1. WCDMA Market Segment Review Chris Ackermann Salim Manji

2. Notice of Confidential Information The information contained in this presentation is considered to be confidential and proprietary information of Spirent Communications Inc. and is subject to the terms and conditions of the Non- disclosure agreement (NDA) between the recipient(s) or recipient's organization and Spirent Communications Inc.

3. Agenda 2005 Recap 2006 Market Drivers 2006 Market & Product Strategy 2006 Top-Level Roadmaps 2006 Revenue Projections By Solution

4. 2005 Recap

5. 2005 U-ATS Highlights Significant wins at key targeted ‘Must-Win’ accounts  Nearly $3M in U-ATS business with Nokia  Nearly $1M in U-ATS business with Cingular Launched ‘Must-Learn’ initiative to develop subject-matter expertise in testing of WCDMA UEs  Resulted in several White Papers exhibiting such expertise and highlighting Spirent’s testing solutions Achieved validation of U-ATS test cases in Bands I, II, and V by GCF and PTCRB  First to validate test cases 7.7.3 and 8.3.4 Only vendor to achieve validation of all asymmetric test cases in TS 34.121

6. 2005 ULTS Highlights Success in capturing some new accounts: …as well as repeat business from familiar faces: Participation in high-profile A-GPS technical trials led by Vodafone and China Mobile First-to-market coverage of OMA’s Secure User Plane (SUPL) technology Achieved approval of elusive Work Item within GCF for mandatory status of TS 34.171 for all A-GPS capable WCDMA devices Received 2004 Spirent Silver Innovation Award!

7. 2005 Product Revenue Product2004 Revenue 2005 Budget 2005 Revenue % Growth U-ATS$1.8M$5.0M$3.7M51.4% ULTS$1.5M$6.0M$2.8M86.7% AirAccess$2.0M Totals

8. 2006 Market Drivers

9. 2006 U-ATS Market Drivers HSDPA deployments by major players are expanding throughout 2006  Cingular, Vodafone, NTT DoCoMo Deployments of new services built on top of HSDPA will begin to expose need to properly address performance-related issues Increasing number of handsets coming online from OEMs using QUALCOMM chipsets Strengthening relationship with leading network operator (Cingular), handset manufacturer (Nokia), and technology provider (QUALCOMM)

10. 2006 ULTS Market Drivers Japanese government has issues mandate for all handsets to include A-GPS by April 2007 Cingular will utilize A-GPS to meet E911 compliance with its WCDMA handsets  Will also face competitive pressures from upcoming Verizon & Sprint LBS launches GCF Work Item for TS 34.171 tests now in place and development of GSM equivalent of specification now underway A-GPS will begin to take hold in Europe as various operators begin to launch services

11. 2006 Market & Product Strategy

12. 2006 WCDMA Market Strategy Target market leadership (#1 or #2 position) through differentiation in:  LBS Test  Performance Test  Applications Test Continue to deliver conformance test cases that ensure our credibility and subject-matter expertise  TS 34.121, TS 34.171, OMA conformance tests Introduce application test capabilities that focus on ensuring the quality of end-user experience of next generation 3G services  Video telephony, video broadcast, VoIP, etc

13. 2006 WCDMA Market Strategy LBS Testing Applications Testing RF Testing Performance Production Test Conformance (34.171) Application Experience Testing Application Enabler Performance Testing Conformance (OMA Application Enablers) Performance Conformance (34.121) Leadership

14. Key Enablers of Market Strategy Maximize our established leadership in LBS test by delivering first-to-market, validated 3GPP TS 34.171 A-GPS RF conformance test cases  First allowable validation cycle in GCF is April 2006 Deliver on 2005 U-ATS commitments to existing customer base rounding out R99 Section 5-7 test coverage Establish competitive HSDPA conformance test coverage roadmap that supports HSDPA-oriented performance test strategy  Covering 10-12 test cases starting in 1Q06 Introduce differentiating HSDPA performance test cases focused initially on test methodology affects data throughput

15. U-ATS 2006 Product Strategy Continue to deliver on existing TS 34.121 conformance test coverage that will enable us to secure key strategic accounts while pursuing growth and differentiation through a clear and unique performance test value proposition Key enablers:  Complete existing TS 34.121 Section 5-7 commitments  Aggressively track competitive offerings in validated HSDPA test cases and establish leadership in advanced areas such as receive diversity  Establish clear value proposition on performance capabilities that focus on the real-world issues facing network operators deploying 3G/3.5G services

16. U-ATS Product Positioning Competitive RF conformance solution with complete TS 34.121 Sections 5-7 and 9 test coverage Cost-effective upgrade path to coverage of new operating bands, Release 5 signaling, and HSUPA on a single test platform Value-added performance testing capabilities that address real-world issues facing 3G deployments on same platform as conformance system

17. ULTS 2006 Product Strategy Further maximize our established leadership in GSM & WCDMA A-GPS device test through:  Continued high visibility participation in 3GPP and OMA standards bodies  Positioning of ULTS as a key enabler of 2006 A-GPS deployments worldwide  Delivering first-to-market validated A-GPS RF conformance test cases  Introduction of value-added A-GPS performance characterization test cases leveraging our unique subject- matter expertise  Expanding breadth of Spirent’s A-GPS testing expertise by enabling Professional Services (PS) to deliver solutions that address A-GPS technology suppliers

