Strategic Approach & Development for Asian market LBO.

1. PROJECT LEVER
October 21, 2009
CONFIDENTIAL 0

2. TABLE OF CONTENTS
1. Project Summary
2. Industry Trends & Overview
3. Acquisition Target Overview
4. Leveraged Buyout
5. Creation of Settlement & Clearinghouse
6. Appendix
CONFIDENTIAL 1

3. 1.0 PROJECT SUMMARY
CONFIDENTIAL 2

4. 1. Project Summary
STRATEGY EXECUTION METHODOLOGY
Telcoware establishes an LBO: Source of capital secured by
Identify technologies anchor for market expansion debt/cash flow rich stable business model
Embedding best core Expansion capital from LBO, debt service
Interlink technologies technology into the from consistent cash flow and customer
customer base expansion
Interlink SS7 signaling and Next generation network S&C
Establish Asian S&C core network components standard via partnership with 3GPP,
based on standards Wimax Forum, and Asian carriers
Hypothesis: We strongly believe Telcowareʼs technology, and stable and predictable cash flow
streams is central to the creation of a next generation Asian Settlement & Clearinghouse.
CONFIDENTIAL 3

5. 1.1 Financing Strategy
Debt Repayment
Initial payment from Telcoware cash
reserve; Reduce subsequent debt via
Telcoware cash flow; Retire debt in
2015 LBO
IPO value
Source of Capital Fund Stable Cash Flow
3x current
Debt (Privatization) market value
Fund
Settlement & Spin-off
Clearinghouse $120M
Source of capital drives financing strategy - managing and servicing debt requires a stable
cash flow operation to satisfy debt obligations, and build an S&C business.
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6. 1.2 Phase One: Present - LBO completion
• Due diligence and LBO Preparation
• Identify LBO candidate - identified (Telcoware, LTD.)
• Financial due diligence
• Investment banking and LBO advisor selection
• Tender offer negotiation
• Market signaling to control stock price manipulation
• Morestone Management team assembled
• CEO - John Shin
• CFO - Identified
• Executive VP, Sales and Marketing - Identified
• Managing Director, Korean operations - Identified
• Finalize financing with Zenith Holdings
• Secure Senior debt to be pledged for LBO in escrow account
• Fund $8.5M in bridge capital for Morestone working capital
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7. 1.3 Phase Two: Synergies & Refocusing on Growth
• Management reorganization at Telcoware, LTD.
• Current CEO retained as ʻAdvisor to the Companyʼ
• Assistant Managing Directors are redundant
• Replace with additional Sales and Marketing personnel
• Accelerate global marketing campaign for existing products are services
• Refocus R&D spending
• Eliminate Wibro product development
• Replace with LTE product engineering
• Reduce non-core R&D initiatives and programs
• Improve year-over-year revenue growth to 30%
• Expand beyond Korean market
• Focus on high-growth Asian markets (e.g., China, India, and developing Asian
countries)
• Improve operational efficiencies
• Gross margin enhancement via optimized procurement of subcomponents
• Divest non-core assets
CONFIDENTIAL 6

8. 1.3 Phase Two: Leveraging core for future Spin-off
• Privatize Telcoware, LTD.
• Eliminate public disclosure requirements
• Focus on long-term goals instead of quarterly results
• Reposition for IPO by 2017
• Incubate Settlement & Clearing division
• 3GPP and IEEE standardization participation
• IPv6 and SS7 signaling engineering
• Embed Telcowareʼs core technologies
• At IPO, spin-off Settlement & Clearing division
• By 2017, Morsetone estimates that S&C will generate in excess of $50M in EBITDA
• S&C division will become the standard for next generation roaming remediation
entity in the Asian marketplace
CONFIDENTIAL 7

