Investment Thesis Investment Highlights Technology Overview Sponsored Research Agreement (SRA) Intellectual Property (IP) Markets Proprietary Products and Technologies Commercialization Strategy Competitive Landscape Company History Management Board Members Technology Team Financials

INVESTMENT HIGHLIGHTS
Over $1 Billion Market by 2011
According to Insight Media, the market for 3D display technologies is currently estimated at $345 M in 2007 for products currently on the market, most of which either require viewing aids such as glasses, or with image quality severely restricting its commercial applications. As technology advances, the market is expected to reach over $1 billion by 2011 for current applications alone. 3D technologies are expected to create completely new markets for which estimates cannot currently be made. Although there are a plethora of recent technologies that capture three dimensional data through scans such as MRIs for medical use and other technologies for baggage scanning, highly-functional and commercially accessible 3D projection technologies are not yet available. 3DIcon is positioned to develop its technologies to bridge this gap and offer technologies that meet market demand for improved visualization in 3D formats.

Research Conducted at University of Oklahoma
The Company has established a SRA (Sponsored Research Agreement) with the University of Oklahoma (OU), whereby 3DIcon’s technologies are being developed by leading researchers and scientists in a state-of-the-art research facility. The research and approach are multidisciplinary, including the use of, and investigations into, applications for optics, photonics, nano-technology, chemical engineering and electronics. OU is one of the leading research institutions in the U.S. In the past 20 years, OU-developed technologies have led to the formation of 30-plus companies that have generated over $65 million. In 2006 alone, OU’s researchers were awarded 19 patents, and processed 51 intellectual property disclosures. OU’s research center hosts scientific research on some of the most important advancements of our day including work on the genome project, NASA, the National Weather Center, telecommunications and with the sponsorship of 3DIcon, OU is now emerging on the forefront of 3D projection technologies.

Intellectual Property Portfolio
3DIcon has the exclusive worldwide rights to technologies developed and patented by OU, under the auspices of its SRA. To date, several utility patents have been filed. The Company’s technologies cover various 3D technologies including Swept Volume Display (SVD) and Closed Space (c-Space) 3D projection methods as well as software. The Company believes that additional patents, copyrights, and trademarks will flow from its research activities at OU.

Competitive Advantage
The volumetric 3D technologies that 3DIcon currently has under development are being designed to create images that do not require viewing aids and are projected into space, creating a floating image that can be viewed from any angle and appears solid to the naked eye. This is a significant advancement from current technologies that either require viewing aids or use a 2D screen to create a 3D image.

SVD
3DIcon, through its OU research team, has recently completed a prototype of its SVD (swept volume display) 3D projection technology. A 3D image is formed by illuminating a rapidly moving display surface, such as a circular screen rotating at an optimal rpm. A collection of voxels is rendered at precise locations within the volume over a period of time resulting in a 3D image due to persistence of vision. As LED technology improves, 3DIcon’s SVD technology lends itself both to high-resolution large outdoor formats as well as smaller displays, both of which are particularly well suited for entertainment and advertising.
 
C-Space
The company’s C-Space (static volume display) technology uses a clear non-moving projection volumetric medium into which light emitting up-conversion nano-materials have been suspended. A 3D image is rendered when laser beams are projected into the nano-materials, exciting them to display the three primary colors and creating a, full color, volumetric image. To date the OU team has successfully produced the volumetric medium, as well as creating and suspending the up-conversion nano-material. The research also has developed the computer programs and electronics for directing the laser for rendering 3D images. C-Space technology is best suited for applications in: a)scanning for medical and security purposes; b)entertainment and gaming; and c)geo-spatial for military, air traffic control, weather mapping and oil and gas exploration.
 

TECHNOLOGY OVERVIEW
3DIcon Corporation’s core strategy is the development 3D technologies that have the potential to transform communications. The inception of the company’s current technology portfolio began when the company’s founder and CEO, Martin Keating, asked the question, “If we live in a 3D world, then why don’t we communicate that way?” From the question sprang 3DIcon’s mission of creating 3D technologies that produce full color, 360 degree, true-to-life 3D images that do not require any kind of viewing aid such as glasses or goggles.

