1 Meshcast Making Internet Radio Viable.

2 Mission Establish Meshcast as a new Internet standard for transmitting audio. Establish Meshcast the place to go for listening to internet radio. Establish the Meshcast brand name through joint ventures and co-branding partnerships. Position the Meshcast technology as THE platform for audio streaming.

3 Innovative Technology Meshcast is based on a proprietary hybrid peer-to-peer technology that supports multicast and Unicast as well. This will eliminate all bandwidth cost that have been the limiting factor in the success of internet radio.

4 Innovative Strategy Meshcast plan it to create a major broadcast network with over 10 million listeners constantly. This is done by allowing 10’s of thousands of amateurs and professionals to broadcast using our network. Advertising will generate revenue as well as charging clients to eliminate the advertising.

5 Management Team John Sokol, CEO - One of the pioneers of streaming Audio in And Video in 1991 Niranjana Balasundaram, CMO – Co-founder and Chief Marketing Officer of Simutest Design Systems Jesse Rendleman, CFO – 13 years of experience in software development and management. Shankar Kuppuswamy, CTO - 6 years of experience in development, currently a Senior Software Engineer

6 Ownership Meshcast total issued shares = 10,000,000 John Sokol, CEO3,000,000[30%] Niran Jana, CMO 600,000[ 6% ] Jesse Rendleman, CFO 600,000[ 6% ] Shankar Kuppuswamy, CTO 600,000[ 6% ] Total[48%] Reserved for investors3,200,000[32%] Reserved for employees2,000,000[20%]

7 Meshcast THE TECHNOLOGY

8 Challenge Streaming high quality audio over the internet SCALABLE ECONOMICAL SECURE

9 Existing Solutions Internet Streaming / Unicast –Not scalalable. Distributed / Edge Serving –Huge transmission costs –Limited scalability.

10 Comparitive Analysis

11 Network Topology MESHSERVE MESHCLIENT INTERNET BACKBONEE MESH CAST NETWORK

12 Highlights Low Bandwidth costs Unlimited scalability Dynamic Self healing Adaptive Rate Multi-serving Distributed intelligence Unique fault correction

13 Uniqueness Quick channel surfing Massive scalability Negligible transmission costs Demographics accumulation

14 Patents Distributed database Meshed Data Distribution Mechanism Error correction codes

15 R&D Roadmap PHASESTime FrameHeadcount Setup phaseJan 2002Outsourced Development phase Jan 2002 – Jun Enhancement / Support phase Jul 2002 – Jul

16 Definition The targeted markets are Streaming audio over Internet for both, Enterprise and Entertainment sectors.

17 Meshcast The Market

18 Market Trends Broadband listener growth from 2 million to 8.5 million in 3 years ( ). Predicted market for broadband users in 2005 is 85 million. Business week suggests that listeners spend about 31/2 hrs listening to streaming audio.

19 Market Trends

20 Market Trends

21 Market Trends 6000 hrs worth of streaming program is created every week. 70,000 streaming pages have been created so far. To assert the growth of web-casting Yahoo! Acquired Broadcast.com for nearly $6 billion, it added 8.5 million unique users to the web traffic.

22 Market Segments Media [Radio] streaming. Corporate streaming. Internet advertisement market. Individual content generators.

23 Market Growth

24 Listener growth

25 Listener Growth(cont…)

26 Online Radio Station’s Growth

27 Corporate Streaming

28 Corporate Streaming CCBN an investors specialist company, started offering conference calls using streaming audio now has 3000 customers. In corporate segments, streaming media could be used in the following areas –Executive addresses –Employee Education –Sales training

29 Corporate Streaming –Intra company meetings –Product launches –Customer training –Customer service –Earning announcements

30 Online Advertisement market

31 Clarifications Internet radio alone the market is – $60 million in It is projected to grow to –$90 million in 2003.

32 Meshcast’s role in the market!!  Today online radio is suffering partly because it has to shoulder unique burdens. Each listener requires an individual audio stream, which means bandwidth costs rise for the online broadcaster with each new fan. NetRadio's Wise estimates that the bandwidth necessary to stream online transmission costs $0.05 to $0.10 per hour per listener.

33 Meshcast  Problem is eliminated with Meshcast’s underlying peer2peer technology.

34 Available Market

35 Meshcast –The competitors mentioned above differ from Meshcast either in the underlying technology or in the target market. The market share is shown in the direct areas Meshcast is directly competing with them. –Total numbers of radio stations are 17,000. Among which 10% [1,700] is already captured by the competitors. 85% of the Market is open for webcasting using peer2peer.

36 TAM for Ad in streaming audio

37 Action...

38 Meshcast –Meshcast is planning to capture 9% [160 radio stations] of the shared available market [SOM] by % of the $300 million Internet Ad revenues by % of the $616 million Internet radio revenue by % of the $3.7 billion Enterprise streaming by 2007.

39 Visibility... Promotional offers to the listeners. Alliances with Internet radio tuners to increase listener base. Trade shows. OEM opportunity for the media companies. Technical patents and articles. Technical Demo to the media and corporate.

40 Cash Cow Segments

41 Contigency If the Internet Ad revenues does not yield to the sales, Meshcast marketing will change to address the Enterprise Segment.

42 Sales Forecast

43 Meshcast The Financials

44 Income Sales increase exponentially due to market Cost of goods sold is only about 5% Operating expenses level off after 2 years Income of $30 million/year by 2006

45 Income Statements

46 Assets and Liabilities No liabilities –Rent or lease space and equipment –Pay cash for expenses Accounts Receivable ~10% of sales $58 million in cash by 2006

47 Balance Sheets

48 Cash Flow

49 Break-Even Analysis

50 Return on Investment IPO after 8 quarters profitable: Q4 of million/year income at IPO Given a 10/1 PE ratio, market cap = $125M With 10M shares, $12.50/share Investment of $4M for 3.2M shares worth $40M 10/1 ROI in 4 years!