9. 1.4 Valuation Analysis
Based on DCF and APV valuation methodologies, Telcowareʼs intrinsic value is far above
its current market capitalization, thus a 25% premium to the share price is still below its
intrinsic value
Telcoware Valuation Analysis
(in $000) Current LBO Premium
Market Cap $45,021 $78,653 $33,632
Discounted Cash Flow (DCF) $57,286 $128,870 $71,584
Adjusted Present Value (APV) $56,603 $130,491 $73,888
Premium/(Discount) to Intrinsic Value -20.81% -39.60%
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10. 1.5 Sources & Uses
Sources Uses
Bridge Financing $8,500,000 Morsetone Mgmt $5,000,000
Transaction Cost
Legal & Admin Fees $950,000
LBO Advisory Fees 2,550,000
Senior Debt $95,160,000 Telcoware Buyout
Tender Offer $80,160,000
Sales & Marketing 10,000,000
Expansion WC 5,000,000
TOTAL $103,660,000 TOTAL $103,660,000
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11. 2.0 INDUSTRY TRENDS & OVERVIEW
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12. 2.1 Mobile Service Evolution
The introduction of mobile technologies is driven by the demand for new services
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13. 2.2 CDMA2000 Roadmap with Next Generation
First new technology implementations occurred in Korea
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14. 2.3 Subscriber Growth
Technology innovation anticipates subscribers need for faster speed and services
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15. 2.4 Protocol Architecture
Picking the leader in Next Generation signaling and database management: Telcoware
Telcoware
Signaling Expert
CONFIDENTIAL 14

16. 2.5 Nextgen Network Architecture
No matter how much the network architecture changes, Telcowareʼs expertise does not
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17. 2.6 Industry Conclusion
• Technology constantly changes
• Subscribersʼ appetite for faster speed and more complex applications
• Voice is treated the same as other data packets
• The telecom equipment marketplace is highly competitive but specialized
• Access Network: Switch and core routing equipment (e.g., Samsung, Alcatel, Cisco,
Ericsson, Huawei)
• Gateways and Servers: AAA, HLR, App servers, etc (Telcoware sweet spot and
market leader)
• Handsets and Terminals: End-user equipment (e.g., Nokia, Samsung, Sony,
Ericsson)
• Standardization is becoming a central focus
• A fixed-mobile convergence creates complexity
• Mobile networks blend with fixed networks in architecture and standards
• A unified standardization effort is the only way to have these networks speak the
same language
• Standardization bodies from landline mobile and broadcasting are deciding on a
single standard for their networks to speak to each other
• Korean telecom market leads global telecom landscape in technology innovation and
implementation
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18. 2.7 Where do you Compete?
• Size and scope matters
• Access Network Components is crowded with multibillion dollar equipment vendors
like Cisco, Samsung, and Ericsson
• Handsets and Terminals is sold directly to end-users which requires breadth and
scale
• A Core Network Sector within this highly complex telecom industry provides the
sweet spot for smaller vendors
• Expertise matters
• Carriers (e.g., SK Telecom, AT&T, China Mobile) are the customers
• Technological leaders have the largest market share
• Technological leadership reduces switching costs
• Stability matters
• Carriers choose stable vendors to minimize switching costs
• Stable companies continue to innovate in the ever-changing technology space
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19. 3.0 ACQUISITION TARGET OVERVIEW
CONFIDENTIAL 18

