Telesoft Partners 2004 Annual Meeting

Calient Networks, Inc. Founded in March 1999 $250M invested in technology and products Restarted company in Nov Secured $35M in new funding in 2004 Vertical integration: Key to technology dominance San Jose, CA Headquarters Software & Systems Santa Barbara, CA Optical Design Manufacturing Class 1000 Ithaca, NY MEMS Design & Fabrication Class 100 VLSI

Technology Leading World-class Products Large-scale, Carrier Class 3D Optical Switch Commercially-deployed, fully standard GMPLS Networking PXC 128/256 GMPLS Networking Optical Switch PX32 ~ PX288 Optical Fiber Switch GMPLS Controller DiamondWave ® Product Family

Application: Remote Test & Monitoring (RTM) Passive Fiber Taps Test Equipment Optical Switch Remote “Center-of-Excellence” Target Customers: Service Providers, Gov’t Intelligence and Defense Agencies Application: De-Marc Management IP Network Monitoring “Fiber” tapping, Lawful Intercept Benefits: Centralize expertise Reduce Opex Costs Improve troubleshooting and response times Monitor IP Networks as value added service Business Case: Elimination of one to two shifts has a 12 to 15 month payback Proof-Points: AT&T, Terramark Service Provider #1 Service Provider #2

Application: Carrier & Vendor Test Lab Automation Central Lab Administrator FOT Lab 1 Lab 2Lab 3 DUT BERT, OSA, etc BERT, OSA, etc DUT Interop DUT Interop FOT OPTICAL SWITCH Target Customers: Telecom/DataCom Vendors Service Providers Application System Test Lab Automation Benefits: Reduction test group staff Faster time-to-market Reduction in test costs (time & labor) Higher product quality Reduction of capital through sharing and elimination of wear and tear Improved customer responsiveness for both pre-sales and post-sales testing Business Case: 6 month ROI Perform many more test scenarios Proof Points: Cisco, Tellabs, BellSouth

Application: IP Over Optics Target Customers: Service Providers, Next Generation Research Networks (NRENs) Application: Dynamically, reconfigurable GMPLS optical networks for high-speed IP & GRID network applications Benefits: Only scalable, reconfigurable optical solution for GRID computing Reduced network costs through Mesh networking Future proofing for 40Gbps networking Business Case: Confirmed 30% saving in network costs Integrated control plane with IP routers MITI-JGN Network installed by KDDI Proof-Points: MITI-JGN, Optiputer, CESNET (Cisco), Japan Telecom -SSIN, KDDI (Trial)

Team Charles Corbalis – President & CEO StrataCom, Cisco, Frame Relay, ATM Dr. John Bowers, PhD – CTO Bell Labs, UCSB, Photonics Ron Mackey – VP, Marketing & CMO Tellabs, Sorrento Tom Walsh – VP, Sales Lucent, Salira Bill Zerella – VP, Finance & CFO Logitier, GTECH Kevin Welsh – VP, Operations AMC, Semi-conductor & MEMS

The Message Why? Because… The world is no longer being wired, it’s being fibered. But today’s fiber is managed like an old-style telephone switch board…manually. Calient’s DiamondWave® Products address this emerging crisis! They: Maximize fiber & wavelength network utility while, minimizing operations and equipment costs; Are field proven and field tested; Work seamlessly in your existing network A CRISIS in fiber management is imminent !