Activity on the Internet and in the Cloud is increasing at an accelerated pace.Business is done globally, with valuable IP and know how being accessed and stolen. New security needs become apparent and never-before-considered issues of privacy rights emerge.More reasons to be online and more data stored & transferred means that the ramifications of a security breach are enormous and growing. Determined attackers will penetrate networks – The networks are impossible to defend – Therefore, Securing the data is critical! PKMS2 takes existing data of all types (document, PDF, image, etc.) and breaks it into segments, encrypting each segment with separate keys. The sequence of the segments varies with time. Therefore unless the hacker has all of those keys, plus the sequence at any given moment of time, it is nearly impossible to break. This technology is exclusive to PKMS2 and we are unaware of like technology on the market.

1. The Problem is an Increasing Threat
Secure Channels Inc. Confidential 1
• Activity on the Internet and in the Cloud is
increasing at an accelerated pace.
• Business is done globally, with valuable IP and
know how being accessed and stolen.
• New security needs become apparent and
never-before-considered issues of privacy rights emerge.
• More reasons to be online and more data stored & transferred means that the ramifications of a
security breach are enormous and growing.
Source: Gartner
Determined attackers will penetrate networks –
The networks are impossible to defend –
Therefore, Securing the data is critical!
…and the Threat results in Opportunity for companies focused on Cyber Security…
“IDC predicts cyber security solutions business growth of 18% CAGR 2013-2018”

2. Opportunities ABOUND
• The race to the cloud and mobile, despite advancing security threats, continues unabated.
• Corporate and Government CIOs are under great pressure to embrace the cloud, reduce costs,
and allow Bring Your Own Device (BYOD) despite dealing with often highly confidential
information.
• Chief Information Security Officers (CISOs) are under increasing pressure to stay ahead of the
threat.
• CEOs, Government and NGO Leaders, and private citizens are learning, often through financial
loss due to staggering cyber attacks, that the security of their data is a critical function.
• Company’s valuable IP is being stolen and used by competitors - often state sponsored.
We are entering a Perfect Storm where IT technology advances and use are running
away from the defensive systems designed to protect and defend.
TechNavio's analysts forecast the Global Encryption Software market is expected to grow at a CAGR of 13 percent
over the period 2010-2014. One of the key factors contributing to this market growth is the changing regulatory
compliance. The Global Encryption Software market has also been witnessing enhanced features of encryption

3. Our Technology
Focusing on Two Core Capabilities to Innovate Infinite Solutions

4. enhanced Encryption (overview)
Secure Channels Inc. Confidential
• Patent pending process using available FIPS certified 3rd party encryption libraries in a new and
innovative way to produce “unbreakable”* documents and data files. The technology is entitled
PKMS2 for “Pattern Key Multi Segment, Multi Strength”.
• Use of 3rd party libraries makes the process extensible to future encryption pattern development.
• Deployable to private data centers or public clouds (Amazon Web Service, Microsoft Azure, Google,
etc.).
• Secures data in transit, at rest, or stored in the cloud with our aim to make this possible across all
desktops, laptops, tablets, mobile phones, and enterprise server environments.
• Also employs One Time Pad (OTP) techniques to make a hacker’s life miserable
* - decryption would take millions of years at the higher applied process levels and is thus unbreakable for all practical intents and purposes using
current technology
Standard Single Key Strength Encryption
Visual Depiction
PKMS2

5. enhanced Encryption (Cont.)
Secure Channels Inc. Confidential
VALUE PROPOSITION:
• While intrusion detectors, firewalls, etc. provide a deterrence, the real key to protecting IP and
valuable data is the encryption behind those defenses so when a hacker breaks in, all they find is
un-readable data.
• PKMS2 takes existing data of all types (document, PDF, image, etc.) and breaks it into segments,
encrypting each segment with separate keys. The sequence of the segments varies with time.
Therefore unless the hacker has all of those keys, plus the sequence at any given moment of time, it
is nearly impossible to break. This technology is exclusive to PKMS2 and we are unaware of like
technology on the market. This uniqueness and encryption strength will be our principal value
proposition to customers and potential competitors in the encryption space.
PKMS2

6. PKMS2 decrypted (key points)
• PKMS2 is a radically new take on standard FIPS certified encryption practices.
• PKMS2 stands for Pattern Key Multi-Segment, Multi Strength (or Standard)
• One of the inherent difficulties with encryption is the use of a single key or protocol to encrypt
data. PKMS2 solves that problem.
• PKMS2 breaks a document into segments and encrypts each segment individually.
• The protocol/password used per segment is based on a pattern key and can be as simple or as
complex as necessary. This pattern is user-derived and thus can be as unique as the user wants.
• Given ‘n’ number of keys/passwords/etc. and a pattern of usage of said keys then the document
is encrypted in a round robin fashion rolling through the pattern.
• The document can be initially encrypted [optional] as a whole resource, then segmented, and
then the resultant encrypted segments can also be encrypted as a whole resource.
• Since PKMS2 only uses FIPS certified third party encryption libraries, the resultant encrypted
document, by definition, is also FIPS certified.
• The segment size is based on the key bit strength formula (s/8 – 11) bytes. The segments
encrypted with passwords have the length embedded in the resource.