20. 3.1 Telcoware Business Summary
Business Summary
Telcoware Co., Ltd. is a Korea-based company engaged in the provision of network solutions and related
services for telecommunications companies. The Company mainly provides two categories of products:
voice over Internet protocol (VoIP) core networks solutions and wireless data solutions. Its VoIP core
network solutions include home location register (HLR), authentication center (AC), equipment identity
register (EIR), number portability database (NPDB), gateway location register (GLR) solutions and others.
Its wireless data solutions consist of telephony and IP integration systems,authentication, authorization and
accounting (AAA) systems, as well as instant messaging (IM), fixed mobile convergence gateway (FMCG),
session initiation protocol (SIP) and push-to talk (PTT) solutions.
Share Performance
Price (KRW): 6,830.00 52 Week High: 8,330.00 Currency:
KRW; Volume (millions): 0.0 52 Week Low: 3,430.00
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21. 3.2 Key Ratios and Statistics
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22. 3.2 Income Statement
TELCOWARE INCOME STATEMENTS
($000)
Historical Fiscal Years Ending 12/31
2008 2009 2010 2011 2012 2013 2014 2015 2016
Total Sales..........................................…...…........… $54,546 $53,455 $60,244 $76,751 $97,780 $114,990 $129,593 $146,052 $164,600
Cost of Sales....................................….…….......… 33,922 32,608 36,146 41,445 50,846 59,795 67,389 75,947 85,592
Gross Profit.........................................…...…........… 20,624 20,847 24,098 35,305 46,935 55,195 62,205 70,105 79,008
Sales, General & Administrative Expenses ……….. 6,136 6,415 7,229 9,210 11,734 13,799 15,551 17,526 19,752
Special charges ………………………....………..… 0 0 0 0 0 0 0 0 0
Research & Development .....................………....… 6,213 5,346 3,012 6,140 7,822 9,199 10,367 11,684 13,168
Other Income (Costs) …………………………......………... 0 (5) 0 0 0 0 0 0 0
EBITDA bef. Restructuring Expenses ….………....….. 8,275 9,082 13,856 19,955 27,379 32,197 36,286 40,895 46,088
Restructuring Expenses ………………………...… 0 0 0 0 0 0 0 0 0
EBITDA.............................................……...…....… $8,275 $9,082 $13,856 $19,955 $27,379 $32,197 $36,286 $40,895 $46,088
Depreciation........................................……..........… 465 429 419 479 625 810 962 1,090 1,235
Goodwill Amortization ……………………….…… 0 0 0 0 0 0 0 0 0
Intangible Amortization …………………………………… 0 0 0 0 0 0 0 0 0
Financing Cost Amortization …………...…...…......… 0 0 0 0 0 0 0 0 0
EBIT..................................................….......…....…. $7,810 $8,653 $13,437 $19,476 $26,754 $31,387 $35,325 $39,804 $44,853
Interest Expense …………………………….…….. 0 0 0 0 0 0 0 0
Interest Income ...................................……......… 0 0 0 0 0 0 0 0
Minority interest ………………………..………… 0 0 0 0 0 0 0 0
Pretax Income..............................….....……......… 8,653 13,437 19,476 26,754 31,387 35,325 39,804 44,853
Current Income Tax ...........................…….....… 0 0 0 0 0 0 0 0
Deferred Tax ...............................……….........… 0 0 0 0 0 0 0 0
Net Income..........................................……….… $8,653 $13,437 $19,476 $26,754 $31,387 $35,325 $39,804 $44,853
Dividends to other than common:
Preferred stock………………………….…….…… 0 0 0 0 0 0 0 0
Net Income Available to Common……..……......… 8,653 13,437 19,476 26,754 31,387 35,325 39,804 44,853
CONFIDENTIAL 21

23. 3.3 Balance Sheet
TELCOWARE BALANCE SHEETS
($000) Historical Fiscal Years Ending 12/31
ASSETS 12/31/2009 2009 2010 2011 2012 2013 2014 2015
Current:
Cash and Marketable Securities ..........................................…
$34,675 $35,089 $10,655 $11,050 $16,798 $29,315 $47,048 $68,350
Accounts Receivable..............…..…………..…………..…… 13,370 13,103 14,767 18,813 23,967 28,186 31,765 35,799
Inventories...................................…………...........................…65 62 69 79 97 115 129 146
Other Current Assets....................……….............................… 1,099 1,077 1,214 1,546 1,970 2,317 2,611 2,943
Total Current Assets...................…………..........................… 49,209 49,331 26,705 31,488 42,833 59,932 81,553 107,237
PP&E and Capitalized Leases............................................…
26,546 26,619 29,254 35,120 42,608 49,034 54,761 61,223
Less: Depreciation.........................…………...........................…
8,745 9,174 9,593 10,073 10,697 11,507 12,469 13,559
Net PP&E and Capitalized Leases……………...........................… 17,801 17,445 19,660 25,047 31,910 37,527 42,293 47,664
Other Noncurrent Assets:
Investments ……………………………....……...... 8,196 8,196 8,196 8,196 8,196 8,196 8,196 8,196
Other Assets...............................…………............................…
4,123 4,123 4,123 4,123 4,123 4,123 4,123 4,123
Total Assets.................................…………........................……
79,329 79,095 58,685 68,855 87,062 109,777 136,165 167,220
LIABILITIES
Current:
Short-term Debt & Current Portion of LTD ….... 0 0 0 0 0 0 0 0
Accounts Payable....................................…….........…...…......… 5,807 5,582 6,188 7,095 8,704 10,236 11,536 13,001
Accrued Expenses...................................…….......................…… 110 108 121 155 197 232 261 295
Other Current Liabilities.............................………....................…. 587 575 648 826 1,052 1,237 1,395 1,572
Total Current Liabilities............................………........................…
6,652 6,265 6,958 8,076 9,954 11,705 13,192 14,867
Long-term Debt:
Senior debt ……………...………...……...……… 95,160 86,660 52,120 41,696 31,272 20,848 10,424 0
Total Long-term Debt..........................................................................
95,160 86,660 52,120 41,696 31,272 20,848 10,424 0
Other Noncurrent Liabilities .........……………………….......….… 2,209 2,209 2,209 2,209 2,209 2,209 2,209 2,209
Total Liabilities...........................………………………........… 104,021 95,134 61,287 51,981 43,435 34,762 25,825 17,076
Common Stock and Retained Earnings..................................... (24,692) (16,039) (2,602) 16,874 43,628 75,015 110,340 150,144
Total Net Worth .............................................................. (24,692) (16,039) (2,602) 16,874 43,628 75,015 110,340 150,144
Total Liabilities and Equity...........................................................
79,329 79,095 58,685 68,855 87,062 109,777 136,165 167,220
CONFIDENTIAL 22

