1 X T E N D W A V E October 2007

2 T H E I N I T I A L X T E N D W A V E S O L U T I O N Enable and provide extended reach of broadband to a greater percentage of existing wire line customers without new build outs or network re-engineering Secure multiple revenue streams, increase customer ARPU and subsequent life value for service providers Meet and exceed customer and regulator demands for broadband ubiquity Allow equipment providers to utilize and monetize spare DSLAM slots to increase sales and service revenue by upgrade of line card Capitalize on initial opportunity to manufacture new products for vast copper telco market

3 W H A T O U R S O L U T I O N I S N O T Xtendwave does not: Break Shannon’s Law Wire bond Alter power Utilize compression Xtendwave accelerates networks without: The risk of untried technologies The capital and time required for new builds The need to change out or re-engineer existing systems

4 O U R S O L U T I O N U T I L I Z E S W A V E L E T S STANDARD SINE-COSINE WAVE REPRESENTS FREQUENCY ON TWO DIMENSIONS WAVELET IS A TIME-SCALE REPRESENTATION ON THREE DIMENSIONS

5 W A V E L E T S A R E N O T N E W Wavelet technology has been a cornerstone of major innovations in a variety of industries in the last century. OIL AND GAS INDUSTRY MEDICAL INDUSTRY MUSIC AND VIDEO

6 W H Y N O W ? Recent convergence of lower costs and higher processing power makes real-time calculation of wavelets feasible for telecom applications.

7 X T E N D W A V E E X T E N D S I N C R E M E N T A L B R O A D B A N D C O V E R A G E

8 Technology Patents Pending 17 utility patents 14 provisional patents I P P R O T E C T I O N

9 H O W X T E N D W A V E W O R K S Adaptive Filter Bank Modulation (AFBM) Longer reach Over copper Using existing plant

Bull Dozing & Trenching $10,000 per home Minimum of 10,000 homes

Remote Terminals (External Cabinets) $150,000 and up

12 C O DSLAM XW CHIP SET XtendWave Chip on both ends $ per port MODEM XW CHIP SET COPPER

13 Broadband to every home with a dial tone PRICELESS C O DSLAM XW CHIP SET

14 F U N D A M E N T A L A D V A N T A G E S O F A F B M More efficient use of the bandwidth Better selection of wavelet for the symbols Better adaptive wavelet algorithms for the filter banks Better immunity to noise More symbols packed into each unit of bandwidth Continuous monitoring of the impulse response of the medium

15 I N I T I A L T H I R D - P A R T Y V A L I D A T I O N

16 I N I T I A L A P P L I C A T I O N S : C O P P E R

17 I N C R E M E N T A L O P P O R T U N I T I E S Cable Wireless WiFi Mobile Devices; PDAs, Set Top Boxes, Modems AFBM has application across all forms of communications platforms.

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