STEALTHPHONE INFORMATION SECURITY SYSTEM

ZURICH, 2015

WWW.MTTGROUP.CH

MTT / ANCORT

• PROJECT TEAM………….………………………………………………………………………………………..…………………..3• TECHNOLOGIES ………….………………………………………………………………………………………..…………………4• COMPANY DEVELOPMENT STRATEGY…………………………………………………………………..…………………5• UPCOMING PRODUCTS………………………………………………………………………………………………………….6 • ABOUT STEALTHPHONE PROJECT ……………………………………………………………………………………………7• COMPETITIVE STRENGTHS ……………………………………………………………………………………………………....8• CONFIDENTIALITY ……………………………………………………………………………………………………..……………..9• CUSTOMERS……………………………………………………………………………………………………..…………………….10• MARKET ANALYSIS……...…………………………………………………………………………………………………………11• INVESTMENT PROPOSAL………...………..…………………………………………………………………………………..13• CASH FLOW FORECAST……………………………………………………………………………………………………….…14

CONTENTS

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PROJECT TEAM

Anatoly Klepov has been running MTT / Ancort for more than 25 years. Doctor of technical sciences with 43 years of experience in the field of cryptography.

MTT / ANCORT TEAM

More than 200 highly professional specialists in cryptography, programming and electronic security system development.

Flexible and able to adapt to market changes.

Able to accomplish tasks of any scale and difficulty in the field of information security in the shortest time possible.

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TECHNOLOGIES

THE COMPANY HAS DEVELOPED A CRYPTOGRAPHIC INFORMATION SECURITY SYSTEM (STEALTHPHONE) ON THE BASIS OF HARDWARE AND SOFTWARE CRYPTOGRAPHIC TECHNOLOGIES, DESIGNED TO SECURE DATA IN MOBILE PHONES AND COMPUTERS

MTT / ANCORT HAS DEVELOPED ITS OWN TECHNOLOGIES: CRYPTO VOICE OVER GSM, CRYPTO SKYPE, WHATSAPP, VIBER AND CRYPTOALGORYTHMS THAT HAVE NO RIVALS IN THE WORLD.

IT’S POSSIBLE TO CREATE A HIGH LEVEL OF DATA SECURITY FOR MOBILE BANKING, E-COMMERCE, MEDICINE, GOVERNMENT, EMBASSIES AND ENSURANCE COMPANIES ON THE BASIS OF STEALTHPHONE INFORMATION SECURITY SYSTEM

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COMPANY DEVELOPMENT STRATEGY

5

Today In 3 years In 5 years

One of the leaders on international market of cryptographic information security.

Clients:• State organizations

Supply of cryptographic equipment to 64 counties of the world.

In top-10 on the market of cryptographic information security

Clients:• State organizations• Corporations• Individuals

In top-3 of the leading companies on the market of cryptographic information security

UPCOMING PRODUCTS

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CRYPTO BLUETOOTHCurrently MTT Company together with Ancort develops Crypto Bluetooth product to secure voice transaction.Launch Date: January 2016Production Cost: $50 /unitSales Price: from $100 to $150Implementation Fields: Police, Army, Detective Agencies, Financial CorporationsEstimated Production Capacity: 2-3 million units/year

CRYPTO FLASH DRIVEAncort Company started the Crypto Flash Drive development – hardware e-mail encryption deviceMain Feature – e-mail encryption, authenticationLaunch Date: February 2016Production Cost: $7Sales Price: $20Estimated Production Capacity: 10–15 million units/yearPossible Sales Options:

A) Pair of hardware solutions to secure information at sending and receiving party side.B) Hardware solution coupled with software solution. Software solution is provided free of charge in this case. This will enable to significantly increase number of customers.