24. 3.4 Statement of Cash Flow
TELCOWARE CASH FLOW STATEMENTS
($000)
Fiscal Years Ending 12/31
2009 2010 2011 2012 2013 2014 2015
Funds from Operating Activities
Net Income Available to Common.....….........…….…. $8,653 $13,437 $19,476 $26,754 $31,387 $35,325 $39,804
Depreciation.......................…....….……...……....… 429 419 479 625 810 962 1,090
Change in current assets except cash……….. ...… 292 (1,808) (4,389) (5,596) (4,582) (3,888) (4,382)
Chg in current liabilities except debt ….……..….…. (387) 693 1,118 1,878 1,752 1,487 1,675
Change in Net Working Capital.........……….….….. (95) (1,115) (3,271) (3,718) (2,830) (2,402) (2,707)
Funds From Operations...................….…….…......… 8,987 12,741 16,684 23,660 29,367 33,884 38,188
Funds for Investment
Capital Expenditures ……………...………...…..… (73) (2,635) (5,866) (7,488) (6,426) (5,727) (6,461)
Funds from (to) Financing
Debt, Preferred, Minority Retirement ………....…. (8,500) (34,540) (10,424) (10,424) (10,424) (10,424) (10,424)
Common Dividend Paid ………….…….…......……. 0 0 0 0 0 0 0
(8,500) (34,540) (10,424) (10,424) (10,424) (10,424) (10,424)
Increase in Cash …….................….....……......….. 414 (24,434) 394 5,748 12,517 17,733 21,302
End-of-Year Cash & Marketable Securities ………. $35,089 $10,655 $11,050 $16,798 $29,315 $47,048 $68,350
CONFIDENTIAL 23

