Nextivity Overview Dec 2008 Summary

Introduction ,[object Object],[object Object]

P/E multiples peaked over promise of 3G ,[object Object],P/E Multiple (x) Wireless Operators* Forward P/EPS, 1998-present *Vodafone, Telefonica, NTTDoCoMo, France Telecom, Deutsche Telekom Source: First Call 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Peak of 3G auctions Reality sets in that 3G will disappoint

3G promise thwarted by physics… ,[object Object],Ironically, the area with the highest probability of usage (up to 70%), is also the area with the lowest probability of coverage

In-home coverage remains industry’s top pain point 35-45% of customers have poor in-home coverage (using 3G, GSM, or CDMA) Expensive, sizeable problem for industry However industry lacks solutions 25% ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: Nextivity interviews with carriers, Nextivity estimates 45% Tier 1 operator 35% Tier 1 operator 36% Signals Research (based on mathematical estimates) “ There is not an operator in the world that does not need an in-building solution…” “ We have a huge pain point with customer churn due to poor indoor coverage and until now have had no tools to save these customers” Frustrated 71M W-CDMA subs with poor indoor coverage create a TAM of €17B

Network quality still remains the axis of competition ,[object Object],Would switch service providers to have fast at-home mobile internet Would only use their mobile service if home coverage was good Would purchase additional equipment if they could make free phone calls inside their home Source: Quality Resource Associates, 2006 (research sponsored by Alcatel-Lucent) Network quality is the key driver of customer satisfaction, churn &upsell

High Speed Data Cards a bright spot…. Integrated HSPA modem 3G data card Source: ABI Research, Ericsson High Speed Data Card Shipments Millions of units, projected 2009 2010 2012 2011 +36% CAGR 2013 By 2011, we are on track to have 100M+ laptops (50% of total laptops manufactured) with integrated HSPA modems

However, in-home data rates have been an embarrassment & present a major challenge ,[object Object]

Nextivity’s ‘Cel-Fi’ solves the physics problem that has hobbled wireless from its inception ,[object Object],Cel-Fi Window unit Coverage unit Cel-Fi removes the adverse effects of outer & inner walls

Cel-Fi is customer installable & self-configuring Cel-Fi is the first mass deployable solution thanks to its extraordinary ease of use Note: To watch this demo, please view it in PPT Slide Show mode. Or, it is also viewable at: http://www.nextivityinc.com/consumers/images/demo_h.swf

Operators extremely excited about Nextivity ,[object Object],Major applications Churn mitigation & customer save programs Fixed line replacement for voice and high speed data Providing broadband where no wireline broadband service exists Enterprise applications “ Right now our usual answer to a residential customer is no, I can’t provide you a repeater; but this product means we can say yes” “ The existence of the enterprise product is very helpful, it would be very much easier to implement than what we do today” “ This product should go hand in hand with the USB dongle modem to create a replacement for wireline broadband in the home” “ We are just starting to cover the rural areas with 3G and it is not easy. This product has a future with us”

30+ operators are piloting Cel-Fi products globally As a key vendor in partnership with Three Hutchison, Nextivity has received its first volume commitment worth €24M+ (minimum €12M) Non-EU pilot commitments have also just begun… Hong Kong, Australia and Russia have already committed

Product summary: Simply Revolutionary

Proven team Has shipped millions of wireless units to top tier customers in the past ,[object Object],[object Object],[object Object],[object Object],Werner Sievers , CEO ,[object Object],[object Object],[object Object],[object Object],MichielLotter, VP of Engineering ,[object Object],[object Object],BehzadMohebbi, Founder & CTO ,[object Object],[object Object],[object Object],Tony Pun, Director of Finance ,[object Object],[object Object],[object Object],Andrew Gruar, VP Sales & Business Mgm’t, EMEA ,[object Object],[object Object],[object Object],George Lamb, Dir. of Marketing & Carrier Ops ,[object Object],[object Object],[object Object],David Ramsland, VP of Operations

Nextivity summary ,[object Object],Top tier investors $17M invested to date Patented breakthrough technology Ideal team ,[object Object],[object Object],[object Object]

KCP Capital Kamal Tayara, Managing Partner [email_address] +971 (50) 559 8114 www.kcpcapital.com Nextivity Werner Sievers, CEO [email_address] +1 (858) 485 9442 x203 www.nextivityinc.com

Nextivity Overview Dec 2008 Summary

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Nextivity Overview Dec 2008 Summary