1. Polycom Video Leadership Q1 2005 For more information, contact: 1 PC Network Inc. 1 PC Network Inc. Phone 949-675-9588 Fax 949-675-9599 e-mail info@1pcn.com info@1pcn.com Click here for more details and discount pricing Click here for more details and discount pricing

2. Why Polycom Video Solutions? LEADERSHIP Technological Leadership and Innovation Leading Market Share and Investment Protection Ongoing Integration Advancements Unmatched Ease of Use Broadest end-to-end Video Conferencing Solutions The Vision and Power of Polycom’s Unified Collaborative Communications

3. Leader: Technology and Innovation

4. AudioVideoContent Creating THE Fundamental Building Blocks Leadership and Innovation Creating THE Fundamental Building Blocks G.722.1 Siren 7 Audio Siren 14 Audio Audio Error Concealment H.264 Intellectual Property ProMotion Dual Monitor Emulation Video Error Concealment T.120 Dual Streams People+Content H.239 Intellectual Property

5. AudioVideoContent Creating THE Fundamental Building Blocks Leadership and Innovation Creating THE Fundamental Building Blocks G.722.1 Siren 7 Audio Siren 14 Audio Audio Error Concealment H.264 Intellectual Property Dual Monitor Emulation Video Error Concealment T.120 Dual Streams People+Content H.239 Intellectual Property The entire industry has built their products on Polycom technology that was driven to become ITU standards! Including Sony, Tandberg, Aethra, Microsoft and others

6. Delivering Superior Performance The Polycom Recipe AudioVideoContent Superior Capture Superior Processing Superior Reproduction

7. Microphone Array Performance Leveraging SoundStation™ Technology Everyone knows the Polycom SoundStation and expects the world’s best performance: Broadest Room Coverage Purest Signal Less Noise From Around the Room Polycom microphone arrays deliver this same world leading performance NEW Ceiling Arrays Provide the Same Benefits! Ideal for classrooms, auditoriums and large rooms Only from Polycom!

8. Polycom StereoSurround™ The Innovation Continues Super wideband 14kHz audio with true stereo separation – for conversations and rich media sharing (DVD, VCR, …) Enables natural left/right audio recognition – Just like being in same room! Adds clarity – hear and process all far side speakers distinctly, even during multiple simultaneous conversations Only from Polycom!

9. Audio Reproduction The Final Step to Superior Audio Low quality TV speakers don’t do justice to the high performance delivered by Polycom microphone arrays and StereoSurround processing High fidelity VSX midrange speaker and subwoofer Enjoy the full range of super wideband 14kHz audio Eases listening and improves understanding Dedicated Stereo Input/Output for easy stereo setup Extended stereo speaker kits – ideal for larger rooms and groups that are planning rich media sharing Only from Polycom!

10. Video Algorithms Leading the Industry Forward Advanced H.264 video algorithm provides a doubling of video quality over H.263 predecessor – ideal for lower bandwidth calls Crisp, clear images with natural motion create lifelike feel and enhance visual interaction Checking the H.264 box is not enough Polycom was first to bring the benefits of H.264 video to end users Polycom is the only Video Conferencing manufacturer recognized for contributing intellectual property to the H.264 standard H.264 must be ‘tuned’ to look better than H.263 Robust Error Concealment over IP and ISDN Minimize video distortion from IP packet loss and ISDN line hits No more choppy, unnatural motion or ‘melting’ video images First to market with 60 fields, ProMotion video for TV-like quality

11. Video Reproduction The Innovation Continues Dual Monitor Emulation (DME) Display multiple views (people and/or content) on single monitor Never miss far side faces, even when sharing content on single monitor Ideal for tight budgets and small spaces Maximize usage of single, large flat panel and 16:9 displays Nine total viewing options allowing for end user preference DME: Often imitated, never duplicated Limited views and availability

12. Content Leadership Past, Present, Future T.120 Polycom Intellectual Property Share documents, files, whiteboards, … Used globally – across many industries and manufacturers Dual Streams (People+Content in single call) Polycom Intellectual Property See far side speakers while simultaneously viewing their content Licensed to other Video Conferencing manufacturers H.239 ITU Standard Built on Polycom Intellectual Property Polycom recognized for contributing Patented technology Polycom selected to be Standard Editor

13. Content Capture True Value-Add Options Visual Concert Embedded processors provide coding power, eliminate burden on codec Direct audio capture for sharing rich media from PC (wav files…) Captures up to SXGA with XGA throughput (1024x768), including motion and builds In room benefits including Ethernet hub and VGA output for high-res projector Image Share Embedded processor for coding Direct audio capture for sharing rich media from PC (wav files…) Only from Polycom!