18. ULTS Product Positioning Comprehensive A-GPS RF conformance test solution for certification of GSM & WCDMA location-capable terminals Scalable platform to support industry-standard user plane technologies being chosen by the world’s leading network operators for their LBS deployments Feature-rich platform in the critical path of A-GPS technology development at the world’s leading chipset and handset manufacturers Flexible platform to fully characterize the performance of A-GPS terminals beyond conformance requirements leveraging Spirent’s unique subject-matter expertise

19. 2006 Top-Level Roadmaps

20. U-ATS 2006 Roadmap Q1 Q2 Q3 Q4 March 2006 (Version 4.0) New HSDPA Tests (4) 6.3A Maximum Input Level for HS-PDSCH Reception 9.2.1 Demodulation of HS-DSCH Single Link Performance 9.3.1 Reporting of Channel Quality Indicator – AWGN Conditions 9.3.2 Reporting of Channel Quality Indicator – Fading Conditions New Band V & VI RF Tests (3) 5.11 Transmitter Characteristics / Spurious Emissions 6.5 Receiver Characteristics / Blocking Characteristics 6.6 Receiver Characteristics / Spurious Response Release Highlights: Introduction of SR3420 enables completion of Section 5-7 tests First HSDPA test cases added to U-ATS portfolio Complete validation of Band V test cases with two handsets

21. U-ATS 2006 Roadmap Q1 Q2 Q3 Q4 April 2006 (Version 4.01) New RF Tests (3) 7.9.1 Downlink Compressed Mode – Single Link Performance 7.10 Blind Transport Format Detection 7.12 Detection of Acquisition Indicator Release Highlights: Additional three high-priority Section 7 tests progresses Nokia A1-A4 milestone approval

22. U-ATS 2006 Roadmap Q1 Q2 Q3 Q4 July 2006 (Version 4.1) New RF Tests (3) 7.6.1 Demodulation of DCH in Open Loop Transmit Diversity Mode 7.6.2 Demodulation of DCH in Closed Loop Transmit Diversity Mode 7.11 Demodulation of Paging Channel New HSDPA Tests (3) 5.2A Maximum Output Power with HS-DPCCH 5.9A Spectrum Emission Mask with HS-DPCCH 5.13A Error Vector Magnitude with HS-DPCCH Release Highlights: Completion of all Section 5-7 WI- 010 and WI-012 test cases! Transmit Diversity with SR3420 Roughly 80% coverage of existing HSDPA test cases Complete port of test cases off of Agilent 8960

23. U-ATS 2006 Roadmap Q1 Q2 Q3 Q4 November 2006 (Version 4.2) New HSDPA Tests (5) 5.7A Transmit On/Off Power – HS-DPCCH 5.10A Adjacent Channel Leakage Power Ratio with HS-DPCCH 9.2.2 Demodulation of HS-DSCH – Open Loop Diversity Performance 9.2.3 Demodulation of HS-DSCH – Closed Loop Diversity Performance 9.4 HS-SCCH Detection Performance Receive Diversity Test Cases Release Highlights: Completion of existing HSPDA conformance test cases Established industry-leadership in HSDPA Receive Diversity tests

24. ULTS 2006 Roadmap Q1 Q2 Q3 Q4 March 2006 (Version 2.2) 3GPP TS 34.171 Test Cases 5.2.1 Sensitivity Coarse Time Assistance 5.2.2 Sensitivity Fine Time Assistance 5.3 Nominal Accuracy 5.4 Dynamic Range 5.5 Multi-path Performance 5.6 Moving Scenario and Periodic Update Performance OMA SUPL 1.0 Support TLS Secure Connections MT-LR Call Flow for WCDMA Release Highlights: First-to-market validated TS 34.171 conformance tests! Introduction of SR3420 for TS 34.171 conformance tests Commercial release of OMA SUPL 1.0 enables handset development

25. ULTS 2006 Roadmap Q1 Q2 Q3 Q4 July 2006 (Version 3.0) HSDPA (Release 5) Support UMTS FDD V & VI Support A-GPS Performance Characterization Test Cases OMA SUPL Application Enabler Test Pack 1 Release Highlights: Expands existing Pre-SUPL and OMA SUPL capabilities to HSDPA Increases coverage of new UMTS frequency bands Introduce SUPL Application Enabler conformance test cases defined in OMA

26. ULTS 2006 Roadmap Q1 Q2 Q3 Q4 November 2006 (Version 3.1) A-GPS Interoperability Test Cases Handover & Cell Reselection Test Cases OMA SUPL Application Enabler Test Pack 2 Release Highlights: Demonstrates subject-matter expertise through value-added test cases Further coverage of new OMA test cases supplementing RF test foundation

27. 2006 Revenue Projections By Solution

28. 2006 Revenue Projections Product2005 Revenue 2006 Budget 2006 Target % Target Growth U-ATS$3.7M$7.0M$7.1M91.9% ULTS$2.8M$6.0M$6.2M121.4% UEPT$2.0M$2.2M Totals$15M$15.5M

29. Summary

30. Key Takeaways Forces driving market for WCDMA products throughout 2006 Clear understanding of 2006 WCDMA market strategy and each the role of each product within the segment High-level product roadmaps supporting the underlying WCDMA market strategy

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