3D technologies that are being developed across the globe today can be put into two main categories:
1) displays that require viewers to wear viewing aids, which tend to produce higher quality images, closer to what we see today on 2D screens; and 2) displays that don’t require viewing aids, which currently tend to have much lower image quality. 3DIcon’s focus is on the latter, 3D images that do not require viewing aids. The company’s mission is to develop these technologies to a degree that the 3D image which occupies 3D space is true-to-life, coming close to replicating reality.

There are currently two main kinds of viewing aid-free technologies under development. These include autostereoscopic and volumetric. 3DIcon’s technologies are volumetric.

In autostereoscopic displays, the most common are LCD systems though they can be projected on any display. According to industry analysts, the two main problems associated with autostreoscopic technology is resolution reduction in which the image quality is quite low and the viewer must keep his head in a ‘sweet spot’. If the viewer moves, the image loses its 3D quality. Autostereospopic displays typically can been seen from as little as two to up to 25 different angles, but cannot be viewed from any given 360 degree position. With each added angle, from two on up to 25, the image quality diminishes. Although a few autostereoscopic displays have been built and commercially sold, the products have been very costly and have been sold for a very narrow niche. Market analysts expect that autostereoscopic technology will not grow beyond its current niche.

3DIcon’s core 3D technologies are volumetric displays. Volumetric is the only 3D technology that creates an image with true depth versus a perception of depth. Other 3D technologies project an image on a single plane and manipulate the brain-eye system into believing it is seeing an image with depth. Volumetric technology has been under development by researchers for many years. The current challenge for developers, including 3DIcon is in raising the image quality to that of current 2D displays. The other challenge involves scalability, creating a larger image size.

SPONSORED RESEARCH AGREEMENT (SRA)
The Company’s SRA with University of Oklahoma, allows 3DIcon to partner with a leading research institution to leverage their scientific expertise and a state-of-the-art facility to create a proprietary technology portfolio at a fraction of the cost of building an in-house research infrastructure. Working through OU gives 3DIcon a competitive advantage in creating a multi-disciplinary approach to technology development. This approach integrates specialized know-how in optics, photonics, nano-technology, chemical engineering and electronics. A multi-disciplinary approach to development of 3D technologies is only available to the largest, most established technology companies, or through an arrangement like 3DIcon’s SRA with OU. Thus, 3DIcon’s technology development strategy makes the company competitive with the leading companies and institutions in the field. r visit.

INTELLECTUAL PROPERTY (IP)
3DIcon has the exclusive worldwide marketing rights to the IP (Intellectual Property) developed at OU under its SRA. To date, several utility patents have been filed. The Company anticipates the development of new technologies and byproducts for which additional patents, trademarks, and copyrights may be pursued. The IP strategy is both offensive and defensive in nature. 3DIcon and OU seek to file new patents that can develop into new product categories, as well as filing additional patents that will defend its rights against competitors.

MARKETS
3DIcon’s current portfolio includes its proprietary SVD and c-Space technologies. Both of these address a plethora of commercial applications including: 1) Large format entertainment in cinema, theme parks, museums; 2)Advertising through digital signage, branding, and trade shows; 3)Gaming including interactive video games; 4) Medical applications in diagnosis, treatment planning, robotic surgery, medical and dental training; 5)Training for the military, police, firefighters, industrial, and pilots; 6)Education; 7)Industrial design and control including quality control and CAD/CAM; 8)Visualization for geological mining, oil, gas, molecular modeling & design, meteorology, astronomy, and physics; 9) Real Estate design and sales; 10)Government applications such as homeland security, surveillance, and intelligence.

According to Insight Media, the market for 3D display technologies is currently estimated at $345 M in 2007 for products currently on the market, most of which require viewing aids. As technology advances the market is expected to reach over $1 billion by 2011 for current applications alone. As 3D technologies develop it is expected that new applications and markets will emerge that cannot be estimated at this time.

