#1proxim netopia. Leaders in Broadband Networking#2Wireless Landscape LAN WAN Cordless phones Wireless PBX SMR Cellular Phones Voice PCS Microwave Radio PHS Millimeter Wave Radio Satellite DECT proxim Wireless LANS Packet Radio Pagers netopia. Data proxim#3Crossing the Chasm Corporate Applications Office mobility • Healthcare ● Point of Service Applications • Hospitality • Traveling professionals • Financial services • Retail Education Applications Data Collection Applications University campuses .K-12 networks ● • Warehousing Manufacturing • Transportation netopia. Consumer Applications • Home networking • SoHo connectivity proxim#4Proxim Direction Indoor Outdoor Commercial RangeLAN2/ RangeLAN802 Wavespan Micrilor Corporate Symphony Farallon High Speed WLANS Local Loop Bypass netopia. Consumer Wireless Internet Access Links SoHo Connectivity Products proxim#5New Wireless LAN Markets > ■ Education ■ Small Business ■ Consumer netopia. - University campus network - K-12 internet access - SoHo connectivity - Branch office networking - Cordless laptop access - Broadband internet sharing proxim#6Residential Broadband Market 7000 6000 5000 4000 3000 2000 1000 100 1997 25 425 1998 Cable 250 1999 Source: Yankee Group (1999) 1000 700 2000 2000 1500 3000 2001 DSL netopia. 2700 4300 2002 proxim#7Symphony HRF Product Family 10 PC MAGAZINE EDITORS CHOICE Apni 6, 1 Proxim Symphony PC WORLD BEST BUY June 1888 2293 netopia. Editors' Choice Chet COMPUTER CO k PC Computing 5-STAR PCComputing July 1988 BEST February 1999 1996 proxim#8HomeRF Working Group COMPAQ IBM proxim Core Members ERICSSON MOTOROLA HEWLETT hp PACKARD Microsoft PHILIPS intel. SVAARIONICE netopia. Philips Consumer Communications proxim#9High Quality Voice ● Requirements Small, constant delay • Low packet loss • Well defined call stack • High predictability HomeRF 20ms Fast hops and contention free period <2% Automatic retry on next hop Yes Uses DECT stack Priority time slots Separate allocation of voice bandwidth netopia. 802.11b Unbounded Variable No No proxim#10HomeRF Voice/Data Protocol Hop B D3 D4 U3 U4 CFP #1 Contention Period CSMA/CA access mechanism Superframe -20ms D4 D3 D2 D1 U4 U3 U2 Contention Free Periods CFP #2 netopia. Hop proxim#11Future Home Network Internet Wireless Gateway POTS/ISDN/xDSL/Cable) Wireless Control Point USB Desktop PC + Printer Settop Box netopia. Notebook PC PalmPad WebPad Cordless Phone proxim#12Harmony Architecture 1) Start with a traditional AP architecture To LAN Filtering Hdw Harmony AP Controller LAN I/F CPU Mem Radio Adapter 2) Divide into 'Networking' & 'Radio' functions + Radio Adapter 3) Connect them together via Ethernet netopia. Harmony Access Point proxim#13Current Harmony Products • ♦ . netopia. Harmony AP Controller - $1495 Harmony 802.11b AP - $599 Harmony 802.11b PC Card - $229 Harmony OpenAir AP - $499 Harmony OpenAir PC Card - $229 Began shipping October 2000 proxim#14Long Term Investment Protection Harmony Wireless LAN Architecture Switch AP Controller OpenAir/HRF Bluetooth WBHRF Mini Access Points 802.11b 802.11a netopia. Harmony Advantages - - Works with all major RF LAN protocol standards - Multiple radio types supported simultaneously Wireless users communicate across different networks Supports any wireless LAN standard proxim#15Stratum MP Feature Summary Radio: ◆ Range: + Data rate: + Security: + Topologies + Maximum nodes ◆ Interface: ◆ Filtering per cell: Antenna connectors (2): Antenna options: 2.4 GHz, Direct Sequence FCC: 12 miles / 19 Km ETSI: 3 miles / 5 Km 10 Mbps half duplex Continuous DS code changing Point-to-Point, Point-to-Multipoint 32 10baseT MAC layer RP-TNC Omni, 2, 5.5, 9 dBi Sector, 8.5, 12, 21 dBi Began shipping November 2000 netopia. proxim#16Proxim Annual Revenues $2,672 $4,114 $8,078 ($000s) $11,297 $22,083 64% $41,220 $42,951 77% $49,711 87% 92% $69,067 95% $107,498 97% netopia. 