1. Preston Lau Vice President, Asia Pacific Region preston@thirdspace.tv, +1 (408) 439 8170 December 1, 2002 Thirdspace Overview Broadband TV Enablement

2. 10/18/2002 All rights reserved © 2002, thirdspace 2 The Triple Play

3. 10/18/2002 All rights reserved © 2002, thirdspace 3 Broadband wars – Who will own the customer? New Incumbent Telco FSP Cable FSP Satellite FSP Competitive Telco FSP New Services: Interactive TV, Packet Voice, Game Privatization of local monopoly Growing Cable Broadband Connections Commercial Service Bundling

4. 10/18/2002 All rights reserved © 2002, thirdspace 4 Consumers are ready today!

5. 10/18/2002 All rights reserved © 2002, thirdspace 5 Growing ARPU

6. Thirdspace Company Introduction

7. 10/18/2002 All rights reserved © 2002, thirdspace 7 Company Mission Statement A global company whose open and scalable software and integration service enable service providers to deliver broadband tv

8. 10/18/2002 All rights reserved © 2002, thirdspace 8 Thirdspace shareholders: industry market leaders

9. Thirdspace “Open Video Solution”

10. 10/18/2002 All rights reserved © 2002, thirdspace 10 iTV Headend & Delivery Network Architecture

11. 10/18/2002 All rights reserved © 2002, thirdspace 11 The FSP Infrastructure

12. 10/18/2002 All rights reserved © 2002, thirdspace 12 The Traditional Approach

13. 10/18/2002 All rights reserved © 2002, thirdspace 13 The Vortel Architecture Four Layers Architecture Model 1.Client Layer 2.Presentation Layer 3.Applications Logic Layer 4.Database Layer

14. 10/18/2002 All rights reserved © 2002, thirdspace 14 Thirdspace “Open Video Solution”

15. 10/18/2002 All rights reserved © 2002, thirdspace 15 iTV Value-added services BTV VoD T-Web T-Mail T-Game PVR ReCasting PPV nVoD true VoD

16. 10/18/2002 All rights reserved © 2002, thirdspace 16 Fully flexible user interface Standard Template UI Customer specific look & feel Local language support

17. 10/18/2002 All rights reserved © 2002, thirdspace 17 STB technologies converging IP - only STBs : mainly former players in the PC market (Acer, Epox, MSI, Kreatel) Almost all of them relying on the NSC Geode / Sigma Designs reference design (two or more chip design) Flexible HW architecture, high CPU power (300 MIPS and above) middleware often chosen by STB vendor or “home grown” high pricing (>250 US$) DTV and analog STBs: “the usual” suspects: Scientific Atlanta, Motorola plus CE manufacturers like Philips, Panasonic highly integrated single-chip solutions, low CPU power (<100 MIPS) from ST Microelectronics, NEC, Texas Instruments, IBM Often no Ethernet support proprietary middleware defined by broadcaster high volumes, low costs ( < 100 US$) Higher integration reduces cost “Learning” from DTV STB vendors More feature rich standards for iTV (mhp) require more CPU power and IP connectivity

18. 10/18/2002 All rights reserved © 2002, thirdspace 18 Bill of material of MPEG-2 STB (example) PCB $15 CPU $25 Graphics $10 RAM $30 Video Decoder $20 Flash $25 Smart Card $8 Power supply, case, cabling, RC $25 Ethernet $4 HW $162 (91%) Multiple processor design (e.g. NSC/EM8400) PCB $12 CPU / Video /Graphics/Ethernet $25 RAM $12 Flash $15 Smart Card $8 Power supply, case, cabling, RC $20 HW $92 (84%) SoC design (e.g. PowerPC)