25. 3.5 Transactions Summary
SOURCES AND USES OF FUNDS AT CLOSING ON TELCOWARE ENTERPRISE PURCHASE PRICE ($000) Telcoware
($000) Equity Purchase Price..................…….....................… $80,160
Uses: Sources: % of Capital Assumed or Refinanced Debt and Preferred Stock ............................……0
Cash on Balance Sheet................…….…................… (43,175)
Offer Price per Share………..………...... $10.44 Cash in the Company.......…..… $8,500 8.2% Transactions expenses ……………………………… 0
Shares Outstanding ...……..….…….….. 7,680 Cash from the Acquirer …….. 0 0.0% Enterprise Purchase Price .........…...….…..….........… $36,985
Equity Purchase Price ……...………..… $80,160 Equity Rollover ………...…...… 0 0.0% Enterprise Forward EBITDA Purchase Multiple ……………………. .1 x 4
Transaction Expenses .…...……….…… 0 New Common Stock Issued …. 0 0.0% Paid Trailing P/E Multiple ……………………………………… 16.3 x
Total Purchase Price ….…...……….….. $80,160 Short-Term Debt ……....……… 0 0.0% Pre-announcement Trailing P/E Multiple…………………………………. 13.0 x
Retire Short-Term Debt ………..……… 0 Revolver ………………...…….. 0 0.0%
Retire Senior Debt ………….……..…… 0 Senior Debt …….……………… 95,160 91.8%
Retire Revolver …………………………. 0 Other Long-Term Debt ……………. 0 0.0%
Retire Other Long-Term Debt ……..…. 0 Subordinated Debt 1 …………. 0 0.0%
• 25% Premium to forecasted stock price at
Retire Subordinated Debt …..……....… 0 Subordinated Debt 2 …………. 0 0.0% closing
Retire Other Sub Debt ………..……..… 0 OID Debt …………...…………. 0 0.0% • $8.5M paid back from Cash Reserve
Retire Preferred Stock …....…....….…… 0 Assumed Debt ………….………. 0 0.0%
Retire Convertible Preferred Stock …… 0 Preferred Stock ………...……… 0 0.0%
• $35M initial pay down of Senior Debt
Retire Minority Interest …………..…... 0 Convertible Preferred Stock.. … 0 0.0% • DCF Value at $90M
Assumed Debt ……………………………… 0 Assumed Preferred Stock …...….. 0 0.0% • APV Valuation at $92M
Assumed Preferred Stock ………………… 0 Minority Interest …………………. 0 0.0%
• Currently, stock repurchase
Assumed Minority Interest ………………. 0 Warrants Issued …………………. 0 0.0%
Prepay Penalties/Retirement Premiums 0 announced to stabilize stock price
Cash for Working Capital ……………. 23,500 • Current stock price devaluation due to
Total Uses …………………………….. $103,660 Total Sources …………...……. $103,660 100.0% sector earnings pressures
CONFIDENTIAL 24

26. 3.6 Why Leveraged Buyout?
Telcoware is an undervalued and under-managed enterprise
• Stable Cash Flow and customer base
• No Debt; Cash & Cash Equivalent 35% of Market Capitalization
• Leadership positioning to an incumbent customer base which is leveraging legacy
• Underperforming stock and earnings vs. KOSPI;
• Using cash flow to repurchase stock versus business and market growth;
• Increasing R&D budgets
• Not effectively leveraging cash flows and borrowing power
• Not expanding sales geographically in emerging consumer markets
• Cultural Korean protocol limits growth e.g., no debt
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27. 3.7 SWOT Analysis
S W
INTERNAL VARIABLES Stable free cash flow
Debt free Dependent on a single market: Korea
Proven R&D Weak global market presence
Industry leader: technology, Small sales force focused on
engineering technology and development
Diversified products and services Public company listing issues
Loyal customer base: KT, Daum, SKT
Naver
O T
Grow intl. sales and customer base
Privatization eradicates reporting
EXTERNAL VARIABLES
Weak telecom market, slower growth
Reduce operating expenses for Large telco equipment vendors
profitability targeting Asian markets
Divest non-core assets Economic downturn limiting lending
Become leader in AAA functionality from banking sector
in wired, wireless telecom Lack of debt is ideal for target for
Alliance, co-development for 3G and takeover
4G, data roaming, settlement,
clearance
CONFIDENTIAL 26

28. 3.8 Revenue Contribution by Product
Portfolio driven by technology leadership not volumetric market gains
(in 10MM Won)
CORE REVENUE
Revenue analysis shows that Telcowareʼs core competency is in core network components;
#1 in technology patents and market share for these products in Korea; all products are
SS7 signaling-related
CONFIDENTIAL 27