7. PKMS2 DECRYPTED step-by-
step example
(VIEW IN SCREENSHOW AS A SLIDE BUILD)
• For simplicity our walkthrough will assume the user has 9 keys, 4 of which are used for the segments
and 2 are used for the optional initial and final encryption.
• Keys: 1,2,3,4,5,6,7,8,9 (Orange, Red, Pink, Black, Yellow, Green, Purple, Blue, White)
• Pattern: 2687, optional 5,4
Baked Shrimp
Melt a stick of butter in
the pan. Slice one
lemon and layer it on
top of the butter. Put
down fresh shrimp,
then sprinkle one pack
of dried Italian
seasoning. Put in the
oven and bake at 350
for 15 min. Best Shrimp
you will EVER taste:)
Ordinary Document
Apply initial encryption
pattern with key 5 (yellow)
Initial optional encryption
Change angle to see layers
Segment 1 with Process 1
Encrypt segment #1
with key 2 (red)
Encrypt segment #3
with key 8 (blue)
Segment 3 with process 3
Encrypt segment #4
with key 7 (purple)
Segment 4 with Process 4
Encrypt segment #5
with key 2 (red)
Segment 5 with Process 1
Encrypt segment #6
with key 6 (green)
Segment 6 with Process 2
Encrypt segment #7
with key 8 (blue)
Segment 7 with Process 3
Encrypt segment #2
with key 6 (green)
Segment 2 with Process 2
Encrypt segment #8
with key 7 (purple)
SEGMENT 8 WITH PROCESS 4
Apply optional final
encryption with key 4
FINAL OPTIONAL ENCRYPTION
PKMS2
applied – for
all practical
purposesm
the document
is immune to
hacker
Decryption

8. PKMS2 DECRYPTED step-by-
step example
(for non screen show viewing)
• For simplicity our walkthrough will assume the user has 9 keys, 4 of which are used for the segments and 2 are used for the optional
initial and final encryption.
• Keys: 1,2,3,4,5,6,7,8,9 (Orange, Red, Pink, Black, Yellow, Green, Purple, Blue, White)
• Pattern: 2687, optional 5,4
Baked Shrimp
Melt a stick of butter in the
pan. Slice one lemon and layer
it on top of the butter. Put
down fresh shrimp, then
sprinkle one pack of dried
Italian seasoning. Put in the
oven and bake at 350 for 15
min. Best Shrimp you will EVER
taste:)
Ordinary Document
Apply initial
encryption pattern
with key 5 (yellow)
Initial optional encryption
Change angle to see layers
Segment 1 with Process 1
Encrypt
segment
#1 with
key 2 (red)
Encrypt
segment #3
with key 8 (blue)
Segment 3 with Process 3
Encrypt
segment #4
with key 7 (purple)
Segment 4 with Process 4
Encrypt
segment #5
with key 2 (red)
Segment 5 with Process 1
Encrypt
segment #6
with key 6
(green)
Segment 6 with Process 2
Encrypt
segment #7
with key 8 (blue)
Segment 7 with Process 3
Encrypt
segment #2
with key 6
(green)
Segment 2 with Process 2
Encrypt
segment #8
with key 7
(purple)
Apply
optional
final
encryption
with key 4
PKMS2
applied – for
all practical
purposes, the
document is
immune to
hacker
decryption
Segment 8 with Process 4
Final Optional Encryption

9. PKMS2 DECRYPTED
(conclusion)
• Decrypting the document requires knowledge of
• the keys
• the key strengths/lengths (Multi-segment/Multi strength/standard =
MS2)
• The pattern used to round robin the keys (Pattern Key = PK)
• PKMS2 – Pattern Key, Multi Segment, Multi Strength/Standard
• Enhancements (potential near-term Patent modifications)
• Optional passes - An initial pass and a final pass.
• Additional processes - There are 4 additional processes SC keeps
secret as options for customers and, unless the decryptor knows any
of these processes have been applied, decryption is literally
impossible as each segment’s data is altered in a deterministic way
that only foreknowledge can undo prior to decryption.

10. language agnostic communications
Secure Channels Inc. Confidential
• We can make text based communications (IM, SMS, Chat, email, etc.) language agnostic*
• Sender creates message in native language (e.g. English) - Recipient receives message in
native language (e.g. Chinese)
• Communicated message can be standalone or contain original message
• Translation practices can also be applied to stored or transmitted documents
• Add PKMS2 security to the mix and one has exponential innovation opportunities
* - based on currently available language translation tools
This technology is cool.
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