14. People+Content™ IP The Innovation Continues No Need for Cables Reduces the hassle factor Reduces tabletop clutter Hardware assist from PC Maximizes codec A/V quality Fast transition for presenters No need to find/swap cables Voice-only participants can finally share content! Only from Polycom!

15. Leader: Global Market Share and Investment Protection

16. World Leading Market Share Installed Base Over 250,000 group systems installed 5x the installed base of nearest competitor Current unit share leading all competitors combined 1 of every 2 systems sold is Polycom Polycom unit share in 2004 exceeded all competitors combined Continual market share leader since launch of ViewStation in 1998!

17. Real Investment Protection A True Polycom Differentiator Only manufacturer to deliver the benefits of H.264 to the installed base Over 60,000 systems enabled Included simultaneous AES encryption Also included simultaneous People+Content The above capabilities required multiple hardware upgrades for several competitors Polycom ViewStation and iPower systems have longest active life in video conferencing industry 72+ months of software enhancements for installed hardware base Only from Polycom!

18. Leader: Enhanced Integration

19. ConferenceLink Technology The Integration Enabler Innovative and powerful digital communication bus Supports multiple media devices –VSX video systems –SoundStation VTX 1000 –Visual Concert –Microphone Arrays Enables high-speed exchange of Voice and Data Only from Polycom!

20. Intelligent Integration Wideband Phone and Video Wideband significantly enhances the communications experience via more crisp, clear audio SoundStation VTX 1000 allows you to speak naturally from up to 20 feet away Reduces clutter on the conference table Eliminates need for VSX mic arrays and wires without loss in quality StereoSurround also supported! Only from Polycom!

21. Intelligent Integration Sophisticated, Simple Calling “Can you make it as easy to dial as a phone?” YES! The VTX knows when it is connected to a VSX system and ‘video enabled’ If a phone call is initiated, the VTX will intelligently prompt end users to see if they desire video If the users agree, the two VTX systems will automatically launch the video call via back channel communication No need to pick up the video remote No need to launch a video call No need to even know the video number – IP, ISDN or otherwise! Easy as dialing a phone; far greater communication! Only from Polycom!

22. Leader: Unmatched Innovation and Ease of Use

23. Leading Ease of Use Polycom GUI – Imitated, never Duplicated Building on our Legacy ViewStation GUI started the revolution VSX UI marches into the future! Intuitive remote control with Color Coding and Back, Dot, Home, … keys Fully customizable UI – for end user needs and/or admin control User definable home screen, menus, icons, colors, … Audio confirmation in local language simplifies dialing Full support for 12 languages Bi-lingual Web GUI ensures global coverage for multi-nationals Only from Polycom!

24. Configurable Look and Feel Advanced User Simplified User

25. Recent Calls Calls may be dialed from this screen

26. One-Step Navigation Use number on remote

27. System Status Alert Alert Condition Date and Time

28. System Status ISDN Line down

29. Call Summary % of IP Or ISDN calls Placed

30. Address Book Search Search for jo

31. Address Book Categories Select category local

32. Custom Icon Setup

33. Custom Icon on Video

34. Kiosk Mode – Insurance Company Application Far Site Near Site Scrolling marquee User selects type of insurance

35. Web Interface Localization Administrator speaks German End user speaks Korean A German speaking administrator can manage a system that is used in Korea

36. Leader: Broadest End-to-End Solutions

37. VSX Solutions From Desktop Conference Room V500 Office Enterprise, Healthcare, Education, Government Entry Mainstream Performance VSX 3000 VSX 6000 VSX 8000 Series Conference RoomDesktop Home Office and Small Businesses/Organizations PVX VSX 7000 Series

