Brilliant Points, Inc. (Brilliant Points, the Company) are a software and service company that uses unique software configurations and designs to transfer data from users to computers. They use innovative applications of optical, laser, and video technology. One U.S. patent has been granted to the Company in the area of optical control of computers (e.g. computer-based presentations) and has applied to for other promising patents. Foreign patents have also been applied for and are pending.

The Company’s mission includes the creation and protection of intellectual property through international patent application, aggressively protecting patents against infringement, and finally entering into licensing agreements with vendors and manufacturers of optical, laser, or video components. Multiple products have been developed by the Company that turn its intellectual property into revenues. These products have immediate applications in home, corporate, educational, gaming, and government environments.

Brilliant Points entered the computer presentation market with cutting-edge, real-world applications. They are also simple to use. The Company believes its technology is ready for prime time. The Company has the opportunity to secure marketable patentable technologies and then to achieve licensing agreements with current solution providers. This will allow it to expand its product line and offer solutions for common problems.

Brilliant Points created the first patentable technology in the United States, U.S. Pat. #6,275214 &#8211′ Computer Present System and Method With Optic Tracking of WirelessPointer. This software allows full control of computers via standard laser-pointing equipment and drivers, giving the high-end laser pointer device the functionality a keyboard or mouse. This makes presentations easier, opens up new opportunities for gamers and entertainment, and increases the potential for presenters. By combining the functionality of two necessary peripherals, the mouse and the keyboard, into the already useful laser pointer, Brilliant Points allows the presenter or user to focus more on the art of the presentation or application, rather than the technology enabling it. A three-minute demo video is available for download from http://kchansen.home.att.net/.

The computer presentation market is large, and is growing rapidly. Research firm Stanford Resources estimates that two years ago, worldwide shipments of business projectors (each of which represents a presentation system for a boardroom, conference room, etc.) They reached 1.4million units and generated $6 billion in revenue. This market is expected to grow to 4.5 million units and $10billion in revenue within four years. This market is also of interest to PC manufacturers, as evidenced by recent announcements from Hewlett-Packard (and Dell) that they plan to begin shipments business projector systems. InFocus (a large manufacturer and supplier of business projectors) has set a goal of reaching 4% attachment rates for laptop computers. This device is expected to be a huge hit in the home market. InFocus predicts that the company’s projector system shipments to home entertainment systems will exceed 2.5 million units next year. See:

http://news.com.com/2100-1040-878277.html

http://media.corporate-ir.net/media_files/NSD/infs/presentations/2002shareholdermeeting/sld032.htm

http://media.corporate-ir.net/media_files/NSD/infs/presentations/2002shareholdermeeting/sld041.htm

Brilliant Points intends to be a major player in the market for presentation system technology. It will do this by aggressively marketing and licensing the technology through the sales of « upgrade » kits (consisting a Webcam, pointer and Company Software) to existing projector owners and the sales/licensing Brilliant Points SDK tool tools that allow other companies to build applications and drivers based on Brilliant Points technology.

The Company intends to initially focus on retrofitting the current presentation hardware owners through “upgrade” kits.

Brilliant Points hopes that Brilliant Points will create the latent demand to get presentation hardware manufacturers to include Brilliant Points software, laser pointers and other hardware to replace the limited functionality of a remote control or other controlling device. Brilliant Points’ software solutions could be used in other industries as well, including home entertainment, gaming and webcams. These are all large, growing markets that could benefit from the focus on business presentation systems.

The Company’s projected proliferation of computer-based prediction systems combined with the anticipated demand to Brilliant Points technology makes it a strong investment case. However there are also other opportunities in development that may have more potential, but will take longer to develop.

Brilliant Points currently has patent-pending products. These products allow for secure data transmission through the laser pointer device (secure pointer tech), (2) the use of complex laser emitter heads capable of creating distinct colors or patterns (complex tiper technology) and/or (3) the use of stabilization mechanisms in pointer devices to reduce ‘pointerjitter’ during presentations (stable pointer tech). Secure pointer technology improves the performance and applicability of the hardware and software, giving users the ability to confidently use the technology developed by Brilliant Points in multiple devices and related applications without concern for audience interference, such as where hostile audience members attempt to scramble a presentation with their own pointers. Secure pointer technology also opens up opportunities within the military community, by enhancing laser target designator devices, for example, or creating undetectable secure optical communications links which can be sensed directly user-to-user or indirectly via reflections off of walls, clouds, or other obstacles. Complex pointer technology allows for multi-user interfaces, where each user has their own complex/secure pointing device. Complex/secure pointing technology makes it possible to present interactive presentations where audience members have unique secure/complex pointing devices. It is also useful in military circles. Stabilized pointers are easier for average users to use during presentations.

Each of these areas of development, (1) secure and (2) complex pointers and (3) stabilized pointsers, opens up new sales channels in the laser pointer market and generates additional revenue streams to Brilliant Points. Existing laser pointer manufacturers will be interested in these technologies. They will create a new paradigm in the market and shift it away from being commodity-based. Instead, the market will be based on customized products that are tailored for specific applications and will increase profits. While the market for laser pointers has been declining, it opens up future revenue opportunities to Brilliant Points. There are many companies that produce laser pointers. They have large product lines and some of them are very big. The Company might be able expand its licensing revenue by using the Brilliant Points presentation product. The Brilliant Points presentation system will enhance the functionality of laser pointers. Management believes this will have positive effects on the market. They will be able to offer better features and more competition, thereby moving away from a commodity market and increasing their sales.

