Telesoft Ventures Don Listwin

© 2001 Openwave Systems Inc. MARKET SCENARIOS PessimisticBase CaseOptimistic Handset Replacement Cycles Next Gen. Network Rollout Availability of Data Enabled Handsets Rate of Service Adoption Among PessimisticBase CaseOptimistic Handset Replacement Cycles Next Gen. Network Rollout Availability of Data Enabled Handsets Rate of Service Adoption Among PessimisticBase CaseOptimistic Handset Replacement Cycles Next Gen. Network Rollout Availability of Data Enabled Handsets Rate of Service Adoption Among PessimisticBase CaseOptimistic Handset Replacement Cycles Next Gen. Network Rollout Availability of Data Enabled Handsets Rate of Service Adoption Among PessimisticBase CaseOptimistic Handset Replacement Cycles Next Gen. Network Rollout Availability of Data Enabled Handsets Rate of Service Adoption Among Base Market Model Case Probable StormPerfect Storm <$400M Probable WavePerfect Wave >$800M

© 2001 Openwave Systems Inc. PROBABLE WAVE Optimal Challenging Slow Fast Product Transitions Fast Industry Consolidation Perfect Storm Probable Storm Probable Wave

© 2001 Openwave Systems Inc. PROBABLE STORM Optimal Challenging Slow Fast Product Transitions Fast Industry Consolidation Assumes: Market Share Constant / ASP Constant Perfect Storm Scenario 1 Probable Wave Probable Storm

© 2001 Openwave Systems Inc. OPENWAVE MISSION Deliver the Services OS ™ software platform that enables communication service providers to rapidly create profitable Internet-based services.

© 2001 Openwave Systems Inc. ANNUAL REVENUE GROWTH

© 2001 Openwave Systems Inc. ANNUAL REVENUE GROWTH 85% GM 25¢/share

© 2001 Openwave Systems Inc. GEOGRAPHIC REVENUE DIVERSITY June, 2001September, 2001 Source: Openwave Americas EMEA Japan and Asia-Pacific ROW 38% 35% 27% Americas EMEA Japan and Asia-Pacific ROW 30% 35%

© 2001 Openwave Systems Inc. SUBSCRIBER GROWTH 1,000M+ 189M 125M 906M 25.7M 420M Mobile InternetMessaging Active Subscribers Subs Served by Our Customers Worldwide Subscribers Sources: Messaging Online (Year End 2000 Report), Radacati, EMC, CSFB, Operator Press Releases, Openwave Estimates, Morgan Stanley Dean Witter PC Industry Overview March 2001 # Seats Activated # PCs # Seats Licensed # Subscribers Licensed 40M +4.1M +5.9M

© 2001 Openwave Systems Inc. COMPANY FACTS 2,000+ Employees

© 2001 Openwave Systems Inc. FINANCIAL PERFORMANCE

© 2001 Openwave Systems Inc. FINANCIAL PERFORMANCE % GM (4.6)% Profit Ops (0.03)¢ 2002

© 2001 Openwave Systems Inc. AGENDA Industry Model Japan’s Success Global Market Openwave Technology

© 2001 Openwave Systems Inc. INDUSTRY TRANSITION Internet Telephony PSTN Internet

© 2001 Openwave Systems Inc. # of Subscribers INDUSTRY BUSINESS MODEL # of SubscribersProfitability New Services Voice Cost

© 2001 Openwave Systems Inc. Content INDUSTRY ENTERPRISE SME SOHO CONSUMER Carrier Data Center Telephony Internet Openwave Device Products Developer Products Communication Services Platform Services Mobile Services Infrastructure Customer Service Ecosystem Partners

© 2001 Openwave Systems Inc. Content ENTERPRISE SME SOHO CONSUMER Telephony Internet Carrier Data Center Openwave INDUSTRY SITUATION Carrier Data Center DataBack Office Voice

© 2001 Openwave Systems Inc. Content ENTERPRISE SME SOHO CONSUMER Telephony Internet Carrier Data Center Openwave ENTERPRISE

© 2001 Openwave Systems Inc. AGENDA Industry Model Japan’s Success Global Market Openwave Technology

© 2001 Openwave Systems Inc. MARKET MODEL Content ENTERPRISE SME SOHO CONSUMER Carrier Data Center Telephony Internet Openwave

© 2001 Openwave Systems Inc SUCCESS FACTORS 1 Internet 1

© 2001 Openwave Systems Inc. Content ENTERPRISE SME SOHO CONSUMER Carrier Data Center Telephony Internet Openwave INDUSTRY SITUATION

© 2001 Openwave Systems Inc. INDUSTRY PRIMITIVES AND MARKET MODEL: 12% INCREASE IN HANDSET SALES… Consistent With Current Analyst Expectations

© 2001 Openwave Systems Inc. HANDSETS

© 2001 Openwave Systems Inc. BROWSER ENABLED HANDSETS Total Worldwide Handset Shipments (M) Data-Enabled Handset Penetration

© 2001 Openwave Systems Inc. Content ENTERPRISE SME SOHO CONSUMER Carrier Data Center Telephony Internet Openwave INDUSTRY SITUATION Internet

© 2001 Openwave Systems Inc. 2.5G NETWORKS Source: EMC, Openwave Analysis 1xRTT GPRS In Service (Commercial) 139 CSPs605M Subs 100% GPRS 1xRTT In Deployment (In Process of Rolling Out)

© 2001 Openwave Systems Inc. Content ENTERPRISE SME SOHO CONSUMER Carrier Data Center Telephony Internet Openwave INDUSTRY SITUATION New Services $15/month $30/month

© 2001 Openwave Systems Inc. “Moore’s Law” 2-way and Global Network Secure and Private Accessible COMMUNITY STRUCTURE

