EDI 3.

0 More Tools, Less Cost…

Mark Pattison, Founder and CEO

June 2008
16 Mile has the Solution
What we do:
•16 Mile Solutions develops tools and services that enhance the way
business is conducted across global supply chains. The company
specializes in lowering the cost and complexity of delivering order
information for buyers, suppliers and 3rd party services.

What this means:

•Comparable to what happened in the cell phone industry.
+

•Technological advancements turned cell phones into mobile

information systems i.e. Blackberry.

•Like the revolution in the cell phone industry, 16 Mile has bundled a
variety of value added services and tools into order information
exchange. Combined with a new, less costly pricing model (SaaS) our
supply chain solution is positioned to shake up the billion dollar
industry. 2
The Problem
• EDI (electronic date interchange) communication methods between buyers, suppliers, and
suppliers’ vendors require multiple tasks to complete purchase order to final invoice i.e.
UCC labels, Bill of Lading, Packing list, Advanced Ship Notices
• EDI has limited automation via outdated communication methods
• Manual (phone, fax, or email)
• Costly- based on transactional volume
• Limited Visibility
• Increased commerce with shorter life cycles create costly log jams throughout the supply
chain.
• All this results in less productivity and is very costly to the entire supply chain.

The company that solves the problem with an affordable solution stands
to earn $70 million in five years.
3
Market Opportunity
Worldwide Supplier Relationship Market
(Billions of dollars)

2,500.00

2,000.00

1,500.00

1,000.00

500.00

0.00
Source: ARC Advisory Group 2007
2006 2007 2008 2009 2010 2011
• The supplier relationship market (SRM) is expected to grow at a
compounded rate of 8.2% — from $1.6 billion in 2006 to $2.35 billion
in 2011.
• Today, 35% of small- to medium-size companies — those earning
annual revenues of $30 million to $1 billion — still use manual
processes for communicating with their suppliers.

4
16 Mile OV (OV = order visibility)

Our inaugural product, 16 Mile OV, is a hosted solution

that differs from its competitors if four important ways:
• New Pricing Model: Results in 50-100% lower EDI costs, plus no
charge for transactions to and from suppliers sent via AS2 and
FTP. Others charge by kilobytes for each transaction.
• Multi-dimensional Order Visibility: Delivers real-time, multi-
dimensional order information across supply networks, along
with EDI (electronic data interchange). Others only offer EDI.
• New Technology: Based on new database structure that
integrates data from Oracle, VANs and other back-end systems,
results in better end-to-end management of supply and demand.
• Built-in Tools: Unites EDI and order visibility with tools and
reporting capabilities for vendor performance, event alerts,
inventory tracking, response management, scanned-based
trading, and more.

5
16 Mile OV
Experienced Team
Mark Pattison – Founder and CEO
• Co-founded Front Porch Classics (2000), venture-backed, acquired December 2006
• Founded The Pattison Group (1994), current CEO
• Five-year NFL player (Raiders and Saints), two playoff games
• Football, University of Washington, five bowl games, inducted as Legend

Jim Cantrell – VP of Business Development / Chief Strategic Officer

• Vice President of Business Development for DIcentral, Houston, TX
• Founding partner of E-tran LLC, boutique supply chain consultancy, Houston, TX
• Director, Print Logics, a data management and direct marketing company, Austin, TX
• Manager of West Coast Sales, Checkpoint Systems, Thorofare, NJ
(Note: CTO, CFO, and developers are independent contractors.)

7
Experienced Team
Founder has experienced supply chain issues first-hand:

• Founded 13-year-old branded • Co-founder, 2000

merchandise and import co.
• 1,000s of transactions, 100s of
customers
• 10-year Preferred Vendor of
Starbucks Coffee
• Manufacturer of all Starbucks’
outdoor umbrellas and bases
for North America, Latin
America, and Asia
• Makers of coffee table games
• 700 retail locations, seven
countries
• Family Fun “Toy of the Year”
Award 2002 and 2003
• Angel and VC funding
• Acquired December 2006

8
16 Mile vs. the Competition

Gray boxes = capabilities

9
Market Summary Breakdown
• Of 309,909 U.S.-based businesses, 79,804 fall in in our target market —
companies with $25 million to $1 billion in annual revenue.
• We only need 2,200 companies as customers (2.75%) to reach our annual
revenue goals.

