#1BEAR STEARNS Presentation to NORTEL Review of Aviator April 2006#2BEAR STEARNS Table of Contents Section 2 3 B E F H A B D A B CONFIDENTIAL Review of Aviator Business Overview Historical Stock Price Performance Wall Street Coverage Current Valuation Historical and Projected Financial Review Officer and Director Profile Shareholder Profile Aviator Corporate Profile Valuation of Aviator Aviator Top-Down Valuation Aviator Sum-of-the-Parts Valuation Enterprise Communications Group Valuation Enterprise Services Valuation Pro Forma Merger Consequences-Nortel Acquires Aviator Transaction Considerations Pro Forma Merger Consequences NØRTEL 8202529, vl#3BEAR STEARNS Section 11 Review of Aviator#4BEAR STEARNS Section 1-12 Business Overview#5BEAR STEARNS Snapshot of Aviator Summary Income Statement FY Ending 9/30 Revenue Growth % EBIT Operating Margin % 2003A $3,796.0 ΝΑ $63.0 1.7 % CONFIDENTIAL Global Communications Solutions (51% Revenue) Large Communications Systems Small Communications Systems 2004A $4,069.0 Converged Voice Applications 7.2 % $324.0 8.0 % 2005E $4,934.0 21.3 % $320.7 6.5 % 2006E $5,316.0 Aviator Aviator is a leading provider of communications systems, applications and services that help enterprises transform their businesses by redefining the way they work and interact with their customers, employees, business partners, suppliers and others. Aviator aims to help its customers optimize their enterprises in order to serve their own customers better, enabling them to reduce costs and grow revenue while preserving the security and reliability of their networks. A key component of Aviator's strategy is to leverage its substantial experience and expertise in traditional voice communications systems to capitalize on the transition of these traditional voice systems to IP telephony systems. Aviator believes its comprehensive suite of IP telephony systems, communications applications and appliances transforms the enterprise communications system into a strategic asset of its customers. Draft of 8202529, v1, printed 10/14/2008 10/14/2008 7.7 % $393.4 7.4 % NORTEL ($ in millions) 2007E $5,635.0 6.0% Maintenance $495.9 8.8% Global Services (49% Revenue) Implementation and Integration Services Rental and Managed Services 40#6BEAR STEARNS Aviator Global Communications Solutions Summary Income Statement FY Ending 9/30 Revenue Growth % EBIT Operating Margin % Large Communications Systems Media servers Media gateways Telephone handsets Contact Center Solutions Extension to Cellular 2004A $2,048.0 ΝΑ CONFIDENTIAL $71.0 3.5 % 2005E $2,275.3 11.1 % $110.6 4.9 % Small Communications Systems Aviator IP Office ■ Telephone handsets Media servers for voice applications Global Communications Solutions Global Communications Solutions sells communications systems and converged voice applications designed for both large and small enterprises. Aviator's offerings in this segment include IP telephony systems, multi-media contact center infrastructure and applications in support of customer relationship management, unified communications applications and appliances, and traditional communications systems. 2006E $2,450.1 Draft of 8202529, v1, printed 10/14/2008 10/14/2008 7.7 % $146.0 6.0 % NORTEL ($ in millions) 2007E $2,597.1 6.0% $189.4 7.3% Converged Voice Applications Voice messaging Unified messaging products Other applications that facilitate and enhance interaction in an enterprise with customers, partners, suppliers and employees 40#7BEAR STEARNS Aviator Global Services Summary Income Statement FY Ending 9/30 Revenue Growth % EBIT Operating Margin % Maintenance Monitors and optimizes customers' network performance to ensure availability. Keeps enterprise communications networks current with the latest software releases, and, in the event of an outage, provides on-site support to help customers recover rapidly. CONFIDENTIAL 2004A $1,761.0 ΝΑ $249.0 14.1 % Global Services 2005E $2,658.7 60.0 % $210.1 7.9 % Global Services is focused on supporting Aviator's customer base with comprehensive, end-to-end global service offerings that enable customers to plan, design, implement, monitor and manage their converged communications networks worldwide. Implementation and Integration Services ■ Helps customers leverage and optimize their multi-technology, multi-vendor environments. ■ Helps enterprises assess, design and install traditional and IP telephony networks, contact centers and unified communications networks. 2006E $2,865.9 7.8 % Draft of 8202529, v1, printed 10/14/2008 10/14/2008 $249.0 8.7 % NORTEL ($ in millions) 2007E $3,037.9 6.0 % $306.5 10.1 % Rental and Managed Services ■ Supports customers' in-house staff and manages complex, multi-vendor, multi- technology networks. ■ Optimizes network performance and configurations, backs up systems, detects and resolves faults, performs moves, adds and changes and manages customers' trouble tickets and inventories. 40#8BEAR STEARNS Aviator-Market Share Analysis CONFIDENTIAL Business Area Voice Services Applications Call Center 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 North America Nortel Aviator NEC Mitel Cisco Inter-Tel 1 2 3 4 Northrop Grumman 5 Verizon 6 IBM Cisco Aviator HP Nortel Aviator Polycom Cisco IBM Microsoft Aviator Nortel Siemens Aspect 26% 21 10 5 5 5 8% 7 5 5 4 3 12% 12 4 2 1 1 36% 22 7 5 1 Siemens 2 Alcatel 3 Aviator 4 Ericsson 5 Nortel 6 Samsung 1 2 3 Siemens 4 Cisco 5 Nokia 6 IBM 1 Geographic Region EMEA 2 3 4 5 6 HP NextiraOne Aviator Nortel Polycom IBM Cisco Microsoft 1 Aviator Nortel 2 3 Alcatel 4 Aspect Draft of 8202529, v1, printed 10/14/2008 10/14/2008 16% 15 11 10 8 4 8.3% 5.0 4.5 3.9 3.5 3.4 11% 9 6 2 1 1 31% S 23 11 5 1 NEC 2 Fujitsu 3 Oki 4 5 6 1 Fujitsu 2 HP 3 Cisco 4 IBM 5 NEC Samsung Nortel LG Electronics 1 2 3 NEC 4 Aviator Nortel NØRTEL Not Available APAC Huawei 22% 9 7 5 5 5 11% 8 7 5 4 55% 20 4 3 40#9BEAR STEARNS Aviator-Product Comparison Review of Large IP PBXs (1,000 + Stations)(¹) Architecture (2) Endpoints (3) Management and Admin(4) Features (5) Security (6) Performance) Total Source: McKinsey Report. CONFIDENTIAL Ratings 15 20 15 20 10 20 100 Aviator S8710 Media Server, G650 Gateway 14 20 11 17.5 8.5 19 90 Cisco IP Communications System 12 19.5 12 17.5 9 17 87 Draft of 8202529, v1, printed 10/14/2008 10/14/2008 Alcatel OmniPCX Enterprise 12 19 12.5 15 5 20 83.5 NØRTEL Shore Tel ShoreTel5 10.5 17.5 11.5 17 5 16.5 78 Siemens HiPath 4000 11 18 11.5 16.5 5.5 13 75.5 40#10BEAR STEARNS Aviator's Challenges in Enterprise Voice Source: BCR, January 2005. (1) Nortel declined the invitation to participate. (2) Includes: Call-control survivability; redundancy and fallover; IP-to-PSTN re-routing, VoIP bandwidth control; QOS support; scalability, standards support and interoperability; and distributed-system networking. (3) Includes verification of endpoint support: IP hard phone, softphone, wireless, analog/fax support, Power-over-Ethernet; unique, specialty and advanced endpoint features, including video. (4) Based on management task completion, interface navigability and intuitiveness, on-screen help, real-time monitoring, reports and reporting. (5) Includes: Validation of 16 basic phone features; verification of common add-on subsystems (E911, voice mail, voice recognition/response, etc.), and evaluation of special and unique "advanced" features. NORTEL (6) Includes: Verification of encrypted call control, VoIP/RTP stream encryption, secure management access, vendor's security documentation, services, security-infrastructure offerings and affiliations. (7) Includes: Traffic load/call-completion testing, interactive/MOS voice-quality tests, latency measurements, verification of high-availability features. CONFIDENTIAL Draft of 8202529, v1, printed 10/14/2008 10/14/2008 40#11BEAR STEARNS CONFIDENTIAL Protecting its current installed base of voice customers Risk of technology substitution from open standard IP-based technologies that could eliminate the need for specialized voice vendors ("Commoditization Effect") Dealing with the threat from IP-Centrex offerings, especially as service providers look for new revenue platforms Well funded competitors like Cisco with significant data credibility NORTEL Changing financial metrics as customers migrate to IP Draft of 8202529, v1, printed 10/14/2008 10/14/2008 40#12BEAR STEARNS Aviator Summary of Recent Acquisitions 2004 12/15/04 11/18/04 10/04/04 08/04/04 2003 Date 11/26/03 10/02/03 2001 04/12/01 03/07/01 02/14/01 CONFIDENTIAL Target Route Science Tenovis Germany GmbH Spectel Tata Telecom (now Aviator GlobalConnect Ltd.) Expanets VISTA Information Technologies, Inc. Quintus Corporation Cyber IQ Systems VPNet Technologies, Inc. Amount Paid $7 M 371 M 106 M 18 M 152 M ΝΑ 30 M ΝΑ Description NORTEL ($ in millions) A maker of adaptive networking software (ANS) for enterprises and service providers. A European-based provider of enterprise communications systems and services. A provider of audio and web conferencing solutions. An India-based communication solutions provider and a distributor of Aviator products in India. A provider of converged communications for mid-sized businesses, and one of the largest resellers of Aviator's products in the United States. Draft of 8202529, v1, printed 10/14/2008 10/14/2008 An IT services business unit that develops Java-based software for contact center platforms, interactive voice response systems, and CRM software. A provider of electronic customer relationship management (CRM) solutions. Developer of data networking products including HyperCommerce, CyberSSL and MonsterSSL. 