The Global TETRA Market John Cox Chief Executive Officer TETRA MoU Association Ladies and gentlemen good morning and may I add my welcome to this the first TETRA Baltic States conference run by the Association here in Riga.

Success for TETRA and the MoU Global Reach - contracts now in 72 countries Athens Olympics – high profile example of multivendor interoperability in action 10 years of achievement and helping TETRA succeed around the world This year marks continuing success for TETRA around the globe with contracts now let in 72 countries according to the survey of contracts taken amongst our members. The Athens Olympics in 2004 remains perhaps the highest profile example of multivendor interoperability which we have seen and is fine justification for the tremendous amount of work put into interoperability by the TETRA manufacturers and the perseverance of the TETRA MoU Association in establishing the process. The association itself celebrated its tenth anniversary another milestone in the success of TETRA.

TETRA’s Global Success More than 700 contracts notified TETRA has been chosen in more than one third of world’s countries Lead sectors - Public Safety 48% and Transportation 24% Middle East and Latin America are currently the fastest growing Regions Let us look at TETRA ‘s success in a little more detail. We had more than 700 contracts notified at the end of Q1 2005 Customers in 72 countries have chosen TETRA as the solution for their communications, customers large and small, thanks to its scalability, customers for whom safety and security is a must thanks to its security and integrity For those who repeatedly say that TETRA is only suitable for Public Safety then the statistics on transportation indicate otherwise and for those who say it is not for Public Safety, then as the preferred Public Safety solution certainly in Europe the statistics indicate otherwise. You can see here the countries with the highest number of contracts not by number but in alphabetical order.

TETRA Contracts Growth 1997- 2004 You can see from this graph that TETRA contracts are following a typical market growth pattern which gives added confidence to the market that TETRA is a global success story.

Global TETRA Contracts mid 2005 - by Region The global regional contracts remain dominated by Europe which is not surprising as TETRA began there some years ago but its growth into more than 70 countries and the fact that one third of the contracts are outside Europe confirms its place as a global standard

Global TETRA Contracts mid 2005 - by Sector

TETRA Contracts mid 2005 - East Europe by Country It is clear from this slide that contracts in Russia dominate the region but Poland has as significant quarter share with the balance between another 10 countries from which I believe we can conclude that at least interest in TETRA is widespread in the region.

TETRA Contracts mid 2005 - East Europe by Sector The spread across the sectors follows the general trend of the global contracts with Public Safety the largest and transportation second – but only just. Government sector and utilities are very close with all sectors having significant representation.

Transportation Airports significant in transportation Security important Excellent example of the need to manage changing circumstances keep the right people informed Airports are becoming of increasing significance in the transportation sector of the TETRA market with some very large airports now in the TETRA portfolio. For all of the users in this sector, the security of a TETRA solution is important as they all manage safety of the travelling public. Additionally they require the flexibility which a TETRA solution can provide. I hope that I do not revive any recent bad experiences of flight delays when I mention the benefit of dynamic regrouping of resources which enables operators to manage the complex task of passenger handling and the necessary support services to despatch aircraft particularly when there is a change due to late arrival of aircraft or delayed take off. Not only does the mix of the groups of people need to change but this flexibility ensures that the right people are kept informed. This could be an area for growth in the region which has many busy airports.

Public Safety in Europe 5 countries with national TETRA networks 3 countries building national TETRA networks A solid platform for cross-border and inter-agency operations Users are taking advantage of the multivendor market Stronger position for public safety to fight cross-border crime and respond to disasters or terrorist attacks Europe was of course the original market for TETRA before it became a global standard and it is not therefore surprising that the market has the highest number of TETRA contracts, nearly half of which are in Public Safety. Within Europe there are five countries with national TETRA networks in operation, (Finland, Belgium, Netherlands, UK & Iceland) and a further three committed to national networks (Sweden, Austria & Greece) These TETRA networks now provide the basis of a solid platform for cross border and inter-agency operations not only shown in trials but also in operation. The TETRA community has nurtured the multivendor market and brought it to maturity for the benefit of users who have taken advantage of the range of offerings on many of the operational networks These many networks already present a stronger position for Public Safety authorities to fight cross border crime and to effectively respond to natural or man made disasters..

European & Nordic Public Safety Networks Countrywide network TETRA European & Nordic Public Safety Networks Regional Network TETRA PSS network License for TETRA Countrywide Projects in progress TETRA is already dominant on the map of the area and when TETRA wins the numerous national projects coloured in yellow, the dark green of TETRA will increase its dominance dramatically. No known/firm Project Progress

Active Open National PSS Projects Norway Poland Ireland Germany Hungary Italy Portugal The countries highlighted here all have active national Public Safety projects for which TETRA is a prime candidate technology. Many of these will become contracts in the next twelve months or so. I recently learned that Hungary expects to make a decision next month having already received tenders and being in negotiation with the bidders.

UK – a National Public Safety Service with 130,000 users Operational in 52 I would just like to say a few words about the TETRA network which has completed its rollout for the UK Police. It is now providing service to over 130,000 terminal users across the UK. It is also another fine example of the benefits that the multi vendor environment which TETRA provides giving users a choice of equipment. In addition to the 54 Police Forces using the service there are over 100 other sharer agencies on this network. The Ambulance services of England recently committed to add their custom and many others are expected to join the network. There are over 3000 base sites giving 99% geographic coverage of mainland Britain. I hope you will agree that this is now an impressive National TETRA network which taken alongside those I mentioned earlier proves that TETRA can satisfy some of the largest network requirements of some of the most demanding customers.

