, Researcher, Virtual Reality Pioneer Jacobson • Worldesign Inc., HIT Lab, SRI Consulting Co-Founder • Ph.D., Urban Design UCLA; MA, Comm Industry Mgmt. USC CEO • 25 years experience, online communications and virtual reality Thomas • Inventor of Renderizer software, patent co-author Ruge • Co-founder, Siemens Visualization Software Division Co-Founder • Siemens Virtual Reality Competence Center CTO • MS, BS, Physics, Technical University in Munich •20 years of technology, product development experience Yixin (Shing) • Senior Marketing Manager, SGI: “Intrapreneur” responsible Pan for PC-cluster business; strategist responsible for corporate Co-Founder manufacturing market strategy VP, Marketing & • MBA, Cornell ; MS, Mech.Eng., Northern Illinois BusinessDev. •14 years product marketing, business development experience Brian Blau • Software Development Manager, Discreet/AutoDesk VP Engineering • Co-Founder, VP Platform Technology, Intervista/Platinum • Founder of VRML Society, SIGGRAPH Events Organizer • MS, BS, Computer Science, Central Florida • 17 years software development and virtual reality experience 4
  • 5. Converging Trends Create an Historic Business Opportunity Open systems’ maturity Visualization’s PC technology widespread use improvements within industry The ModViz Opportunity IT users Display increasingly technology are direct buyers improvements Utility and grid computing developments 5
  • 6. Visualization is Enterprise-wide Product Manufacturing Marketing Sales Distribution Development & Support Conceptual Modeling, Digital Training Assembly Review Digital Sales & Simulation Styling, Industry Design & Marketing Functional Design Review, Ergonomics Factory Planning, After-Sales Service Simulation, & Maintainability Performance Robotics, AEC, QA Studies Evaluation CAE Motion Simulation, 6 Visualization Kinematics
  • 7. The Problem We Solve: We Make Industrial Visualization Affordable The conventional solution: The Viz Cluster $500,000-$2,500,000+. Proprietary. Hard-wired. Centralized. Alternative: Tough to upgrade. $30,000-$100,000+. For most would-be users: Open. Scalable. Portable. Unaffordable and inaccessible. Easy to upgrade. Better performance. High-end visualization everywhere it’s needed. 7
  • 8. The Addressable Market For Cluster-Based Visualization Military & Government R&D HIGH-END Fortune 500 Companies Target Industrial 10% 10%  $500K-$50M+ Markets ed $2.2B per system derserv (in order of priority*) Un  Mid-Range Companies 1.Oil & Gas MID-RANGE Educational Institutions ModViz’s Local Public Agencies 2.Manufacturing 44% 44% $9.8B $5B+ $50K-$500K per system 3.Life Sciences Market rved 4.Entertainment Unse Opportunity 5.AEC (Architecture/ Small Businesses Professional Offices Engineering/ CONSUMER Individual Users Construction) 46%  $2K-$50K $10.3B rved • Based on Unse importance of Total Visualization Market: visualization to $22B+*  Replacement industry and  Expansion industry’s current  Universal ability to buy. * Sources: Peddie & Associates 2001 Frost & Sullivan, 2001,IDC 2001, Giga 2002 (includes hardware, software, and displays) 8
  • 9. Immediate Target Markets: Oil & Gas, Manufacturing = $2.7B Geo-Analysis, Interpretation, Concept Design And Well Location CAD/CAE Reservoir Management Virtual Prototyping Facilities Planning Sharing Information and Management With Suppliers
  • 10. Our Technology and IP Strategy Our technology, the result of three years of labor and $3M investment, is protected… ------------------------------------------------------------------------------------------- …And four provisional patents United States Patent Application 20020002587 Kind Code A1 Kecik , Yalin Ahmet ; Ruge, Thomas; et al. January 3, 2002 in process will further protect our unique technology: ------------------------------------------------------------------------------------------- Method and Arrangement for Determining Current Projection Data for a Projection of a Spatially Variable Area Abstract In