Picture Speak

Some SMS messages

you may see in the near
future:
(Hi. Where you
Please call me)
(Night night. Big kiss. Sleep good.)
(Me Angry !
Me no speak you today !)
(She crazy fat stupid bitch)
(Miss you. Come here fast
Me want kiss you now)
(Me class. Meet after school. Bye)
(You little shit)
• A new iconic language for SMS
communication.
• Practical, expressive, juicy and fun.
• Simple and intuitive. Easy to learn and
master.
• Java application, resident on sending
and receiving handsets.
• Messages sent over existing SMS
infrastructure.
Zlango is not limited to graphic symbols. It
is easy to add a text segment at any point
in the message. For example:

ICE
CREAM

19:30
(Us go eat “ice cream”
See you “19:30” there)
 Benefits for Users (1)

• Much improved messaging experience –

messaging now is quick and lively.
• Fun generation – using Zlango always puts
you in a playful mood.
• Efficiency – fewer buttons to press, per
‘word’, per message.
• Community tool – a group of friends can
create and modify their own secret
language!
• International communication – connect with
people from different cultures and
languages
 Benefits for Users (2)
• Simplicity – you don’t have to search
endlessly for the exact right wording.
• Excellent for those unskilled in written
language:
– Younger children 5 – 10 years old
– People who rarely write, or are illiterate
• Major improvement in business-generated
SMS
• Voice-to-sms – You can now create
messages while driving, etc. No need to
tap the buttons!
 Benefits for Operators
• Providing their users with a desired application
they will enjoy and use.
• Creating and maintaining fun throughout the
network.
• Increase in numbers of subscribers using
messaging.
• Increase in situations enabling users to send
SMS’s.
• Increase in number of messages sent (Zlango
fosters shorter, faster communication)
• Increased revenues:
– More messages
– Higher revenues per message (if Zlango
messages are priced higher)
– A portion of users’ fees
 Advantages
• A truly universal product
• Huge global potential
• NO technological unknowns
• Extremely positive reactions from
first users
• Very short time to market
• The ultimate case of viral
marketing
• First mover advantage
• Strong IP position
Market Test Results

• Users enthusiastic about product

• Users Find language friendly and easy
to master
• ZMS usage almost eliminates SMS
usage
• Users express strong desire to own the
product, and recommend it to friends
• High willingness to pay for the product,
per month or per message.
 Status
• First version of product currently in
second market test in a real-life
situation.
• Agreement in principal to launch
product in Israel with major Israeli
operator.
• In discussion with potential partners
in Western Europe, and Asia.
• Extensive patent application filed.
 Market (1) – SMS Huge and
Growing

• Global expenditure on P2P SMS will grow

from over $ 30 billion (2004), to $ 50
billion (2009)
• 960 billion SMS messages sent in 2004
(Source: Ovum)
• P2P SMS traffic in Western Europe alone
was 127 billion in 2004 (source: Yankee
group)
The market (2) Youth Spending on
Mobile Products Substantial and
Growing
 A few Possible Revenue
Streams
• User pays small monthly fee for Zlango
• ZMS (Zlango message) costs slightly more
than an ordinary SMS
• Participants in small groups with their
unique language and icons pay a higher
monthly fee
• Shared revenue from generation of user-
to-system messages
• Various entities pay a fee for inclusion of
their symbols and distribution of their
messages
 Financials
5 year revenue and income
projections:
2005 2006 2007 2008 2009
Countries Europe
Asia 2 10 17 17 17
Pacific 4 6 9 9
Americas 2 5 5 5
Countries (Total) 2 16 28 31 31
Revenues 0.35 11 41 98 154
($
Net margin millions 13% 41% 46% 54%
Net income ) 1.5 17 45 83
Financial Model Assumptions
• About half of world not included in model
(Japan, China, Russia, Africa – were all left
out)
• Only one type of revenue (monthly-fee) was
included in model. All other revenue streams
were left out.
• Very gradual market penetration
• Overall global penetration 1.8 % in year 5
• Penetration rate among youth only 9% in year
5
• Low cost for users, $ 0.5 - $ 1.3 per month
• 50% of all revenues goes to operators and
agents
Significant Long-Term Potential

• May achieve much higher penetration,

usage and revenue numbers.
• May become part of the basic cellular
package (voice, voice-mail, sms, zms…)
• May become the owner and manager of
the graphic repository in many phones,
and part of the core UI.
• Many external opportunities,including
merchandising, books, etc.
Team
• Yoav Lorch – Founder and CEO
An experienced entrepreneur, led one company
from inception to international operations and
market cap of over $ 40 mill. Has extensive
background in languages and writing for youth.

• Ehud Spiegel – CTO

A seasoned technologist, with a very strong
background in cellular technology and intimate
knowledge and experience in implementing
innovative cellular applications.

• David Polonski – Art Director

One of Israel’s top illustrators, with a very broad
and versatile graphic background. Staff member at
the Bezalel Academy of Arts.
Advisory Board
• Nahum Korda – Linguist, head of
knowledge management group, Technion.
• Ilan Neeman – Software specialist,
Manager Messaging Systems, Orange
Israel.
• Ari Rappoport – Founder and CTO
Proficiency, lecturer in computer science
and cognition, The Hebrew University.
• Yair Safrai – Managing Partner, Concord
Ventures
• Sharon Peleg – Founder and CTO Red Bend
Technologies.
Picture Speak