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IEEE Asia-Pacific Initiative - Phase I: A Liaison Office in the People’s Republic of China Michael Lightner 2006 IEEE President Matt Loeb Staff Director, Corporate Strategy Approved by the IEEE Board of Directors 19 February 2006

About this Presentation l In April 2005, President Cleon Anderson charged the IEEE SPC to begin development of an IEEE Strategy focused on fast growing regions of the world with an initial emphasis on the Asia-Pacific Region and, in particular, China l In November 2005, the IEEE Board of Directors requested the development of a business plan to establish a legal and physical presence in the People’s Republic of China to be considered by the Board at its February 2006 meeting l The business plan development was facilitated by IEEE Corporate Strategy & Communications with guidance from the IEEE Executive Committee and Management Council, and it reflects input from across the organization, including the IEEE Standards Association and the IEEE Computer Society l Implementation of the business plan was approved by the IEEE Board of Directors at its meeting on 19 February 2006 in Scottsdale, AZ USA l This presentation provides you with an overview of the proposed business plan to establish a liaison office in the People’s Republic of China (PRC)

IEEE Activities Focused on the PRC þInventory current IEEE activities and member/volunteer contacts þConduct member interviews þBenchmark activities of other associations and corporations regarding these countries þAcquire and/or conduct complementary research that provides insights and helps to evaluate opportunities þHeld a China Summit in August 2005 þDetermine funding required for 2005 efforts þIdentify necessary actions as part of proposed plan þEvaluate the Business Case – Why China? þIdentify Preliminary Business Targets/Metrics þEvaluate Near-Term Business Opportunities – CSDP Certification (IEEE-CS), SA Corporate Members, Beijing Section, Sale of IP, Membership Development þBring proposal for due diligence to the BoD: November 2005 þConduct due diligence regarding an IEEE physical and legal presence þSite search þEstablish cost estimates for 2006 beyond New Initiative funding þValidate business case/develop first phase of a business plan þBring proposal to BoD to open office: February 2006 oTarget date to open office: 2Q2006

Why China First? Doing Business in the PRC Requires a Physical Presence l Working with a complex and involved central government creates a unique challenge l Need to develop partnerships with one or more of the major government organizations (i.e. MOST, CAST, CAS, SAC) l Partnership with government organizations are required l Partnerships in China require collective input from multiple advisors with knowledge of all these institutional agendas l In the end, IEEE will likely have to foster multiple and somewhat counter-balanced relationships l Good news: We have volunteers with contacts with these organizations; we need to consolidate these so we can leverage them

Site Selection Process l Site Selection is now narrowed down to two locations l Office will either be in a “serviced office” or an office building where build-out (fit-out) is necessary l We are close to terms for the build-out office which would be located in the Haidian Science Park l IEEE will sign a short term lease – 12 months with an option to renew for up to 3 additional years l Site selection is based on the following criteria l Close proximity to where IEEE staff in Beijing will spend the majority of their time meeting with constituents l Reasonable distance from industry, academic institutions, government agencies, and airport l Offers best ROI to IEEE (not necessarily financial)

Liaison Office in China Initial Activities l Current IEEE Initiatives driving the Phase I Plan l This is an IEEE office in China to support IEEE business initiatives l Computer Society’s (CS) marketing of its Certified Software Development Professional Program (CSDP) l Standards Association’s (SA) effort to encourage Chinese companies to participate in the global development of Standards l Accreditation of engineering curriculum at Chinese Universities, as part of IEEE’s global accreditation initiative l Identification of future opportunities for IEEE in and around China l Also, establishing the office enables the opening of a checking account for use by the Beijing Section

How will Region 10 Be Involved? l Establishing an IEEE office in China is the first phase of an IEEE Asia-Pacific initiative l Concurrently with the liaison office, we are also in discussion with the Japan Council about increased opportunities in Japan l Following the visit by the IEEE Executive Committee to China, President Lightner will travel to India for discussions there l We are working closely with Director Takeuchi and keeping him informed on the current activities associated with opening the Liaison office l Director Takeuchi will be with us in China for the April visits and ExCom meeting there l Our Chief Representative (staff) in the Liaison Office will attend and report on a regular basis at Region 10 meetings l We are working with Beijing Section officers on visits to the city and discussing further collaboration opportunities with the Section and its current sub-sections in Xi’an and Shanghai

We Want Your Feedback l Our experiences with the early phases of the Asia-Pacific initiative will help us to determine the next steps l We want your feedback and your ideas l Please share them with Director Takeuchi and President Lightner

For additional clarification, comments or questions, please contact Michael Lightner or Matt Loeb