1. CONFIDENTIAL October 20, 2003 Technology IPO Perspectives PRESENTATION TO: Annual Venture Capital Ecosystem Meeting

2. Table of Contents 1Historical IPO Perspectives 2Current IPO Perspectives 3The Global Settlement and IPO Underwriting

3. TECHNOLOGY IPO PERSPECTIVES / October 20, 2003 3 1 Historical IPO Perspectives

4. TECHNOLOGY IPO PERSPECTIVES / October 20, 2003 4 Historical IPO Perspectives >1,804 technology companies have gone public in the U.S. >$118 billion in total capital raised >33% have been acquired >14% have gone bankrupt or liquidated >41% have appreciated in value since IPO date (1) >41 have been “ten baggers” (2) >May 2001 – date of the last telecom equipment IPO By the numbers since 1980 (1)Determined at acquisition date if acquired. (2)“Ten-bagger” defined as lifetime stock price appreciation in excess of 1,000%.

5. TECHNOLOGY IPO PERSPECTIVES / October 20, 2003 5 Historical IPO Perspectives Number of IPOs (January 1, 1980 – December 31, 2002) Source: Securities Data Corporation. Cyclicality of IPOs follows the evolution of new industries and broader economic themes PC Revolution Retrenchment NetworkingInternet Revolution Retrenchment

6. TECHNOLOGY IPO PERSPECTIVES / October 20, 2003 6 Historical IPO Perspectives Average IPO Market Value and IPO Size Source: Securities Data Corporation. Excludes Accenture and Agere IPOs in 2001. (January 1, 1980 – October 13, 2003) PC Revolution Retrenchment NetworkingInternet Revolution Average IPO market value and size have steadily increased as investors demand greater liquidity and companies with greater critical mass Retrenchment

7. TECHNOLOGY IPO PERSPECTIVES / October 20, 2003 7 Historical IPO Perspectives Average Number of Underwriters per Technology IPO (January 1, 1980 – October 13, 2003) Source: Securities Data Corporation, EquiDesk. Increase in deal size and competitive dynamic among investment banks has increased the average number of underwriters on an IPO

8. TECHNOLOGY IPO PERSPECTIVES / October 20, 2003 8 Historical IPO Perspectives >Like the 1983 NFL quarterback class (Elway, Kelly, Marino), the 1986 IPO class yielded exceptional value >Approximately $400 billion of value creation from 10 companies that went public in 1986 >Lesson: As industry leaders emerge, sectors consolidate and disproportionate value is ascribed to #1 Phase 1: Technology emerges Phase 2: Several companies compete to grow the technology and market Phase 3: Leader emerges Phase 4: Industry consolidates Phase 5: Leader captures disproportionate value IPO Darwinism

9. TECHNOLOGY IPO PERSPECTIVES / October 20, 2003 9 Historical IPO Perspectives Technology Sector is an IPO Leader 2002 Sector Breakdown (by # of IPOs) 2003 Sector Breakdown (by # of IPOs) Source: EquiDesk. >Despite a poor environment for IPOs, technology has increased its share of total IPOs in 2003 from 2002 >Given the emerging growth characteristics of technology companies, the technology sector is well suited to capture a significant portion of the IPO total

10. TECHNOLOGY IPO PERSPECTIVES / October 20, 2003 10 Historical IPO Perspectives >Eight technology IPOs completed since June 2003 Financings occur in brief windows of opportunity >Average post-IPO market capitalization was $530 mm – with the smallest at $173 mm >All issuers were profitable in 2003 and have visibility into 2004 >Issuers had limited to no exposure to telecom carrier capex >Stocks have performed well – up 49% on average In difficult financing environment, higher levels of scrutiny are placed on those that can go public 2003 IPO Observations

11. TECHNOLOGY IPO PERSPECTIVES / October 20, 2003 11 Historical IPO Perspectives SigmaTel’s IPO Case Study Critical Mass (approximately $20 million quarterly revenues)` High quality customer relationships Significant growth in targeted end-markets Profitability in year of issuance Potential for core technology to serve additional markets in the future Experienced management team with proven track record Filing Mid June 2003 Marketing Early September 2003 Pricing (9/18/03) Current (10/13/03) $350 - $400 million$410 - $470 million$504 million$799 million Increased 32% on the first day of trading Currently up 54% Strong visibility at least one-year forward (period that the valuation will be based upon)

12. TECHNOLOGY IPO PERSPECTIVES / October 20, 2003 12 2 Current IPO Perspectives

13. TECHNOLOGY IPO PERSPECTIVES / October 20, 2003 13 Current IPO Perspectives >Downsizing of the past 3 years has led to significant operating leverage >Positive Qtr/Qtr revenue and earnings growth in Q1 and Q2, expected for Q3 >Equity fund flows positive every month since April 2003/2004 Outlook Domestic Equity Funds Flow FY 2002: ($27.3B) FY 2003: +$20.7B FY 2002: ($27.3B) FY 2003: +$20.7B

14. TECHNOLOGY IPO PERSPECTIVES / October 20, 2003 14 Current IPO Perspectives >Investors are cautious when valuations fluctuate dramatically, making IPOs difficult to accomplish 2003/2004 Outlook (continued) Percentage of Trading Days per Year NASDAQ Moved +/- 2% in One Day Extreme levels of volatility have given way to greater stability Source: Wall Street Research.

