Per Andersson CEO

Tornado Market Growth A really big tornado is forming on the horizon. “Bigger than the world’s telephone network, more revolutionary than the Internet, and with the potential to create more wealth than the PC industry.” “In our opinion, the next tornado will be the deployment of a broadband, packet-based public network.” Source:

Terminal Access net or LAN ISP or Enterprise BackboneTransmission Network Anatomy Copper & wireless Interconnect Optical Complexity Switching Speed = Switch or Router

Moore’s Law Electronics evolve exponentially Both Logic speed & complexity (the number of functions per chip) double every 18 months Driven by fabrication technology Demand for network capacity growths even faster!

What is microelectronics? Chip, or Integrated Circuit, in opened package System built from several packaged chips

Fabrication of Integrated Circuits Chip, also called die Wafer, a disc of silicon

Design to Win!

The Technology is a Methodology Simple and Regular Silicon Structures SwitchCore’s CXE-technology Powerful Networking Architectures

SwitchCore’s Unique Edge Networking Power through Silicon Simplicity

Step-by-step development Four-step process Each step results in a prototype Simulation, evaluation and improvement

Switch prototype

First generation products CXE-16; Wire speed IP- switch/router for 16 ports running Gigabit Ethernet on single chip Well ahead of competition Complementary and companion products to address other market segments Limited scalability

Marketing Strategy Strategic Relationships –Customers –Partners –Industry Analysts –Media Marketing Communications (Marcom) –Contributed Articles –Quotes in Articles –Trade Shows –World Wide Web

Business Development Strategy Focused development on the market leaders –Build / Continue Relationships with key decision makers at each customer site Provide a high interaction experience –Frequent person to person contact Provide prompt technical support –Have highly trained support personnel

Sales Process Five phases to sales process Each phase has a definite start and stop point All phases must be completed for a design win (sale) to be complete

Phase 1 - The Introduction Initial first level of meeting Show non-confidential presentation Judge level of interest and synergy Build the groundwork for confidence and trust in SwitchCore Introduction

Phase 2 - The Disclosure Present confidential information Exchange data sheet and customer requirements Receive feedback on data sheet Show demonstration of evaluation board DisclosureIntroduction

Phase 3 - The Proof This phase gives the best indication on the level of interest from customers Customer test the evaluation boards themselves ProofDisclosureIntroduction

Phase 4 - The Design Win Sample order placement from customer SwitchCore holds a design review with the customer on customer’s design Design win is announced to public Design WinProofDisclosureIntroduction

Phase 5 - Production Completed testing of the customer design with SwitchCore products First production quantity purchase order is placed On-going support begins ProductionDesign WinProofDisclosureIntroduction

The Company Research village Ideon in Lund, Sweden –Headquarters –Design team –32 employees Stockholm, Sweden –Reference design –12 employees Silicon Valley, San Jose, CA –Worldwide sales and marketing –8 employees

Quote from Dataquest report “...10/100/1000-Mbps Layer 3/4 chipsets are currently under development with vendors such as SwitchCore leading the charge.” Dataquest, July 1999, by Jeremey Donovan