1. Ethernet Unified Wire November 15, 2006 Kianoosh Naghshineh, CEO kianoosh@chelsio.com www.chelsio.com Chelsio Communications

2. CHELSIO CONFIDENTIAL 2 Pioneering Unified Wire Unified 10Gb Ethernet Network LAN NAS SANHPC LAN NAS SAN HPC Improves CPU efficiency Improves CPU efficiency Minimizes software licenses Minimizes software licenses Simplifies data center wiring Simplifies data center wiring Leverages staffing skills & tools Leverages staffing skills & tools Lower Total Cost of Ownership Improves cluster performance Improves cluster performance Lowers application latency Lowers application latency Faster backup and recovery Faster backup and recovery Enables storage applications Enables storage applications Higher Performance and New Apps Convergence Benefits Simplified network architecture – reduced operating costs

3. CHELSIO CONFIDENTIAL 3 Key Market Drivers CriteriaMarket Drivers / Enablers Unit Growth  3x volume growth in the 10GbE NIC market in 2006 (synergy report)  3x volume growth in 10GbE switch market in 2006 (Dell’Oro)  iSCSI market growing at 50% per quarter Infrastructure  High density 10GbE switches available now  OpenFabrics released  can run IB apps unmodified, channel product  Chimney OS released  All NICs become TNICs in channel  iSCSI Target & Initiator ready  can begin to replace FC  Middleware partnerships in place  can run FC apps unmodified Prices  XFP over 12 months: prices halved  CX4 switch port at $700/port list price now  10G CX4 RNIC at $995. Expected to be halved by 4Q07 Standards  10G CX4 (copper media) introduced and shipping  10G-baseT switches and cards expected by 1Q07

4. CHELSIO CONFIDENTIAL 4 Current Shipping Products Full TCP/IP Offload (TOE) Full iSCSI Target solution CX4 copper or XFP fiber Highest performance and CPU efficiency T210 10GbE Protocol Engine N210 10GbE Server Adapter 10Gb Ethernet NIC Linux, Windows, Solaris Turn-key software drivers Easy-to-use server adapter for 10GbE connectivity 4-port Gigabit Ethernet Full TCP/IP Offload (TOE) Full iSCSI Target solution Best price/performance for servers & IP SANs T204 4GbE Protocol Engine  2 nd generation products shipping in volume since Feb 2005  Over 140 customers in 20 countries using Chelsio adapters  Strong foundation for 3 rd generation ‘unified wire’ solution  Holder of all but one of the current Land Speed Records CX4 copper or XFP SR/LR optics PCI-Express or PCI-X bus interface

5. CHELSIO CONFIDENTIAL 5 Introducing Terminator 3 (T3) T3 ASIC T310 10GbE PCI-Express or PCI-X 2.0 T302 2x1GbE PCI-Express  PCIe x8 or PCI-X 2.0  10GbE CX4 or XFP  NIC+TOE+iSCSI+RDMA  32K connections  iSCSI Target+Initiator  Full-duplex 10Gbbps line-rate performance  ½ length form factor  PCIe x4  2-port Gigabit Ethernet  NIC+TOE+iSCSI+RDMA  32K connections  iSCSI Target+Initiator  2 x 1000BASE-T ports  Low-profile form factor  PCIe x8 or PCI-X 2.0  2x10G or 2x1G Ethernet  NIC+TOE+iSCSI+RDMA  Up to 1M connections  ACPI, IPMI, SMBus, I 2 C  0.13um TSMC LV  ~11W typical power  37mm FCGBA PCI-Express or PCI-X bus interface

6. CHELSIO CONFIDENTIAL 6 Superior Performance Source: Independently verified by VeriTest, Inc. Test tool: netperf Test configuration: 2 systems connected through 10GbE switch running single TCP channel with 1500-byte Ethernet frames System configuration: AMD Opteron 248 2.2GHz uniprocessor running Linux kernel 2.6.6  Performed May 2003 by the world’s leading independent lab, VeriTest, Inc.  TOE delivers ~2X network throughput vs. 10GbE NICs  TOE shows ~1/2X CPU utilization vs. 10GbE NICs  Net-net: TOE shows ~4X network efficiency vs. NICs  No Jumbos, one connection to thousands of connections Chelsio T110 TOE versus 10GbE NIC Network Performance