120M A privately held developer of virtual private network (VPN) solutions and devices. 40#13Section 1-23 Historical Stock Price Performance#14Aviator Stock Price Performance Daily: May 9, 2004-May 9, 2005 Volume 60,000 40,000 D 50,000 30,000 B 20,000 A C E F 10,000 0 5/04 05/24/04: 07/06/04: 07/27/04: 10/26/04: 10/28/04: 11/01/04: A B 7/04 9/04 Announced a voluntary contribution of approx. $111M of its common stock to its pension plan. Volume E 11/04 Announced it had completed cash repurchases of $131.6 million in principal amount of its 11 1/8% senior secured notes during the third fiscal quarter. Announced Q3 '04 EPS of 16 cents versus consensus estimates of 12 cents. Provided guidance for fiscal year 2005 including operating margin between 8.5-9.0% and revenue growth between 25-27% compared to fiscal 2004 revenues of $4.1B. Announced Q4 '04 EPS of 19 cents versus consensus estimates of 18 cents. Commenced a cash tender offer for any and all of its 11-1/8% Senior Secured Notes due 2009. G Price G H I J 1/05 01/25/05: H 3/05 04/19/05: $20.00 5/05 18.00 16.00 14.00 12.00 10.00 8.00 6.00 11/18/04: Announced a redemption for cash all of its outstanding Liquid Yield Option Notes due 2021 ("LYONS") on December 20, 2004. The redemption price was $545.67 per $1,000 principal amount at maturity of LYONS. Price Announced Q1 '05 EPS of 17 cents versus consensus estimates of 18 cents. 02/24/05: Announced the successful completion of a new $400 million five-year unsecured revolving credit facility and the reduction of secured floating rate notes associated with the Tenovis acquisition. Announced Q2 '05 EPS of 9 cents versus consensus estimates of 18 cents.#15Indexed Stock Price Performance Indexed Comparison Graph 130% 120 110 100 90 80 70 60 50 5/04 Aviator 7/04 NASDAQ Source: Thomson One Banker and Company press releases. 9/04 Daily: May 9, 2003-May 9, 2005 11/04 1/05 (1) Global Communications Equipment Composite 3/05 130% 120 110 100 90 80 70 60 50 5/05 (2) Global Enterprise Services Composite#16Section 1-34 Wall Street Coverage Source: Thomson One Banker. (1) Peer group includes Alcatel, Aspect, Cisco, Inter-Tel, InterVoice, Nortel and Polycom. (2) Peer group includes Black Box, Convergys, CGI Group, Getronics and Unisys.#17Wall Street Commentary "Despite the earnings miss and pressure on the shares this morning, we still see some downside risk in sales and margins for the next several quarters. We believe that the year-over-year decline for core Aviator's sales highlights sales of IP telephony products mostly just cannibalizes sales of traditional telephony products and the enterprise telephony industry as a whole has shown and is likely to continue to show limited growth." -Jiong Shao, Lehman Brothers (April 20, 2005) "We believe that most of the issues are temporary, the Tenovis integration wiped out almost 50% of this quarter's EPS and service revenue weakness explains the rest. The Tenovis integration had a highly detrimental effect contributing a loss of $28m in the quarter. The integration of this company is clearly proving to be a more challenging task than envisioned by the company." -Tal Liani, Merrill Lynch & Co. (April 20, 2005) "Despite these reductions to our top-line forecast and an assumed "market-even" growth outlook in our discounted cash flow model we still view the shares as grossly undervalued by the market. While we certainly acknowledge a lower bar has been set with the disappointing results for F2Q, we do not believe the current stock price fairly represents the company's cash-generating potential over the longer term." -Timm Bechter, Legg Mason (April 20, 2005) "We are maintaining our Neutral rating as we expect the current pause in VoIP demand to continue through calendar 2005. We believe that organic growth could be flat year-over-year with flat-to-down gross and net margins. We do not expect VoIP sales to be robust enough to overcome the declining legacy TDM business, in order to give Aviator significant growth to warrant a buy rating." -Gina Sockolow, The Buckingham Research Group (April 20, 2005)#18Aviator Analyst Coverage Analyst Tavis McCourt Gina Sockolow Jiong Shao Scott Coleman Long Jiang Frank Marsala Ehud Gelblum Manuel Recarey Timm Bechter Eric Buck Jason Ader Christin Armacost Samuel Wilson Inder Singh B. Alex Henderson Morgan Keegan Buckingham Research Group Lehman Brothers Morgan Stanley UBS First Albany JP Morgan Kaufman Brothers Bank Legg Mason Janco Partners Thomas Weisel SG Cowen JMP Securities Prudential Smith Barney Rating Market Perform Neutral Neutral Attractive Buy 2 Neutral Neutral Buy Buy Market Perform Peer Perform ΝΑ Strong Buy Overweight Buy Price Target ΝΑ NM $7.40 16.00 13.00 ΝΑ ΝΑ 12.00 21.00 9.00 ΝΑ ΝΑ 20.00 14.00 20.00 Date 05/03/05 04/25/05 04/21/05 04/20/05 04/20/05 04/20/05 04/20/05 04/20/05 04/20/05 04/20/05 04/20/05 04/20/05 04/20/05 04/20/05 04/13/05#19Section 1-45 Current Valuation#20Current Valuation-Aviator CY 2007E CY 2006E CY 2005E Analyst Estimates CY 2007E CY 2006E Stock Price (5/27/05) CY 2005E Stock Price 52-week High Current Value as a Multiple of: 52-week Low Average Last 30 days $9.53 17.76 7.76 9.00 Net Income $396.2 367.3 296.8 Equity Value/ Net Income 11.8x 12.7 15.7 Current Value Fully Diluted Shares Equity Value Enterprise Value 489.298 $4,663.0 3,996.7 Revenue $5,719.5 5,395.8 5,029.5 Revenue 0.70x 0.74 (1 0.79 ($ in millions, except per share data) Selected Balance Sheet Items (3/31/05) Cash Total Debt Shareholders' Equity Total Debt/Total Capitalization EBITDA $788.9 686.9 626.4 Enterprise Value/ EBITDA 5.1x 5.8 6.4 $688.3 22.0 1,238.3 1.7% EBIT $513.8 419.0 338.9 EBIT 7.8x 9.5 11.8#21Section 1-56 Historical and Projected Financial Review (1) Based on 477.043 million basic shares and 20.696 million in-the-money options with a weighted average strike price of $3.89.#22Aviator Historical Financial Review Historical Income Statement Data Fiscal Year Ending September 30 Revenues % Growth Cost of Sales Gross Profit % Gross Margin Operating Expenses Operating Income % Operating Margin Other Income (expense), net Interest Expense Pretax Income Income Taxes (Benefit) Effective Tax Rate Net Income from Cont. Operations 2002 $4,387.0 ΝΑ $2,523.0 $1,864.0 42.5 % $2,218.0 ($354.0 ) (8.1 %) 1.0 (51.0 ($404.0 ) $273.0 NM (677.0 ) 2003 $3,796.0 (13.5 %) $2,157.0 $1,639.0 43.2 % $1,576.0 $63.0 1.7 % (29.0 (78.0 ($44.0 ) $84.0 NM (128.0) 2004 $4,069.0 7.2 % $2,124.0 $1,945.0 47.8 % $1,621.0 $324.0 7.9 % (15.0 (66.0 $243.0 ($49.0 NM 292.0 LTM 3/31/2005 $4,462.0 NM $2,330.0 $2,132.0 47.8 % $1,780.0 $352.0 7.9 % (40.0 (41.0 $271.0 $43.0 15.9 % 228.0 ($ in millions) 6 Months Ended 3/31/05 $2,370.0 NM $1,264.0 $1,106.0 46.7 % $966.0 $140.0 5.9 % (38.0 ) (15.0 $87.0 $18.0 20.7 % 69.0#23Diluted EPS $0.64 = 36 EBITDA $471.0 %EBITDA Margin 11.6 % ($2.47 ) ($158.0 ) (3.6 %) ($0.34 ) $234.0 6.2 % $0.48 $567.4 12.4 % $0.15 $287.4 12.1 %#24Aviator Current Balance Sheet Balance Sheet as of March 31, 2005 Cash and Cash Equivalents Receivables Inventories Deferred Income Taxes, net Other Current Assets Total Current Assets Property, Plant and Equipment Deferred Income Taxes, net Goodwill Other Intangible Assets Other Assets Total Assets Accounts Payable Debt Maturing within one year Payroll and Benefit Obligations Deferred Revenue Other Current Liabilities Total Current Liabilities Long-Term Debt Benefit Obligations Deferred Income Taxes, net Other Liabilities Total Non Current Liabilities Total Shareholders Equity Total Liabilities and Shareholders Equity Source: Company 10-K for period ended September 30, 2004 and Press release for period ended March 31, 2005. Shown as reported. ($ in millions) $855 793 364 69 139 $2,220 $747 360 939 390 187 $4,843 $403 74 289 234 365 $1,365 114 1,595 119 411 $2,239 1,239 $4,843#25Aviator Financial Review Income Statement Summary FYE September 30, Revenue % Growth EBITDA % Margin EBIT % Margin Diluted EPS(¹) % Growth First Call EPS LTGR Source: Earnings release for period ended March 31, 2005. 2003A $3,769.0 ΝΑ $229.0 6.1 % $58.0 1.5 % ΝΑ ΝΑ 10.0 % 2004A $4,069.0 8.0 % $471.0 11.6 % $324.0 8.0 % $0.64 ΝΑ 2005E $4,934.0 21.3 % $615.4 12.5 % $320.7 6.5 % $0.54 (15.5 %) ($ in millions, except per share data) 2006E 2007E $5,316.0 7.7 % $659.5 12.4 % $393.4 7.4 % $0.70 29.4 % $5,635.0 6.0 % $769.2 13.7 % $495.9 8.8 % $0.78 11.3 %#26Section 1-67 Officer and Director Profile Source: Aviator public filings, Wall Street research, and Bear Stearns estimates. (1) Based on 480.014 million basic shares and 20.696 million in-the-money options with a weighted average strike price of $3.89.