29. 3.9 Revenue Model
• Revenue projected to grow on average 30% year-over-year
• Average contract size for Telcoware Products and Services is $3 to $5 million
• SK Telecom accounts for approximately 50% of their revenue base
• KT, LG, Daum and Naver account for the rest of the 50%
• By selling core products (which accounts for 90% of the revenue base today)
outside of Korea, Telcoware can accomplish this growth target on a conservative
basis
• There are over 100 carriers throughout Asia
• Key customers outside of Korea: China Mobile (China), Reliance (India), Tata
(India), China Unicom (China), and Bharti (India) and rest of Asia
• 4 new customers per year would meet the 30% growth target
• Morsetone already has relationships with over 25 carriers who are ready
to upgrade to a better HLR, AAA, and IMS
• The revenue assumption is a very conservative case scenario
• Additional upgrades and maintenance contracts would supplement core base
revenues by approximately 20%
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30. 3.10 Revenue Expansion Model
TODAY: 100% revenue
contribution
South
Korea
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31. 3.11 Operational Efficiencies
• Cost of Goods Model
• Currently, Telcoware has improved COGS to 61% of Sales
• There is an opportunity decrease this to an additional 10% of Sales
• Telcoware remains a “Made in Korea” vendor with all sourcing and labor from within
Korea which is about 40% more in labor costs and about 10% more in components
pricing
• By resourcing equipment components from same equipment quality sources in
China and Japan would increase COGS by an additional 5%
• Some core components can be manufactured in China with equivalent
engineering talent – an additional 2% cost improvement
• Headcount Analysis
• Remove redundant management layers
• Currently there are two layers of senior management between the Managing
Directors and Program Managers creating unnecessary overhead
• Replace layers of inefficient management with Sales and Marketing personnel
• Non-Korean, market based
• Executive Vice President will also bring seasoned sales professionals
• Reduce headcount with more efficient and effective partnerships and alliances
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32. 3.12 Technology Evolution
Telcoware core equipment already compliant for Wibro, Mobile Wimax, LTE, and Next
Generation IEEE 8022.16n standards.
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33. 4.0 LEVERAGED BUYOUT
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34. 4.1 Leveraged Buyout Process
• Investment banking and Fairness Opinion
• Incorporate acquisition vehicle
• Binding financial commitments: debt and equity
• Definitive Agreement
• Final Fairness Opinion • Begin negotiations with Financial
• Finalize Financing Agreement Sponsor group
• Acquisition Agreement executed • Retain investment banking advisors
• Press Release • Legal Agreements
WEEKS 16 - 26 WEEKS 12 - 16 • Letter of Intent
BID PHASE DUE DILIGENCE
WEEK 26 & PRELIMINARY WEEKS 4 -12
NEGOTIATIONS
EXECUTION MARKETING
PHASE PHASE
(IF REQUIRED)
WEEKS 26 - 36 WEEKS 1- 4
CLOSING PHASE INITIAL
DICUSSION
PHASE • Confidential Information Memorandum
• Management presentation
• Final schedules to FSC
• Valuation Analysis
• Final approval by FSC
• Initial meetings re: Structure, Capitalization, Accounting and Tax
• Close acquisition
• Identify optimal structure
CONFIDENTIAL 33

35. 4.2 Revenue Growth vs Free Cash Flow Contribution
$200,000
$180,000
$160,000
$140,000
$120,000
Free Cashl flow
$100,000 EBITDA
Revenue
$80,000
$60,000
$40,000
$20,000
$0
2009 2010 2011 2012 2013 2014 2015 2016 2017
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36. 4.3 LBO Premium Calculation
LBO is assumed at 25% premium despite a 30% premium calculation.
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37. 4.4 Debt Repayment
Telcowareʼs stable existing customer base is sufficient to repay LBO financing
• At closing of LBO, Telcoware will immediately pay $8.5M to extinguish bridge financing
to Morsetone
• First debt payment of $34.5M paid from cash and cash equivalents of Telcoware
• 20% of cash remaining on balance sheet
• ʻExpected Caseʼ Scenario
• Subsequent debt payments of $10.4M per annum to extinguish debt by 2015
• Cash balance covenant: 20% of cash reserves
• Interest assumed at 6.5%
• ʻWorst Caseʼ Scenario
• Assumes flat revenue growth
• Covenants remain the same: An additional 3 years to satisfy debt repayment, 2018
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38. 5.0 CREATION OF S&C
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39. 5.1 “Filling the Next Generation S&C Gap”
• Today, MACH is the global leader in “TAP”- based settlement and clearing
• Accounts for over 150 billion records processed per annum
• MACHʼs 2008 revenue was approximately $1.3 billion
• Became the de facto standard by acquiring regional S&Cʼs
• Acquired market leaders in S&C outside of MACHʼs markets
• Active in GSM World Congress for standardization
• Currently evaluating standardization change for Next Generation networks
• Problem: MACH only owns the SS7 links and not the data file format for roaming
resolution
• Will need to begin from scratch to adjust to new standardization
• “TAP” format is for circuit-switched voice traffic
• Data roaming is currently being settled on a per Meg basis - inefficient
• Gap: everyone starts from scratch for the Next Generation settlement and
clearinghouse
• By embedding Telcowareʼs roaming gateway throughout Asia, Morsetone S&C can
become the standardization leader for the Next Generation S&C market
CONFIDENTIAL 38

