1 DATA I/O CONFIDENTIAL Device Support Updates and Improvements Why Annual Support?

2 DATA I/O CONFIDENTIAL “With smartphones accounting for an ever- increasing portion of the global cell phone business, the mobile handset market is demanding more and more memory, particularly flash. This is causing the cell phone business to eclipse all other application markets for flash usage. Indeed, the shift in flash demand is reflective of a widespread transition in technology markets to focus more on mobile platforms like smartphones.” Growing Flash Densities – Demand Speed Source: Ryan Chien Analyst, for Memory and Storage at HIS Source iSuppli 2Q12

3 DATA I/O CONFIDENTIAL Flash / Wireless Applications Demand Speed Consumer/Wireless product functionality and feature sets are growing Longer programming times are the result of growing data content Longer programming times impact production output Competition is fierce, cost controller is critical Data I/O’s Annual Programmer Support (APS) Provides Speed-enhanced algorithms For growing production demands

4 DATA I/O CONFIDENTIAL Programming Algorithms Change 75 % of all Products Have Algorithm Changes The Semiconductor Vendor Enhances a Device for One or More of the Following Reasons. Reduction in die size Increase device speed Improve data retention Addition of new features Reduce cost to manufacture Improve programming speed Improve programming yields Rewrite of spec to correct errors Change in the silicon fabrication process TODAY’s SILICON ENHANCEMENTS RESULT IN THE RELEASE OF A NEW ALGORITHM

5 DATA I/O CONFIDENTIAL Sample Algorithm Speed Enhancements Serial Boost, NOR Boost, Super Boost, Flash Boost Maximize Productivity with FlashCORE Algorithm Speed Enhancements 83% Faster w/Serial-Boost 19% Faster w/ NOR-Boost 47% Faster w/SuperBoost 55% Faster w/FlashBoost

6 DATA I/O CONFIDENTIAL Annual Programmer Support for Flash Consumer/Wireless - Maximizes Productivity Annual programmer support maximizes productivity while controlling cost Device algorithm optimization for NOR Flash (NOR Boost) Device algorithm optimization for NAND Flash (Super Boost) Device algorithm optimization for Serial Flash (Serial Boost) Request new device support for devices not already supported Instant access to entire library of devices, including new algorithms Programming times available online

7 DATA I/O CONFIDENTIAL “Quality is an important factor for the rapidly innovative in-vehicle infotainment electronics market, and memory is the backbone of this segment where semiconductor products must meet specific automotive-grade certifications.” Source: Giorgio Scuro General Manager, Automotive Business Unit, at Micron Technology Stability Monitoring Seat Position Parking Assist Ignition Systems Transmission Airbag Air Flow Door Locks And Keyless Entry Steering Control Cruise Control Tire Pressure LED Lighting Wiper Motor Battery Mgmt ABS Radio, GPS, CD Mirror Parking Brakes Window Lift Engine Controls

8 DATA I/O CONFIDENTIAL Automotive Electronics are Mission Critical Automotive electronics have strict quality & life expectancy requirements The engine, safety and mission-critical systems have the most stringent specification Infotainment systems and connectivity systems cannot afford to skimp on quality The automotive environment is harsh (Temperature variations are extreme) Automotive electronics are Mission-Critical, reliability is a matter of life and death Brakes must engage, Airbags must deploy, Engine controllers must not falter Data I/O’s Annual Programmer Support (APS) Delivers the Highest Quality Programming Algorithms For Mission Critical Applications - When Failure is Not an Option

9 DATA I/O CONFIDENTIAL Maximize your Product Life with FlashCORE Figure 1 - Texas Instruments validation of Cell Margin on Data I/O’s FlashCORE All cells passed with full cell margin charge Fully charged cells can last up to 20 years Semiconductor manufacturers typically warranty up to 10 years Texas Instruments TMS470MSF Flash Programming (Cell Margin) Validation Report Figure 1 – Device 1 Programmed by DATA I/O PROGRAMMER FlashCORE All Data I/O algorithms are written to manufacturer’s specifications High-insertion count (HIC) sockets deliver programming yields ≥ 99.5% FPGA-based FlashCORE is optimized for quick algorithm development Annual Programmer Support (APS) – Assures access to the latest algorithms Measured Success with Cell Margin Analysis

10 DATA I/O CONFIDENTIAL Annual Programmer Support (APS) is Critical for Automotive Electronics Quality Assurance – With Annual Programmer Support Access to the latest versions of your licensed software, firmware and algorithms Instant access to entire library of devices, including new algorithms Request new features or optimizations in future releases of software, firmware or algorithms Request new device support for devices not already supported Factory QC testing of algorithms prior to release

11 DATA I/O CONFIDENTIAL 3 Options for APS Contracts 1.Full APS One year coverage both hardware and software 2. Software only APS One year subscription to all new software releases Full library of algorithm supports Plus the ability to request new device support and software features 3. Get current update One time update of your software and device library to current level Annual Programmer Support (APS) Features Full APS Software- only APS Get Current Update Extended warranty on durable portions of your programming system. If a covered part breaks, Data I/O replaces it as soon as possible at no charge to the customer. (Does not include on-site service.) √ Access to the latest versions of your licensed software, firmware and algorithms. Newer versions may include bug fixes, optimizations, or other improved features. √√ Access to technical support for software, firmware and algorithms questions and problems. √√ Access to entire library of algorithms, including new algorithms released during the term of your APS contract. √√ Allows you to request new device support for devices not already supported on your programmer. If a new adapter is required, or if the new algorithm is complex, additional NRE fees may apply. √√ Allows you to request new features or optimizations in future releases of software, firmware or algorithms. √√ Access to the current version of software, firmware and algorithms. Other benefits do not apply. √ Note: Customers with expired APS contracts who wish to renew need to purchase the Get Current Update in addition to the Full APS contract or Software-only APS contract.

12 DATA I/O CONFIDENTIAL Why Annual Programmer Support Matters TimeCostQuality Instant access to entire library of devices, including new algorithms √√ Factory QC testing of algorithms prior to release √√ Access to the latest versions of your licensed software, firmware and algorithms √ √√ No charge hardware repairs for covered components √√ Device algorithm optimization for NOR Flash (NOR Boost) √√√ Device algorithm optimization for NAND Flash (Super Boost) √√√ Device algorithm optimization for Serial Flash (Serial Boost) √√√ Request new features or optimizations in future releases of software, firmware or algorithms √√√ Request new device support for devices not already supported √ Algorithms posted daily √√ Programming times available online √√ Access to technical support for software, firmware and algorithms questions and problems √√√