#27Aviator Organizational Chart Jocelyne J. Attal Chief Marketing Officer Louis J. D'Ambrosio Group Vice President, Global Sales and Channels and Marketing Thomas A. Lesica Group Vice President, Global Information Technology and Business Operations Donald K. Peterson Chairman & Chief Executive Officer Maryanne DiMarzo Sr. Vice President, Human Resources Karyn Mashima Sr. Vice President, Strategy and Technology Ravi Sethi President, Avaya Labs Pamela F. Craven Sr. Vice President, General Counsel & Secretary Patricia R. Hume Global Vice President, Small and Medium Business Solutions Garry K. McGuire Chief Financial Officer and Sr. Vice President, Corporate Development Michael C. Thurk Group Vice President, Enterprise Communications Group David P. Johnson Group Vice President, Europe, Middle East and Africa Francis M. Scricco Group Vice President, Avaya Global#28Director Profile(¹) Board Composition Insiders Outsiders Total Directors Donald K. Peterson Joseph P. Landy Mark Leslie Anthony P. Terracciano Bruce R. Bond Director Since 2002 2003 2001 2003 2002 Term Expires Age 55 2007 2007 2007 2007 2006 43 58 65 58 1 10 11 Position Chairman and CEO Co-president of Warburg Pincus Managing director of Leslie Ventures 9.1 % 90.9 100.0 % Vice Chairman, American Water Works Company Former chairman and CEO of Picture Tel Corporation Description Previously, Mr. Peterson had been executive vice president and chief financial officer of Lucent Technologies from 1996-2000. He has also served in various capacities at Northern Telecom, State Mutual Life Assurance Company and Nortel. He is a member of the board of directors of Reynolds and Reynolds Co.; a member of the board of trustees of Worcester Polytechnic Institute; a member of the Council on Foreign Relations; a member of the World Economic Forum; a member of the board of overseers of the Amos Tuck School of Business Administration, and a trustee for the Committee for Economic Development. Mr. Landy has been co-president of Warburg Pincus LLC since January 2002 and a managing general partner since October 2002. Mr. Landy is also a member of the board of Indus International Inc., Neustar, Inc., The Cobalt Group and ezGov, Inc. Mr. Leslie is currently the managing director of Leslie Ventures, a private investment company. He is also an adjunct professor at Stanford Graduate School of Business and Stanford University Graduate Engineering. Mr. Leslie served as chairman of the board of Veritas Software Corporation until December 2001 and remains on the board as a director. Mr. Leslie has also worked at Leslie Consulting (owner) and Rugged Digital Systems (CEO). Mr. Leslie is a director of WebEx Communications, Inc. and a number of privately held high-technology corporations. Mr. Terracciano is vice chairman, American Water Works Company, Inc. and is the former chairman of Dime Bancorp. He has held executive positions with First Union Corporation, First Fidelity Bancorporation, Mellon Bank Corp. and Chase Manhattan Bank. Mr. Bond is the former chairman and CEO of Picture Tel Corporation. Mr. Bond is a retired global telecommunications executive with 23 years of experience in the Bell System, including Ohio Bell, AT&T, US West and Mountain Bell. He has also spent six years with British Telecom, in London, UK, responsible for transforming the Products and Services Group as well as leading the National Business Communications Group. Beneficial Ownership/ (% O/S) 5,784,834 1.3% 70,095 NM 98,721 NM 148,343 NM 49.908 NM#29Director Profile (¹) (cont.) Directors Dan C. Stanzione Ronald L. Zarrella Philip A. Odeen Hellene S. Runtagh Paula Stern Richard F. Wallman Director Term Since 2000 2002 2002 2003 2002 2003 Expires Age 2006 59 2006 2005 2005 2005 2005 54 69 56 59 53 Position President Emeritus, Bell Laboratories and former COO of Lucent Technologies Chairman and CEO of Bausch & Lomb Retired Chairman of TRW Inc. Former President and CEO of Berwind Group Chairwoman of The Stern Group, Inc. Former Senior Vice President and Chief Financial Officer of Honeywell International Inc. (1) Source: January 4, 2005 Proxy and Company Website. Description Dr. Stanzione, president emeritus, Bell Laboratories, served as chief operating officer of Lucent Technologies, Inc. from November 1997 to October 1999 and as the president of Bell Laboratories at Lucent. Dr. Stanzione is also a director of Quest Diagnostics, Inc. Mr. Zarrella is chairman and CEO of Bausch & Lomb. He was president of General Motors North America before returning to Bausch & Lomb as chairman and CEO in November 2001. He was previously with Bausch & Lomb from 1985 through 1994, first as president of its international division, then as president and COO. Mr. Zarrella is also a member of the board of US FIRST (For Inspiration and Recognition of Science and Technology). Mr. Odeen is the retired chairman of TRW Inc. Mr. Odeen was president and chief executive officer of BDM, which TRW acquired in 1997, and directed its growth and evolution as a multi-national information technology (IT) firm. Mr. Odeen has served in senior positions with the Office of the Secretary of Defense and the National Security Council staff. Mr. Odeen is also a member of the board of Convergys Corporation, The Reynolds and Reynolds Company and WGL Holdings, Inc. Ms. Runtagh is the former president and CEO of Berwind Group, an enterprise with businesses in multiple industries. Prior to joining Berwind, from 1997 to 2001, Ms. Runtagh held senior level positions at Universal Studios and General Electric Company. Ms. Runtagh is also a member of the board of Covad Communications Group and Lincoln Electric Holdings. Dr. Stern is chairwoman of The Stern Group, Inc., an economic analysis and international business and trade advisory firm. She is currently a member of the US President's Advisory Committee for Trade Policy and Negotiations and previously served as chairwoman of the US International Trade Commission. Dr. Stern is also a member of the board of Avon Products, Inc., Hasbro, Inc. and The Neiman Marcus Group. Mr. Wallman is the former senior vice president and chief financial officer of Honeywell International Inc. Mr. Wallman previously served as chief financial officer of AlliedSignal Inc., prior to its merger with Honeywell. He also held various positions at IBM Corporation and Chrysler Corporation. Mr. Wallman is also a member of the board of Ariba, Inc., ExpressJet Holdings, Inc., Hayes-Lemmerz and Lear Corporation. Beneficial Ownership/ (% O/S) 125,942 NM 64,939 NM 125,131 NM 51,908 NM 51,213 NM 14,016 NM#30Section 1-78 Shareholder Profile (1) Source: January 4, 2005 Proxy and Company Website.#31Aviator Shareholder Profile Institutional Ownership(¹) Warburg Pincus(²) Dodge & Cox Fidelity Management & Research Lord, Abbett & Co. Barclays Global Investors Friess Associates SSgA Funds Management Vanguard Group Wellington Management AIM Management Group Calamos Advisors Top 10 Institutions Top 15 Institutions Top 20 Institutions All Other Institutions Total Institutions Insider Ownership Donald Peterson Louis D'Ambrosio Michael Thurk Other Officers and Directors Total Insiders Shares Held 47,955,205 24,811,519 16,979,323 16,214,594 15,082,667 12,913,000 11,960,949 11,883,167 11,103,715 10,080,020 7,282,718 186,266,877 216,434,130 236,594,164 131,293,886 367,888,050 1,250,174 328,500 214,130 1,792,804 1,013,384 2,806,188 % of Total 10.0 % 5.2 3.5 3.4 3.1 2.7 2.5 2.5 2.3 2.1 1.5 38.8 % 45.1 49.3 27.4 76.6 % 0.3 % 0.1 0.0 0.4 % 0.2 0.6 %#32Other Shareholders Basic Shares Outstanding 109,320,035 480,014,273 22.8 100.0 %#33Section 1-89 Aviator Corporate Profile (1) Source: LionShares. (2) Holdings obtained at a cost basis of approximately $9.16 per share.#34Aviator Profile(¹) State of Incorporation Headquarters Capital Stock Shareholder Meetings Delaware Basking Ridge, NJ 1,700,000,000 authorized common shares (480,014,016 basic shares outstanding). 200,000 authorized preferred shares (none outstanding). Annual Meeting: Exact date and time determined by Board of Directors (usually February). Special Meeting: Special shareholder meetings can be called by (i) the Chairman of the Board or (ii) the majority of the directors of the Board. Shareholders can not call special meetings. Notice: Notice of a meeting must be given to all shareholders entitled to vote at least 10 business days but not more than 60 days in advance of the meeting. Record Date: Determined by the Board of Directors; may not be more than 60 days prior to nor less than 10 days before the related shareholder meeting, dividend, or other distribution. Business: Must be brought before meeting by (i) Board of Directors or presiding officer or (ii) on behalf of any stockholder of record who submits a timely request by certified mail (return receipt requested) that the proposal be included in the Company's proxy statement. Such shareholder requests must comply with the provisions of Rule 14a-8 of the SEC act of 1934, as amended.#35Aviator Profile (cont.)(¹) Directors Cumulative Voting Shareholder Action by Written Consent Actions Requiring Super Majority Shareholder Vote Number: Currently eleven directors; number determined by majority vote of directors then in office. Board must consist of at least three directors. Staggered Terms: Yes. Nomination: New Directors can be nominated by (i) the Board or (ii) any shareholder who provides proper and timely notice. For notice to be proper and timely, written notice must be made to the Secretary of the Corporation not later than the close of business on the 45th calendar day nor earlier than the close of business on the 75th calendar day prior to the first anniversary of the preceding year's annual meeting. Vacancies: Vacancies and newly created directorships are filled by a majority of the directors then in office, including vacancies as a result of removal or an enlargement of the board. Removal: Any or all Directors may be removed for cause by a majority of shareholders at any annual or special shareholder meeting. No (default Delaware state statute). Yes; unanimous written consent of shareholders required (default Delaware statute). 80% shareholder vote required to amend articles V, VIII and IX of the Charter including: Election of directors ● Re-election/removal of directors (1) Sources: SharkRepellent.net, Company Corporate Charter as amended on 1/12/03 and Amended and Restated By-laws.