40. 5.2 Steps to build Morsetone S&C
1. Incubate S&C division within Telcoware
2. Increase R&D headcount for standardization effort
3. Embed Telcowareʼs roaming gateway throughout Asia
4. Active participation and standardization efforts with 3GPP, GSM World Congress,
Wimax Forum, and IEEE
5. Relink SS7 signaling from legacy networks to Next Generation service networks
6. Spin-off during Telcowareʼs IPO
7. Build a global footprint outside of Asia via acquisitions
CONFIDENTIAL 39

41. 5.3 Morsetone Financial Summary
Morsetone
Financial Summary
($ in thousands) 2010 2011 2012 2013 2014
Revenue $3,333.3 $4,000.0 $2,625.0 $31,062.5 $55,562.5
Cost of Service $0.0 $0.0 $215.3 $2,547.1 $4,556.1
Gross Margin $3,333.3 $4,000.0 $2,409.8 $28,515.4 $51,006.4
Gross Margin % 100.0% 100.0% 91.8% 91.8% 91.8%
Operating Expenses $1,843.1 $4,152.4 $5,070.2 $6,432.1 $7,694.7
Operating Expense Ratio NM 103.8% 193.2% 20.7% 13.8%
EBITDA $1,490.2 ($152.4) ($2,660.5) $22,083.2 $43,311.6
EBITDA Ratio 44.7% NM NM 71.1% 78.0%
Net Income (Loss) $778.1 ($643.5) ($3,077.4) $14,513.7 $26,676.9
Net Income Ratio 23.3% NM NM 46.7% 48.0%
Current Assets $5,778.1 $5,134.6 $2,272.4 $17,431.9 $44,431.7
Total Assets 6,271.0 10,180.4 7,521.5 23,103.6 50,521.8
Current Liability 492.9 1,254.8 1,673.3 2,741.7 3,483.0
Total Liability 492.9 5,045.8 5,464.3 6,532.7 7,274.0
Stockholder's Equity/Deficit 5,778.1 5,134.6 2,057.2 16,570.9 43,247.8
Total Liability and Stockholders' Equity $6,271.0 $10,180.4 $7,521.5 $23,103.6 $50,521.8
Net Increase (Decrease) in Cash ($221.9) $356.5 ($4,174.6) $11,222.0 $25,031.1
Cash Balance $4,778.1 $5,134.6 $959.9 $12,181.9 $37,212.9
CONFIDENTIAL 40

42. 6.0 APPENDIX
CONFIDENTIAL 41

43. 6.1 Itemized Appendices
1. Financials and detailed analysis
1. Telcoware financials and LBO model
2. Telcoware equity premium calculator
3. Morsetone SNC model
2. Telcoware information overview
1. Information book (Korean)
2. Roaming gateway brochure
3. IMS brochure
4. IR book 2009
3. Industry information
1. CDG presentation
2. BERGE new business models 2007
3. Korean government initiatives
4. Other supporting documents - LBO price premium research
CONFIDENTIAL 42

44. CONTACT
John J. Shin
President & CEO
Morsetone, Inc.
8840 Stanford Boulevard, Suite 4000
Columbia, MD 21045
+1 443 538 8110
Jshin@Morsetone.com
CONFIDENTIAL 43