a method and the arrangement for determining projection data for a projection of a Patent 1: Distribution of Scene spatially variable area, change data are determined in a first computing unit, where the change data describe a change in the spatially variable area from a starting state to an Graph Among Multiple Rendering end state. The change data are transmitted to a second computing unit and to a third computing unit, which are each connected to the first computing unit. First current projection data for a first projection of the spatially variable area are determined in the Processors second computing unit using the change data and first previously stored projection data. Second current projection data for a second projection of the spatially variable area are determined in the third computing unit using the change data and second previously stored projection data. ------------------------------------------------------------------------------------------------------------ Patent 2: Dynamic Load Inventors: Kecik , Yalin Ahmet; ( Muenchen, DE) ; Ruge , Thomas; ( Muenchen, DE) ; Wiedemann , Claus Peter; ( Ottobrunn, DE) Balancing Among Multiple Correspondence Name and Address: Schiff Hardin & Waite Rendering Processors Mark Bergner 6600 Sears Tower Patent 3: Dynamic Reallocation Chicago Illinois 60606 US mbergner@schiffhardin.com of Multiple Processors for (312)258-5779 (312)258-5700 Rendering Assignee Name and Address: Siemens Aktiengesellschaft Wittelsbacherplatz 2 Muenchen 80333 Patent 4: Weighted Allocation of Serial No.: 652671 Series Code: 09 Filed: August 31, 2000 Computational Tasks Among Multiple Processors 10
  • 11. Our Technology Synchronization of 3D data across a cluster in real-time Proprietary network protocol (patent pending in Europe, America and Asia) Seamless migration of existing applications Integration of existing 3D-API's (OpenGL Performer, Open Inventor) and support of OpenGL Support of high-performance display systems Support of high-resolution single-screens, curved screens, CAVE's, and displays with edge-blending systems. Display configuration independent of application by ASCII file Unlimited Linear Scalability Image compositor enables huge datasets (>2 GB) 11
  • 12. ModViz-Managed Visualization Cluster Master PC User interacts with application here. Desktop/Team Room … 1 2 3 N Nodes in Viz Cluster (w/ or w/o Image Compositor)
  • 13. Our Product: Renderizer™ Software, Version 3.0 • Turns common PCs into powerful visualization clusters, harnessing the power of multiple PCs and graphics processors • Generates real-time graphics that equal or exceed anything available today -- at a fraction of the cost • Synchronizes and optimizes multiple PCs’ rendering processes, in real-time, for an exceptional visual experience • Is highly scalable and enables fail-safe operation • Can transition to a grid-computing environment 13
  • 14. We Make It Easy for Industrial Applications to Run on Viz Clusters 14
  • 15. Our Product Roadmap Utility and grid Ubiquity visualization Combined computation and visualization cluster Universal product for use with any visualization application Scalable PC-based visualization For single-screen displays Scalable PC-based visualization for multi-channel displays 2003 2004 2005 2006 2007 15
  • 16. Competitive Matrix Industrial Open Low Product Scalable Mobile Strength System Cost MODVIZ RENDERIZER™      Graphics Supercomputers (SGI, E&S, Custom)  Visualization Systems (ORAD, CAE,    Quantum3D) Open-Source Projects (Chromium,    OpenGS, etc.) Embedded Applications (Landmark,  Dassault, A/W) 16
  • 17. Channel Sales Strategy Product Flow Revenue Stream Sequence 1 PC Hardware Manufacturers M Value- 3 O Added D Resellers End V Users I Z 2 Independent Software Vendors 4 Grid Computing Utility 17
  • 18. Partners and Customers Partners Hewlett-Packard MechDyne/Fakespace TGS Pilot Customers EADS (Eurocopter) Siemens Medical Siemens Transportation 3d Pixel Prospective Customers (Shing Pan) 18
