1. Best Practices in Optimizing Network Assets in an Environment of Legacy Networks Adrian Tylim Director Sales - CALA Somera Communications

2. Somera - Proprietary & Confidential Forces Shaping our Industry OEM Concerns 1.Maintaining customer relationships 2.Commoditization 3.Managing end-of-life while launching new products 4.Margin protection and operating efficiencies 5.New market players Industry Issues 1.Carrier consolidation 2.Prolonged life of legacy networks 3.Accelerated technology cycles 4.CapEx scrutiny and OpEx reductions 5.Business transparency and SOX compliance Technology Trends 1.VoIP introduction. 2.Wireless consolidation, relocation, rural and indoor coverage. 3.Broadband access build out. 4.Data communications upgrades (GigE, ATM/FR) 5.Wireless harmonization 2.0 to 2.5 to 3.0G. 1.Minimal investment in legacy networks 2.ROA optimization 3.Technology migration 4.New services delivery to meet market demand 5.Competitive pressures Carrier Concerns

3. Somera - Proprietary & Confidential Extended Network Equipment Lifecycles Time Revenue Planned Life Cycle Actual Life Cycle Uncertain ending for: Class 3,4,5 switching ATM, FR TDMA, CDMA, GSM DLC SONET, SDH Introduction of: VoIP Data Wireless Data DSL, Cable Gig E Supply of New & Used Asset Disposition & Valuation Repair Outsource Programs

4. Somera - Proprietary & Confidential Lifecycle Management Requirements  New Equipment Sales  Refurbished Equipment Sales  Spot Buying  End of Life Management  Custom Configurations  Logistics Management  Installation/De-Installation  Spares Management  Out of Warranty Repair  Testing & Refurbishment  Disposition  Valuation  Inventory Analysis  Procurement Lifecycle Management Offering Criteria Equipment Disposition Repair Maintenance and Services

5. Somera - Proprietary & Confidential Lifecycle Services Trend * Source: Dataquest / Gartner, NSO, Industry estimates, Ovum Holway Sources: Telecom Industry Association (TIA), BAH study, Lucent Managed Services report, Somera management interviews, LEK reports, Tyler & Company analysis 3.42 4.12 4.94 5.88 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2004200520062007 CAGRs 2004-2007 20% 24% 13% 25% 3% Market Size ($Bn) Lifecycle Management Support Network Maintenance Installation/de-installation Logistics, spares, repair & testing, inventory mgmt Kitting, Staging, Re-configuration Global Business Process Outsource Mkt* 202 242 348 2004200520062007 50 100 150 200 250 300 350 CAGRs 2004/07 20% 290 Market Size ($Bn)

6. Somera - Proprietary & Confidential Standards for Buying and Selling Equipment Assets Buying  Equipment supports your network deployment standards and requirements –For legacy structures to next-generation implementation  Equipment has been tested to extensive required specifications  Equipment is refurbished and fully warranted  Equipment is reconfigured to your exact network application and specification

7. Somera - Proprietary & Confidential Standards for Buying and Selling Equipment Assets Selling  Established channel and relationships to effectively sell the equipment  Extensive sales force to accelerate the remarketing of assets  Strong cash position to stand behind commitments  Refurbishment expertise to ensure maximum value on the open market  Offer different programs to gain best return from the excess equipment – buy, consign, exchange.  Visibility into market demand of specific components and technology to assess real market value and return.

8. Somera - Proprietary & Confidential Lifecycle Management Partner Qualification Checklist Financial strength & Publicly traded to stand behind commitments If your company is public, is your partner Sarbanes-Oaxley (SOX) attested? Global reach and regional representation Established relationships with leading operators Extensive technical knowledge Visibility into market demand and equipment values to yield highest ROI Large sales force to accelerate remarketing efforts Operational precision and scale Extensive testing & refurbishment capabilities Breath of services and offerings to create custom solutions Complete Business Transparency through SOX Compliance

9. Somera - Proprietary & Confidential SOX Business Transparency — Customer Benefits  Complete documented processes in place  Commitment to honest and professional business practices  Rigorous testing and approvals  Financial strength and documentation  Complete visibility for customer reporting

10. Somera - Proprietary & Confidential The Future: New Strategies for Legacy Network Management  Key is to balance network objectives of cost containment while introducing new technologies and services.  Refurbished equipment can provide the solution to meeting your network needs at a lower cost.  Idle and excess inventories can be a new source of capital to offset the cost of new equipment purchases.  Reclaiming existing assets and either redeploying or remarketing them supports corporate financial imperatives without compromising the network strategy.  OEMs are less able to provide the traditional resources to manage the network’s lifecycle due to their focus on their own technologies.  Operator and OEM return to core competencies likely to fuel the trend toward outsourcing.  Buyer beware – select a partner with the qualifications to make you successful!

11. Thank You www.somera.com Adrian Tylim Director, CALA Sales atylim@somera.com +1 805 699 3282