38. Polycom PVX Software Application Strongest, Most Robust Personal Solution What is it? Software application that works with your PC and web camera Call Quality H.264 video – 30 fps full screen Siren™14 kHz audio Send/Rcv high-res images with Polycom People+Content Easy to Use and Versatile Polycom graphical user environment Multiple Monitor Support Integrated AES Encryption Full Web GUI for admin support Network flexibility IP Support to 2Mbps DiffServ, IP Precedence, Error Concealment Supports NAT, VPN, Gatekeepers, …

39. Polycom V500 Ideal for Small Business and Telecommuters What is it? Compact, integrated set-top system with built in camera and microphone Simplified Polycom remote control Call Quality H.264 video – 30 fps Siren™14 kHz audio View content from Polycom People+Content or H.239 Easy to Use and Versatile Support for People+Content IP Polycom graphical user environment Dual Monitor Emulation Integrated AES encryption SIP conferencing Network flexibility Supports IP up to 512 kbps ISDN up to 128 kbps (separate model)

40. Polycom VSX 3000 The First Fully-Integrated Solution What’s inside Integrated 17” SXGA LCD Display Built-in camera, dual stereo mics and speakers Polycom VSX remote control and GUI Conferencing and Collaboration H.264 video, Polycom Pro-Motion Video Siren™14 – 14 kHz audio fidelity Polycom StereoSurround Support for People+Content IP Easy to Use, Feature Rich Dual Monitor Emulation Integrated AES Encryption SIP Conferencing Internal Multipoint option Network Flexibility Supports 2Mbps IP and 512kbps ISDN

41. VSX 6000 Re-defining Entry-Level Conferencing What is it? Set top solution for IP Video Conferencing Conferencing and Collaboration H.264 video – ideal for low bandwidth calls Siren™14 with embedded mid-range speaker Polycom StereoSurround Embedded AES Encryption SIP Conferencing Flexible Options People+Content IP VTX 1000 Integration Network Flexibility Supports up to 768kbps IP

42. VSX 7000 Series Powerful Mainstream Conferencing Solutions What is it? Set top solutions for High Quality Video Conferencing and Collaboration Premium H.264 and ProMotion Video Siren™14 with mid-range speaker and subwoofer Audio and VideoError Concealment for IP and ISDN People+Content, H,239, IP Embedded AES Encryption VTX 1000 Integration SIP Conferencing Internal Multipoint Polycom StereoSurround and Speaker Kits Powerful, Innovative GUI for user and Web Network Flexibility: Supports 2Mbps IP, ISDN, V.35

43. VSX 8000 Series Highest Performance Conferencing Solutions What is it? Professional Grade Video Conferencing and Collaboration Integrator Designed, Professional Grade I/O Premium H.264 and ProMotion Video Siren™14, Super Wideband Audio Fidelity Internal Multipoint People+Content, H,239, Cable Free Embedded AES Encryption VTX 1000 Integration SIP Conferencing Polycom StereoSurround, Speaker, Voice Tracking Powerful, Innovative GUI for user and Web Network Flexibility: Supports 2Mbps IP, ISDN, V.35

44. VSX 8000 & Vortex Professional, Integrated Voice Solutions or VSX 8000 & Vortex EF2241 Supports up to (4) microphones POTS connectivity VSX 8000 & Vortex EF2280 Supports up to (8) microphones Bundles include (1) Vortex product + (1) VSX 8000 video codec and all necessary cabling

45. 2005 VSX Solutions Cart/Display Offerings Basic Cart with optional 32” TV For the budget minded – with VSX 6000s Quality cart system with single/dual 32” LCDs Media Center cart with premium sound system, 32” LCDs or 42” plasma Value and quality offering – with VSX 7000s Top of the line cart system – with VSX 8000s Stylish elegance for the boardroom - for VSX 8000s Executive Collection Stand or Wall Systems with 50” or 62” Plasmas

46. Leader: Polycom UCC Vision and Power

47. Unified Collaborative Communications With Polycom, It is Here! CRM ERP SCM Customers Suppliers Your Business Employees Front Office Back Office Desktop Video Pager email Mobile Phone Collaboration Software Web Conferencing Fax Voice Mail Audio Conferencing Laptop Phone Room-based Video Messaging Software PDA The Communications Needs of the Extended Organization Source: The Yankee Group, 2004

