DnBNOR SMB-Seminar 14 March 2007

Agenda The Company The Market Broader Portfolio Stronger Position Positioning Strategy Finance Market Growth Laptop Smartphone Strategy

Making It Easy The market leader in connectivity & mobility software The Company

Founded 1996, listed on Oslo stock exchange since employees with main offices and competence centers in Oslo, Stockholm, Cambridge UK, San Francisco and Seattle Software client solutions in service with more than 40 mobile network operators Connectivity and Mobility partners such as Nokia, Ericsson, Microsoft, Cisco, Sony Ericsson, Fujitsu/Siemens, HP, Nortel, Cisco, Intel Brief history and credentials The Company

Track record of innovation and first to market First to market Birdstep files patent for first connectivity client First to market Birdstep files patent for Mobile IP across security bounderies First with Vodafone Worlds first generic connectivity client launched with Vodafone UK First for T-Mobile First in the world to launch a commercial notebook with an embedded HSDPA module The Company First for T-Mobile & KPN Worlds first generic UMTS/WLAN connectivity client First with T-Mobile & Amena Worlds first commercial generic WLAN/GPRS card on the market First with Nokia and SonyEricsson First with seamless mobility on dual-radio smartphones First with Asian Device Manufacturer First OEM contract on seamless mobility for dual radio Smartphones

Birdsteps Markets Laptops Birdsteps addressable market is Laptops with PC-cards, USB modems, phones or embedded modules. The more Laptops with cellular modems sold, the better for Birdstep Smartphones Birdsteps addressable market is dual mode SmartPhones (Wi- FI/WLAN and 3G/HSDPA/HSPA) The more dual mode Smartphones available on the market the bigger the opportunity for Birdstep The Market

Mobile Voice over IP – now part of Birdstep portfolio VoiceRoaming AS incorporated during fourth quarter 2006 and engineers immediately hired Launch of SmartVocie™ at 3GSM World in Barcelona (12-16 February 2007) Successful demos for customers at 3 GSM World –Mobile Voice over IP calls –Seamless switching between VoIP and GSM –Make mobile VoIP call using your GSM number –Phonebook integration Product development and industrialization well on track First market trial to commence with Freetel in Sweden, 2nd Quarter 2007 Broader portfolio

Aramova Inc. – now part of Birdstep The most recent acquisition is Aramova. They have provided birdstep with: Stronger position Stronger position in Europe Strong development team in the US MAC OS X product line

Business Model & Go to Market Strategy Operators Provide tailored and pre-packaged solutions for seamless connectivity and mobility for all devices and all access technologies Work closely with strategic operators on both short term deliveries as well as long term roadmaps Device Manufacturers (smartphones) Become the leading provider of seamless roaming and connectivity products for device manufacturers Positioning

Birdsteps intends to be market leader Strategy Achievements licenses licenses26% market share Objectives 2007 Keep market share in the fast growing laptop market First license sales in emerging dual radio smartphone market First Mobile VoIP customer Take active part in the market consolidation

Income Statement – from fourth quarter 2006 presentation Finance

Wireless performance – 2006 Finance

Growth enablers 3G network deployment, with 123 Commercial 3G (WCDMA) Networks now deployed 40% of workforce is now mobile Faster and more advanced mobile devices Flat rate data plans Operator marketing campaigns and bundled market offerings Market growth

Laptop market growth Laptop

Cellular Modems Shipment growth Laptop

Cellular Modems Attach Rate Laptop

Comparison with Wi-Fi market: Wi-Fi modem attach rate comparison Laptop

Laptop advanced client software market growth 2006: Market growth –Mobile Internet becomes mainstream business –Important tool for ARPU growth –Operators plan for further growth 2007: Mainstream business –More services & higher speeds –Responsiveness & Support –Quality of service 2008: Mass market adoption –Mass Market adoption –Embedded devices –User behavior statistics Laptop

Dual Radio Smartphones growth Smartphone

Market Outlook – Smartphone segment 2007/08: Proof of concept phase –Smartphone manufacturers –Mobile operators –Smaller deployments –13 million phones available 2007 –35 million phones available : Market growth –Commercial deployments with mobile operators –93 million phones available 2009 –186 million phones available 2010 Smartphone

Product Portfolio in different stages in lifecycle Users Early MajorityLate MajorityEarly Adopters/ Innovators Demand Creation Demand Fulfillment Laggards Laptop Segment Smartphone Segment Products

Birdstep position and strategy in laptop market Birdstep delivered advanced laptop software clients, making Birdstep the clear market leader in Europe with a global market share of 26% Birdstep estimates that the market for advanced software clients will increase from 2.3 million advanced software clients in 2006 to more than 22 million clients by Birdstep estimates that the market will continue to consolidate and that the amount of vendors will be reduced with at least 50% by Birdstep intends to be active in the market consolidation and grow market share over time Laptop Strategy Objective: Market leadership

Birdstep strategy in Smartphone market The market is young and 2007 will be the year of proof-of-concept. The market estimate is that the amount of dual radio smartphones will increase from 13 million smartphones 2007 to 328 million smartphones by Birdstep will build on experience and relations from laptop market and deliver solutions to both operators and mobile phone manufacturers during When the market is ready for commercial volume deployments 2008 and beyond, Birdstep intends to have a complete portfolio for both mobile data as well as mobile voice over IP Smartphone Strategy Objective: Positioning & market leadership

Questions Thank you Petri Markkanen, CEO