7. CHELSIO CONFIDENTIAL 7 Independent HPC Benchmarks Validate Performance 10GbE has higher bandwidth than Infiniband & Myrinet 10GbE has lower latency than Infiniband Testing performed by Los Alamos National Laboratory and The Ohio State University

8. CHELSIO CONFIDENTIAL 8 RDMA & iSCSI  PCI-X 133MHZ  1.8GHZ Dual CPU OPTERON  1GB Memory  Mellanox 4X SDR IB PCI-X HCA  Chelsio T320X 10GbE PCI-X RNIC  Point to point networks  Using Open-IB derivative benchmarks  20 Initiators – MS iSCSI 2.0, 1GbE  Dell 2950, 2 x Intel 3GHz EM64T Dual Core Woodcrest, 8GB DDR-II 667MHz memory  Linux 2.6.17 SMP x86_64.  T320e (T3b).  iSCSI Target 2.0 release.  Ramdisk. No CRC, TOE mode

9. CHELSIO CONFIDENTIAL 9 T3 Feature Summary FeatureDescription Hardware  Integrated native PCIe 8x and PCI-X 2.0 266MHz interface  Integrated 2 GigE or 2 10GbE ports with CX4/KX4 compliant XAUI Architecture  Cut-through processing architecture delivers 10Gbps wire rate & ultra low latency  Scalable to 100Gbps and extendable to additional protocols (IPSec, SSL, XML, NFS)  Flexible in cost, power, performance, programmability Management  PXE, EFI, Power Management QoS  Multiple queues for bandwidth resource provisioning and allocation  Multiple channels for simultaneous high bandwidth/low latency operation Virtualization  Extensive receive and transmit features to support virtualization Filtering  Tens of thousands of filter rules in hardware, configurable in software, used for firewalls and virtualization Traffic Manager  Simultaneous per-connection and per-class rate control and bandwidth allocation TOE  4x performance vs NIC  Implements both Full and Partial TCP offload  High performance even in demanding network environments (large RTT, packet loss) DDP  Zero-copy steering of payload data directly into application space for extremely low CPU utilization  No modification to applications  Line rate receive on 1 connection iSCSI  16x performance vs NIC  Chelsio offers complete commercial-grade iSCSI software stack for Linux for FREE iWARP RDMA  RDMAC & IETF compliant  RNIC-PI, kDAPL and OpenIB software interfaces

10. CHELSIO CONFIDENTIAL 10 Competitive Analysis  Chelsio competes primarily with companies that develop Ethernet adapter cards and/or integrated circuits  Indirect competition from other fabric technologies such as InfiniBand and Fibre Channel  Chelsio delivers a best-in-class, full-featured and seasoned solution NICTOEiSCSIRDMA10GbEGbE2-portPCI-2XPCIeVLIW Chelsio ►►►►►►►►►► Broadcom ►►►►►► Emulex/Silverback ►► QLogic ►► Intel ►►► Neterion ►►► NetXen ►►►►►►

11. CHELSIO CONFIDENTIAL 11 Why Chelsio  Very High Performance  Very Low Latency  High Transaction Rate  High Bandwidth  Correct architecture  Data Flow Processor produces a Scalable and Ideal Performance Profile  Value added features  Integrated Traffic Manager  Filtering  Virtualization  3 rd Generation – Robust, Seasoned  Maximum guarantee of no late arriving QA bugs  Integrated High Performance ULP solutions – run IB or FC apps unmodified  Commercial grade iSCSI stack integrated with hardware DDP facilities  Fully integrated OpenFabrics RDMA software stack  Broad product offering – future protection  2x1Gb or 2x10Gb, iSCSI, RDMA, TOE, Chimney, NIC  PCI-Express, PC-X 2.0, PCI-X 1.0  Reliable, predictable supplier (ISO 9001 certified)  The only vendor with experience shipping Offload products to enterprise OEMs  Availability of software-only products

12. CHELSIO CONFIDENTIAL 12 Thank You