#36Aviator Profile (cont.)(¹) Amendments Officer and Director Indemnification Shareholder Rights Plan Corporate Charter: As seen above, 80% vote required to amend certain provisions of relating to director voting and constituency. By-laws: The by-laws may be amended by at least a majority of the total number of directors then necessary to constitute a full Board. Any by-law may be further amended or reinstated by a majority of shareholders by vote at either an annual or special shareholder meeting (provided the amendment is timely included in order of business). All Officers and Directors of the Company are fully indemnified by the Company unless they are found to have not acted in good faith. Yes, triggered at 15%. (1) Sources: SharkRepellent.net, Company Corporate Charter as amended on 1/12/03 and Amended and Restated By-laws.#37Section 210 Valuation of Aviator (1) Sources: SharkRepellent.net, Company Corporate Charter as amended on 1/12/03 and Amended and Restated By-laws.#38Section 2-111 Aviator Top-Down Valuation#39Summary Valuation of Aviator Calendar Year Ending December 31, Valuation Method Discounted Cash Flow Analysis Comparable Company Analysis Comparable Acquisition Analysis BSC RE ENCE RANGE Add: Cash Option Proceeds Less: Total Debt Minority Interest Total Adjustments Gross Equity Value Gross Diluted Shares (M) Equity Value Per Share Stock Price (05/27/05) Premium/(Discount) Enterprise Value Range $4,500 $4,500 $5,500 $4,500 $688.3 80.4 $22.0 0.0 $746.7 $5,246.7 497.739 $10.54 $9.53 10.6 % $5,750 $5,500 $6,500 $6,250 $688.3 212.0 $22.0 0.0 $878.3 $7,128.3 508.173 $14.03 $9.53 47.2 % Revenues 0.83 X 0.89 0.83 X 0.89 1.02 X 1.09 0.83 X Aviator Enterprise Value Range as a Multiple of CY 2006E/2005E Net Income (¹) 0.89 I 1.07 X 1.14 1.02 X 1.09 1.20 X 1.29 1.16 X 1.24 EBITDA 6.6 X 7.2 6.6 X 7.2 8.0 X 8.8 28 6.6 X 7.2 T - 8.4 X 9.2 10.7 X 13.3 8.0 10.7 X 8.8 9.5 X 10.4 9.1 X 10.0 X 13.3 13.1 X 16.2 10.7 X 13.3 EBIT 13.7 13.8 X X 17.0 17.3 13.1 13.8 X X 16.2 17.3 15.5 16.5 X X 19.2 20.6 14.9 X 18.4 13.8 X 17.3 17.1 X 21.5 16.5 X 20.6 19.1 X 24.0 18.5 X 23.2 Revenues $5,395.8 5,029.5 $5,395.8 5,029.5 $5,395.8 5,029.5 5,029.5 Assumes 20.696 million in-the-money options at a weighted average strike price of $3.89 and 31.130 million in-the-money options at a weighted average strike price of $6.81. CY 2006E/2005E EBITDA $5,395.8 $686. ($ in millions) $686.9 $419.0 626.4 338.9 EBIT $686.9 $419.0 626.4 338.9 $686.9 626.4 626.4 $419.0 338.9 338.9 Net Income $374.8 298.7 $374.8 298.7 $374.8 298.7 $374.8 298.7#40Valuation Matrix Premium Over: Stock Price (05/27/05) 52-Week High 52-Week Low Average Last 30 days x Shares Outstanding plus Exercisable Options - Option Proceeds Equity Value + Debt + Minority Interest - Cash Enterprise Value Equity Value as a Multiple of: CY 2007E Net Income CY 2006E Net Income CY 2005E Net Income Enterprise Value as a Multiple of: CY 2007E Revenue CY 2006E Revenue CY 2005E Revenue CY 2007E EBITDA CY 2006E EBITDA CY 2005E EBITDA $9.53 17.76 7.76 9.00 $396.2 367.3 296.8 $5,719.5 5,395.8 5,029.5 $788.9 686.9 626.4 Market $9.53 0.0 % (46.3 22.8 5.9 497.739 $80.4 $4,663.0 $22.0 688.3 $3,996.7 11.8 X 12.7 15.7 0.70 X 0.74 0.79 5.1 X 5.8 6.4 $10.00 4.9% (43.7) 28.9 11.2 497.739 $80.4 $4,896.9 $22.0 688.3 $4,230.6 12.4x 13.3 16.5 0.74x 0.78 0.84 5.4x 6.2 6.8 Note Financial projections based on Wall Street equity research and Bear Stearns Investment Banking estimates. 8.2x (1) Multiple of Equity Value. $11.00 15.4% (38.1) 41.8 22.3 497.739 $80.4 $5,394.7 $22.0 688.3 $4,728.4 13.6x 14.7 18.2 0.83x 0.88 0.94 6.0x 6.9 7.5 9.2x ($ in millions, except per share data) Potential Price per Share $12.00 25.9% (32.4) 54.6 33.4 497.739 $80.4 $5,892.4 $22.0 688.3 $5,226.1 14.9x 16.0 19.9 0.91x 0.97 1.04 6.6x 7.6 8.3 10.2x $13.00 36.4% (26.8) 67.5 44.5 508.173 $212.0 $6,394.2 $22.0 688.3 $5,727.9 16.1x 17.4 21.5 1.00x 1.06 1.14 7.3x 8.3 9.1 11.1x $14.00 46.9% (21.2) 80.4 55.6 508.173 $212.0 $6,902.4 $22.0 688.3 $6,236.1 17.4x 18.8 23.3 1.09x 1.16 1.24 7.9x 9.1 10.0 12.1x#41CY 2006E EBIT CY 2005E EBIT 419.0 338.9 X 9.5 11.8 10.1 12.5 11.3 14.0 12.5 15.4 13.7 16.9 14.9 18.4#42Discounted Cash Flow Analysis PV of Period Cash Flows PV of Terminal Value PV of Enterprise Implied FCF Growth Rate PV per Share(¹) PV of Period Cash Flows PV of Terminal Value PV of Enterprise Implied FCF Growth Rate PV per Share(¹) PV of Period Cash Flows PV of Terminal Value PV of Enterprise Implied FCF Growth Rate PV per Share(¹) PV of Period Cash Flows PV of Terminal Value PV of Enterprise Implied FCF Growth Rate PV per Share(¹) WACC 15.00% 16.00% 17.00% 18.00% TV-Forward Revenue Multiple 1.00x 0.85x $1,345.3 3,075.8 $4,421.11 6.8 % $10.32 $1,315.7 2,960.3 $4,276.0 7.7 % $10.03 $1,287.0 2,850.1 $4,137.1 8.6 % $9.76 $1,259.5 2,744.9 $4,004.3 9.6 % $9.49 $1,345.3 3,618.6 $4,963.89 7.9 % $11.41 $1,315.7 3,482.7 $4,798.4 8.9 % $11.08 $1,287.0 3,353.0 $4,640.1 9.8 % $10.76 $1,259.5 3,229.3 $4,488.7 10.8 % $10.46 1.15x $1,345.3 4,161.3 $5,506.68 8.8 % $12.49 $1,315.7 4,005.1 $5,320.8 9.8 % $12.12 $1,287.0 3,856.0 $5,143.1 10.7 % $11.76 $1,259.5 3,713.6 $4,973.1 11.7 % $11.42 TV-Forward EBITDA Multiple 7.5x 6.5x $1,345.3 3,539.5 $4,884.87 7.8 % $11.25 $1,315.7 3,406.6 $4,722.3 8.7 % $10.92 $1,287.0 3,279.8 $4,566.9 9.7 % $10.61 $1,259.5 3,158.7 $4,418.2 10.6 % $10.32 $1,345.3 4,084.1 $5,429.41 8.7 % $12.34 $1,315.7 3,930.7 $5,246.4 9.6 % $11.97 $1,287.0 3,784.4 $5,071.5 10.6 % $11.62 $1,259.5 3,644.7 $4,904.1 11.5 % $11.29 8.5x $1,345.3 4,628.6 $5,973.95 9.4 % $13.42 $1,315.7 4,454.8 $5,770.5 10.4 % $13.02 $1,287.0 4,289.0 $5,576.0 11.3 % $12.63 $1,259.5 4,130.6 $5,390.1 12.3 % $12.26 Note: Financial projections based on Wall Street equity research and Bear Stearns Investment Banking estimates. TV-Forward EBIT Multiple 10.0x 9.0x $1,345.3 3,419.5 $4,764.87 7.6 % $11.01 $1,315.7 3,291.2 $4,606.8 8.5 % $10.69 $1,287.0 3,168.6 $4,455.7 9.4 % $10.39 $1,259.5 3,051.6 $4,311.1 10.4 % ($ in millions, except per share data) $10.10 $1,345.3 3,799.5 $5,144.82 8.3 % $11.77 $1,315.7 3,656.8 $4,972.5 9.2 % $11.42 $1,287.0 3,520.7 $4,807.7 10.1 % $11.09 $1,259.5 3,390.7 $4,650.2 11.1 % $10.78 11.0x $1,345.3 4,179.4 $5,524.77 8.8 % $12.53 $1.315.7 4,022.5 $5,338.2 9.8 % $12.15 $1,287.0 3,872.8 $5,159.8 10.7 % $11.80 $1,259.5 3,729.8 $4,989.2 11.7 % $11.46 TV-Forward Unlevered NI Multiple 15.0x 16.0x $1,345.3 4,012.3 $5,357.59 14.0x $1,345.3 3,510.7 $4,856.06 7.7 % $11.19 $1,315.7 3,378.9 $4,694.6 8.7 % $10.87 $1,287.0 3,253.1 $4,540.2 9.6 % $10.56 $1,259.5 3,133.0 $4,392.5 10.6 % $10.27 $1,345.3 3,761.5 $5,106.82 8.2 % $11.69 $1,315.7 3,620.3 $4,935.9 9.1 % $11.35 $1,287.0 3,485.5 $4,772.5 10.1 % $11.02 $1,259.5 3,356.8 $4,616.3 11.0 % $10.71 8.6 % $12.19 $1,315.7 3,861.6 $5,177.3 9.5 % $11.83 $1,287.0 3,717.9 $5,004.9 10.5 % $11.49 $1,259.5 3,580.6 $4,840.1 11.4 % $11.16#43Free Cash Flow Analysis-WholeCo Revenue EBITDA Depreciation & Amortization EBIT EBIT Margin Taxes Tax Rate Unlevered Net Income Depreciation & Amortization (Increase)/Decrease in Working Capital Capital Expenditures & Additions to Intangible Assets Other Cash Flows 2005 $4,934.0 $615.4 (294.7 $320.7 6.5 % ($38.7 ) 12.1 % $282.0 $294.7 (49.1 (155.2 ) 3.4 2006 $5,316.0 $659.5 (266.1 $393.4 7.4 % ($42.8 10.9 % $350.6 $266.1 (65.2 (172.7 9.6 Projected FYE September 30, 2007 2008 $5,973.1 $5,635.0 Unlevered Free Cash Flow $3,75.8 $388.4 Note: Financial projections based on Wall Street equity research and Bear Stearns Investment Banking estimates. Note: Discounted back to May 01, 2005. (1) Assumes $855.0 million cash, $80.4 million option proceeds, $188.0 million debt and 500.710 gross diluted shares. $769.2 (273.3 $495.9 8.8 % ($109.1 ) 22.0 $386.8 $273.3 (26.0 (171.6 (11.4 $451.1 $847.9 (280.5 $567.4 9.5 % ($192.9 34.0 % $374.5 $280.5 (25.5 (173.5 (9.0 $447.1 2009 $6,331.6 $952.8 (288.0 $664.8 10.5 % ($226.0 ) 34.0 % $438.8 $288.0 (23.8 (175.4 (9.8 $517.7 ($ in millions) 2010 $6,711.5 $1,010.0 (305.3 $704.7 10.5 % ($239.6 34.0 % $465.1#44% Growth ΝΑ 3 % 16 % %) 16 %#45Comparable Company Trading Analysis-Aviator Aviator Enterprise Communications Alcatel Aspect Cisco Inter-Tel InterVoice Nortel Polycom Mean Median Enterprise / Telecom Services Black Box Convergys CGI Group Getronics Unisys Mean Median Company Aviator-Implied Enterprise Value Enterprise Communications Alcatel Aspect Cisco Inter-Tel InterVoice Nortel Polycom Stock Price 05/09/05 $9.08 10.95 9.02 18.21 19.23 11.00 2.62 15.66 34.21 13.04 5.61 1.62 6.88 Equity Enterprise Value Value $4,185.6 $ 3,518.6 15,286.5 575.3 117,893.7 588.3 434.9 9,330.1 1,562.4 607.6 1,862.9 2,506.0 1,372.2 2,320.6 14,812.2 415.5 101,368.7 373.4 394.7 10,079.1 1,347.5 637.4 2,163.4 2,684.5 1,335.0 2,711.2 Enterprise Value/CY 2005E Revenue EBITDA EBIT 0.70 X 0.88 X 1.12 3.93 0.83 2.35 1.14 2.33 1.80 X 1.14 1.14 X 0.81 0.82 0.39 0.46 0.72 X 0.81 $10.35 12.69 40.95 9.78 25.07 12.94 24.90 5.6 X 12.98 9.62 9.73 5.38 6.14 6.8x 4.9 11.1 5.8 11.7 12.6 10.1 9.0 X 10.1 8.3 X 5.6 5.4 6.1 5.6 6.2 X 5.6 $10.02 7.59 15.35 8.80 16.10 17.31 14.18 Enterprise/Telecom Services Black Box Convergys CGI Group Getronics. Unisys Note: Financial projections based on Wall Street equity research and Bear Stearns Investment Banking estimates. 