© 2001 Openwave Systems Inc. AGENDA Industry Model Japan’s Success Global Market Openwave Technology

© 2001 Openwave Systems Inc. INDUSTRY STANDARDS Optical Standards Security Standards Presentation Standards IP Standards Messaging Standards IP Standards Messaging Standards Presentation Standards Security Standards Optical Standards TransportCommunicationEntertainmentCommerceImaging

© 2001 Openwave Systems Inc. MOBILE INTERNET GROWTH

© 2001 Openwave Systems Inc. CONTENT

© 2001 Openwave Systems Inc. DEMOGRAPHICS

© 2001 Openwave Systems Inc. MARKET SCENARIOS PessimisticBase CaseOptimistic Handset Replacement Cycles Next Gen. Network Rollout Availability of Data Enabled Handsets Rate of Service Adoption Among PessimisticBase CaseOptimistic Handset Replacement Cycles Next Gen. Network Rollout Availability of Data Enabled Handsets Rate of Service Adoption Among PessimisticBase CaseOptimistic Handset Replacement Cycles Next Gen. Network Rollout Availability of Data Enabled Handsets Rate of Service Adoption Among PessimisticBase CaseOptimistic Handset Replacement Cycles Next Gen. Network Rollout Availability of Data Enabled Handsets Rate of Service Adoption Among PessimisticBase CaseOptimistic Handset Replacement Cycles Next Gen. Network Rollout Availability of Data Enabled Handsets Rate of Service Adoption Among Base Market Model Case Probable StormPerfect Storm <$400M Probable WavePerfect Wave >$800M

© 2001 Openwave Systems Inc. PROBABLE WAVE Optimal Challenging Slow Fast Product Transitions Fast Industry Consolidation Perfect Storm Probable Storm Probable Wave

© 2001 Openwave Systems Inc. PROBABLE STORM Optimal Challenging Slow Fast Product Transitions Fast Industry Consolidation Assumes: Market Share Constant / ASP Constant Perfect Storm Scenario 1 Probable Wave Probable Storm

© 2001 Openwave Systems Inc. PROBABLE STORM – CY m 139m 181m216m226mMobile Data Subs Key Drivers Perfect Storm Replacement rates fall (US) or stagnate Significant delays in NG infrastructure. US falls further behind Europe. Failure by vendors to increase number of browser enabled handsets Data adoption continues to be slow. Nokia stalls M- Services in Europe Probable Storm Replacement picks up as confidence recovers and new models are shipped Continued delays in NG rollout. Greatest impact in US Data capable hand- sets become more pervasive Compelling content continues to be lacking, pushing back adoption by 2 quarters.. Europe sees continued use of SMS, causing delays in micro-browser uptake of up to 1 yr Base Case Gradual recovery in handset replacement in all regions ‘ Rollout of 2.5G in APAC and Europe in ‘01. US follows ’02. S. America, Asia, Middle East/ Africa ‘03-04 All 2.5G+ handsets data enabled. Increases in % of new 2G handsets data enabled. Among users with data enabled handsets, steady growth in adoption to 60% by 2006 in US, APAC, W.Europe. Moderate growth in less developed regions Probable Wave Handset replacement begins to pick up gradually from ‘02 2.5G and 3G networks continue present rollout path APAC and W.Europe US, ROW Increase in micro- browser enabled 2G handsets as consumer demand emerges. M-Services achieves early success and availability of rich content increases (e.g. Java). Data uptake outside Japan accelerates Perfect Wave Replacement rates return to ’99/’00 level. Ongoing growth in Middle East/Africa and C.Asia 2.5G rollout accelerates from ’02. Seen in increased share of handset sales. Vendors rapidly increase availability of data enabled handsets. M-Services takes off in EU. CSPs “get” the concept of ecosystem development. Data uptake accelerates. Transition to Japan type penetration rates in Europe, US, Asia 90% C.I. 99% C.I. * Subs defined as at least 1 use per month CY2001 – 84M

© 2001 Openwave Systems Inc. COMMUNITY STRUCTURE Open Community Messaging

© 2001 Openwave Systems Inc. MAJOR MESSAGING PLAYERS Millions of Users

© 2001 Openwave Systems Inc. GLOBAL MARKET GROWTH United States Development Europe Deployment Asia- Pacific Japan Expansion

© 2001 Openwave Systems Inc. AGENDA Industry Model Japan’s Success Global Market Openwave Technology

© 2001 Openwave Systems Inc. COMPONENTS Customer Service Communication Services Platform Services Mobile Services Infrastructure Mobile Access Gateway / Mobile Services Platform Device Products Mobile Browser Device Applications Developer Products WAP Push Library SDK Mobile Unified Messaging Instant Messaging Multimedia Messaging Commerce Broker Sync Manager Provisioning Manager Download Fun Mobile Messaging Gateway Ecosystem Partners Channel AlliancesStrategic AlliancesDeveloper Alliances Product and Technology Alliances Professional Services Customer Support

© 2001 Openwave Systems Inc. PLATFORM Mobile Services Platform Client Applications Communication Suite Customer Life Cycle Management Developer Alliances Strategic Alliances

© 2001 Openwave Systems Inc. CLIENT TECHNOLOGY Mobile Access Multimedia User Friendly

© 2001 Openwave Systems Inc. UNIFIED MESSAGING TUI “You have 3 urgent Voic Messages, 6 new s…” Address Book Notification Calendar Messaging

© 2001 Openwave Systems Inc. INSTANT MESSAGING WAP Client SMS Client Desktop IM Client Mobile – Embedded Client

© 2001 Openwave Systems Inc. MULTIMEDIA MESSAGING

© 2001 Openwave Systems Inc. ASIA’S SUCCESS…

© 2001 Openwave Systems Inc. … COMING TO REST OF WORLD

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