CONFIDENTIAL Page 61 of 125 4/15/2004

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E x e c u t i v e S u m m a r y

LoudWolf Holdings Ltd. Is a limited liability corporation based in Guernsey. Its primary focus is to act as a coordinating entity to exploit the various technologies and products recently acquired by LoudWolf from its contributing partners. These partners are companies that have pooled their combined technologies and expertise into LoudWolf and are now wholly owned subsidiaries of LoudWolf Holdings Ltd.

___Table of Contents 1________________________________________________

Contributing Partners page 5

Digital Animation Inc. page 5

Startech (US) Computer Consultancy Inc. page 5

Startech Computer Consultancy Ltd. Page 5

Edison Research Labs page 5

Summary of Core Technologies page 5

Business Overview page 6

Market Size page 7

Growth Trends page 7

Competitors page 8

Expected Competitor’s Responses page 9

LoudWolf’s Competitive Strategy page 10

Risk Factors page 11

Risk Factors & Their Mitigation page 11

Competitive Products page 11

Loss of Trade Secrets page 11

Development Delays page 11

Government Interference page 11

Hacker Interference page 11

The Rixa “STEEL” Series – Born of Necessity page 12

Rixa STEEL Historical Context page 12

Rixa Presents a New Challenge for IP Security Industry page 13

Background Regarding Security Issues page 13

Stealth Trojans on the Horizon page 13

Definitions of a Trojan page 13

The Stealth Trojan page 13

Trojans on the Web page 14

ProRAT Trojan page 14

ProRAT Commands page 15

Toquito Bandito page 15

Optix ICQ page 16

Professional versions page 16

Wheels within wheels (Trojaned Trojans) page 16

Commercial Countermeasures page 17

Trojan Hunter page 17

TDS3 page 18

Anti-Anti-Virus functionality page 18

Security Community Response page 18

The Mature Hacking Corporation page 19

The “Take” (Money to Be Made) page 20

More Examples of IP Theft page 21

High-Value IP theft – A case study page 22

Hackers Need Discipline Too page 23

The WolfPak page 23

WolfPak Rules page 24

High-Value IP in today’s connected World page 25

Hacker Quotes page 26

Analysis of Current Hacker Software page 27

Purpose of This Document page 27

Cautionary Disclaimer page 28

Design Rules as a way of describing Functions page 28

Engineer’s Notes on Descriptive Style page 29

The Threat, an Overview page 29

General description, Development Status page 29

Software goals page 30

Overview page 30

Standard IT Procedures on a Trojaned System page 31

A Scenario page 31-33

How It Was Done page 34

___Table of Contents 2________________________________________________

Defining Terms page 35

Dangerous page 35

Harmful page 35

Nullable page 35

Useful page 36

Unknown page 37

Benign page 37

Fallback Procedures page 38

Note Regarding PNF Files page 38

Rules regarding PNF files page 39

Dealing With Threats page 40

The Trojan Masters – History and Splinter Groups page 41

Cyber Crooks page 41

Tech Officers ` page 41

Zombies page 42

Extending the NameSpace page 42

Hackers United page 42

Design Rules page 43

First Infection page 44

Untraceable UDP Communications page 44

Rules Regarding Communications page 45

UDP & non-routable Protocols page 45

PC HEALTH page 45

Behavior & Sources of Code page 46

The Unexplained page 46

Pinch Points page 47

The Various Secrets of the Secret Vault page 48

Cache Memory page 48

OS2 page 48

DoubleSpace Drives page 48

Bad Blocks on Hard Disk Drives page 49

Operating System Files page 49

System Restore Area page 49

Driver Rollback Files page 49

Windows \System Directory page 49

Page File page 49

HiberFile page 49

Exotic Operating Systems page 50

The Windows Registry page 50

Print Spooler ` page 50

USB devices page 50

Hiding Techniques page 51

NTFS Hidden Date Streams page 52

UPX Ultimate File Packer page 52

Morphine page 52

Undetectables page 52

E. T. Phone Home page 52

Hacker Communications in General page 53

Telephone Techniques page 53

Telephone Dial Up page 53

Telephone Techniques page 53

Anonymous Pager page 53

Call Back page 53

Fax In & Out page 53

UDP Over Telephone page 53

ICMP page 53

TCP/IP page 53

Wireless Communications page 53

Blue Tooth page 53

Radio Keyboards & Mice page 54

Infra-Red Communications page 54

Wireless Access to Non-Wireless page 54

Audio Communications page 55

Soft Modem Communication page 55

Hacking With Audio Communications page 56

Voice Command & Voice Recognition page 57

User Names & Permissions page 58

Certificates of Authority & Digital Signature Certificates page 59