ABOUT STEALTHPHONE PROJECT

30 M US$ WERE INVESTED IN THE DEVELOPMENT OF THE PROJECT

HARDWARE IS MANUFACTURED IN SOUTH KOREA AND MALAYSIA

WE PERFORM CRYPTOGRAPHIC PRODUCTS FINAL ASSEMBLY AND TESTING AT THE MTT PRODUCTION FACILITIES IN SWITZERLAND. THE PRODUCT COMES WITH A LABEL “MADE IN SWITZERLAND”

IN Q2 OF 2015 THE FIRST BATCH OF ENCRYPTION DEVICES - 5000 UNITS - WILL BE INTRODUCED TO THE MARKET

ALL PRODUCTS CURRENTLY UNDERGO THE FINAL STAGE OF TESTING AND ACQUIRING OF INTERNATIONAL LICENSES - CE, FCC, RF, BLUETOOTH

SALES LAUNCH - Q2 2015

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COMPETITIVE STRENGTHS

MTT / ANCORT COMPANY SCIENTIFIC AND TECHNICAL SOLUTIONS ARE AT THE SAME LEVEL OF CRYPTOGRAPHIC

SECURITY WITH SUCH OF CRYPTO AG (SWITZERLAND), RAYTHEON (THE USA), BOEING (THE USA) CORPORATIONS

HARDWARE IS MANUFACTURED IN SOUTH KOREA AND MALAYSIA , ONE OF THE LEADING MANUFACTURER OF ELECTRONICS IN THE WORLD

CLOSEST ANALOGUE IN THE AREA OF HARDWARE ENCRYPTION IS TOPSEC MOBILE OF ROHDE & SCHWARZ COMPANY (GERMANY). PRODUCTS OF THIS COMPANY SECURE ONLY VOICE USING SOLELY VO-IP TELEPHONY. COMPARATIVE ANALYSIS SHOWS THAT STEALTHPHONEHARD IS 10 TIMES MORE SECURE THAN THE GERMAN ENCRYPTION DEVICE IN TERMS OF FUNCTIONAL SECURITY

ONE OF THE COMPETITORS IN THE AREA OF SOFTWARE IS SILENT CIRCLE (USA), WHICH SYSTEM IS INFERIOR TO

STEALTHPHONE IN TERMS OF RESISTANCE AND FUNCTIONALITY.

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CONFIDENTIALITY

NO ONE, EXCEPT FOR CLIENTS THEMSLEVES, HAS ACCESS TO SECRET ENCRYPTION KEYS, INCLUDING STEALTHPHONE TELL DEVELOPERS AND ADMINISTRATORS OF THE CERTIFICATION CENTRE.

SUBSCRIBERS’ SECRET KEYS ARE GENERATED AND STORED AT THEIR SMARTPHONES IN AN ENCRYPTED FORM.

OUR SERVERS ARE LOCATED IN SWITZERLAND, CANADA, HONG KONG AND OTHER COUNTRIES WITH RESPECTFUL ATTITUDE TO PRIVATE LIFE AND STRICT OBSERVANCE OF PERSONAL PRIVACY.

CRYPTOGRAPHY SOFTWARE WILL BE SOLD VIA SERVERS LOCATED IN SWITZERLAND.

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CUSTOMERS

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STEALTHPHONE system is designed for: State organizations; Government organizations; Ministries of Foreign Affairs; Banks and financial structures; Detective agencies; Industrial structures; Research centers; Legal companies; Medical establishments; Individuals who value confidentiality of personal data.

MARKET ANALYSIS

According to Gartner company, one of the leading consulting companies specializing in IT market:

Information security market volume will be tripled in the next 5 years, which will make it one of the most rapidly growing markets in high-tech field.

In 2013 only 10% of all expenditures on information security (antiviruses, access control, firewalls, access control systems and other) was allocated to security of mobile devices. By 2018 this number will increase to 37%.

The market of information security for mobile devices will reach 45,5-90 billion US Dollars.

Data security for mobile devices is one of the most perspective areas of information security.

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Switzerland was chosen due to the fact that its legislation in the field of cryptography is the most liberal in the world, and it makes it the most liberal country in respect to Swiss government agencies. This is particularly important because numerous testimonies of Edward Snowden, the former CIA and National Security Agency employee, have been published recently, and they showed that the United States, England and Germany have the capabilities for the uncontrolled interception of information from virtually any global information system, including e-mail, mobile communication, etc.