11.90 8.51 8.30 9.15 8.55 10.4x 9.6x 6.6 12.6 6.4 15.1 19.9 13.9 12.0x 12.6 9.6x 9.1 8.1 9.7 27.3 12.8x 9.6 $7.99 5.94 10.03 5.85 11.75 14.96 10.93 7.98 7.64 6.95 8.09 20.02 ($ in millions, except per share amounts) Enterprise Value/CY 2006E EBITDA EBIT Revenue 0.65 X 0.85 X 1.06 3.53 0.77 2.11 1.08 2.10 1.64 X 1.08 0.95 X 0.76 0.75 0.36 0.44 0.65 X 0.75 $10.63 12.87 39.51 9.78 24.28 13.12 24.17 11.74 9.68 9.58 5.42 6.28 5.1 X 6.4 X 4.3 9.9 5.1 9.2 9.1 8.5 ävää a 7.5 X 8.5 6.7 X 5.1 4.8 5.1 4.3 5.2 X 5.1 $10.35 7.35 15.19 8.49 14.20 14.06 13.16 10.66 8.55 8.11 8.56 7.36 8.4 X 9.0 X 5.4 11.2 5.8 11.4 12.5 11.5 9.6 X 11.2 8.0 X 8.2 6.8 6.7 10.0 7.9 X 8.0 $9.06 6.01 10.89 6.40 11.05 12.01 11.14 8.17 8.38 7.21 7.13 9.88 CY 2005E 15.7 X 14.5 X 15.8 19.3 13.8 18.4 29.7 20.3 18.8 X 18.4 14.8 X 13.7 12.5 11.5 NM 13.1 X 13.1 $10.08 10.86 12.91 9.68 12.38 19.09 13.53 10.26 9.62 8.89 8.27 ΝΑ P/E CY 2006E 12.7 X 12.0 X 13.5 17.0 12.0 16.9 18.6 17.2 15.3 X 16.9 12.5 X 12.1 10.8 9.0 19.7 12.8 X 12.1 $10.33 11.37 13.98 10.32 13.89 15.12 14.12 10.65 10.36 9.40 8.10 15.92#46#47Comparable Transaction Multiples and Implied Valuation-Aviator Acquiror Enterprise Communications ScanSoft Avaya Polycom Alcatel Nortel InterVoice Enterprise/Telecom Services Nortel IBM Warburg-Providence Cisco Avaya CGI GTCR Acquiror Enterprise Communications ScanSoft Avaya Polycom Alcatel Nortel InterVoice Enterprise/Telecom Services Nortel IBM Warburg-Providence Cisco Avaya CGI GTCR Nuance Tenovis Picture Tel Genesys Periphonics Brite Voice Expanets AMS Syniverse Aviator-Implied Valuation PEC Solutions Corio Telcordia NetSolve Target Nuance Tenovis Picture Tel Target Genesys Periphonics Brite Voice Telcordia NetSolve Expanets AMS Syniverse PEC Solutions Corio Transaction Date 05/09/2005 11/18/2004 05/22/2001 09/28/1999 08/23/1999 04/26/1999 04/26/2005 01/25/2005 11/18/2004 09/09/2004 11/26/2003 03/09/2004 02/14/2002 Equity Value $212.5 370.5 357.7 1,526.8 419.6 172.0 471.1 182.0 1,350.0 128.0 152.0 858.0 770.0 Target Enterprise Value $113.8 635.5 358.4 1,465.3 392.0 159.5 448.0 174.1 1,350.0 89.0 152.0 795.7 770.0 Revenue 1.49 X 1.00 0.92 7.25 2.27 0.97 1.65 X 2.94 1.53 2.21 0.36 0.78 2.45 $16.21 11.35 10.56 72.93 23.86 11.05 $17.77 30.46 16.57 23.27 5.02 9.21 25.64 Enterprise Value/Forward EBITDA ΝΑ 6.5 X 6.7 26.1 14.7 10.5 11.9 X ΝΑ 7.7 ΝΑ ΝΑ 8.9 6.3 ΝΑ 9.48 9.73 33.57 19.56 14.40 $16.12 ΝΑ 10.96 ΝΑ ΝΑ 12.37 9.24 EBIT 49.5 X ΝΑ 15.7 33.8 19.9 16.8 13.2 X NM 8.9 NM NM 17.3 7.4 NM ΝΑ 11.55 23.14 14.24 12.25 $9.95 ΝΑ 7.19 ΝΑ ΝΑ 12.57 6.23 Note: Based on Aviator's Forward Revenue of $4934.0 million, Forward EBITDA of $615.4 million, Forward EBIT of $320.7 million, and Forward Net Income of $276.2 million. Note: Based on Aviator's Cash of $855.0 million, Debt of $188.0 million, and Option Proceeds of $80.4 million. ($ in millions) Forward P/E 42.1 X ΝΑ 20.7 53.0 31.1 27.4 22.5 X NM ΝΑ NM ΝΑ 31.3 ΝΑ NM ΝΑ 11.58 29.39 17.31 15.27 $12.57 ΝΑ ΝΑ ΝΑ ΝΑ 17.42 ΝΑ#48Weighted Average Cost of Capital Analysis-Aviator Assumptions Risk-free Rate(¹) Market Risk Premium(²) Aviator Marginal Tax Rate Debt/ Equity (4) 10.0 % 20.0 30.0 40.0 50.0 Debt/ Equity (4) 10.0 % 16.7 23.1 28.6 33.3 20.0 30.0 40.0 50.0 2.76 2.97 3.18 3.38 16.7 23.1 28.6 33.3 4.39 % 7.20 12.0 1.66 1.78 1.90 2.03 WACC Calculation-Based on Aviator's Unlevered Beta Debt/ Levered Beta (5) Capitalization 9.1% 2.56 Cost of Equity(6) 22.8% 24.3 25.8 27.3 28.7 Unlevered Beta Calculation Comparable Company Cost of Equity(7) 15.4% Enterprise Communications Alcatel Aspect Cisco 16.3 17.2 18.1 19.0 Inter-Tel InterVoice Nortel Polycom Mean Enterprise/Telecom Services Black Box Convergys Corporation CGI Group Getronics Unisys Mean Consolidated Mean Aviator WACC Calculation-Based on Industry Average Unlevered Beta Debt/ Capitalization 9.1% Levered Beta (6) 1.53 6.00% 21.2% 21.1 21.0 21.0 20.9 6.00% 14.5% 7.00% 21.3% 14.5 14.5 14.4 14.4 21.3 21.2 21.2 21.2 7.00% 14.6% 14.6 14.7 14.7 14.7 21.4 21.4 21.5 21.5 Barra Beta 1.62 1.64 14.8 14.9 14.9 15.0 1.45 1.32 1.41 2.21 1.61 1.61 Pre-Tax Cost of Debt 8.00% 21.4% 1.24 1.14 1.00 1.99 1.75 1.43 1.53 2.44 Pre-Tax Cost of Debt 8.00% 14.7% Debt/Equity (3) 39.1% 0.1 0.0 0.0 2.4 40.1 0.0 11.7% 9.00% 21.4% 21.6 21.7 21.7 21.8 9.00% 14.7% 14.9 15.1 15.2 15.3 6.7% 18.1 14.7 15.1 45.3 20.0% 15.1% 4.5 Note: Based on Aviator's Forward Revenue of $4934.0 million, Forward EBITDA of $615.4 million, Forward EBIT of $320.7 million, and Forward Net Income of $276.2 million. Note: Based on Aviator's Cash of $855.0 million, Debt of $188.0 million, and Option Proceeds of $80.4 million. Unlevered Beta(4) 21.7 21.9 22.0 22.1 1.20 1.64 1.45 1.32 1.38 1.63 1.61 1.46 10.00% 21.5% 15.1 15.3 15.4 15.6 1.17 0.98 0.89 1.76 1.25 1.21 1.36 2.35 10.00% 14.8%#49Section 2-212 Aviator Sum-of-the-Parts Valuation Note: Barra Beta as of May 9, 2005. WACC = Kd * D/(D+E) + Ke * E/(D+E) (1) Yield on 20-year Treasury Bond as of March 9, 2005. (2) Long-term horizon expected equity risk premium. Source: Ibbotson Associates. (3) Total debt divided by market value of equity. (4) Unlevered Beta = Predicted Beta / (1+ (1-tax)*D/E). (5) Levered Beta - Unlevered Beta* (1+(1-tax) *D/E)). (6) Cost of Equity Risk-free Rate + (Levered Beta * Market Risk Premium) + Market Capitalization Premium.#50Sum-of-the-Parts Valuation Valuation Method Global Communications Group Global Services BSC REFERENCE RANGE Enterprise Value Range $2,000 $2,500 $4,500 $2,500 $3,750 $6,250 Revenues 0.80 X 0.86 0.86 0.92 0.83 X 0.89 X T I T 1 1.01 X 1.08 1.29 1.38 1.16 X Value Range as a Multiple of CY 2006E/2005E EBITDA 7.8 X 9.1 5.8 6.1 6.5 X 1.24 7.18 T I I I I 9.8 X 11.3 16.7 8.7 9.2 9.1 X 12.7 X 9.97 9.5 11.4 10.7 X 13.3 EBIT I 15.9 X 20.9 14.9 X Unlevered Net Income 18.4 14.5 14.2 10.8 17.1 12.9 X 19.0 12.2 X 15.1 - 18.1 X 23.8 16.2 19.4 16.9 X 20.9 Revenues $2,486.8 2,319.0 2,908.9 2,710.5 $5,395.8 5,029.5 CY 2006E/2005E EBITDA $256.3 220.4 433.0 406.7 $689.3 ($ in millions) Unlevered Net Income 627.1 EBIT $156.9 119.5 263.4 219.8 $420.2 339.3 $138.0 105.1 231.8 193.4 $369.8 298.6#51Section 2-313 Enterprise Communications Group Valuation#52Summary Valuation—Global Communications Group Valuation Method Discounted Cash Flow Analysis Comparable Company Analysis Comparable Acquisition Analysis BSC REFERENCE RANGE Enterprise Value Range $2,000 $2,000 $2,200 $2,000 $2,600 $2,500 $2,600 $2,500 Revenues 0.80 X 0.86 0.80 X 0.86 0.88 X 0.95 Global Communications Solutions Value Range as a Multiple of CY 2006E/2005E 0.80 X 0.86 I I T T I 1.05 X 1.12 1.01 X 1.08 1.05 X 1.12 1.01 X 1.08 7.8 X 9.1 7.8 9.1 8.6 10.1 7.8 9.1 EBITDA 10.1 X 11.8 9.8 11.3 10.1 11.8 9.8 11.3 12.7 X 16.7 12.7 16.7 14.0 18.4 12.7 16.7 EBIT 16.6 X 21.8 15.9 20.9 16.6 21.8 15.9 20.9 Unlevered Net Income 14.5 X 19.0 14.5 19.0 15.9 20.9 14.5 19.0 i 18.8 X 24.7 18.1 23.8 18.8 24.7 18.1 23.8 Revenues $2,486.8 2,319.0 $2,486.8 2,319.0 $2,486.8 2,319.0 $2,486.8 2,319.0 CY 2006E/2005E EBITDA $256.3 220.4 $256.3 220.4 $256.3 220.4 $256.3 ($ in millions) 220.4 EBIT $156.9 119.5 $156.9 119.5 $156.9 119.5 $156.9 119.5 Unlevered Net Income $138.0 105.1 $138.0 105.1 $138.0 105.1 $138.0 105.1#53Valuation Matrix at Selected Enterprise Values-Global Communications Segment Enterprise Value as a Multiple of: CY 2007E Unlevered Net Income CY 2006E Unlevered Net Income CY 2005E Unlevered Net Income CY 2007E Revenue CY 2006E Revenue CY 2005E Revenue CY 2007E EBITDA CY 2006E EBITDA CY 2005E EBITDA CY 2007E EBIT CY 2006E EBIT CY 2005E EBIT $172.6 138.0 105.1 $2,636.0 2,486.8 2,319.0 $298.3 256.3 220.4 $196.2 156.9 119.5 $2,000.0 11.6 x 14.5 19.0 0.76 x 0.80 0.86 6.7 x 7.8 9.1 10.2 x 12.7 16.7 $2,100.0 12.2 x 15.2 20.0 0.80 x 0.84 0.91 7.0 x 8.2 9.5 10.7 x 13.4 17.6 Note: Financial projections based on Wall Street equity research and Bear Stearns Investment Banking estimates. Note: EBITDA, EBIT, and Unlevered Net Income are all adjusted for allocation of corporate overhead. Enterprise Value $2,200.0 12.7 x 15.9 20.9 0.83 x 0.88 0.95 7.4 x 8.6 10.0 11.2 x 14.0 18.4 $2,300.0 13.3 x 16.7 21.9 0.87 x 0.92 0.99 7.7 x 9.0 10.4 11.7 x 14.7 19.2 $2,400.0 13.9 x 17.4 22.8 0.91 x 0.97 1.03 8.0 x 9.4 10.9 ($ in millions) 12.2 x 15.3 20.1 $2,500.0 14.5 x 18.1 23.8 0.95 x 1.01 1.08 8.4 x 9.8 11.3 12.7 x 15.9 20.9 x#54Discounted Cash Flow Analysis-Global Communications Group PV of Period Cash Flows PV of Terminal Value PV of Enterprise Implied FCF Growth Rate PV of Period Cash Flows PV of Terminal Value PV of Enterprise Implied FCF Growth Rate PV of Period Cash Flows PV of Terminal Value PV of Enterprise Implied FCF Growth Rate PV of Period Cash Flows PV of Terminal Value PV of Enterprise Implied FCF Growth Rate WACC 14.50% 15.00% 15.50% 16.00% Forward Revenue Multiple 1.10x $508.7 1,870.2 $2,378.9 1.00x $508.7 1,700.2 $2,208.8 8.9% $502.9 1,667.7 $2,170.7 9.4% $497.3 1,636.1 $2,133.3 9.9% $491.7 1,605.1 $2,096.8 10.4% 9.4% $502.9 1,834.5 $2,337.4 9.9% $497.3 1,799.7 $2,296.9 10.4% $491.7 1,765.6 $2,257.3 10.9% 1.20x $508.7 2,040.2 $2,548.9 9.8% $502.9 2,001.3 $2,504.2 10.3% $497.3 1,963.3 $2,460.5 10.8% $491.7 1,926.1 $2,417.9 11.3% Forward EBITDA Multiple 9.0x $508.7 2,009.3 $2,518.0 8.0x $508.7 1,786.1 $2,294.7 9.2% $502.9 1,752.0 $2,254.9 9.7% $497.3 1,718.7 $2,216.0 10.1% $491.7 1,686.2 $2,177.9 10.6% Note: Financial projections based on Wall Street equity research and Bear Stearns Investment Banking estimates. Note: EBITDA, EBIT, and Unlevered Net Income are all adjusted for allocation of corporate overhead. 