48. Unified Collaborative Communications The integration of voice, video, Web and data communications over standard IP infrastructure Speeds and improves the way people work Make faster, more-informed decisions Transfer and access knowledge across extended organization in real-time Maximize business relationships within and across organizations Leverages existing technology investments Adapts with your organization Extends your organization not your people

49. UCC Demanded by Customers Customers want it all, and they want it now Any and all … Media (voice, video, data, Web) Media (voice, video, data, Web) Devices (phone, PDA, laptop, cell phone…) Devices (phone, PDA, laptop, cell phone…) Networks (POTS, ISDN, IP, WiFi, GPRS…) Networks (POTS, ISDN, IP, WiFi, GPRS…) Times (ad-hoc, scheduled) Times (ad-hoc, scheduled) Places (home, mobile, office, conference room…) Places (home, mobile, office, conference room…) 1-to-1 or 1-to-many or many-to-many Security High quality Standards-basedAffordability

50. Polycom Leads in UCC Broadest Offering Best in Class Partner of Choice Standards Driven Best Investment Protection Polycom out-performs and out-innovates the competition!

51. Gartner agrees… Soon to be announced: Polycom Polycom named as a visionary in the Unified Communications space by Gartner Group

52. Polycom Business Leadership Financially stable A publicly-traded American company Growing at 4-5x the industry average Has 5x the installed base of nearest competition Over 400 patents registered or pending Note: Opex split for Tandberg is estimated as R&D spend Cash Revenue R&D Polycom Tandberg Radvision $0 $100 $200 $300 $400 $500 $600 $ Millions

53. Competitive Leadership

54. Competitive Audio Leadership PLCMTAASONYAETHRAVCONHUAWEI Developed G.722.1 Developed Siren Audio Support 14 KHz Audio Broadest Audio Capture Microphone Array Support StereoSurround Single Microphone Stereo Stereo Audio from VTX Audio Error Concealment IP and ISDN Subwoofer & Mid Range Speakers

55. Competitive Video Leadership PLCMTAASONYAETHRAVCONHUAWEI First H.264 Delivery Intellectual Property in H.264 Standard Best Motion Handling and Video Cleanup Video Error Concealment IP and ISDN 6-Way Internal MP Next Release H.264 MP Support Next Release

56. Competitive Content Leadership PLCMTAASONYAETHRAVCONHUAWEI Developed T.120 Developed Dual Streams Intellectual Property in H.239 Hardware Assisted Content Capture (Visual Concert, Image Share) Cable-Free Content Capture with motion/builds (People+Content IP) Alternate Content Sources Next Release

57. User Experience Leadership PLCMTAASONYAETHRAVCONHUAWEI Video Dialing from Conference Phone (VTX) Intelligent Video Add (VTX) Eliminates microphones and wires Color Coded Remote with Interoperability Across Line Customizable UI for Admin or End User Web GUI in Simultaneous Multiple Languages 12 Languages – Including Local Language Dialing Feedback

58. THE END Thank You!

59. Backup Slides

60. PLCM Audio Advantage PLCM Audio Advantage : only vendor in the industry that delivers true conversational stereo Polycom StereoSurround: only vendor in the industry that delivers true conversational stereo larger room audio capture from 3-mic array, processes best signal for clearest transmission, minimizes room noise 360 degree Mic Arrays- larger room audio capture from 3-mic array, processes best signal for clearest transmission, minimizes room noise – eliminates mic clutter, extends natural conference phone dialing to video, incredible audio capture and stereo support VTX integration – eliminates mic clutter, extends natural conference phone dialing to video, incredible audio capture and stereo support Industry best for IP and ISDN environments Audio Error Concealment- Industry best for IP and ISDN environments We have standard based MPEG audio - Siren 14 is proprietary No MPEG interoperability No MPEG interoperability Consumes massive bandwidth Consumes massive bandwidth Siren 14 standard ratification underway – and only 24kbps! Siren 14 standard ratification underway – and only 24kbps! We have stereo too! No conversational stereo No conversational stereo No dedicated stereo I/O No dedicated stereo I/O Consumes VCR audio when stereo is used on Tandberg Consumes VCR audio when stereo is used on Tandberg Sony cannot do Stereo conferences Sony cannot do Stereo conferences We have error concealment too! Loses in side-by-side testing Loses in side-by-side testing LEADERSHIP NEUTRALIZER