19. 10/18/2002 All rights reserved © 2002, thirdspace 19 Dual approach to multiple STBs All Thirdspace apps are based on open standards STB vendors, who develop their own middleware can very easily comply with requirements set out by OVA and OVS Thirdspace will, where appropriate certify various STBs to ensure a seamless integration of new devices into existing deployments Thirdspace will be providing the full middleware stack for STBs STB vendors without own middleware can license the necessary technology from Thirdspace to get a quicker time to market By providing a SDK (Software Development Kit), Thirdspace allows those vendors to port the middleware themselves This middleware is continuously performance optimised to support even the low-end spectrum of STBs

20. 10/18/2002 All rights reserved © 2002, thirdspace 20 Lowering STB prices Higher integration of HW reduces cost as well (see market dynamics) Higher integration of SW leads to lower HW cost Smaller footprint reduces cost for Flash memory / RAM (difference between 16MB and 32MB of Flash is up to 15US$ per device) Performance tuning of heavy components of the STB middleware allows to run on lower performance STBs

21. 10/18/2002 All rights reserved © 2002, thirdspace 21 OVC Thirdspace Open Video Client (OVC) Will become a complete broadband TV middleware solution for set- top boxes is the de-facto industry standard client SW for IP-based Broadcast Television (Broadband TV), Video on Demand and Gaming runs on different set-top boxes as well as on PCs and can easily be ported to new devices Is fully based on open industry standards such as IGMP, RTSP, MPEG-1/2/4 and MP2TS

22. 10/18/2002 All rights reserved © 2002, thirdspace 22 Future OVC for Set-top Boxes 3 rd party CA client Broadcast TV client (BTV) UI HTML engine Real Time Operating system (e.g.. Linux, VX Works) Set-top box Hardware Monitoring and Telemetric (Overlook) Video on Demand client (RTSP) Remote Gaming client (g-cluster) Thirdspace OVC

23. 10/18/2002 All rights reserved © 2002, thirdspace 23 OVC RTSP Set-top Boxes Client for Video-on-demand (VoD) Fully compliant with RFC 2326 “Real Time Streaming Protocol (RTSP)” and “thirdspace TM OVS Custom Video Client Developer’s Guide Annex A” MPEG2TS filter to separate Audio / Video / Teletext / CC etc. PS Full trick play implementation Play, FF, RW, Pause and Stop with negligible latencies (Stop has immediate effect) Supports thirdspace OVS AND ALL OTHER RTSP / MPEG2TS – compliant Video Servers

24. 10/18/2002 All rights reserved © 2002, thirdspace 24 OVC SDK for Set-top Boxes Allows STB manufacturers to integrate OVC into their middleware of choice or, in the future to port the full OVC middleware to their OS Reduces integration time for STB vendors by up to 50% OVC binaries for OS platform Code examples for integration with UI engine (JAVA, HTML) Frame buffer Audio/Video decoder Documentation: Installation manual OVC porting guide Available for Linux October 2002, other OS platforms to follow

25. 10/18/2002 All rights reserved © 2002, thirdspace 25 OVC SDK - architecture OVC client Network Interface Framebuffer (TV-out) User Input (RC) HTML Browser CA client Video Decoder CA client OS (Win32, Linux, VxWorks)

26. 10/18/2002 All rights reserved © 2002, thirdspace 26 Client certification program OVA User interface HTML Thirdspace Certified OVS Uni & Multicasting (VOD & nVOD) MPEG / MP2 TS RTSP Thirdspace Certified Two certification programs

27. 10/18/2002 All rights reserved © 2002, thirdspace 27 Summary Thirdspace provides industry leading, platform independent, standard video server solution: OVS Carrier class: scalable, redundant, full feature set. Standard RTSP video server with open RTSP+ extensions with standard operating system support like Linux. Distributed OVS integrates multiple vendor´s standard RTSP video servers. Thirdspace has been first to market with true web/thin client implementation with common framework for multiple own & 3 rd party iTV applications: OVA Next generation implementation for full commercial deployments with first to market full CAS integration. Support of variety of thin client capable STBs Focus on local and global SI partners: Thirdspace solution pre integration & component certification. Customisation for individual customer needs.