9.8% $502.9 1,971.0 $2,473.9 10.2% $497.3 1,933.6 $2,430.8 10.7% $491.7 1,897.0 $2,388.7 ($ in millions, except per share data) Forward EBIT Multiple 10.5x $508.7 1,690.3 $2,198.9 11.2% 10.0x $508.7 2,232.6 $2,741.3 10.2% $502.9 2,190.0 $2,692.9 10.7% $497.3 2,148.4 $2,645.7 11.2% $491.7 2,107.8 $2,599.5 11.7% 9.5x $508.7 1,529.3 $2,038.0 8.3% $502.9 1,500.1 $2,003.0 8.8% $497.3 1,471.6 $1,968.9 9.3% $491.7 1,443.8 $1,935.5 9.8% 8.9% $502.9 1,658.0 $2,160.9 9.4% $497.3 1,626.5 $2,123.8 9.9% $491.7 1,595.8 $2,087.5 10.3% 11.5x $508.7 1,851.2 $2,359.9 9.4% $502.9 1,815.9 $2,318.8 9.8% $497.3 1,781.4 $2,278.7 10.3% $491.7 1,747.7 $2,239.5 10.8%#55Free Cash Flow Analysis-Global Communications Group Revenue EBITDA Depreciation & Amortization EBIT EBIT Margin Taxes Tax Rate Unlevered Net Income Depreciation & Amortization Deferred Taxes (Increase)/Decrease in Working Capital Capital Expenditures Other Cash Flows Unlevered Free Cash Flow Note: Discounted back to May 1, 2005. 2005 $2,275.3 $212.3 (101.7 $110.6 4.9 % ($13.3 12.1 % $97.3 $101.7 (16.9 (53.5 1.2 $129.6 2006 $2,450.1 $244.8 (98.8 $146.0 6.0 % ($15.9 ) 10.9 % $130.1 $98.8 (24.2 (64.1 3.6 $144.2 Projected FYE September 30, 2007 2008 $2,597.1 $290.9 (101.4 $189.4 7.3 % ($41.7 22.0 % $147.8 $101.4 (9.6 (63.7 (4.2 $171.6 $2,752.9 $320.4 (104.1 $216.3 7.9 % ($73.5 34.0 % $142.8 $104.1 (9.4 (64.4 (3.3 $169.7 2009 $2,918.1 $359.7 (106.9 $252.8 8.7 % ($86.0 34.0 % $166.8 $106.9 (8.8 (65.1 (3.6 $196.2 ($ in millions) 2010 $3,093.2 $406.2 (113.3 $292.9 9.5 % ($99.6 ) 34.0 % $193.3#56Comparable Company Multiples and Implied Valuation-Global Communications Group Aviator Enterprise Communications Alcatel Aspect Cisco Inter-Tel Inter Voice Nortel Polycom Mean Median Company Global Communications Group Implied Enterprise Value Alcatel Aspect Cisco Inter-Tel InterVoice Nortel Polycom Stock Price 05/09/05 $9.08 10.95 9.02 18.21 19.23 11.00 2.62 15.66 Equity Enterprise Value Value $4,185.6 15,286.5 575.3 117,893.7 588.3 434.9 9,330.1 1,562.4 $3,518.6 14,812.2 415.5 101,368.7 373.4 394.7 10,079.1 1,347.5 Enterprise Value/CY 2005E EBITDA Revenue 0.70 X 0.88 X 1.12 3.93 0.83 2.35 1.14 2.33 1.80 X 1.14 $2,045.3 2,585.7 9,108.5 1,913.5 5,443.4 2,643.3 5,402.9 5.6 X 6.8 X 4.9 11.1 5.8 11.7 12.6 10.1 9.0 10.1 $1,501.5 1,072.9 2,438.6 1,286.1 2,570.3 2,784.2 2,233.3 X EBIT Note: Financial projections based on Wall Street equity research and Bear Stearns Investment Banking estimates. 10.4 X 9.6 X 6.6 12.6 6.4 15.1 19.9 13.9 12.0 X 12.6 $1,145.4 783.4 1,505.0 768.6 1,809.1 2,375.0 1,664.8 Enterprise Value/CY 2006E EBITDA Revenue 0.65 X 0.85 X 1.06 3.53 0.77 2.11 .08 2.10 1.64x 1.08 $2,108.1 2,626.5 8,773.4 1,912.3 5,257.9 2,682.5 5,234.1 5.1 X 6.4 X 4.3 9.9 5.1 9.2 8.5 7.5 X 8.5 $1,649.2 1,091.5 2,549.4 1,302.3 2,366.2 2,339.8 2,172.2 EBIT 8.4 X 9.0 X 5.4 11.2 5.8 11.4 12.5 11.5 9.6 X 11.2 $1,414.7 844.6 1,757.1 917.0 1,785.7 1,965.8 1,802.9 ($ in millions) CY 2005E 15.7 X 14.5 X 15.8 19.3 13.8 18.4 29.7 20.3 18.8 X 18.4 $1,525.8 1,663.9 2,027.0 1,454.6 1,934.1 3,125.2 2,138.4 P/E CY 2006E 12.7 x 12.0 x 13.5 17.0 12.0 16.9 18.6 17.2 15.3 X 16.9 $1,662.8 1,858.5 2,348.5 1,659.1 2,331.9 2,562.3 2,375.6#57Comparable M&A Transaction Multiples and Implied Valuation Global Communications Group ScanSoft Avaya UT Starcom Cisco Melita Polycom Cisco Alcatel Nortel InterVoice Cis Nortel Lucent Acquiror Cisco Melita ScanSoft Avaya UT Starcom Polycom Cisco Alcatel Nortel Inter Voice Cisco Nortel Lucent Acquiror Nuance Tenovis Global Communication Group-Implied Valuation Target Target Commworks (3Com) Latitude Concerto Picture Tel Active Voice Genesys Periphonics Brite Voice Geotel Bay Networks Octel Nuance Tenovis Commworks (3Com) Latitude Concerto Picture Tel Active Voice Genesys Periphonics Brite Voice Geotel Bay Networks Octel Transaction Date 05/09/2005 11/18/2004 04/23/2004 11/12/2003 10/06/2003 05/22/2001 11/10/2000 09/28/1999 08/23/1999 04/26/1999 04/12/1999 06/15/1998 07/17/1997 Target Equity Value $212.5 370.5 100.0 92.5 141.9 357.7 295.3 1,526.8 419.6 172.0 1,914.1 8,520.3 1,755.8 Enterprise Value $113.8 635.5 100.0 69.9 113.8 358.4 275.8 1,465.3 392.0 159.5 1,854.4 7,912.7 1,665.5 Revenue 1.49x 1.00x 0.91x 2.20x 1.07x 0.92x 3.21x 7.25x 2.27x 0.97x 25.73x 2.70x 2.74x $3,463.3 2,319.0 2,110.3 5,101.8 2,481.3 2,133.5 7,443.9 NM NM 2,249.4 NM 6,261.2 6,354.0 Enterprise Value/Forward EBITDA ΝΑ 6.5x ΝΑ ΝΑ 18.0x 6.7x 47.6x 26.1x 14.7x 10.5x 85.7x ΝΑ 14.4x ΝΑ 1,432.8 ΝΑ ΝΑ 3,967.6 1,476.8 NM NM 3,240.2 2,314.5 NM ΝΑ 3,174.1 EBIT 49.5x ΝΑ ΝΑ ΝΑ 23.0x 15.7x 96.3x 33.8x 19.9x 16.8x 92.3x ΝΑ 22.8x NM ΝΑ ΝΑ ΝΑ 2,748.1 1,875.9 NM NM 2,377.7 2,007.3 NM ΝΑ 2,724.2 ($ in millions) Forward P/E 42.1x ΝΑ ΝΑ ΝΑ 38.1x 20.7x 122.1x 53.0x 31.1x 27.4x 132.5x ΝΑ 34.7x NM ΝΑ ΝΑ ΝΑ 4,006.0 2,176.5 NM NM 3,270.0 2,881.0 NM ΝΑ 3,648.5 Note: The P/E multiple is applied to Unlevered Net Income. Note: Based on Enterprise Communications segment Forward Revenue of $2319.0 million, Forward EBITDA of $220.4 million, Forward EBIT of $119.5 million, and Forward Net Income of $105.1 million.#58Cost of Capital Analysis-Enterprise Communications Group Assumptions Risk-free Rate(¹) Market Risk Premium(²) Harris Marginal Tax Rate Debt/ Equity (4) 10.0% 20.0 30.0 40.0 50.0 9.1% 16.7 23.1 28.6 33.3 4.39 % 1.59 1.72 1.85 1.98 2.11 7.20 12.0 WACC Calculation—Based on Industry Average Unlevered Beta- Debt/ Levered Beta(5) Capitalization Cost of Equity (6) Unlevered Beta Calculation Barra Beta 15.9% 16.8 17.7 18.6 19.6 Comparable Company Global Communications Group Alcatel Aspect Cisco Inter-Tel Inter Voice Nortel Polycom Consolidated Mean Aviator 6.00% 14.9% 14.9 14.8 14.8 14.8. 1.62 1.64 1.45 1.32 7.00% 15.0% 15.0 15.0 15.1 15.1 1.41 2.21 1.61 1.61 2.44 Debt/ Equity (3) 15.1% 15.2 15.3 15.3 15.4 39.1 % 0.1 0.0 0.0 2.4 40.1 0.0 11.7 % 4.5 % Unlevered Beta (4) -Global Communications Group Pre-Tax Cost of Debt 8.00% 9.00% 15.1% 15.3 15.5 15.6 15.7 1.20 1.64 1.45 1.32 1.38 1.63 1.61 1.46 2.35 10.00% 15.2% 15.5 15.7 15.8 16.0 Note: The P/E multiple is applied to Unlevered Net Income. Note: Based on Enterprise Communications segment Forward Revenue of $2319.0 million, Forward EBITDA of $220.4 million, Forward EBIT of $119.5 million, and Forward Net Income of $105.1 million.#59Section 2-414 Enterprise Services Valuation Note: Barra Beta as of May 9, 2005. WACC = Kd * D/(D+E)+ Ke * E/(D+E) (1) Yield on 20-year Treasury Bond as of May 9, 2005. (2) Long-term horizon expected equity risk premium. Source: Ibbotson Associates. (3) Total debt divided by market value of equity. (4) Unlevered Beta = Predicted Beta/(1+ (1-tax)*D/E). (5) Levered Beta = Unlevered Beta* (1+(1-tax) *D/E). (6) Cost of Equity Risk-free Rate + (Levered Beta * Market Risk Premium) + Market Capitalization Premium.#60Summary Valuation-Global Services Valuation Method Discounted Cash Flow Analysis Global Services Value Range as a Multiple of CY 2006E/2005E EBITDA EBIT Unlevered Net Income Revenues EBITDA 8.1 9.5 13.3 10.8 X X X X 8.6 11.4 15.9 12.9 communi 8.1 9.5 13.3 10.8 8.6 11.4 15.9 12.9 9.2 10.4 15.2 11.9 9.8 12.5 18.2 14.2 8.7 9.5 14.2 Comparable Company Analysis Comparable Acquisition Analysis BSC REFERENCE RANGE CONFIDENTIAL Enterprise Value Range $2,500 $2,500 $2,750 $2,500 $3,500 0.80 $3,500 X $3,750 0.86 0.86 X 0.92 $4,000 0.95 X 1.01 0.86 X 0.92 Revenues 1.05 X 1.12 1.20 X 1.29 1.38 X 1.48 1.29 X 1.38 7.8 X 6.1 5.8 6.1 6.4 6.8 5.8 6.1 1 9.2 11.4 17.1 Draft of 8202529, v1, printed 10/14/2008 10/14/2008 10.8 12.9 15.1 18.1 15.1 18.1 17.3 20.7 16.2 19.4 $2,908.9 2,710.5 $2,908.9 2,710.5 $2,908.9 2,710.5 $2,908.9 2,710.5 CY 2006E/2005E $433.0 406.7 $433.0 406.7 $433.0 406.7 $433.0 ($ in millions) 406.7 EBIT $263.4 219.8 $263.4 219.8 $263.4 219.8 $263.4 219.8 Unlevered Net Income $231.8 193.4 $231.8 193.4 $231.8 193.4 $231.8 193.4 56#61Valuation Matrix at Selected Enterprise Values-Global Services Enterprise Value as a Multiple of: CY 2007E Unlevered Net Income CY 2006E Unlevered Net Income CY 2005E Unlevered Net Income CY 2007E Revenue CY 2006E Revenue CY 2005E Revenue CY 2007E EBITDA CY 2006E EBITDA CY 2005E EBITDA CY 2007E EBIT CY 2006E EBIT CY 2005E EBIT $279.5 231.8 193.4 $3,083.5 2,908.9 2,710.5 $491.8 433.0 406.7 $317.6 263.4 219.8 $2,500.0 8.9 x 10.8 12.9 0.81 x 0.86 0.92 5.1 x 5.8 6.1 7.9 x 9.5 11.4 $2,750.0 Note: Financial projections based on Wall Street equity research and Bear Stearns Investment Banking estimates. Note: EBITDA, EBIT, and Unlevered Net Income are all adjusted for allocation of corporate overhead. CONFIDENTIAL 9.8 x 11.9 14.2 0.89 x 0.95 1.01 5.6 x 6.4 6.8 8.7 x 10.4 12.5 Draft of 8202529, v1, printed 10/14/2008 10/14/2008 Enterprise Value $3,000.0 10.7 x 12.9 15.5 0.97 x 1.03 1.11 6.1 x 6.9 7.4 9.4 x 11.4 13.6 $3,250.0 11.6 x 14.0 16.8 1.05 x 1.12 1.20 6.6 x 7.5 8.0 10.2 x 12.3 14.8 ($ in millions) $3,500.0 12.5 X 15.1 18.1 1.14 x 1.20 1.29 7.1 x 8.1 8.6 11.0 x 13.3 15.9 $3,750.0 13.4 x 16.2 19.4 1.22 x 1.29 1.38 7.6 x 8.7 9.2 11.8 x 14.2 17.1 56#62Discounted Cash Flow Analysis-Global Services PV of Period Cash Flows PV of Terminal Value PV of Enterprise Implied FCF Growth Rate PV of Period Cash Flows PV of Terminal Value PV of Enterprise Implied FCF Growth Rate PV of Period Cash Flows PV of Terminal Value PV of Enterprise Implied FCF Growth Rate PV of Period Cash Flows PV of Terminal Value PV of Enterprise Implied FCF Growth Rate WACC 13.50% 14.00% 14.50% 15.00% Forward Revenue Multiple 0.95x $873.3 1,964.0 $2,837.4 0.80x $873.3 1,653.9 $2,527.2 4.3% $863.5 1,622.1 $2,485.6 4.7% $853.8 1,591.0 $2,444.8 5.2% $844.3 1,560.7 $2,405.0 5.6% 5.6% $863.5 1,926.2 $2,789.7 6.1% $853.8 1,889.3 $2,743.1 6.5% $844.3 1,853.3 $2,697.6 7.0% 1.10x $873.3 