1. WAVECOM©2005. All rights reserved Confidential 1 Market Overview 2007 Distributors Conference Olivier Beaujard VP Business Development April 2007 Wavecom Confidential

2. WAVECOM©2005. All rights reserved Confidential 2 Segmentation Definition WAVECOM© 2006 All rights reserved Wavecom Confidential

3. WAVECOM©2005. All rights reserved 3 Segmentation Definition M2M Automotive Control & Monitoring: Industrial Automation, Facility Management, Traffic signals, Display… Sales & Payment : Vending, Cash Registers, EPOS, Copiers/Printers, Parking Meters, Gambling Automatic Meter Management: Water, Gas, Electricity Tier1 / Car Manufacturers / OEM: Telematics, Infotainment Navigation built-in, Hands-free built-in, Emergency call, Remote diagnostics, Alarm built-in,… Aftermarket : Radio add on Hands-free add on Info traffic Navigation add on Alarm add on Fixed Voice : Desktop phones Payphone/Public Call Office LCR / PABX / VoIP Gateways Mobile Computing : PDAs PC Cards, PC Modems PC Embedded Entertainment : Gaming Machines Digital Media Payers Set Top Boxes Mobile Professional Home & Security : Alarms (Domestic & Pro), Telemedicine, Home Automation, Video surveillance Vehicle Remote Management: Fleet, Toll Collect, Vehicle Recovery, Pay-As-You-Drive Wavecom Confidential

4. WAVECOM©2005. All rights reserved Confidential 4 Industry Projections Worldwide WAVECOM© 2006 All rights reserved Wavecom Confidential

5. WAVECOM©2005. All rights reserved 5 The size of our markets  “M2M devices shipments for N.America + W.Europe will reach 26 million for 2006..”  “The number of M2M modules already totalled 92 million units in 2004…”  “The worldwide M2M market is expected to be worth over 200 billion EUR in 2010…”  “Cellular M2M modules shipments will reach 20 million units in 2006…”  “30 million wireless M2M devices installed worldwide in 2006…” Wavecom Confidential Time for Homework !

6. WAVECOM©2005. All rights reserved 6 Volumes by Segment (K Units) Worldwide  Scenario steady-state volume progression.  We have a better accuracy after SE acquisition – robust and consistent figures Wavecom Confidential CAGR 27,5% 36,5% 26,6% 8,750 11,477 15,410 19,750 25,944 34,054 44,757

7. WAVECOM©2005. All rights reserved 7 Revenues by Segment (M € ) Worldwide Wavecom Confidential CAGR 14,5% 21,8% 13,7% 473 567 641 741 878 1040 1265  Market valuation model taking into account a price decrease / segment / region

8. WAVECOM©2005. All rights reserved 8 Sub-segmentation (K Units) Worldwide 8,750 11,477 15,410 19,750 25,944 34,054 44,757 Wavecom Confidential  External market analysts do not have such a level of details CAGR 31,2%

9. WAVECOM©2005. All rights reserved 9 Revenue sub-segmentation (M € ) Worldwide 473 567 641 741 878 1040 1265 Wavecom Confidential  Most sub-segments substantially below 100M Euros, which is one reason why semiconductor companies are not interested today CAGR 17,8%

10. WAVECOM©2005. All rights reserved Confidential 10 2006 Market Breakdown by Manufacturer WAVECOM© 2006 All rights reserved Wavecom Confidential

11. WAVECOM©2005. All rights reserved 11 2006 Market breakdown by Manufacturer Our Estimates based on field information Wavecom Confidential NB: Excludes PC cards and PDAs, which are large markets in themselves

12. WAVECOM©2005. All rights reserved 12 2006 WW Market Share – (Revenues) The Market Leader – our Estimates Wavecom Confidential

13. WAVECOM©2005. All rights reserved Confidential 13 Segments Potential 2006-2010 WAVECOM© 2006 All rights reserved Wavecom Confidential

14. WAVECOM©2005. All rights reserved 14 Segments Potential - Worldwide Revenues (2006) CAGR (2006-2010) 20% 30% 10% 5m€ 50m€ 100m€+ AMM Auto Tier1 Fixed Voice Rev. 2010 Mob. Comp. Sales Payment VRM After- Market Home& Security Control Monit. Wavecom Confidential

15. WAVECOM©2005. All rights reserved 15 Segments Potential - EMEA Revenues (2006) CAGR (2006-2010) 20% 30% 10% 5m€ 25m€ 50m€ AMM Auto Tier1 Fixed Voice Rev. 2010 Mob. Comp. VRM After- Market Home& Security Control Monit. Sales Payment Wavecom Confidential

16. WAVECOM©2005. All rights reserved 16 Segments Comparison - APAC Revenues (2006) CAGR (2006-2010) 20% 30% 10% 5m€ Rev. 2010 25m€ 50m€+ AMM Auto Tier1 Fixed Voice Mob. Comp. VRM After- Market Home& Security Control Monit. Sales Payment Wavecom Confidential

17. WAVECOM©2005. All rights reserved 17 Segments Comparison - Americas Revenues (2006) CAGR (2006-2010) 20% 30% 10% 5m€ 25m€ Rev. 2010 50m€+ AMM Auto Tier1 Fixed Voice Mob. Comp. VRM After- Market Home& Security Control Monit. Sales Payment Wavecom Confidential