It should be noted that after the publication of Snowden’s revelations the American business in the field of information security has lost up to $300 billion, according to the studies of the consulting company Gartner.

The USA and their partners (France, Germany, and Great Britain) have lost the market. Therefore, we have to occupy a niche in the production of cryptographic equipment soon as possible.

Besides, the intellectual property rights for the designed systems and software are being registered in Switzerland. The estimated cost of intellectual property is 300 million dollars (based on the volume of the developed software and hardware, as well as unique algorithms to secure information).

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INVESTMENT PROPOSAL

1M US DOLLARS PER SHARE

MINIMUM OFFERING 10% OF SHARESMAXIMUM OFFERING 25% OF SHARES

The funding will be directed to further business expansion and commercialization, including the development of global network of secure personal information exchange and storage as well as establishment of new representative offices in Rio de Janeiro, Mexico, Hong Kong and Dubai and creation of Data Center, Laboratory and Production Facilities in Switzerland.The Data Center will be located in a nuclear bunker – Swiss Army former command center. This is a unique opportunity to ensure super strong and reliable physical and cryptographic security of the Data Center. The center will also house a TEMPEST-compliant lab to assess and measure hazardous electromagnetic emissions of electronic equipment. Currently this type of Lab exists in the USA only.

All investments are dedicated for production development and will not be used for shareholders’ bonuses.

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CASH FLOW FORECAST

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000'USD TOTAL Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018Receipts 426 750 - - 22 750 29 750 29 750 29 750 29 750 47 500 47 500 47 500 47 500 47 500 47 500

Stealthphone soft 69 500 - - 4 500 5 000 5 000 5 000 5 000 7 500 7 500 7 500 7 500 7 500 7 500Stealthphone soft for Corporations 104 250 - - 6 750 7 500 7 500 7 500 7 500 11 250 11 250 11 250 11 250 11 250 11 250Stealthphone hard 220 000 - - 10 000 15 000 15 000 15 000 15 000 25 000 25 000 25 000 25 000 25 000 25 000

Hardware encryption key generators 33 000 - - 1 500 2 250 2 250 2 250 2 250 3 750 3 750 3 750 3 750 3 750 3 750

                             Payments (135 157) (4 444) (6 041) (4 608) (10 204) (8 262) (7 432) (8 291) (18 545) (11 192) (10 333) (11 192) (23 823) (10 792)

Serial production (28 689) (799) (45) (545) (1 950) (2 350) (1 550) (2 350) (2 850) (3 650) (2 850) (3 650) (2 850) (3 250)IP registration, certification, patents (305) (51) (153) (102) - - - - - - - - - -

Organization of production in Switzerland certified by Swiss law (ISO -9000) (3 966) (1 772) (1 733) (460)

IP center development (1 476) (614) (620) (243) General and administrative expenses (33 323) (1 013) (2 905) (2 673) (2 673) (2 673) (2 673) (2 673) (2 673) (2 673) (2 673) (2 673) (2 673) (2 673)Selling expenses (18 715) (195) (585) (585) (1 488) (1 488) (1 488) (1 488) (1 900) (1 900) (1 900) (1 900) (1 900) (1 900)Tax forecast (48 683) - - - (4 093) (1 751) (1 721) (1 781) (11 122) (2 969) (2 909) (2 969) (16 400) (2 969)

NET CASH FLOW 291 593 (4 444) (6 041) 18 142 19 546 21 488 22 318 21 459 28 955 36 308 37 167 36 308 23 677 36 708Cash BoP - - (4 444) (10 485) 7 658 27 204 48 692 71 010 92 469 121 424 157 732 194 899 231 207 254 885Cash EoP - (4 444) (10 485) 7 658 27 204 48 692 71 010 92 469 121 424 157 732 194 899 231 207 254 885 291 593

Switzerland, 8001 Zurich, Usterristrasse 11

Phone: +41442103743E-mail: info@mttgroup.ch

WWW.MTTGROUP.CH