Brilliant Points intends to aggressively pursue licensing agreements with large manufacturers who are already in this market, as well as defend its patents against infringement by competitors. The Company’s goal is to keep costs low and earn significant income while maintaining a high level of profitability.

Brilliant Points, a true start up, does not have historical financials. Furthermore, the company’s current course makes it difficult to predict revenue.

The Company made some assumptions to show that licensing revenues would be based on licensing only a small portion of the business presentation systems industry. The company is expecting to generate significant revenues in its first year of operations if it can license approximately one-half of the sales forecast for business projectors, and/or the sales of 60,000 « upgrade » kits for existing presentation installation on the market. The projections used in this analysis are only estimates. Blue-sky optimistic projections, which assume significant licensing penetration, higher per-unit nets and potential revenues for the Company, would be able to show revenue potential of hundreds of millions annually within five years. Even these optimistic estimates could prove to be wrong if penetration occurs in (1) home entertainment, (2) gaming and (3) military markets.

Brilliant Points is looking for major capital investment and a line to credit to recruit critical talent, launch aggressive marketing, license sales and licensing of Brilliant Points’ technology. Brilliant Points sees a liquidity event for investors in five years. This could be (1) IPO or (2) acquisition or (3) Full Intellectual Property Purchase by one of the larger companies operating in this space.

1.1 Objectives

The first three months

• Recruit sales, marketing, and operations directors.
• Recruitment of software and hardware developers
• Get office space
• Commence software/hardware design and development.
• Improve your website.
• Design marketing/sales campaigns.

First six months:

• For a simple pointer, release-candidate-1 hardware is available. (Multiple dots and/or colours.
• Driver software for Win platform(s).
• Beta-1 LaserBoard(tm) SDK.
• Preliminary licensing negotiations with manufacturers/resellers
• • Projectors
  • Webcams
  • Pointers
  • Manufacturers of PCs
  • OS
• Under the supervision of a marketing manager, begin advertising campaigns
• Increase website for downloading and placing direct orders
• Shipment of « Upgrade » kits to business projector owners in-place (e.g. boardrooms, conference rooms, lecture circuit)
• • Webcam
  • Simple pointer
  • Control application for simple operation

First year:

• Market and develop multi-button optopointers. Include options for external keypad, headset, secure pointer, etc.
• Alpha-1 software/hardware for enhanced pointer. (Display head using DLP, or other technology.
• Negotiating first licensing deals with pointer, projector, and Webcam manufacturers/resellers.
• Continue R&D investigations in related technology areas.
• Continue to pursue IP rights via trademarks, patents, and copyright.
• Shipping/Licensing simple, driver, enhanced driver
• 10,000 kits for ‘#8220’ upgrade were shipped.

Eighteen months:

• With options, develop and market a secure pointer.
• Develop a gaming interface SDK
• Close first licensing deals.
• Shipping of 50k #8220Upgrade#8221 kits.
• Cash flow positive

Second Year

• 1.5% market penetration for business projectors.
• 10% licensing penetration in the pointer markets
• 60,000 “Upgrade” kits shipped in year.
• Preliminary licensing negotiations have been initiated with gaming device manufacturers.
• Continue R&D investigation of related technology areas.
• Continue to pursue IP rights via trademarks, patents, and copyright.
• Profitable.

Third year:

• Achieve 2.5% licensing penetration of business projector market.
• Achieve 20% licensing penetration in pointer market
• 90,000 “Upgrade” kits shipped in year.
• Continue R&D investigations in related technology areas.
• Keep pursuing IP protection via patent, trademark, or copyright.

Fourth Year

• Attract 4% penetration of the business projector market licensing.
• At 40%, license penetration in pointer market.
• Gaming device manufacturers close first licensing agreements
• 150,000 “

In Year, Upgrade Kits were Shipped

Ongoing:

• Investigate and pursue additional licensing areas.
• For each market, aim to increase licensing penetration by 50% each year.
• Make software easy to use and safe.
• Brilliant Points is a household name that will ensure that, even when IP protection ceases to exist, people continue to look to Brilliant Points as their first choice for laser and imaging solutions.
• Continue R&D into related technology areas.
• Continue pursuit of IP protection via patent, trademark, and copyright.

Investor Exit Strategies:

• Publicize in 5th year.
• Acquired from another company
  • Input device manufacturer/reseller
  • Projector manufacturer/reseller
  • OS manufacturer/reseller
  • Manufacturer of computers
  • Laser pointer manufacturer/reseller
  • Webcam manufacturer/reseller
• Exclusive full-rights licenses to specific areas with guaranteed income stream for the entire term of the Patent

1.2 Mission

Brilliant Points uses innovative technologies of laser, optical,, and video technology to transfer information from users into computer systems.

Our mission is to define and create new applications, protect those applications so we may better ensure their quality, and bring them into all aspects of human/computer interaction from the corporate boardrooms, to the home user, to the gaming arena.

Our applications will give users access to #8220cool, yet cutting-edge technology that is simple to use and reliable in operation.

We will accomplish this while providing obvious superior quality to our customers, excellent customer service, and creating a mentally stimulating and enjoyable work environment for our employees.

1.3 Keys to Success

• Patented technology, involving substantial, useful enhancement to existing presentation methods, providing 15 to 17 years of monopoly-like development environment.
• Aggressive IP protection through copyright, patent, and legal enforcement
• To increase visibility among potential buyers and/or obtainrs, rapid development, marketing, as well as penetration of market.
• Instead of being the sole-source of hardware/software, licensing technology is better.