18. WAVECOM©2005. All rights reserved 18 2007 Market Size and Key Segments Wavecom Confidential Worldwide APACAmericasEMEA Total Market 2007 Revenue (M€) 740,6240,2239,6260,8 Volume (KU) 19,7508,5206,1805,050 Top 5 Segments by Revenue Auto Tier 1(*)Fixed VoiceAuto Tier1(*)VRM Fixed VoiceMobile Computing VRMHome & Security VRMAMMMobile Computing AMM Mobile Computing VRMHome & SecurityControl & Monitoring Home & Security Control & Monitoring Fixed Voice (*) Auto Tier1 in Americas includes all OnStar business

19. WAVECOM©2005. All rights reserved 19 Some take aways  Automotive and Vehicle Remote Monitoring – Emergency services (Onstar and e-Call + Aftermarket) – Pay-as-you-drive projects (PAYD) – and road-charging programs applications driving volumes.  Automatic Meter Management – De-regulations trigger projects in Europe/Oceania (accurate and actual insight in energy consumption) – Energy savings and fraud avoidance creates markets  Sales & Payment good potential – Emerging countries (wireline replacement) and/or tax control and fraud protection  Fixed Voice – Still growing in emerging countries  Other segments relatively small, driven by local economics  In summary -- Projecting market to grow steadily, although scenarios where growth is more or less. Higher growth requires mass market adoptions such as with e-Call and Onstar, PAYD, Toll-Collect and aggressive energy de-regulation roll out. Wavecom Confidential

20. WAVECOM©2005. All rights reserved 20 Teamwork to adopt an ecosystem approach Customer End Customer Car Maker Energy Supplier Insurances Banks Tier1 System Integrator Product Manufacturer Legislation / Gov. Service Provider IT Integrators Wireless Operators Influencers Partners Key Customers Key Targets End User Wavecom Confidential Distributors

21. WAVECOM©2005. All rights reserved 21 Conclusion  We have a complete market analysis by application segment and by region for the first time.  We believe this analysis is self consistent, and checked with figures from Sony Ericsson, but still does not have valid confirmation by an independent firm (Gartner, ABI, HR, …)  There are many trends that lead us to believe that the market will grow steadily, with the possibility of discontinuous, more rapid growth, as some applications gain mass market adoption.  Largest highly fragmented segments: VRM / Control Monitoring / Fixed Voice / AMM – through distribution network  Number #1 leading supplier on the market – 2007 will be the year of recognition Wavecom Confidential

22. WAVECOM©2005. All rights reserved 22 2007 : TRY CONVERSION !

23. WAVECOM©2005. All rights reserved Confidential 23 WAVECOM© 2006 All rights reserved Wavecom Confidential THANK YOU !

24. WAVECOM©2005. All rights reserved 24 Subsegmentation Data (K Units) Worldwide Wavecom Confidential

25. WAVECOM©2005. All rights reserved 25 Revenue subsegmentation Data (M € ) Worldwide Wavecom Confidential

26. WAVECOM©2005. All rights reserved 26 EMEA – Volumes by segment (K Units) 4580 6180 8754 11844 15770 Wavecom Confidential

27. WAVECOM©2005. All rights reserved 27 EMEA – Volumes by segment (K Units)  Top 5 segments by 2009: – Automatic Meter Management – Vehicle Remote Management – Home & Security – Sale & Payment – Fixed Voice Wavecom Confidential

28. WAVECOM©2005. All rights reserved 28 EMEA – Revenues by segment (M Euros) 212,5 260,8 327,5 406,4 498 Wavecom Confidential

29. WAVECOM©2005. All rights reserved 29 EMEA – Revenues by segment (M Euros)  Top 5 segments by 2009: – AMM – Vehicle Remote Management – Home & Security – Sale & Payment – Control & Monitoring Wavecom Confidential

30. WAVECOM©2005. All rights reserved 30 APAC – Volumes by segment (K Units) 6910 8520 10550 13350 17178 Wavecom Confidential

31. WAVECOM©2005. All rights reserved 31 APAC – Volumes by segment (K Units)  Top 5 segments by 2009: – Fixed Voice – Mobile Computing – AMM – Vehicle Remote Management – Home & Security Wavecom Confidential

32. WAVECOM©2005. All rights reserved 32 APAC – Revenues segment (M Euros) 220,6 240,2 270,4 299,0 354 Wavecom Confidential

33. WAVECOM©2005. All rights reserved 33 APAC – Revenues segment (M Euros)  Top 5 segments by 2009: – Fixed Voice – Mobile Computing – AMM – Vehicle Remote Management – Home & Security Wavecom Confidential

34. WAVECOM©2005. All rights reserved 34 Americas – Volumes by segment (K Units) 3920 5050 6640 8860 12029 Wavecom Confidential

35. WAVECOM©2005. All rights reserved 35 Americas – Volumes by segment (K Units)  Top 5 segments by 2009: – Auto Tier 1 – Home & Security – Vehicle Remote Management – Control & Monitoring – Mobile Computing Wavecom Confidential

36. WAVECOM©2005. All rights reserved 36 Americas – Revenues by segment (M Euros) 209,6 239,6 280,4 335,2 418 Wavecom Confidential

37. WAVECOM©2005. All rights reserved 37 Americas – Revenues by segment (M Euros)  Top 5 segments by 2009: – Auto Tier 1 – Home & Security – Vehicle Remote Management – Control & Monitoring – Mobile Computing Wavecom Confidential