MYCELIUM PAYMENT SYSTEM BASED ON DISTRIBUTED LEDGERS Part 1. What is Mycelium Part 2. Adoption Model Part 3. Financials EFTA01736136

1 VERY LOW COSTS ULTRAMODERN RAPID DEPLOYMENT & SIMPLE MAINTENANCE EFTA01736137

SELF-SUFFICIENT UNLIKE 44 APPLE/ANDROID/SAMSUNG/ ETC. PAYS► DOES NOT USE LARGE CARD NETWORKS' DIGITAL ENABLEMENT PROGRAMS» AND POS NETWORKS EFTA01736138

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MYCELIUM VS CONVENTIONAL EFTA01736140

Mycelium vs Conventional Transactions by distributed ledgers Expensive in-house proprietary transaction engine Merchants' setup costs $10 (ten) Merchants' infrastructure costs are high Both cards and mobile app in-store Single channel focus leads to dangerous weaknesses at a second channel Conventional systems either offer online payments through a number of Online is equal to in-store patches or have no physical offline channels True peer-to-peer payments Peer-to-peer options are illusory, executed through a central server Micro payments enabled *** n/a Consumer fully controls her wallets Mobile wallet or card are the keys to accounts kept beyond consumers' reach EFTA _R1_0O020940 EFTA01736141

Mycelium vs Conventional Distributed Centralized Costs next to zero Expensive Outsourced In-house Self-sufficient Requires intermediaries No single points of failure Can be hacked; can break Requires zero maintenance Has to be constantly taken care of Transaction Engine EFTA01736142

Mycelium vs Conventional Light and Easy Standard Direct access to all tools Requires intermediaries such as POS networks One piece of proprietary hardware Complicated and expensive setup Ordinary Internet access is ok Requires special network access Fully wireless Needs wires and stationary power Modern UI over own tablet/phone Previous generation displays and UI technology Merchants' Setup EFTA01736143

All Channels * Both physical channels (card and smartphone) are equally powerful * Online and in-store payments work in exactly the same manner, with no compromise to security and other important aspect PayPal card? 1404 404 EFTA,1_0O03... EFTA01736144

TRUE PEER-TO-PEER THE SYSTEM IS ACTUALLY BASED ON P2P ARCHITECTURE. BANKS CAN BE BYPASSED IN THE FUTURE WHEN LEGAL FRAMEWORK ALLOWS. close distance - B= NHEATIN -17.1 -IN -cm-cm mesh networking EFTA01736145

Mycelium vs Conventional Full Situational Control by Consumer Funds actually kept on card or wallet Funds are kept centrally; mobile app and card serve as conditional access keys Modern coding: public + private keys Many types of access keys: PINs, passwords, i-bank keyword, CCV, etc. Codes can be changed by customer Most access codes can only be changed by the issuer Cards can be backup by cardholders Takes a trip to a bank or snail mail order Transaction history is at user's side Takes Internet access and number of keys to access transaction history EFTA _R1_0O02094 5 EFTA01736146

SUMMARY OF BENEFITS EFTA01736147

Payments are a form of transportation service * Cost: Mycelium offers a definitive advantage * Speed: Mycelium uses peer-to-peer channels, thus removing interbank dependency — the slowest component of the traditional payments process. In distributed ledger technology, there is no need to trade-off between speed, flexibility, and efficiency * Security: distributed ledgers offer unprecedented security * Comfort and connectivity: contextualized commerce EGTP_I21_0002041 EFTA01736148

Contextualized Commerce • Invisible payments: a platform level approach helps payments fade into the background. • Deriving value from purchase journey: shifting focus away from the payment mechanism to the surrounding e-commerce experience. • Resolving pre- and post-payment needs: this is where the real benefits of Mycelium payments will be unlocked. Removing consumer pain points both before and after payments occur will create the value needed to spur widespread adoption. EFTA01736149

INVESTMENT OPPORTUNITY EFTA01736150

CURRENT STATE OF THE PROJECT OVER 100,000 OF ACTIVE USERS CUSTOMERS' FUNDS: OVER $100 MILLION (BITCOIN NOMINATED), OVER $4 MILLION (FIAT NOMINATED) MYCELIUM CARDS ARE PRODUCTION READY EFTA01736151

Reasons to Invest * 1. The blockchain technology is altering the incumbent payments industry landscape. • 2. Mycelium is one of the most recognized brands in the field of blockchain based payments. EG,I21_00020951 EFTA01736152

Few Amazing Facts About Mycelium Merchants can add lists of goods with tags and photos right into the merchant's console. Consumers can interact with merchants by scanning QR codes: works great for restaurants and merchants who are ready for the trending “buy online pick up in store), concept. • A card can pay another card at a distance of up to 300 feet; no infrastructure needed at all, cards use the proprietary wireless protocol. * Cardholders can change their PIN code using the card keypad, no connection needed. • Any merchant can act as an ATM or a cash accepting top up machine and earn fees. Mycelium does not need a server infrastructure to perform transactions; moreover, its merchants need no POS providers. Mycelium hub costs only 10 dollars and can be used with an ordinary web-router. close distance INTERNET BLOCKCHAIN mesh networking EFTAR I.:L0026-952 EFTA01736153

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mycelium.com 2016 End of Part 1. Other parts: Part 2. Adoption Model Part 3. Financials EFTA01736155