___Table of Contents 3________________________________________________

Persistence of Control- Hanging On page 60

CMOS RAM page 61

EEPROM page 61

Error Messages: & Other Time Gainers page 62

Other Noted Trojan Functionality page 63

LoudWolf Solutions page 64-67

Rixa STEEL Secure Servers page 68

Rixa STEEL Concept page 69

Product Description page 70-72

Military Servers page 73

Commercial Servers page 74

General Topography page 75

Consumer Systems page 76

STEEL Standard equipment page 77

SuperKey Technologies page 78

The Problem page 78

Security Encryption Today page 78

Every-day Security page 78

Vital Security page 78

Unbreakable Security-Isn’t page 78

The Best Encryption Available page 79

The LoudWolf Way page 79

Superkeys Product Description page 80

Implementation of a Hardware Session Key page 81

Why Keys are So Important page 82

Anatomy of a Key-Breaker Program page 82

The “Dictionary Attack” page 82

Combination Word Attack page 82

Multiple Language Variant page 82

Number Substitution page 82

The Brute Force Attack page 82

Components of the Super-Key Product page 83

Key Length & Complexity Issues page 84

Variables as Key Components page 85

Secure Satellite Superkeys Sample Application page 86

The Sentinel Series page 87-89

The Sentinel Sharp page 87

Sentinel Standalone Functionality page 89

Hot ROD Read Only Drive page 90

HVIP Drive Chemical Erasure System page 91

Business Plan Implementation page 92

Overview page 92

Time Lines Months 1-7 page 93

Time Lines Month 8-12 page 94

End of First Year Summary page 94

Time Lines Months 13-16 page 95

End of Second Year Summary page 95

End of Third Year Summary page 95

Budget Assumptions page 96

Average Salary Per Category of Job page 96

Headcount Over Time page 96

Reference Section page 97

Rixa STEEL Utility Board Documentation page 97

Micro-Controller Specifications page 98

Processor Schematic Diagram page 99

Printed Circuit boards & Schematics page 100

Software Guidelines & Connection Lists page 101-107

Trojan Read Me Files page 108-118

Hacker Defender page 108-116

Optix Pro page 116-117

FuRootKit page 118

In the News page 119

Biographies: page 120

Paul Fullwood page 120-125
THIS DOCUMENT CONTAINS HIGHLY CONFIDENTIAL INFORMATION AND MAY CONTAIN ELEMENTS OF CERTAIN PRORIETARY PRODUCTS, SERVICES AND BUSINESS INTELLIGENCE WHICH, IF DISCLOSED, MAY CAUSE HARM TO COMPANIES AND INDIVIDUALS - PLEASE DO NOT COPY OR DISTRIBUTE.

Contributing Partners

Digital Animation Inc.

A Silicon Valley-based company specializing in the development of complex software for the encoding and decoding of highly compressed and secure data streams.

Startech Computer Consultancy Inc.

A Los Angeles-based company, specializing in the development and production of custom integrated hardware and software products for the television and movie industry.

Startech Computer Consultancy Ltd.

A UK-based hardware & software development company specializing in circuit design for industrial automation.

Edison Research Labs

A Central California-based R&D partnership focused on security research and advanced countermeasure development.

Summary of Core Technologies

As a result of the acquisition of these companies, LoudWolf owns and controls all aspects of several new and important technologies. These combined technologies are focused in the following areas:

· Process-based computer security systems for military, industrial and commercial applications.

· Hardware-based security devices and technologies for high value intellectual property protection.

· Advanced computer intrusion detection systems for high security military data systems.

· Personal privacy, spy-ware detection technology and data theft protection software systems.

· Hardware-mediated system integrity and verifications systems.

· Cryptographic key systems, utilizing hardware-based keys and non-shared secret key technology.

· Encoding systems advanced compression and secure delivery of entertainment and educational media.

· Encoding systems secure transmission of high-value data over insecure pathways.

Business Overview

One of the major difficulties we have faced during the preparation of our business strategy has been the large number of products envisaged. In two years of fundamental product research we have produced dozens of potentially marketable solutions and products. Only a selected few products have been presented in this document. One of the first imperatives as we move forward will be a thorough review of all of these products with a view to extracting the best of these possibilities for further analysis. It must be assumed that this review will produce additions and modifications to our product line.