61. PLCM Video Advantage PLCM Video Advantage Only PLCM recognized in standard for Intellectual H.264 Standard: Only PLCM recognized in standard for Intellectual Property best motion handling and background cleanup H.264 Video Quality: best motion handling and background cleanup PLCM leads industry in both IP and ISDN Video Error Concealment- PLCM leads industry in both IP and ISDN Every ms matters (e.g. tele-medicine) Lower Latency: Every ms matters (e.g. tele-medicine) Industry 1st for Video/Content on one monitor Dual Monitor Emulation: Industry 1st for Video/Content on one monitor We were first with H.264 Not true- iPower first in industry Not true- iPower first in industry TAA’s Intelligent Video Management Beaten in side-by-side test Beaten in side-by-side test 700ms delay kills natural interaction 700ms delay kills natural interaction Heavy distortion with motion makes images blurry Heavy distortion with motion makes images blurry Poor, slow background cleanup reduces video crispness Poor, slow background cleanup reduces video crispness TAA’s IPLR for Error Concealment Well beaten in side-by-side test Well beaten in side-by-side test LEADERSHIP NEUTRALIZER

62. PLCM Content Advantage PLCM Content Advantage PLCM lead standard development based on PLCM People+Conten H.239 Standard: PLCM lead standard development based on PLCM People+Conten Only PLCM offers direct, hardware assist and capture over IP options Multiple Capture Options: Only PLCM offers direct, hardware assist and capture over IP options removes content coding burden from video codec resulting in better quality Hardware Assist: removes content coding burden from video codec resulting in better quality share content from wireless PC; even if participating via audio-add People+Content IP: share content from wireless PC; even if participating via audio-add Single XGA monitor support for high res and video in one True. If single monitor XGA is critical, call us for an NDA! True. If single monitor XGA is critical, call us for an NDA! We can share alternate content sources (VCR, Doc) Coming in next s/w release Coming in next s/w release If critical, call for NDA If critical, call for NDA LEADERSHIP NEUTRALIZER

63. PLCM UI Advantage PLCM UI Advantage Common UI across platform Interoperable remote controls Interoperable remote controls VS, VSX, V500 VS, VSX, V500 VTX integration – only from PLCM Simpler dialing; enhanced quality Simpler dialing; enhanced quality Local language support (12) Incl. audible dialing confirmation Incl. audible dialing confirmation Color coded remote - by function DOT, Back, Home, Delete keys DOT, Back, Home, Delete keys Bi-lingual Web GUI Supports 2 simultaneous local languages for admin and end user Supports 2 simultaneous local languages for admin and end user Common UI No commonality to non-MXP or current video telephony models No commonality to non-MXP or current video telephony models Easy to learn No commonality with prior systems to MXP No commonality with prior systems to MXP Remotes NOT interchangeable LEADERSHIP NEUTRALIZER

64. Microphone Array Performance Leveraging Polycom SoundStation Technology Broadest Room Coverage Intelligent Mic Steering Purest Signal Less Noise From Around the Room

65. DEMO VTX Calling VTX as Stereo Mic Array VTX/VSX 8000 to VSX 8000 Reinforce: “Wireless” mics (not on the table AT ALL) Stereo Audio capture – 3 mics in VTX (like VSX arrays) Conversational Stereo – have far side walk and talk 14 kHz – show call stats if time permits Low bandwidth – show call stats if time permits Stereo Reproduction NO ONE ELSE can do this today! TRAP

66. DEMO TAA 1500 Hurried ‘Integration’ System often crashes on incoming Sony call Two Large Power Supplies Different pwr bricks, same connector, but not interchangeable Discuss wiring and klunk factor – these are EXEC solutions… Remote control discrepancies (PIP, Mute) Reinforce poor mic location – noise, muffling Screeching boot-up noise – proof point of poor integration Discuss white gap at bottom of screen in call TRAP