Projections for 3D Display Sales

Source: Insight Media
 
 

3DICON’S PROPRIETARY PRODUCTS & TECHNOLOGIES

3D-SVD

3D-SVD (swept volume display) is one of several 3D image projection technologies currently being developed by 3DIcon Corporation. This technology creates a volumetric image that floats in air, occupying 3D space without the use of a 2D screen or viewing aids, in a full color true-to-life format that can be viewed from any angle with the naked eye.

SVD is one form of 3D display technology currently being researched by scientific leaders in the 3D field. SVD is a volumetric display in which a 3D image is formed by illuminating a rapidly moving display surface, such as a circular screen rotating at an optimal rpm (revolutions per minute), sweeping a spherical volume at each half-rotation. A collection of voxels (volumetric pixels) is rendered at precise locations within the volume over a period of time, resulting in 3D imagery perceived due to persistence of vision.

Volumetric displays were first postulated nearly a century ago and have been a staple of science fiction. Until recently its development has only been accessible to research institutions, the military and now leading technology companies like 3DIcon.

3DIcon recently announced that its research team at OU completed Stage I of its 3D-SVD development program, which took the technology from concept stage to successfully rendering full color, 3-dimensional, 360-degree volumetric images. The embodiments of the original patent claim filed by OU for the 3D SVD technology include full color, 360-degree, 3D video images using LEDs (light emitting diodes) operating at an optimal rpm to create a solid-appearing image with negligible flicker. The completed demo has delivered on the ability to create full color, 360-degree 3D images.

As the technology continues to develop in Stage II, the goal is to create image quality that appears more solid with negligible flicker. Over the next 12 months, 3DIcon and OU expect to complete Stage II of SVD and bring the technology to a point of development where it may be marketed and licensed to potential partners in various industries. Specific performance goals include investigating alternate image pane technologies with 3 color LEDs; demonstration of increased rpm capability; and creation of opacity.

SVD is well suited for outdoor formats for use in advertising and entertainment, yet it’s been designed for flexibility and functionality including scalability for larger or smaller displays, automated 3D image preparation and importation software, and variable clock image display control.

C-Space
The company’s C-Space (static volume display) technology uses a clear non-moving projection volumetric medium (think of it as a 3D volumetric screen) into which light emitting up-conversion nano-materials have been suspended. A 3D image is rendered when laser beams are projected into the medium with nano-materials, exciting the nano-materials to display the three primary colors and creating a, full color, volumetric image. To date the OU team has successfully produced the volumetric medium, with one color (green) nano-materials, as well as creating and suspending the up-conversion nano-material. The research also has developed the computer programs and electronics for directing the laser for rendering 3D images. A one-color 3D image is expected by Q1 of 2008. Specific technology goals for the next 12 months include developing brighter green color nano-size up-conversion materials; commencing development of blue and red nano-size up-conversion materials; synthesizing a near transparent projection medium suitable for dispersion of nano-particles; and demonstrating transparent projection material dispersed with nano-particles for the first color.

C-Space technology is best suited for applications in: a) scanning for medical and security purposes; b) entertainment and gaming; and c)geo-spatial for military, air traffic control, weather mapping and oil and gas exploration.

To the company’s knowledge only a few other companies are developing this kind of 3D technology. 3DIcon’s C-Space technology has already created numerous voxels in one color, which is believed to be a milestone not yet achieved by the other known parties who have to date created only one voxel.


Pixel Precision™
3D Icon has recently announced the launch of its first product, Pixel Precision™, which targets the research and development market for Texas Instruments’ DLP® technology. The provisional patent application covering Pixel Precision™ was filed on January 29, 2007. Pixel Precision emerged as a by-product of the research conducted on its core 3D technologies.