15. TECHNOLOGY IPO PERSPECTIVES / October 20, 2003 15 Current IPO Perspectives >Strong performance of 2003 IPO class >Interest rates remain low >IPO calendar beginning to build There are currently 61 IPOs filed with the SEC – 10 of these are technology companies 2003/2004 Outlook (continued) Current Sector Breakdown of IPO Backlog 1 ($7.1 Billion) 1 Source: Dealogic; IPOs filed/ revised within the last 180 days, current amount filed greater than $30mm. By number of transactions.

16. TECHNOLOGY IPO PERSPECTIVES / October 20, 2003 16 Current IPO Perspectives >Since 1980, every ten years significant new technologies have emerged Early to mid 1980s – PC Mid 1990s – Internet ?? Mid-2000s – Broadband connectivity and mobility utilizing cost-effective infrastructure 2003/2004 Outlook (continued)

17. TECHNOLOGY IPO PERSPECTIVES / October 20, 2003 17 Current IPO Perspectives What are Company Metrics for an IPO? Critical mass – at least $100 million in revenue Demonstrated momentum through quarterly sequential revenue and earnings growth Profitability in year of issuance Good visibility one year forward (the period valuation will be based upon) Product and customer diversification Experienced management

18. TECHNOLOGY IPO PERSPECTIVES / October 20, 2003 18 Current IPO Perspectives >Earnings momentum focus will shift from margins to revenues by early to mid-2004; lack of quarter/quarter revenue growth >Jobless recovery restricts economic growth >A few lesser quality companies capitalize on the IPO window and subsequently underperform >Another shock to global geopolitical events What Can Change Our Positive Bias?

19. TECHNOLOGY IPO PERSPECTIVES / October 20, 2003 19 3 The Global Settlement and IPO Underwriting

20. TECHNOLOGY IPO PERSPECTIVES / October 20, 2003 20 The Global Settlement and IPO Underwriting >Banker / Analyst diligence proceeds on a dual-track Bankers cannot ask an Analyst to visit a company Analysts and Bankers may not attend the same meetings with companies No discussion of anticipated equity rating is permitted >Research Analyst “Teach-Ins” to salesforce Viewed as an education opportunity, not as a sales or marketing opportunity Can discuss business fundamentals and information contained in prospectus May discuss the Analyst’s financial estimates May NOT comment on the transaction structure or pricing Bankers may NOT attend Teach-In’s >Management Presentation to the salesforce Analysts may NOT attend (permitted to view presentation from a different location) Bankers and ECM may attend Analyst estimates may NOT under any circumstances be announced or distributed Underwriter Selection and Pre-Marketing

21. TECHNOLOGY IPO PERSPECTIVES / October 20, 2003 21 The Global Settlement and IPO Underwriting >Roadshow Preparation Analysts may NOT participate in the preparation of, contribute to, comment on, or review the roadshow presentation Bankers may NOT solicit input from Analysts on the roadshow presentation >Marketing and Roadshow During marketing process, no event can be attended by Bankers and Analysts together Analysts may NOT introduce management to buyside accounts during roadshow Analysts may NOT provide input into the roadshow schedule or identify investors to target Analysts may NOT attend roadshow meetings Analyst estimates and other perspectives/opinions may NOT be discussed or distributed in any manner, at any time by Bankers or Management during the roadshow Marketing

22. TECHNOLOGY IPO PERSPECTIVES / October 20, 2003 22 The Global Settlement and IPO Underwriting >Analysts’ communications with Investors Analysts may NOT make outgoing phone calls or other communications to Investors to solicit interest in the offering Analysts may respond to incoming calls from Investors and discuss: –Business fundamentals of the company –Information contained in the prospectus –Analyst’s previously published research reports and financial model Analysts may NOT discuss or provide an opinion with respect to: –Structuring or pricing of the transaction –Any information not contained in the prospectus >Bankers and ECM personnel may NOT direct and Analyst to initiate or take calls from investors >Analysts may NOT communicate investor feedback to Bankers or ECM personnel >Analysts may not participate in the pricing call Marketing

23. TECHNOLOGY IPO PERSPECTIVES / October 20, 2003 23 CIBC World Markets 2002 & 2003 YTD Lead and Co-Managed Equity New Issues Source: Dealogic EquiDesk. Assumptions: Ranked by number of issues for lead and co-managed deals. Includes IPOs and Follow-ons, excludes closed-end funds and REITs. Based on calendar year pricing dates and on total issue amount, allocates 100% to each manager. CIBC’s strength is with middle-market companies; we have a long record of successfully executing transactions for these companies