NMS Communications Video Products Overview Allen Ho Country Manager April 2005

NMS at a Glance Communications technologies & solutions –OEM products and carrier solutions Founded in 1983; publicly traded since 1994 TTM revenues $101.6 million 300+ employees; 150 in R&D Products deployed in > 90 countries Product Development Sales & SE Support Channel Partner’s Headquarters

Voice Quality Voice Quality Enhancement Echo Cancellation Multimedia 3G Video Gateway Media Server Message Switch Radio Access Networks RAN Optimization

Entertainment Music On Demand Messaging Video Messaging Voice Messaging Network Services Pre-Paid Ringback Video On Demand Conferencing Mobile Applications

Landline Subs Mobile Subs (millions) Crossover happened Mid-2002 ! 1.65 B wireless Subscribers By 2007 Sources: ITU World Telecom Indicators, July 2003; IDC, Worldwide Mobile Phone Forecast and Analysis, , Sept B. Turner World Telecom Statistics: Wireless Growth

Source: IDC, September, 2003, Worldwide Wireless and Mobile Network Infrastructure Forecast and Analysis Update, , September, 2003 Early 3G Networks are in Place Japan, Korea, Europe… More on the way

Mobile Video Services Market A Market on Fire OpportunityMarket Conditions for Growth NMS Strategy Mobile Video Services & Applications Service Providers demand new applications to drive ARPU and reduce churn. Increasing deployments of new handset technology, improved 3G infrastructure enables applications Consumers demand “Internet” like multimedia on their handsets Video Products –Video Access API’s - NEP –Video Servers –SI & App Developers Target developers delivering solutions to Mobile operators Product focus on, conversation G/W’s, video messaging and Streaming, Video conferencing

Mobile Video Services Equipment Market Opportunity, Size and Evolution *Sources – IDC and NMS

DoCoMo’s Case Study 25,

P900iV Handsets Drive the Market DoCoMo FOMA Height x width x thickness (folded): 102 x 50 x 27 mm Weight: Approx. 138 g. (4.6 oz.) Continuous talk time: –Audio Call: Approx. 150 min –Video Call : Approx. 90 min Stand-by time: Approx. 350 hours Display: –2.4-inch 252,144 color TFT screen Built-in cameras –Side (CCD) : Approx. 2 M pixels –Front (CMOS): Approx. 100 K pixels It appears that those in the know, which is just about everyone in Japan in a major city under the age of 50, doesn't give a fig about a second- generation 2G phones, they want 3G FOMA with its bandwidth and sophistication and they want it fast! (July issue – 3G Wireless Watch – Japan)

Wireless video gateway system for distributing multimedia content Transmits both live and archived video to mobile handsets High density media streaming platform translates into big savings on equipment M-Stage® V-Live™ The Foundation of Innovation

Multi-location Video Conferencing System operates in a pure IP network or a mixed IP and PSTN environment Construction sites, workers, supervisors and home-office Provide capability for last minute updates or urgent reporting 13:30 The Foundation of Innovation

Broadcast video feed Key Mobile Video Applications 3G-324M-RTSP gateway Desktop video terminals Video streaming media server WEB content renderer IETF/SIP 3GPP/SIP H.323 Video conferencing system H.323 video phones 3G-324M 64 kbps video phones Video mail system 2.5G Phones MMS SIP video phones Media adaptation (MMS,web,..) PC 3G-324M-H.323 gateway 3G-324M-SIP gateway IP 3G /2G Network = NMS inside Messaging Conferencing Streaming

3G-324M Streaming Gateway Mobile terminal is transmitting video over circuit switched path (3G324M format) to IP video terminal Media adaptation for video; audio IP networks include Broadband 3G-324M H.323/SIP MSC Video Gateway Media Adaptation- Video/audio transcoders IP Wireless Network MSC MPEG-4 or H. 263 video AMR audio H.261 or H. 263 video G.711, G.723.1, G.729a audio H.323 IP phone Camera video feed

2.5/3G Wireless Video Messaging with Media Adaptation Play back to 2.5G phone with MMS message –Provide key still pictures with audio –“Cross-media adaptation” –Could be an incremental business opportunity Video Gateway Message Server MSC Wireless Network 3G-324M GPRS/EDGE Phone (MMS) Media Adaptation- Video/audio transcoders

3G Wireless Video Conferencing Media Adaptation for phone, network variations Becomes Media Resource Function (MRF) in long term (in network IP audio and video conferencing) Business and Consumer use Media Adaptation Video Gateway Conferencing Server MSC Wireless Network 3G-324M GPRS/ EDGE Phone (MMS)

Video Mail Video Stream Video Chat Vision PDS NMS Vision Portal is a Silo Buster Removes multiple video application silos Reduces CapEx and OpEx by removing the duplication of network resources Enables the choice of “best of breed” video applications while meeting the end user’s need to see application consistency

NMS Brings Vision to Video Vision Video Portal, Gateways & Video Servers Turnkey solutions to target market applications Configured as a platform for an application partner to offer the solution Sold by application developers and systems integrators to service providers Examples –Transcoder Server — Beta Q2/05 –3G.324M to SIP Gateway with Portal support — Beta Q3/05 –Video Server — Beta Q3/05

Keys to Mobile Video Success Existing application developers, system integrators and Network Equipment Providers choose to offer mobile video applications Use NMS Video SDK, Conversational Video G/Ws and Servers from NMS – the widest set of mobile video solutions in the mobile market Go-To-Market with Mobile Video Solutions tailored to Mobile Users needs NMS Video Products = Time to market + high value = Pathway to profits in the 3G market