1. ICSI Speech Intelligibilty Keith McMillen President / CEO mcmillen@octiv.com Phone: 510-280-5013

2. OCTIV CONFIDENTIAL Company Background 2000 Operations and first products launched VCs include 3i, Novus and Intel Capital Today Focused on telephony products Positioning ourselves for consumer product integration Continue to support solutions for Internet, pro audio and broadcast Future Expand telephony product line IP licensing as standard feature on consumer electronics

3. OCTIV CONFIDENTIAL OctiMax StreamPro AV Octivating video streams OctifierPro Create quality differentiation for free and subscriber services OctifierPro Octivation of over 1,400,000 songs for on- line broadcast Product Name Application Description Media Customers Surround Sound Processor - HDTV OctiRama Professional Audio & Broadcast Customers

4. OCTIV CONFIDENTIAL  Octiv delivers professional strength audio products to the consumer mass markets  Consumer penetration grows as cost of technology decreases $10,000 $1,000 $100 $1 Technology Advancements

5. OCTIV CONFIDENTIAL iTunes Plugin Mac iTunes plug-in launched Jan. 5, 2004 PC iTunes plug-in version now in alpha Other versions available for launch over next 3 months: MusicMatch Windows Media Real

6. OCTIV CONFIDENTIAL Multi-band Processing Overview HPF – High Pass Filter - filters out signals below 5hz to balance the signal Xover – Crossover - filter with 2 outputs that splits broadband signals into multiples AGC – Automatic Gain Control - system that responds to changes in dynamic levels Control – keeps the bass from being amplified more than master signal from the AGC Mixer – combines multiple signals into one Band Drives 1-5 – 5 band input gain controls Neg Att Time Dyn Proc – Negative Attack Time Dynamics Processor - controls excessive peaks in the system Output Mix Drive – 5 band output gain control

7. OCTIV CONFIDENTIAL Conference Audio Corrections Octivated Original

8. OCTIV CONFIDENTIAL Dynamics Processing Overview Better Peak to Average Ratio Rail to Rail Amplitude Dynamic Noise Gating Spectral Optimization Dynamic Peak Limiting Rich Voice Quality

9. OCTIV CONFIDENTIAL Original Full Scale Excursion Octivated Full Scale Excursion Original Peak-to-Average Ratio Octivated Peak-to-Average Ratio

10. OCTIV CONFIDENTIAL Mean Opinion Score (MOS) Better Than Toll Quality! Toll Quality OctiVox Quality MOS Scores From Dynastat, Inc. Very Satisfied Some Users Dissatisfied Many Users Dissatisfied Nearly All Users Dissatisfied Not Recommended Satisfied 4.0

11. OCTIV CONFIDENTIAL Hear the Difference! AOL Voice Chat Echo Latency Normalization Latency Normalization Windows Net Meeting No Echo OctiVox Toolkit

12. OCTIV CONFIDENTIAL PC Latency Comparison

13. OCTIV CONFIDENTIAL Clear Call Phone Accessory What is it? Hear what you’ve been missing Accessory that plugs into your phone to make conference calls more intelligible What does it do? Adjusts the audio not the working environment Provides professional strength volume matching for all incoming calls  How does it affect my phone? Compatible with most conference phones and speakerphones

14. OCTIV CONFIDENTIAL OctiVox W2W Application Full adjustable feature set Customizable & Presetable Metering for Visibility Batch Processing