A B

Key:
A = annual revenue
B = number of U-S.-
based companies with
that revenue

10
Pricing Model
Seat Licenses Price Per
Software as a Service (SaaS) Number of Seats Seat

• Based on a seat license and 1 to 10 $ 5,000

11 to 19 $ 4,500
sliding scale
20 to 49 $ 2,700
• Transaction pricing (for VAN-EDI 50 -99 $ 2,100
management): $0.25/kb, 100 to 200 $ 1,700
decreasing if competition Annual seat license 20%

increases. Never below cost plus

30-40%. Setup (Per retailer) $250

Map to client environment by format

X.12 (Custom format)* $2,500

Chart prices derived from competitive analysis
XML $1,000
models between 16 Mile OV and other
solutions operating in the hosted EDI ASCII $500
market. Packet (In increments of 10 $1,000

Training $0

Support $0

11
Milestones
PRODUCT MILESTONES
Beta testing completed January 2007 (with Starbucks)
Product launch May 2008
SALES MILESTONES
CLOSED DEALS: Robins and Meyer, Olympia Sports, Carbon 5, Inmoda, Mello
Sales, Staub USA, The Pattison Group (translating data between them and
retail giants Adidas, Columbia Sportswear, KB Toys, Nike, Reebok, Sam’s
Club, Starbucks, Target, Wal-Mart, PetSmart, Dillards & more)
PENDING PROPOSALS: PetFood.com, Safeway, Kassatex, Venture Products,
Red Wing Shoes, Capacity, K&M International, Brucci, Westgate Home
Fashions plus 20 others
IN DISCUSSIONS: Nordstrom, Starbucks Coffee, Restoration Hardware,
Schenker Logistics, True Religion Jeans, Baden Sports, Zumiez, Sababa Toys,
Chef’n
SALES TEAM: Hired supply chain experts from key competitor, Houston-
based Dicentral.
OTHER MILESTONES
LEGAL: Perkins Coie agreed to provide legal representation as part as its
“Emerging Company” program.
PATENTS: 1 process and 1 technology patent pending for warranty claims
12
facilitation.
Financial Summary
GOAL: Reach 2.75% of our target market for success

Detailed revenue model available upon request

13
Board of Advisors

• DEAN BAKER: Founder of Asset Recovery Specialist Inc. (

www.equipmentrecovery.com), asset management for banks
and leasing companies
• JOHN BAUGHN: Former partner of Accenture for business
and IT architecture, managing over $100 million dollars
• DIANE DEWBREY: CEO/President of Foundation Bank
• TERRY DRAYTON: Co-Founder of Home Grocer, Count Me In,
Ramp Technology Group (www.RampGroup.com)
• DAN NORDSTORM: Former CEO of www.Nordstrom.com,
current CEO of Outdoor Research Company (
www.outdoorresearch.com)

Each advisory member has invested in 16 Mile Solutions.

14
Funding Requirements
Prior Funding: $200,000 from founder
Series A Raise @ $1,500,000
Goal Accomplished
Pre-money valuation: $2.5 million
Post money valuation: $4 million
Preferred shares .35
Series B Raise @1,500,000
Pre-money valuation: $6 million
Preferred shares .37
Capital Raised will allow us to:
Acquire working capital
Hire infrastructure (CTO, CFO, sales, marketing, support)
Launch channel partner program (domestic and international)
Visibility, Efficiency, Lower Costs
Continue public relations, search engine optimization, marketing
Extend features of 16 Mile OV
Complete development of Warranty15Claims (in beta)
Where We’ll Be in 3-5 Five Years

• $70 million in revenue

• More than 2,000 clients worldwide
• Established international channel partnerships
• Next-generation status in retail compliance
• Recognized market leader in automating supply chain
collaboration, communication, and warranty claims
• Exiting — through acquisition by company with
compatible fit . . .

16
EDI 3.0 More Tools, Less Cost…

Mark Pattison, Founder and CEO

712 N. Motor Place Suite 3
Seattle, WA 98103
206.675.1066
206.675.1099
Mark@16MileSolutions.com
www.16MileSolutions.com