2,274.1 $3,147.5 6.6% $863.5 2,230.4 $3,093.8 7.1% $853.8 2,187.6 $3,041.4 7.6% $844.3 2,145.9 $2,990.2 8.0% Forward EBITDA Multiple 6.0x $873.3 2,304.3 $3,177.7 5.0x $873.3 1,920.3 $2,793.6 5.4% $863.5 1,883.3 $2,746.8 5.9% $853.8 1,847.3 $2,701.0 6.4% $844.3 1,812.0 $2,656.3 6.8% Note: Financial projections based on Wall Street equity research and Bear Stearns Investment Banking estimates. Note: EBITDA, EBIT, and Unlevered Net Income are all adjusted for allocation of corporate overhead. CONFIDENTIAL 6.7% $863.5 2,260.0 $3,123.5 7.2% $853.8 2,216.7 $3,070.5 7.6% $844.3 2,174.4 $3,018.7 8.1% Draft of 8202529, v1, printed 10/14/2008 10/14/2008 7.0x $873.3 2,688.4 $3,561.7 7.6% $863.5 2,636.7 $3,500.1 8.1% $853.8 2,586.2 $3,439.9 8.6% $844.3 2,536.8 $3,381.1 9.0% Forward EBIT Multiple 8.5x $873.3 2,326.0 $3,199.3 7.5x $873.3 2,052.3 $2,925.7 5.9% $863.5 2,012.8 $2,876.3 6.4% $853.8 1,974.3 $2,828.1 6.9% $844.3 1,936.6 $2,780.9 ($ in millions) 7.3% 6.8% $863.5 2,281.2 $3,144.7 7.2% $853.8 2,237.5 $3,091.3 7.7% $844.3 2,194.8 $3,039.1 8.2% 9.5x $873.3 2,599.6 $3,472.9 7.4% $863.5 2,549.6 $3,413.1 7.9% $853.8 2,500.7 $3,354.5 8.4% $844.3 2,453.0 $3,297.3 8.9% 56#63Free Cash Flow Analysis-Global Services Revenue EBITDA Depreciation & Amortization EBIT EBIT Margin Taxes Tax Rate Unlevered Net Income Depreciation & Amortization Deferred Taxes (Increase)/Decrease in Working Capital Capital Expenditures Other Cash Flows Unlevered Free Cash Flow Note: Discounted back to May 1, 2005. CONFIDENTIAL 2005 $2,658.7 $403.1 (193.0 $210.1 7.9 % ($25.3 12.1 % $184.7 $193.0 (32.2 (101.7 2.2 $246.2 2006 $2,865.9 $417.5 (168.4 $249.0 8.7 % ($27.1 ) 10.9 % $221.9 $168.4 (41.3 (109.3 6.1 $245.9 Projected FYE September 30, 2007 2008 $3,037.9 $479.5 (173.0 $306.5 10.1 % ($67.4 22.0 % $239.1 $173.0 (16.4 (108.6 $279.8 Draft of 8202529, v1, printed 10/14/2008 10/14/2008 $3,220.2 $528.7 (177.6 $351.1 10.9 % ($119.4 34.0 % $231.7 $177.6 (16.1 (109.8 (5.7 $277.7 2009 $3,413.5 $594.3 (182.3 $412.0 12.1 % ($140.1 34.0 % $271.9 $182.3 (15.1 ano (6.2 $321.9 ($ in millions) 2010 $3,618.3 $672.2 (193.2 $478.9 13.2 % ($162.8 ) 34.0 % $316.1 56#64Comparable Company Trading Analysis-Global Services Aviator Enterprise Services Black Box Convergys CGI Group Getronics Unisys Mean Median Global Services-Implied Enterprise Value Black Box Convergys CGI Group Getronics Unisys Company CONFIDENTIAL Stock Price 05/09/05 $9.08 $34.21 13.04 5.61 1.62 6.88 Equity Value $4,185.6 $607.6 1,862.9 2,506.0 1,372.2 2,320.6 Enterprise Value $3,518.6 $637.4 2,163.4 2,684.5 1,335.0 2,711.2 Enterprise Value/CY 2005E Revenue EBITDA EBIT 10.4 X 0.70 X 1.14 X 0.81 0.82 0.39 0.46 0.72 X 0.81 $3,098.5 2,192.2 2,221.5 1,048.3 1,255.1 Note: Financial projections based on Wall Street equity research and Bear Stearns Investment Banking estimates. 5.6 X 8.3 X 5.6 5.4 6.1 5.6 6.2 X 5.6 $3,379.4 2,280.0 2,211.0 2,487.2 2,290.1 Draft of 8202529, v1, printed 10/14/2008 10/14/2008 9.6 X 9.1 8.1 9.7 27.3 12.8 X 9.6 $2,102.8 1,994.9 1,769.5 2,140.8 6,008.5 Enterprise Value/CY 2006E Revenue EBITDA EBIT 0.65 X 0.95 X 0.76 0.75 0.36 0.44 0.65 X 0.75 $2,767.3 2,209.1 2,183.4 1,058.8 1,292.4 5.1 X 6.7 X 5.1 4.8 5.1 4.3 5.2 X 5.1 $2,884.3 2,218.4 2,081.2 2,224.2 1,845.8 8.4 X 8.0 X 8.2 6.8 6.7 10.0 7.9 X 8.0 ($ in millions) CY 2005E CY 2006E 15.7 X 14.8 X 13.7 12.5 11.5 NM 13.1 X 13.1 P/E $2,095.5 $2,864.5 2,161.6 2,655.0 1,793.4 2,417.9 1,770.4 2,215.6 2,630.5 ΝΑ 12.7 X 12.5 X 12.1 10.8 9.0 19.7 12.8 X 12.1 $2,891.1 2,798.4 2,496.6 2,086.0 4,556.0 56#65Nortel IBM Acquiror Warburg-Providence Cisco Avaya CGI GTCR Aviator-Comparable Transaction Multiples and Implied Valuation- Global Services Nortel IBM Acquiror Cisco Avaya CGI GTCR Warburg-Providence Services Implied Valuation Target Target PEC Solutions Corio Telcordia NetSolve Expanets AMS Syniverse CONFIDENTIAL PEC Solutions Corio Telcordia NetSolve Expanets AMS Syniverse Transaction Date 4/26/2005 1/25/2005 11/18/2004 9/9/2004 11/26/2003 /2004 2/14/2002 Equity Value $471.1 182.0 1,350.0 128.0 152.0 858.0 770.0 Target Enterprise Value $448.0 174.1 1,350.0 89.0 152.0 770.0 Revenue 1.65 X 2.94 1.53 2.21 0.36 0.78 2.45 $3,830.6 6,817.8 3,548.0 5,124.9 829.4 1,815.9 5,681.5 Enterprise Value/Forward EBITDA 11.9 X Draft of 8202529, v1, printed 10/14/2008 10/14/2008 ΝΑ 7.7 ΝΑ ΝΑ 8.9 6.3 $2,623.1 ΝΑ 1,697.3 ΝΑ ΝΑ 1,950.9 1,388.7 EBIT 13.2 X NM 8.9 NM NM 17.3 7.4 $1,577.2 ΝΑ 1,063.4 ΝΑ ΝΑ 2,067.0 884.2 Forward P/E 22.5 X NM ΝΑ NM ΝΑ 31.3 ΝΑ ($ in millions) $2,365.8 ΝΑ ΝΑ ΝΑ ΝΑ 3,291.0 ΝΑ Note: The P/E multiple is applied to Unlevered Net Income. Note: Based on Global Services segment Forward Revenue of $2319.0 million, Forward EBITDA of $220.4 million, Forward EBIT of $119.5 million, and Forward Net Income of $105.1 million. 56#66Cost of Capital Analysis-Services Assumptions Risk-free Rate(¹) Market Risk Premium (²) Aviator Marginal Tax Rate CONFIDENTIAL Debt/ Capitalization 9.1 % 16.7 23.1 28.6 33.3 Levered Beta (5) 1.32 1.42 4.39 % 1.53 1.64 1.74 7.20 12.0 Unlevered Beta Calculation Barra Beta WACC Calculation-Based on Industry Average Unlevered Beta—Services Debt/ Cost of Pre-Tax Cost of Debt Equity(6) 8.00% Equity (4) 10.0% 20.0 30.0 40.0 50.0 13.9% 14.6 15.4 16.2 16.9 Comparable Company Global Services Black Box Convergys Corporation CGI Group Getronics Unisys Consolidated Mean Aviator 6.00% 13.1% 13.1 13.1 13.1 13.1 7.00% 13.2% 13.2 13.3 13.3 13.4 1.24 1.14 1.00 1.99 1.75 13.3% 13.4 13.5 13.6 13.6 Draft of 8202529, v1, printed 10/14/2008 10/14/2008 1.43 2.44 Debt/ Equity (3) 6.7% 18.1 14.7 15.1 45.3 20.0 4.5 9.00% 13.3% 13.5 13.7 13.8 13.9 Unlevered Beta (4) 1.17 0.98 0.89 1.76 1.25 1.21 2.35 Note: The P/E multiple is applied to Unlevered Net Income. Note: Based on Enterprise Communications segment Forward Revenue of $2319.0 million, Forward EBITDA of $220.4 million, Forward EBIT of $119.5 million, and Forward Net Income of $105.1 million. (1) Excludes Cisco/Active Voice, Alcatel/Genesys and Cisco/Geotel. 10.00% 13.4% 13.7 13.9 14.1 14.2 56#67Section 315 Pro Forma Merger Consequences -Nortel Acquires Aviator Note: Barra Beta as of May 9, 2005. WACC = Kd * D/(D+E) + Ke * E/(D+E). (1) Yield on 20-year Treasury Bond as of May 2, 2005. (2) Long-term horizon expected equity risk premium. Source: Ibbotson Associates. (3) Total debt divided by market value of equity. (4) Unlevered Beta = Predicted Beta/(1+ (1-tax)*D/E). (5) Levered Beta = Unlevered Beta* (1+(1-tax) *D/E)). (6) Cost of Equity Risk-free Rate + (Levered Beta * Market Risk Premium) + Market Capitalization Premium.#68Section 3-116 Transaction Considerations#69Nortel Merges with Aviator-Strategic Rationale Dominant Legacy PBX Vendor Globally Different Channel and Portfolio Strategies Create Opportunities for Cross Selling Similar Geographic Footprint Creates Potential for Cost Synergies Potential to create the largest PBX vendor globally, with combined enterprise revenue of $8.1 billion and well-entrenched customer relationships Nortel/Aviator will be the #1 vendor in the North American enterprise voice market, with a combined market share of approximately 47% Nortel/Aviator will be the #1 vendor in the global contact center market, with market shares of 56%, 54% and 75% in North America, Europe and Asia respectively Could potentially have the scale and the R&D capabilities to take on Cisco in the enterprise PBX portion of the overall enterprise market as it transforms from circuit to IP Aviator's channel mix is mostly direct (65%), whereas Nortel's enterprise channel strategy is almost entirely indirect Nortel's enterprise business generates approximately 30% of revenue from sale of data networking equipment; Aviator currently generates no revenue from sale of data networking equipment Aviator could potentially cross-sell its service offerings into Nortel's customer base; Nortel could potentially cross-sell its data offerings into Aviator's customer base Significant opportunities for cost synergies exist through reductions in cost of sales, overlapping R&D platforms and redundant G&A functions Geographic proximity of Nortel and Aviator should allow for efficient execution of these synergies.