  • 19. Current Pre-Sale Projects, 1 Joint Proposals in O&G ISVs Testing Process Renderizer • Shell • Shell (in-house • Chevron/Texaco application) • BP • Schlumberger • University of Utah • Paradigm Geophysical • Seismic Micro-Technology • Staag Imaging 19
  • 20. Current Pre-Sale Projects, 2 Integrators End-User Customers Evaluating Evaluating Renderizer Renderizer • Nissho Electronics • Petrobras (Japan) • TotalFinaElf • OFC plc (UK) • Lockheed Martin • IVSL Ltd. • Toyota (Singapore) • Brookhaven National • Holographic Laboratory Imaging (Detroit) • VR Solutions Ltd (Australia) 20
  • 21. Testimonials  Leading ISV, Oil & Gas Industry: “ModViz’s Renderizer software offers a lower cost solution for intensive graphics applications. This technology is extremely important to our clients. It maximizes our applications’ potential in an industry where ROI is crucial.”  Chief Engineer, Automotive Manufacturer: “We are encouraged with the potential of Renderizer to eliminate several steps in our current process that require multiple iteration of fiberglass and clay models. We have developed a request for a supplemental funding to acquire Renderizer.”  Emerging Technology Director, Hewlett-Packard: “Renderizer is a cornerstone of our cluster management products.”  Fakespace CEO: ”The partnership between ModViz and Fakespace takes immersive visualization one step further. It enables both companies to offer highest quality turn-key solutions." 21
  • 22. Go-to-Market Strategy 1. Build Brand Recognition as… • The de facto software platform for low-cost, scalable, real-time, high-performance visualization. • The leader in distributed visualization software. 2. Execute Push-Pull Strategy with channel and technology partners, and via programs and promotions directed at end-users. 3. Create Market Awareness and Demand with our own and our partners’ coordinated marketing programs.
  • 23. Sales Strategy 1. Partner with software and hardware vendors (ISVs and IHVs), integrators, and value-added resellers (VARs) to quickly penetrate key markets. 2. Integrate our products with our channel partners’ software and hardware products and system solutions, to sell into the verticals they command. 3. Our partners are our customers. Their customers are our end-users. 4. Evangelize among end-users and with application developers. 5. Become a resource for end-users seeking advice.
  • 24. Revenue Model Service 1% 1 Support & Main 15% SW Apps HW SW HW Sepia Partners Partners Support/Main 25% 59% Services Margins Software 86-89% Support 50% 24
  • 25. Pricing Starting 2003 Starting 2003 Starting 2004 Starting 2005 Starting 2006 Manufacturing Oil&Gas Medical&Science Entertainment Construction Vertical Application Market Size $1.75 Billion $1.6 Billion $1 Billion $3 Billion $500 Million ASP of Applications $12,500 $40,000 $35,000 $4,500 $10,000 Total Addressable # of Seats 140,000 40,000 28,571 666,667 50,000 ModViz % of Install Seats 5% in 5 years 5% in 5 years 5% in 5 years 5% in 5 years 5% in 5 years Average ModViz Royalty per Application Seat $4,500 $9,000 $4,500 $900 $1,800 ASP of ModViz SDK $25,000 $50,000 $35,000 $15,000 $10,000 Support & Maintenance 15% 15% 15% 15% 15% Royalty = 15-25% of Application Offering Price
  • 26. 18-Month Sales Projection Bottom Up Sales Projection for 18 months 2003 2004 Manufacturing SDK @$25K 0 4 Parallelation Service @$120K/Unit 1 2 # of Install Seats 0 96 ModViz Royalty Per Seat $4,500 $4,500 Support & Maintenance @15% $0 $64,969 Sub-Total $120,000 $838,094 Oil & Gas SDK @$50K 0 4 Parallelation Service @ $120K/Unit 1 2 # of Install Seats 10 150 ModViz Royalty Per Seat $9,000 $9,000 Support & Maintenance @15% $13,500 $202,500 Sub-Total $223,500 $1,992,500 Hardware # of nodes 24 928 Price Per Node $3,000 $3,000 Equivalent # of customers @ 8 node cluster 3 116 Support & Maintenance @15% $10,800 $417,600 Sub-Total $82,800 $3,201,600 Total $426,300 $6,032,194