The need for the type of security that LoudWolf provides is clear. LoudWolf has identified large markets in multiple industries that are clearly awaiting the introduction of the definitive and complete intellectual property protection system.

The investment opportunity presented clearly has a huge potential. LoudWolf will provide “enabling technology” for various large market sectors.

The full exploitation of all of the opportunities afforded by these broad technologies will involve numerous partnerships with industry-leaders, aggressive protection of LoudWolf’s intellectual property and judicious maintenance of market leadership.

In some cases LoudWolf act as a technology provider rather than a manufacturer / distributor. We will license our technology to companies who can efficiently sell into their existing markets. In other cases the technology lends itself to direct sale to consumers; industry and military customers.

In these areas maintenance of market share may involve anti-competitive measures, such as; acquisitions of fledgling competitors, enforcement of patents and so on. For this reason we will depend heavily on expert management decisions pertaining to our market protection and anti-competitive strategies.

The various new technologies we will be introducing must be revealed, implemented and exploited with extreme delicacy. Patents, trade secrets, copyrights and brand-name maintenance must all be coordinated as a whole so as to ensure maximum investor return. We may hold back on the introduction of certain products or technologies in certain market segments in anticipation of earning greater rewards by implementing these technologies at different times. For example:

It would not be unreasonable to withhold a consumer level product incorporating the concept of super keys until such time as the military implementation of these super keys has been exploited to its fullest. This is consistent with our financial and marketing model which proscribes the relative marketing economy derived from direct sales to the military giving LoudWolf the opportunity for early revenues without a large sales and marketing effort and providing us with high profile reference customers which, in turn, naturally eases the task of introducing to market our commercial and consumer products at some later date.

Effective exploitation of our discoveries and innovations can be assured only by utilizing the very best of marketing and business expertise available. The full potential of LoudWolf can be effectively realized by the delicate application of our existing management expertise provided with sufficient capital to generate a powerhouse group of companies. We are confident that we can then maintain market leadership in a multitude of markets. The business structure that we have created is designed to form an effective launch pad for this strategy.

We have designed various short-term profitability products with short time to market timelines, these are intended to be distributed by several reliable partners. We have also several midterm high potential products many of which imply long term an ongoing revenue streams. In addition we possess a small number of market controlling fundamental technologies. Whilst we cannot expect to maintain dominance in all aspects of our enterprise, we can certainly anticipate high likelihood of significant return for our investors. The team of experts we are assembling for these tasks provide us with an enhanced certainty of success.

Market Size

LoudWolf’s technologies are applied to various products and services described herein. The market for these various technologies is very large indeed. Encompassing a broad swath of markets including, but not limited to, the following areas:

In US Dollars.

Tactical and strategic military computing devices Estimated Market: 20 Billion

Commercial data communications systems Estimated Market: 10 Billion

Personal computer security products Estimated Market: 10 Billion

Enabling technology in entertainment media transmission Estimated Market: 1 Billion

Enabling technology in media compression systems Estimated Market: 2 Billion

Total overall sales per year Estimated Market: 43 Billion

Growth Trends

The growth of these markets exceeds the growth in the overall worldwide computing technology sector due to existing need to add our technologies to the current installed computer user base in addition to the incorporation of our technologies into new computer systems. Many of the threats and solutions presented are not yet widely known and as such are un-tapped markets with growth curves typical of emerging technologies.

Security Related Growth

The computer security industry, enjoys one of the highest growth rates in the World. For example: In just a few short years the Anti-Virus program has transitioned from a optional component to essential software for all computers. We are in the midst of a further transition from “Security as a one-time purchase” to “Security as a subscription service”. Security technologists are in high demand, one of the few computer technical specialties still in short supply after the ballooning of tech resources in the period 1998-2000.

Security is an industry that grows when stimulated by advances in hacker technology. “Fed by fear” one could say. Described in this document are several hundred advances in hacker technology, any one of which could , and should, be feared. Growth of this market is assured, in fact to keep up with the hacker techniques we will describe it must accelerate dramatically.

Competitors

Leaving aside LoudWolf’s data compression technology, which has no known competitors, the main competition comes from established companies in the computer security sector.

Computer Associates

McAffee

Norton

FarStone

Internet Security Systems (ISS)

Trend Microsystems

At this time, all of the companies mentioned are in a position to make inroads into LoudWolf’s market. We can expect that after we launch various products, we will see some combination of the following responses from these companies and possibly some other startup companies forming who will attempt to build upon our technologies as they are released.