#70Pro Forma Revenue Mix Analysis Nortel Enterprise 24% Wireline Infrastructure 25% Wireless Infrastructure 51% Total 2005E Revenues = $10.6 Billion Nortel + Aviator Enterprise 50% Wireline Infrastructure 16% Total 2005E Revenues Wireless Infrastructure 34% = $15.6 Billion#71Review of Portfolio Overlap-Nortel Merges with Aviator Growth Businesses Carrier IP Routing Carrier VoIP Gateways and Softswitches Enterprise Convergence 3G Wireless Broadband Access Security, Storage, WLAN Home Networking/Mobile Phones Mature Businesses Optical Networking ATM Switching 2.0 2.5G Wireless Enterprise Data Networking Declining Businesses Digital Cross Connect Circuit Switching Legacy PBX Nortel Lucent Siemens Alcatel OOOOTI | | Source: Wall Street Research and Bear Stearns Investment Banking estimates. Note: Fiscal year ending December 31. O Leadership/Strong Position OOO Cisco Aviator OI O O Weak Position Juniper ETIO Nortel+ Aviator#72Review of Key Considerations Merger with Aviator Insert Portrait Tabloid 6937031 (Doc. # 6966602) Page 48#73Shareholder Overlap Analysis Nortel Shareholders Primecap Management Capital Research & Management MFS Investment Management Smith Barney Asset Management Alliance Capital Management McLean Budden TD Asset Management CDP Capital World Markets Barclays Global Investors BC Investment Management Fidelity Management & Research Canadian Pension Plan Investment Board BMO Nesbitt Burns Artisan Partners RBC Asset Management Ontario Teachers' Pension Plan Board Equinox Capital Management Ontario Municipal Employee Retirement System TAL Global Asset Management Phillips, Hager & North Investment Management Connor, Clark & Lunn Investment Management I. G. Investment Management HOOPP Investment Management Deutsche Bank Investment Management Merrill Lynch Investment Managers Letko, Brosseau & Associates Jennison Associates UBS Global Asset Management Goldman Sachs Asset Management Marathon Asset Management TIAA-CREF Investment Management T. Rowe Price Associates AIM Trimark Investments Morgan Stanley Natcan Investment Management C. I. Mutual Funds Deutsche Bank Securities Courage Capital Management Norges Bank Kapitalforvaltning Goldman Sachs Position 118.712 98.550 79.074 78.334 67.884 65.775 62.288 53.573 52.422 51.264 48.026 42.805 37.682 36.825 36.346 33.866 31.418 29.419 24.508 23.038 21.856 18.811 16.524 15.758 15.302 15.174 14.037 13.760 13.554 12.867 12.146 11.685 11.517 11.495 11.425 11.193 9.921 9.736 8.994 8.972 % Ownership 2.8% 2.3 1.9 1.8 1.6 1.5 1.5 1.3 1.2 1.2 1.1 1.0 0.9 0.9 0.9 0.8 0.7 0.7 0.6 0.5 0.5 0.4 0.4 0.4 0.4 0.4 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.2 Aviator Shareholders Warburg Pincus Dodge & Cox Fidelity Management & Research Lord, Abbett & Co. Barclays Global Investors Friess Associates SSgA Funds Management Vanguard Group Wellington Management AIM Management Group Calamos Advisors Artisan Partners Franklin Advisers Trusco Capital Management Victory Capital Management Northern Trust Global Investments Bessemer Investment Management Pioneer Global Asset Management TIAA-CREF Investment Management BNP Paribas Asset Management Fifth Third Asset Management Dreyfus Investment Advisors. AXA Rosenberg Investment Management Mellon Bank Asset Management JPMorgan Investment Management Northern Capital Management Perkins, Wolf, McDonnell & Co. US Bancorp Asset Management Merrill Lynch Investment Managers, Inc. American Century Global Investment Management California Public Employees Retirement System Deutsche Bank Investment Management Northwestern Investment Management PDR Services Akanthos Capital Management Citadel Investment Group Fred Alger Management Teacher Retirement System of Texas HSBC Asset Management Geode Capital Management Position 47.955 24.812 16.979 16.215 15.083 12.913 11.961 11.883 11.104 10.080 7.283 7.013 6.717 5.952 5.751 4.736 4.645 4.537 3.838 3.617 3.207 2.944 2.720 2.695 2.339 2.153 2.132 2.100 2.056 2.050 1.998 1.971 1.931 1.874 1.872 1.752 1.744 1.699 1.696 1.668 % Ownership 10.0 % 5.2 3.5 3.4 3.1 2.7 2.6 2.5 2.3 2.1 1.5 1.5 1.4 1.2 1.2 1.0 1.0 0.9 0.8 0.8 0.7 0.6 0.6 0.6 0.5 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.3#74Section 3-217 Pro Forma Merger Consequences#75Relative Contribution Analysis Revenues EBITDA EBIT Net Income Cash (¹) Total Debt(¹) Minority Interest(¹) Shareholders Equity(¹) Equity Value (2) Enterprise Value Equity Value at $10.00 per Share Equity Value at $12.00 per Share Equity Value at $14.00 per Share FY 2008E FY 2007E FY 2006E FY 2008E FY 2007E FY 2006E FY 2008E FY 2007E FY 2006E FY 2008E FY 2007E FY 2006E Nortel $13,305.9 12,672.3 12,061.7 $1,481.0 1,429.4 1,130.1 $1,075.3 1,023.9 738.8 $933.5 867.2 571.6 $3,386.4 3,870.0 630.0 3,766.7 $11,315.9 12,361.9 $11,315.9 11,315.9 11,315.9 $ Aviator $6,062.8 5,719.5 5,395.8 $874.2 788.9 686.9 $591.8 513.8 419.0 $406.7 396.2 367.3 $1,040.1 20.5 0.0 1,535.3 $4,663.0 3,996.7 $4,896.9 5,892.4 6,902.4 Total $19,368.7 18,391.9 17,457.4 $2,355.2 2,218.3 1,817.0 $1,667.1 1,537.6 1,157.8 $1,340.1 1,263.4 938.9 $4,426.5 3,890.5 630.0 5,302.0 $15,978.9 16,358.6 $16,212.9 17,208.4 18,218.3 Nortel 68.7% 68.9 69.1 62.9% 64.4 62.2 64.5% 66.6 63.8 69.7% 68.6 60.9 76.5% 99.5 100.0 71.0 70.8% 75.6 69.8% 65.8 62.1 ($ in millions) % Aviator 31.3% 31.1 30.9 37.1% 35.6 37.8 35.5% 33.4 36.2 30.3% 31.4 39.1 23.5% 0.5 0.0 29.0 29.2% 24.4 30.2% 34.2 37.9#76Pro Forma Merger Consequences Summary-Nortel Acquires Aviator Implied Exchange Ratio Premium to Market Earnings (Dilution)/Accretion Per Share ($) FY 2006E FY 2007E FY 2008E Earnings (Dilution)/Accretion Per Share (%) FY 2006E FY 2007E FY 2008E Additional Pre-Tax Earnings for 0% Dilution FY 2006E FY 2007E FY 2008E Closing Balance Sheet Cash Incremental Identifiable Intangible Assets Total Debt Equity FFO/Debt FY 2006E FY 2007E FY 2008E Total Debt/Capitalization Closing FY 2006E FY 2007E FY 2008E Total Debt/EBITDA Closing FY 2006E FY 2007E FY 2008E Pro Forma Ownership-Aviator 100% Stock 3.779 x 4.9 % $0.01 (0.01 ) (0.01 ) 7.7 % (2.7) (3.7 ) ΝΑ 38.3 60.2 $4,306.0 692.3 3,870.0 8,663.6 41.5 % 50.5 52.7 29.4 % 27.6 25.4 23.4 2.9 x 2.1 1.7 1.6 30.2 % $10.00 per Share 25% Cash/ 75% Stock 2.834 x 4.9 % $0.02 0.01 0.01 13.6 % 3.4 2.4 ΝΑ ΝΑ ΝΑ $3,081.7 692.3 3,870.0 7,439.4 41.0 % 50.0 52.2 32.4 % 30.2 27.7 25.4 2.9 x 2.1 1.7 1.6 24.5 % 50% Stock/ 50% Cash 1.889 x 4.9 % $0.02 0.01 0.01 11.9 % 7.0 6.5 ΝΑ ΝΑ ΝΑ $3,001.2 692.3 5,030.0 6,215.1 33.6 % 41.9 43.9 42.4 % 37.0 33.9 31.0 3.8 x 2.5 2.0 1.9 17.8 % 100% Stock 4.534 x 25.9 % ($0.00 ) (0.02 ) (0.02 ) (0.6 %) (9.6 ) (10.5) $5.4 145.9 178.8 $4,306.0 891.4 3,870.0 9,659.1 41.6% 50.6 52.8 27.3 % 25.8 23.9 22.1 2.9 X 2.1 1.7 1.6 34.2 % Note: Financial projections based on Wall Street equity research and Bear Stearns Investment Banking estimates. Note: Fiscal year ending December 31. (1) As of December 31, 2005. (2) As of May 27, 2005. $12.00 per Share 25% Cash/ 75% Stock 3.401 x 25.9 % $0.01 (0.01 ) (0.01 ) 4.3 % (3.6 ) (4.3 ) ΝΑ 49.7 66.9 $3,000.0 891.4 4,038.7 8,186.0 40.1 % 49.2 51.4 31.4 % 28.9 26.6 24.5 3.1 x 2.2 1.8 1.7 28.1 % ($ in millions, except for per share data) $14.00 per Share 25% Cash/ 75% Stock 3.968 x 46.9% 50% Stock/ 50% Cash 2.267 x 25.9 % $0.00 (0.00) (0.00) 0.5% (0.4) (0.6) ΝΑ 5.6 8.0 $3,011.6 891.4 5,545.0 6,712.9 31.2 % 39.4 41.3 43.0 % 36.9 34.0 31.4 4.2 x 2.6 2.1 2.0 20.7 % 100% Stock 5.290 x 46.9 % ($0.01 ) (0.03 ) (0.04 ) (8.1 %) (15.9) (16.6) $81.8 255.0 299.1 $4,306.0 1,093.4 3,870.0 10,669.1 41.6 % 50.6 52.9 25.5 % 24.2 22.5 21.0 2.9 x 2.1 1.7 1.6 37.9 % ($0.01 ) (0.02 ) (0.03 ) (5.5 %) (11.6) (11.9) $50.2 168.5 194.6 $3,021.4 1,093.4 4,320.0 8,943.5 35.9 % 44.1 46.1 31.1 % 29.4 27.3 25.4 3.3 x 2.4 1.9 1.8 31.4% 50% Stock/ 50% Cash 2.645 x 46.9% ($0.01 ) (0.02 ) (0.02 ) (10.4 %) (8.0 ) (7.7) $85.5 104.6 113.1 $3,023.3 1,093.4 6,070.0 7,217.9 28.4 % 36.1 37.9 43.6 % 37.3 34.7 32.2 4.6 x 2.8 2.3 2.2 23.4 %#77Nortel Acquires Aviator-Synergy Sensitivity Analysis Assuming 50% Stock/50% Cash $10/share Earnings (Dilution)/Accretion Per Share ($) FY 2006E FY 2007E FY 2008E Earnings (Dilution)/Accretion Per Share (%) FY 2006E FY 2007E FY 2008E $12/share Earnings (Dilution)/Accretion Per Share ($) FY 2006E FY 2007E FY 2008E Earnings (Dilution)/Accretion Per Share (%) FY 2006E FY 2007E FY 2008E $250 $0.06 0.06 0.06 44.5 % 28.0 10.0 $0.04 0.04 0.04 32.1 % 19.8 17.7 $300 $0.07 0.07 0.06 51.1 % 32.2 13.5 $0.05 0.05 0.05 38.4 % 23.9 21.4 $350 Pretax Synergies $0.08 0.07 0.07 57.6 % 36.4 17.0 $0.06 0.06 0.05 44.7 % 27.9 25.1 $400 $0.04 0.04 0.04 $0.09 0.08 0.08 64.1 % 40.6 20.6 $0.07 0.06 0.06 51.0 % 32.0 28.7 ($ in millions, except per share data) $0.05 0.05 0.04 $450 $0.09 0.09 0.09 70.7 % 44.8 24.1 $0.08 0.07 0.07 57.3 % 36.0 32.4 $500 $0.06 0.06 0.05 $0.10 0.10 0.10 77.2 % 49.0 27.7 $0.09 0.08 0.08 $14/share Earnings (Dilution)/Accretion Per Share ($) FY 2006E $0.03 $0.03 FY 2007E 0.02 0.03 0.03 FY 2008E 0.02 Note: Financial projections based on Wall Street equity research and Bear Stearns Investment Banking estimates. Earning (Dilbeion)/Aretion PatShare (%) 32.2 38.3 44.4 50.5 % Assuno Nortel stock price of $2.65 and Aviator stock price of $9.53 (May 27, 2005). 26.1 Assumes 20% of Excess of Purchase Price over Book Value is allocated to Incremental Identifiable Intangible Assets and is amortized (straight-line) over 10 years for book purposes. Assumes purchase funded with balance sheet cash subject to a $3.0 billion minimum cash balance; excess, if any, funded with a combination of bank debt at L+350 and senior notes at 8.19% for 50/50 2993cenarios. 23.3 31.1 11.5 15.4 19.4 27.2 63.6 % 40.1 36.1 $0.07 0.06 0.06#78FY 2008E 10.0 13.5 17.0 20.6 24.1 27.7#79Nortel Acquires Aviator-Synergy Sensitivity Analysis Assuming 100% Stock $10/share Earnings (Dilution)/Accretion Per Share ($) FY 2006E FY 2007E FY 2008E Earnings (Dilution)/Accretion Per Share (%) FY 2006E FY 2007E FY 2008E $12/share Earnings (Dilution)/Accretion Per Share ($) FY 2006E FY 2007E FY 2008E Earnings (Dilution)/Accretion Per Share (%) FY 2006E FY 2007E FY 2008E $14/share Earnings (Dilution)/Accretion Per Share ($) FY 2006E FY 2007E FY 2008E Earnings (Dilution)/Accretion Per Share (%) $250 $0.05 0.03 0.03 35.5 % 15.1 (2.2 $0.03 0.01 0.01 25.6 % 7.2 4.7 $0.02 (0.00 (0.00 ) $300 $0.05 0.04 0.03 41.0 % 18.7 0.6 $0.04 0.02 0.02 30.8 % 10.5 7.7 $0.03 0.01 0.00 $350 Pretax Synergies $0.06 0.05 0.04 46.6 % 22.3 3.5 $0.05 0.03 0.02 36.0 % 13.9 10.8 $0.04 0.01 0.01 $400 $0.07 0.05 0.05 52.1 % 25.8 6.4 $0.06 0.03 0.03 41.3 % 17.2 13.8 $0.04 0.02 0.01 ($ in millions, except per share data) $450 $0.08 0.06 0.06 57.7 % 29.4 9.2 $0.06 0.04 0.04 46.5 % 20.6 16.8 $0.05 0.03 0.02 $500 $0.08 0.07 0.06 63.2 % 33.0 12.1 $0.07 0.05 0.04 51.7 % 24.0 19.9 $0.06 0.03 0.03#80FY 2006E FY 2007E FY 2008E 16.6 % (0.0 (2.2 21.6 % 3.1 0.6 26.5 % 6.3 3.5 31.4 % 9.5 6.4 36.4 % 12.7 9.2 41.3 % 15.8 12.1