ION VIDEO LTD — AGM Information 2017

Nov 27, 2017

The Future of TV is Personal

Linius’ patented Video Virtualization Engine™ is designed to convert cumbersome, legacy video into interactive, virtual video, enabling Artificial Intelligence, personalization and the opportunity transformation of the entire Internet video market.

Annual General Meeting 28 November 2017

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Disclaimer

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This presentation has been prepared by Linius Technologies Ltd (“LNU”). The information contained in this presentation is for information purposes only and has been prepared for use in conjunction with a verbal presentation and should be read in that context.

The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. Please note that, in providing this presentation, LNU has not considered the objectives, financial position or needs of any particular recipient. LNU strongly suggests that investors consult a financial advisor prior to making an investment decision.

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of LNU, its related bodies corporate, shareholders or respective directors, officers, employees, agents or advisors, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence for any loss arising from the use of information contained in this presentation.

This presentation includes “forward looking statements” within the meaning of securities laws of applicable jurisdictions. Forward looking statements can generally be identified by the use of the words “anticipate”, “believe”, “expect”, “project”, “forecast”, “estimate”, “likely”, “intend”, “should”, “could”, “may”, “target”, “plan” “guidance” and other similar expressions. Indications of, and guidance on, future earning or dividends and financial position and performance are also forward-looking statements.

Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of LNU and its officers, employees, agents or associates, that may cause actual results to differ materially from those expressed or implied in such statement. Actual results, performance or achievements may vary materially from any projections and forward looking statements and the assumptions on which those statements are based. Readers are cautioned not to place undue reliance on forward looking statements and LNU assumes no obligation to update such information.

This presentation is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities and neither this presentation nor anything contained in it forms the basis of any contract or commitment. Any offer or sale of securities will be made pursuant to definitive documentation, which describes the terms of the offer (Offer Document). An Offer Document for any offer of securities in LNU will be made available when the securities are offered. Prospective investors should consider the Offer Document in deciding whether to acquire securities under the offer. Prospective investors who want to acquire securities under the offer will need to complete an application form that is in or accompanies the Offer Document.

This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. The securities of LNU have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (Securities Act) or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States except in compliance with the registration requirements of the Securities Act and any other applicable securities laws or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws.

THE JOURNEY SO FAR

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Completed Virtualized Commercial Channels Commercial
Showcases Instagram Team 2 SI’s signed Raise $6m
Village validated Internet Scale Global execs Led by Village
Personal Ads Extended Global Integration 1 [st] Sale!
Live Demo Patents Partner Comcast Tech Roadshow
2 US patents Signed IBM
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Where to From Here?

Strategy

• Vision:

• Mission:

Make the worlds video accessible as data Scale quickly

• Key Metric:

The number of virtual videos created

• Commercialization Strategy:

Growth into attractive global markets

Our commercial activity is focused on two things:

1. Growth in key metric

leading to growth in revenue in clearly defined, attractive markets which means client wins and utilization of VVE

1. Building our organizational and technology infrastructure to scale quickly, for example:

leveraging IBM, Microsoft, Amazon — technology capabilities and relationships

launching SaaS product to developers.

Near-Term Goals -> Revenue

Linius short-term goals for commercialization drive revenue in the anti-piracy division, secure the first commercial wins in search and personalized advertising and lay the strategic foundation for future business growth:

• ü Deliver the integration of VVE with at least one world leading Over The Top (OTT*) platform

• ü Deliver the integration of VVE into IBM’s BlueMix Cloud

• ü Engage with a global movie studio to develop Proof of Value (POV) in anti-piracy q Deliver the integration of VVE into Microsoft Azure

• q Deliver the integration of VVE with Major OTT ad servers

• q Engage with a global movie studio to develop a mass content distribution POV

• q Deliver an end to end piracy solution with a movie studio q Deliver the integration of VVE with at least one cognitive AI provider

• q Deliver blockchain strategy and solution design

• q Deliver POC of Search in a global cloud environment q Convert initial deal flow with IBM

• • OTT – a broadcaster that broadcasts over the public internet

SEARCH

PRODUCT	Linius VVE, Linius Player and Linius AI Intelligence system supplied to online clients with little to no integration. This is the first commercially available monetization method for video artificial intelligence
Proposition:	Worlds first personalized video search results
Market:	Applicable to Media & Entertainment, Higher Education, Corporate, Sports
Delivery:	Delivered with Microsoft, with open API to any AI system

RELEVANT STATISTICS

Paid per search result

• 55% of people watch video online each day

• Market is growing at 20-40% per annum

• Snapchatters watch 10B videos a day

• 500 million people watch video on Facebook everyday

• You tube has 5B video views per day

• You tube as 18% market share of video on the internet

• Conservatively estimate 2B video searches per day

SECURITY & DEFENSE

PRODUCT	Linius VVE, Linius Player and Linius AI Intelligence system supplied to online (OTT) clients with little to no integration. This is the first commercially available monetization method for video artificial intelligence
Proposition:	Video to be analyzed at scale, instantly compiled based on intelligence and injected into workflow.
Market:	Applicable to government agencies and video security firms
Delivery:	Delivered with Microsoft, with open API to any AI system and onsite deliver

MARKET STATISTICS:

Paid per search result, plus per-seat license

• Video surveillance is a $40billion market

• 72M hours (822 years) of video acquired per day

• Video surveillance is 20% of UK’s criminal justice budget

• 0.2% of all US federal video footage is ever viewed. It would take 7 million analysts to accomplish.

ANTI PIRACY

PRODUCT	Linius VVE, Linius Player and Linius Content Protection system supplied to Movie Studios.
Proposition:	Content protection
Market:	Applicable to content producers and owners
Delivery:	Delivered with IBM

MARKET STATISTICS:

Paid per streamed video

• Film piracy costs the US economy $20.5 billion per year

• 100 billion visits to pirate sites per year

• 432 million internet users regularly pirate content

• In 2016, peer-to-peer distributors were responsible for 5.4 billion downloads of pirated wide-release films

• A stolen movie that appears online before appearing in theaters loses 19 percent of its box-office revenue on average compared with films that are pirated after they're released,

PERSONALIZED ADS

PRODUCT	Linius VVE, Linius Player, API to ad servers, supplied to online (OTT) clients with integration into workflows
Proposition:	High value, hyper-personalized advertising Makes Ad blockers redundant
Market:	Applicable to Media & Entertainment
Delivery:	Delivered with Microsoft, with open API to any AI system

MARKET STATISTICS: The US TV advertising market revenues of $90B per annum. Cable $75.3B, IP $15B Total # of ads viewed estimated at 9 - 12 trillion p.a., in the US With Linius personalized ads, Ad blockers do not work, saving this revenue for the industry.

Paid for 1,000s of ads served

• Ad blocking forecast to cost $35B by 2020

• 225M consumers who are active users of ad blockers

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Engineering Intelligent Content