67. DEMO Sony TL50 GUI TL50 Issues Show GUI Show transitions when pulling up menu while in a call TL50 Remote Radically different than rest of PCS line Requires 2 hands Requires aim for IR collection No Back, Dot, Color Coding… TL50 Noise – show shut down silence TL50 ‘Integration’ Data Solution Box – No P+C IP option ISDN brick – where does all this go on the Exec’s Desktop?? TRAP

68. Superior ‘Widescreen’ Support TAA ‘auto zoom’ actually reduces resolution by 25% SIF coded video drops from 288 to 216 lines of resolution TAA still capturing / sending 4:3 – cropping to 16:9 at display Full 4:3 images not shown to 16:9 site and vice versa – –Heads got cut off or too much area is shown – –Can’t be certain if near and far side are seeing the desired image PIP in wrong location – near center of screen, blocks far side faces AudioContent Video FUD

69. TAA MP Call with CP and Dual Monitors TAA Monitor 1 shows CP as expected Monitor 2 only shows near side full screen –Who needs to see themselves, Full Screen in MP call? –Seeing the far side is more important PLCM shows active speaking party in full screen for real value –Seeing detailed expressions of speaking party enhances understanding in MP calls TRAP

70. Executive Desktop “Ergonomics” TAA 1500 Smallest screen size area – 10% less than VSX 3000 Poor screen/desktop ratio – only 0.81 Monitor too short to double as PC screen Not true 16:9, viewing window distorted Sony TL50 Largest screen size area; Worst screen/desktop ratio – 0.80 PLCM VSX 3000 Industry BEST screen/desktop real estate ratio – 1.21 Great screen balance for PC and VC AudioContent Video TRAP

71. Demo Exec Desktop’s Image Quality Sony Lens curvature Image distortion/fuzziness with zoom TAA Poor video image – worst focus of background images Color distortion (blue looks grey) Cropped image window – very difficult to use as huddle system Still image coding PLCM Clear video and background image No lens distortion Solid color handling Full viewing window TRAP

72. Demo TAA 1500 Single Mic – No Stereo Capture Horrible Mic location – in base unit Collects keyboard/desktop noise Muffled by clutter on desktop Poor gain control No dual mics; no Stereo capability Noisy audio when digital gate opens TRAP

73. Multiple Content Sources TAA and Sony both capture content from non-PC sources In next PLCM software release Do NOT lose a sale over this – Contact us for NDA! AudioVideo Content FUD

74. Superior Monitor Support TAA supports single-monitor VGA In next PLCM software release 1024 1084 x 768 resolution Do NOT lose a sale over this - Contact us for NDA? AudioVideo Content FUD

75. TAA MXP GUI Easy, Common Interface TAA has improved their GUI with MXP But not common across full line UI screens are different MXP remote controls are radically different MXP remotes do not work on non-MXP systems or vice versa PLCM V500, VSX and ViewStation remotes work on all systems - interchangeably Quality of Experience FUD

76. Sony TL50 The Best Executive Desktop Hands down, Sony is the Industrial Design favorite Clean integration, sophisticated look Constant, excessive fan noise becomes unbearable My favorite thing to do with this system is TURN IT OFF! Integration to Hot monitor precipitated need for fan – no fans in original PCS codecs Audio/Video performance and UI are detractors Data Solution Box and ISDN brick - too much clutter for the Executive Desktop FUD Quality of Experience

77. Superior MP Capability TAA, Sony and others offer 6-way internal MP TAA, Sony support H.264 MP In next PLCM software release Do NOT lose a sale over this – Call for NDA! AudioContent Video FUD

78. MPEG AAC is Superior MPEG4 AAC An old ‘standard’ – but no Interoperability Bandwidth Hog – consumes 96-128kbps Reduces video quality PLCM StereoSurround True 14kHz StereoSurround @ 24kbps The Only conversational Stereo solution Siren 14 submitted to ITU to become G.722.1 Annex C Audio VideoContent FUD

79. Camera Performance Group cameras offer fairly common video capture Attention to detail noticeable to the discriminating eye Executive Desktop cameras have more Pro’s and Con’s TAA – rugged cosmetics & tactile feel, WORST imaging SONY – most attractive, poor lens quality and breakdown with zoom PLCM – plastic look & tactile feel, BEST video in side-by-side performance AudioContent Video