UK - Good example of TETRA Multi-Vendor benefits Terminal suppliers Chelton Cleartone Motorola Nokia Sepura Teltronic Thales As you can see there are 7 terminal suppliers in the UK network, some providing specialist terminals such as for aircraft, covert operation or repeater operation and others providing different types of handheld terminal.

Members’ Achievements MoU has provided a framework and administration for action The members can be very proud of what they have achieved IOP Information hub Springboard for focus groups Spreading the word around the world Built a specification reflecting user requirements Amongst all of this success over the last ten years, the Association has provided a framework and the administrative support for action by its members. The Members can and should be very proud of what they have achieved. The interoperability process has yielded results for the multi vendor market and as an information hub through its web site and publications the Association is probably the biggest single source of TETRA information. It has established a number of focus groups which have successfully spread the word about TETRA beyond Europe into the whole world market. And through these groups the specification for TETRA has been refined, strengthened and focussed reflecting user requirements. It is certainly our view that a specification which has been user driven will be far more robust than one that is not and I am sure you will agree that TETRA is a fine example.

Focused Groups Technical Forum – managing the Interoperability process Development and output of specialist focus groups Technical Forum – managing the Interoperability process Security & Fraud Prevention Group – encryption and security recommendations Operator/User Association – inputs on feature priority Business Solutions Group – defining user needs for applications Enhancement of Services Group – identifying future functionality TETRA Association Communications Group Our specialist focus groups covering a wide range of activities continue to service the community. They do of course cover a much wider range of activities than summarised here but this slide illustrates the breadth of our activities.

Growth & Progress 1995 2005 9 120 MoU Signatories TETRA’s Global Reach Trial networks only Over 700 contracts in 72 countries Interoperability Proposed Supported by 12 companies

Global Activity Regional Forums – 7 countries International promotions – 13 countries in 2004 TETRA World Congress – establishment and ongoing support www.tetramou.com – 1000 user sessions per day Our 7 regional forums are growing stronger each year running their own promotional and education events. I believe that our Norwegian Forum, which recently produced an excellent video has been influential in the decisions made by the Norwegian government to move forward with its procurement plan. Let us hope that they can continue this success and achieve a TETRA outcome. That video is available from the Association in English. Our Norwegian, Hungarian, German, Southern African and new Ukranian Forum have already held successful seminars this year and the Russian Forum ran its own successful event in Moscow last week. And of course the TETRA World Congress begins on November 28th in Frankfurt Germany.

Global Promotional Activity Regional Forum Events – 2005 Germany Hungary Norway Russia Southern Africa Ukraine Our 7 regional forums are growing stronger each year running their own promotional and education events. We believe that our Norwegian, Hungarian and German Forums have been influential in the decisions made by their governments to move forward with procurement plans. Let us hope that they can continue this success and achieve a TETRA outcome.. As you can see here our forums are active in promotional events in their own regions and this is supplemented by our own global programme of events.

Global Promotional Activity International promotions – 2005 Ireland Europe - April Malaysia Asia Pacific - May South Korea Asia Pacific - June Jordan Middle East - September Venezuela Latin America - September Argentina Latin America - September Latvia Europe - October TETRA World Congress – Germany - November

Supplier Base 2004 Cleartone R&S Bick Mobilfunk Damm Cellular Rohill DeTeWe/FWK EADS Secure Networks (Nokia) ETELM Frequentis OTE Motorola R&S Bick Mobilfunk Rohill Sepura Siemens Simoco Digital UK Ltd Teltronic Thales Communications Ltd Thales Communications Zetron The supplier base remains strong with growing interest from outside Europe and we are hoping that there will be some innovative commercial agreements which will enable local manufacture in these and other interested countries Further new manufacturers coming from China, Korea, India, Russia ...

TETRA offers...................... Constructive competition A solid standard solution Peer review reduces implementation risk Multi-vendor reality Airwave – 5 terminal vendors Olympic Games A choice Enables freedom in choice of supplier

TETRA Features in action – Athens Olympics 2004 Solution chosen to give highest level of confidence Interoperability & inter agency use Two networks Secure C4i system by Siemens using Motorola infrastructure Greek Operator OTE Commercial system using Motorola infrastructure expanded for Games Management Multivendor terminal supply Cleartone Motorola Nokia Sepura 12,000,000 calls from over 30,000 terminals And in Greece TETRA was chosen to give the highest level of security to both the users and participants in the recent Olympic Games This slide shows the impressive statistics and again demonstrates the power of the multi vendor market for TETRA. I think it is worth noting here that many of the users of the TETRA equipment were brought in to assist the management of the logistics and were given minimal training in the sue of their new terminals which makes the statistics even more impressive.

Users choose TETRA Comprehensive Voice & Data specification Proven operational solution Scalable Multivendor support Proven inter-agency capability Europe’s preferred PSS solution Comprehensive applications support Future proof The TETRA platform is continually strengthening and is providing the benefits which give users the power to choose. And choose they have for the many reasons outlined here. Hundreds of organisations have seen the potential benefits which TETRA can bring and have chosen it as their solution.

Realising the benefits Multivendor support Rapid deployment of new models Innovative solutions Competitive pricing Active investment environment What are the things about TETRA which enable users to realise the benefits? Multivendor support has enabled users to purchase the product which best suits their needs be it specialised repeaters, intrinsically safe terminals or terminals with innovative solutions such as built in GPS. This market pressure has led to innovative solutions appearing far more quickly then they ever did in traditional PMR markets and has led to really competitive pricing whilst retaining an active investment environment.

Realising Business Benefits! I would like to leave you with images of the many users who have already realised the benefits of TETRA. Thank you