This presenation discusses Systems In Motion's Domestic Outsourcing business model and describes Systems In Motion' innovative enterprise technology services capability that is more agile and cost-effective than globally distributed (offshore) service delivery.

1. Designing a globally competitive, cost efficient US IT Services model Presented by: Debashish Sinha Chief Marketing Officer Colin Chapman VP and GM, Michigan DC June 24, 2010 Copyright © 2010 Systems In Motion. All rights reserved.

3. Backed by Cervin Ventures with ~$17 million in available capital

4. Leading the way in services focused on business technology transformation programs

5. Pioneering the ‘Inshore’ service model - an agile, integrated, cost-optimized US service delivery capability

6. Based on standards and best practices of remote service delivery, with strong focus on workforce training and development

7. Deep expertise in Media, Telecom, Retail and Manufacturing

8. Two current service centers

9. Silicon Valley (Innovation Hub)

10. Ann Arbor (Delivery Center)

11. Clients include F-500 (Thomson Reuters, Best Buy) mid-sized enterprises (Leap Frog, Matson) and high-performing growth companies (Chegg, Zephyr)Page 2 Copyright © 2010 Systems In Motion. All rights reserved.

12. Leadership team with deep experience in global services industry Page 3 Copyright © 2010 Systems In Motion. All rights reserved.

14. Multi-channel (web, social, mobile, etc.)

15. Customer engagement management (personalization, participation and control

16. Predictable, repeatable business cycle

17. Brick & mortar + web interface

19. License, maintenance and upgrade extra

20. On-premise with multiple versions

21. Rented applications

22. Pay-go model with automatic upgrades

24. No capex and low cost of ownership

25. On-demand scaling with agile deployment

26. Traditional Datacenters

27. Capital intensive

29. Flexible, agile service delivery

30. Outcome and value driven

31. Labor intensive engagements

32. Standardized processes

33. Effort and SLA driven contractsSourcing Significant potential for disruption in the competitive landscape Excellence in customer experience will be the hallmark of future industry leaders Page 4 Copyright © 2010 Systems In Motion. All rights reserved.

34. Agile & Integrated Business Aligned New technology transformation Outcomes Driven Solutions Oriented Cost effective operations Driving the need for a different kind of service partnership Le Leadership and experience in understanding business requirements Agile teams tightly integrated with customer Solution frameworks to accelerate technology deployment Focus on outcomes and strategic value of new technology initiatives Page 5 Copyright © 2010 Systems In Motion. All rights reserved.

36. Technical competence

37. Resource productivity

38. Communication challenges

39. Lack of interaction/integration

40. Flexibility/agility of teams

41. Program management and governance

42. Infrastructure cost

43. Risk managementEnterprises make significant investments to bridge the “value gap” in the global delivery model. This is likely to increase in the future. Page 6 Copyright © 2010 Systems In Motion. All rights reserved.

44. ‘Inshore’ model can provide an alternative to global delivery for a significant part of enterprise services sourcing strategy Inshoring fills a white space between in-house and offshore engagements that is currently sub-optimally filled by supplemental staffing, boutique firms or large onshore staff of offshore vendors Page 7 Copyright © 2010 Systems In Motion. All rights reserved.

45. Three strategic pillars of the Systems In Motion service model The new service paradigm combines deep domain leadership with an ecosystem of IP assets and an operating model that can create agile and integrated delivery teams Page 8 Copyright © 2010 Systems In Motion. All rights reserved.

47. Program management, technical, solutions architecture and/or leadership skills

48. Experience in operating models incl. global delivery

49. Strong focus on methodology and IT processes

51. Process, technical, architecture skills

52. Strong implementation and support experience

54. Process, technical skills

55. Strong fundamentals in primary area of expertise

56. Knowledge of IT lifecycleDevelopers, Test and Support Engineers * Pyramid structure and skills will vary based on stage of project, type of work (dev vs. support), and program duration Page 9 Copyright © 2010 Systems In Motion. All rights reserved.

57. Tightly integrated service operation through ‘Inshore’ centers of expertise ‘Inshore’ center of expertise is a US based domestic service delivery model, combining cost-efficient remote service delivery with strong local workforce development and management Page 10 Copyright © 2010 Systems In Motion. All rights reserved.

58. US resources have a competitive advantage over India in supporting this transformation in technology services While India produces a larger number of engineers, the US has higher level engineering resources. India produces 84% of their engineers from Tier 3 schools. US engineers get a significantly more intensive education, are more self-directed and can lead/work in teams Research by RafiqDossani, Director, Center for South Asia, Stanford University Page 11 Copyright © 2010 Systems In Motion. All rights reserved.

60. Drive greater business participation in coursework, especially in associate degree apprenticeship programs (EMU)

61. Provide the hub for business connect (U of M and EMU)

62. Support business with infrastructure and processes for training and development

63. Vertical integration of Local and State institutions (MEGA, Michigan Works, SPARK)

64. Invest in training, talent development and workforce management

65. Invest in incentive programs (tax incentives and OJT training reimbursements)

66. Co-invest in marketing and PR initiatives to drive location attractiveness

67. Business development support with local enterprises

68. Partner in building SIM University (EMU)Systems In Motion partners with government to provide the right incentive and infrastructure investments Systems In Motion partners with universities to provide talent, training and workforce development support Page 12 Copyright © 2010 Systems In Motion. All rights reserved.

69. True cost of service delivery Inshore vs. Offshore Significant wage difference equals a negligible cost of service difference 5 4 2 3 1 $55/hr (with transition) $48/hr (in steady state) $52/hr Travel Costs are negligible Travel &1.17 4 trips a year Program Management costs are negligible Transition $2.00 PMO $2.25 5% of $44.88 Inshore Center Blended Charge Rates $50.00 Transition Costs are 30% due to faster transition process, higher overall productivity Transition* $6.73 15% of $44.88 Hourly true cost of services delivered (App Dev/BI Example) Productivity $5.76 75% of $17.28 Productivity Factor is 25% lower in offshore model Onsite Rate $21.84 28%@$78.00 Inshore Center charge rate combines offshore, onsite and infrastructure costs Offshore Rate$17.28 72%@$24.00 Global Delivery Model Inshore Delivery Model * Offshore transition amortized over a 3-year contract Page 13 Copyright © 2010 Systems In Motion. All rights reserved.

70. Key Takeaways New technology trends are transforming the business environment Enterprises need service partners with deeper domain expertise, and tighter alignment with internal IT and business stakeholders Global delivery models will need higher caliber resources, and even greater program management and governance investments to meet the future needs of US enterprises A well-structured Inshore operations center can be very competitive Requires strong collaboration among business, education and government to develop the appropriate level of expertise and structure of the workforce Investments must continue in developing the foundation for service delivery and innovation, through broadband deployment, tax policy, etc. Page 14 Copyright © 2010 Systems In Motion. All rights reserved.

71. Questions ? Debashish Sinha Chief Marketing Officer Systems In Motion Email:dsinha@systemsinmotion.com Direct: (650) 704-8843 www.systemsinmotion.com ? ? Page 15 Copyright © 2010 Systems In Motion. All rights reserved.