Sales channels for the product include software distributors as well as direct sales by 3DIcon. 3DIcon’s new product is expected to address the needs of a market that includes projection and display manufacturers that design, manufacture, and market products based on DLP® technology. In addition to digital TV, DLP® technology is also being used in several emerging applications like 3D metrology, confocal microscopy, holographic data storage, scanning, and other advanced imaging and visualization applications.
 

COMMERCIALIZATION STRATEGY
3DIcon’s commercialization strategy includes licensing, co-development, distribution, and direct sales. Through this multi-pronged approach, the company varies its commercialization approach based on the specific product or technology in its portfolio.

The company’s SVD and c-Space technologies, which continue to progress through milestones in their development stages, are best suited to licensing or co-development with large, well-funded partners who may have complimentary products and sales channels that can be leveraged to the benefit of 3DIcon’s technologies.

Pixel Precision™, as a fully-developed software product ready for sale to a focused market, will be offered through direct sales by the company and well distributors. 3DIcon has begun demo of the product to qualified customers in November of 2007 and anticipates sales in the first quarter of 2008.

In addition to commercial applications, 3DIcon also recently launched a federal outreach program which is designed to attract federal research funding for 3D technologies that may have applications in homeland security, military and intelligence. The company may therefore be in a position to generate revenues from sales to federal, state and local governments.
 

COMPETITIVE LANDSCAPE
Currently there are a handful of companies involved in development of 3D volumetric display technologies that do not require viewing aids. These companies include 3D Technology Laboratories, Sharp Electronics, Teleportec, Actuality Systems, Ethereal Technologies, Zebra Imaging, Felix 3D, and Holoverse. While each of these companies is developing 3D applications, every technology is developed uniquely and for a range of uses and markets. 3DIcon believes that as its technologies develop, it is well positioned to capture part of the projected multi-billion 3D display market and is pleased to have industry peers that are equally dedicated to making 3D displays a reality of the future.

COMPANY HISTORY
First Keating Corporation was founded 1998 and by 2002 focused on the development of 3D technologies. The company became publicly listed on the pink sheets in 2003 and initiated discussions with the University of Oklahoma in 2004. The company’s name was changed from First Keating to 3DIcon, and its first SRA was signed with OU in 2004. By 2006 the first provisional patents were filed and a revised SRA was signed. In that same year, OU shifted its focus in 3D to volumetric display technologies. 3DIcon upgraded its public listing by moving to the OTCBB in July of 2007. Key executives and board members have joined the company in the latter half of 2007.

MANAGEMENT
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Martin Keating, Chairman of the Board & Chief Executive Officer
Vivek Bhaman, President, Chief Operating Officer and Treasurer
Judith Keating, Company Secretary and Director of Investor Relations

BOARD MEMBERS
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Martin Keating, Chairman of the Board
Lawrence Field, Board Member
Victor Keen, Board Member
John O'Connor, Board Member

 TECHNOLOGY TEAM
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3DIcon’s Technology Team at University of Oklahoma

Dr. James Sluss, Principal Investigator
Dr. Pramode Verma, Co-Principal Investigator
Greg Griffin, Director of R&D Programs Management
Dr. Hakki Refai, Co-Principal Investigator C-Space /Static Volume Project Lead Scientist - Optics and Electronics
Dr. Gerard Newman, Co-Principal Investigator, C-Space/Static Volume Project; Lead Scientist - Nano Technology and Materials
Dr. Martina Dreyer, C-Space/Static Volume Project - Research Scientist - Nano Technology and Materials
Dr. Monte Tull, Co-Principal Investigator, 3D-SVD Project
Erik Petrich, Lead Researcher, 3D-SVD Project

FINANCIALS
As a development-stage technology company, 3DIcon Corporation reported no revenues in its most recent SEC filings for the period ended September 30, 2007. Since its most recent filings, the company has launched its first product, Pixel Precision™ in Q4 of 2007. The company anticipates this product may produce revenues by Q1 of 2008. As of September 30, 2007, the company has current assets of $639,642.

The following is 3DIcon’s most recent income sheet, as reported in its 10Q for the period ended September 30, 2007.