31% 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 900 MHz 2.4 GHz proxim#17Proxim Quarterly Revenues* ($000s) $8,901 73 90 $9,751 74 90 $10,916 20 40 $11,652 -9661 28 $12,493 $13,100 90 25 911 35 6 $8,101 3 40 $9,257 20 40 $10,250 91 40 $11,500 90 90 $13,302 $14,659 $14,750 93 90 94 6 $16,002 94 40 96 40 $18,002 || 辉 95 $20,313 $20,051 -6661 + 94 901 $24,523 95 90 + Excludes Micrilor historical non-recurring engineering revenue 97 40 netopia. $33,627 $29,297 97 90 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q² Q3 Q4 Q1 Q2 Q3 Q4 Q¹ Q² Q3 Q4 1997 1998- 2000 98 40 900 MHz 2.4 GHZ proxim#18Proxim Financial Model Gross Profit** R & D* S, G & A* FY'98 FY'99 FY'00 48% 48% 15% 13% Q4'00 47% 48% Income from Operations* 10% 15% 11% 10% 23% 20% 18% 18% 17% 20% * Excludes one-time charges and amortization of goodwill ** Excludes amortization of intangibles and one-time charge in Q2'00 netopia. Current Target 46-48% 10-12% 20-22% 14-16% proxim#19Netopia Mission Broadband Connectivity Providers BROADBAND BROADBAND DSL Fixed Wireless Cable Netopia Enables Centrex Voice Cordless Phones Wireless LANS Web Sites eStores Backup Support Security Bonding netopia. Broadband Service Providers BROADBAND BROADBAND+ BROADBAN*E* Bundled Services $$$ proxim#20Market Size Number of SMEs 28M worldwide ● ● >7M in U.S. Source: IDC/Link & AMI netopia. U.S. Penetration <10% currently have broadband connections <1% are selling online proxim#21Worldwide Business DSL Market Number of installed lines 0.2M 0.2M 0.8M 1.2M 2000 2.8M 0.6M 0.7M 1.5M 2001 5.3M 1.3M 1.6M 2.4M 2002 8.0M 2.1M 2.6M 3.3M 2003 netopia. Asia Europe US Source: IDC, Netopia Est. proxim#22Internet Equipment Family Broadband connectivity is the core of our business SDSL IDSL ADSL G.SHDSL Cable T1/E1 Frame Relay net pin netopia. Data Routers hello hello hello hello hello hello hello hello Fello Integrated Access Devices proxim#23DSL Landscape Customer Premises netopia. Central Office Copper Mtn. Nokia Lucent Nortel Ericsson Paradyne Alcatel Orckit Siemens Cisco DSLAM SUPPLIERS SDSL IDSL ADSL netopia. CLEC Regional Hub Lucent ATM Switch Cisco or DATA Redback Router proxim#24Netopia Value Add Integrated Back-up Dial-up DSL Common Router Motherboard ISP DSL Bonding Central Office Business netopia. Security & VPN The Internet Business Netopia DSL Router • Firewall • VPN proxim#25VODSL Service Delivery PSTN DSL Carrier Central DSLAM Office Voice Carrier CLASS 5 Switch ATM Voice Gateway COPPER COM td oft DSL TOLLBRIDGE. ZHONE. ERICSSON GENERAL BANDWIDTH JETSTREAM ISP IAD N KOREY PCs netopia. Ph Fax SMB Customer proxim#26VODSL OEM Partnership Ericsson selects Netopia G.SHDSL ADSL Data Routers IADS •Global due diligence •Validates Netopia roadmap •Commences FY 01, accelerates FY 02 netopia. Netopia selected proxim#27Unique Distribution Leverage riers sales DSL ine SME DOP Needs DSL SPECIFIES net n ORDERS proxim ISP 12-24 month contract service PROVISIONS netopia. Car Wholes I#28Netopia Software Solutions Customer Interaction Timl Netopia Web Platform Software "uktu eCire System Management esupport net Octopus Broadband Deployment Pro visioning Reng Act Bill, "Ing eCommerce core eS1 es Ite netopia. eCi art proxim#29From Web Sites to e-Stores Briefcases, Inc. SALE $375 SALE $375 Key Chain $60 Check Out Ard Cart Add to Cart add to Cart netopia. e-Commerce Web Platform: • One click upgrade from site to store · Add e-commerce to any web site • Real-time order processing • Complete international capabilities Call 1-800-567-2300 to order or fax your order to 212-678-4350 Order Summary Code the-1133 Ins-1134 kes-1100 Description Bik Leather Attache Ben Leather Kay Chains Quantity 205375 205375 30560 Price $750.00 $750.00 $180.00 SubTotal 51686.00 Shipping (UPS) $20.00 Please Enter Your Credit Information Card Number 411 5525 6524 4588 Card Type VISA Expires 02-February ● 2010 proxim#30Customer Interactive Solutions NAT Proxy End Customer Fire Wall SecureCon™ Server netopia. Thin Client .JSP, XML, LDAP • ODBC & JDBC • SSL Service Provider proxim#31Leveraging The Distribution Channel netopia. XOF BIG PLANET INCORPORATED THE INTERNETWORKING COMPANY CENDANT France Telecom TELECOM ITALIA VERIO McLeodUSA mPower MEGÁPATH NETWORKS RHYTHMS CORECOMM UUNET A WordCam Company TELE DANMARK Birch telecom COVAD A NETWORK TELEPHONE D EarthLink CAIS™ INTERNET free serve proxim#32Proxim/Netopia Synergy Large Enterprise Harmony Product Family VPN Security Routers Sma La Medium Size Enterprise Harmony Product Family vers DSL Routers Voice/Data IAD Home Intel AnyPoint Network (Proxim Symphony) HomeRF Voice/Data IAD Help Web Pfarm Softwar Web Platform Software ADSL & Cable Routers DSL Routers Help Web Platform Saltwww Web Platform Software Business Web in inc e Site Super Store 500 netopia. e Stores Harmony Product Family Gateway Stratum Integrated Residential proxim#33Residential Broadband Gateways Broadband Service New Integrated Residential IADS HomeRF Ethernet Library Bedroom Ext1 Bedroom WebPad Kitchen Study Ext2 Intel AnyPoint Family Room Entry netopia. proxim