  • 27. Revenue Expectations by Product Line 120 100 80 $Millions Support and Maintenance 60 OEM (with Hardware Partners) Application Per-Seat Royalties 40 20 - 2003 2004 2005 2006 2007 Year 27
  • 28. Revenue and Income Statement, 2003-2007 2003E 2004E 2005E 2006E 2007E Revenues Hardware Partners 82,800 3,201,600 14,262,300 24,950,400 31,160,400 Software Partners 343,500 3,163,004 17,298,313 43,651,045 75,960,089 Total Revenue 426,300 6,364,604 31,560,613 68,601,445 107,120,489 Cost of Revs 48,030 748,269 3,969,886 9,018,634 14,532,228 Gross Margin 378,270 5,616,335 27,590,726 59,582,811 92,588,262 % of revenue 89% 88% 87% 87% 86% Operating Expenses G&A 610,731 945,403 1,835,445 2,509,094 3,256,593 % of revenue 143% 15% 6% 4% 3% S&M 815,183 3,241,021 5,984,792 10,758,880 15,922,267 % of revenue 191% 51% 19% 16% 15% R&D 1,314,454 3,076,689 5,068,330 7,240,609 11,018,463 % of revenue 308% 48% 16% 11% 10% Total Op Exp 2,740,369 7,263,113 12,888,567 20,508,582 30,197,324 Operating Income (2,362,099) (1,646,777) 14,702,160 39,074,229 62,390,938 Interest - - - - - Net income before taxes (2,362,099) (1,646,777) 14,702,160 39,074,229 62,390,938 Taxes 40% - - (5,880,864) (15,629,691) (24,956,375) Net income (2,362,099) (1,646,777) 8,821,296 23,444,537 37,434,563 % of revenue -554% -26% 28% 34% 35% 28
  • 29. Projected Revenues and Net Income Annual Projections 120.00 100.00 80.00 60.00 $Millions Revenues Net Income 40.00 20.00 - 2003 2004 2005 2006 2007 (20.00) Year
  • 30. Wildcard Revenue Accelerators • Popularity of high-end holography • Pace of utility and grid computing environments • Improvements in displays • Greater visual literacy among industrial computer users across the board
  • 31. ModViz’s First Year Company Product & Market Product & Market Formation Development, Phase 1 Development, Phase 2 Fundraising Company Building Houston Oil Seismic Industry Houston Oil HP Tests Micro-Tech Other ISV Demos I & II Industry Demo III HP Sales Channel Deal Deals Legacy Siemens’ Renderizer for Renderizer for Begin OpenGl Customers Open Inventor Performer-Plus Universal Product HP Sepia Renderizer IA-64 File New O&G Application Prototype for Windows Ports IP Apps Integrations Hire Developer, Co-founders/ Hire Senior Hire VP Recruit & Hire Systems Engineer, Executives Developer Engineering First-Year Staff Biz Dev Director Funding/IP Transfer Seed Round Institutional from Siemens Investment Funding Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 31 2002 2003
  • 32. ModViz: A Short History of Remarkable Accomplishment 1. ModViz incorporated in October 7. New products ready for release 2002 in April and May 2003 including Windows version of Renderizer 2. Headquarters located in San Mateo, CA 8. IP formally transferred from Siemens to ModViz, received 3. Currently, a team of nine investment from Siemens 4. Several existing customers, with 9. New IP (four provisional patents) more pending in process 5. Patent-protected product, 10. Projects in the pipeline with Renderizer, is in Version 3.0 prospective customers 6. Renderizer demonstrated at 11. Key partnerships with IT industry Daratech CAD Summit, SIGGRAPH, leaders (including HP) SEG, Supercomputing, I/ITSEC, and Digital Energy conferences; 12. Receiving revenues from HP and more events scheduled for 2003 customers 32
  • 33. Hiring Projections 100 90 12 80 12 General & Administrative 70 Research & Development Sales and Marketing 11 60 40 $Millions 50 37 8 30 40 30 23 6 20 34 39 17 29 10 21 7 - 2003 2004 2005 2006 2007 Year 33
  • 34. VC Interest is High Azure Capital Battery Ventures Ignition (Seattle) Kleiner Perkins Mobius Venture Sofinnova HP Investments Shell Technology Ventures Siemens Ventures
  • 35. Our Funding Requirements and Exit Strategy • Angel Forum capital takes us through institutional financing in Q3-4 2003 • $2-3M in institutional financing powers company to profitability in Q4 2004 • M&A in three to five years with one of our channel partners • Consistent value gains for our company generate wealth for our shareholders