Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 1 Mobile Terminals S.p.A. Telit R&D Project Management Author: M. Fragiacomo, D. Protti, M. Torelli Telit Mobile Terminals S.p.A. viale Stazione di Prosecco 5/b Sgonico (Trieste) Date: 15/11/2001

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 2 The Telit R&D Division is organised according to four main areas: Advance Development, Product Development, Technologies and Software Methodologies. The Advance Development area deals with basic or applied R&D development activities. The Product Development area aims to the development of product. The Techologies Area deals with the development and test of physical platforms. The Software Methodologies Area aim to the improvement of the software development.

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 3 OUTPUT AREA - INCOMES IMPUT AREA - COSTS Platform Development Product Development Process Engineering Factory University Researches Silicon vendor High Technologies Know How Technology Platforms MMI Software Final products (prototypes) Final Products Validated platforms Know How Demostrators Designed Products (Lucent like) Engineered Products (UbiNetics like) Tools Final Products

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 4 Telit R&D Organisation Breakdown

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 5 Telit R&D Organisation Breakdown

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 6 The activities are organised in projects performed by teams deriving from the various functional departments of each area. At this aim the R&D organisation is a matrix. In the columns of the matrix the functional departments are present and ruled by department leaders. In the rows the projects (both thematic and product) co-ordinated by the project managers are present. See Organisation chart for clarification.

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 7 Matrix Organisation Dept. ADept. BDept. CDept. DDept. E Project Manager 1 Project Manager 2 Project Manager 3 Advanced Development Business Management

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 8 The projects are of two basic categories: thematic (platform) projects and product projects. In thematic projects hardware, software or mechanic activities not directly related to a specific product are carried out.

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 9 Product projects, planned in order to obtain a pre-industrial product, include activities for the realisation of parts even designed or developed in thematic projects. In respect of time to market requests it is necessary to co-ordinate the product project activities with the ones of one or more thematic projects.

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 10 It is better sometimes to think of a product project as a multi-project programme, including several thematic projects as part of it. The software groups work on several thematic projects; these projects converge into one or more product projects. We can say that various thematic projects form a programme leading to the finalisation of a product.

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 11 The following picture from the document “GPRS Product Organisation“ is an example of a product project breakdown organisation. In the example the software area is compound by groups deriving for the functional departments and organised in thematic projects (e.g – SW platform project, 0171 – Protocol Stack GPRS project).

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 12 GPRS Product Organisation

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 13 Telit GPRS RoadMap: The relationships among thematic and product projects are depicted in the following figure from the document “Draft Mid-Term Telit R&D GPRS Product Roadmap”

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 14 A roadmap is a mid-term plan of R&D activities. A roadmap is a document showing the availability of platforms and products and their mutual affection during the period of the mid- term plan. To develop a platform or a product activities are organised in projects. Sometimes a project is better referred to as a programme as more projects are necessary for the aim.

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 15 Each project must be organised by a pool of people deriving from the various organisational department in the organisational matrix. A project leader is request to drive the project but with a reference for the main functional phase (HW, SW, Physical Project). This must occur both in project and in platform projects.

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 16 Sometimes, a product project leader is required to co-ordinate the activities of the platform projects involved in the final product. Sometimes, more products will be integrated with the same features realised in more platform projects. In this case Platform and Product activities must be co-ordinate and linked.

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 17 Platform & Product APTIX RESEARCH PHASE PLATFORM DEVELOPMENT PHASE PRODUCT DEVELOPMENT PHASE University; European Projects; Standardization; Specifications; Common tools; Common Methodology. HW RF PURCHASE Specification HW Si discrete components ESPi HW DIGITAL FPGA uPDSP sw PCB IC SW DESIGN EVB ALFA BETA PURCHASE SYSTEMSYSTEM Physical project

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 18 t INVESTMENTS PROFITS RESEARCH SYSTEM DESIGN PLATFORM DEVELOPMENT PRODUCT DEVELOPMENT months ETSI 3G, 4G V. Framework PRODUCTION SALES SERVICE SUPPORT,….. PHASE OUT ADVANCED DEVELOPMENT

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 19 A programme compound by more projects is also referred to as a multi-project programme In these case the project leaders of the linked projects of the programme form a committee for a continuous control of the main milestones. Roadmap

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 20 Several platform projects contribute to the development of subsystems to be integrated into future products. These subsystems must be as stable as possible in order that they could be integrated into as many products as possible with little or no effort. Roadmap

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 21 To prepare a roadmap several meetings are necessary, involving all the potential project and company leaders. Some main milestones must be fixed according to when the products must be issued on market. Each project leader will know when to produce deliverables. The platform project leaders will focus on these targets and, in the meanwhile, communicate possible critical paths that might rise. Roadmap

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 22 Further meetings will be organised in order to focus all the critical paths and as a consequence the General Direction will be informed on possible investment needs. The Planning and Business Management office will collect all the information regarding time schedule, resource allocation, investment budget in order to cross all the data and to investigate possible labour overlapping and missing specifications. Roadmap

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 23 At this aim each project leader will organise the project. The product project leader will work according to the project iter procedure (the template for the planning of a product project). The platform product project will first prepare a document for the specifications of the project and how the activities will be organised. Roadmap

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 24 Each product project leader will deliver a feasibility report regarding the new product. The same document or a similar one will be required from the platform project leaders. The feasibility report is what is necessary to describe the project, the risks to be faced, the possible evolution and income, and to convince the company to realise the mentioned product. The following information will be requested: Roadmap

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 25 Brief description of the product Project Planning WBS (Work BreakDown structure) Necessary resources (Project Team or Organisation BreakDown Structure) The Time Schedule The Budget of Costs The Product cost The critical points Final Comment Roadmap

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 26 A last important highlight is the convergence of the roadmap with those of the silicon vendors involved into the platform projects. Hence, the milestones of the roadmap derive from the company inputs and from the links to those necessary for the development of new chipset and critical components. Roadmap

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 27 As a summary the following documents are issued for a product roadmap: -the Feasibility Report(s – if a roadmap of products is required) -the annexes regarding the Gantt Chart, the Detailed Budget, the Human Resources Allocation -the roadmap of the product families and of project families (when platform projects are involved for the development of a new product) -the detailed technical note (the description of the specifications of the product) -other documents validating the project -the evaluation of when and how big the returns will be Roadmap

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 28 Iter of a new product project The iter of a new product project is a template used for planning and management of a product project. It is mainly compound by engineering, design and development of hardware and mechanics parts with integration of software features. The software features are issued several times as new releases as outputs of thematic projects. The design process is compound by a certain number of stages quite enough to guarantee the process control.

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 29 Iter of a new product project Each stage include as many activities as possible as to obtain outputs which can be papers, physical deliverables (such as HW platform and so on) necessary to monitor the performance of the process. For each stage some indicators will be therefore evaluated and will constitute the inputs for the next stages. The following figure depicts the process of the iter of a new product project.

Rev. 0 CONFIDENTIAL Mod.19 02/00 Rev.2 Mobile Terminals S.p.A. Trieste Author: M.Fragiacomo, D.Protti, M.Torelli 30 Iter of a new product project