1. Intel Capital CEO Summit Arjun Gupta, CEO and Chief Believer TeleSoft Partners August 1, 2001 www.telesoftvc.com

2. Page 1 AGENDA Page I.Next-Gen Communications Opportunities2 II.Supply of Venture Capital3 III.Private Market Pricing Dynamics4 IV.Public Market Pricing Dynamics5 V.Macro Trends & Industry Structure6 VI.Exits – Acquisitions vs. IPO’s7 VII.Optical Value Chain – The Next Frontier8

3. Page 2 TELESOFT KEY INVESTMENT SEGMENTS I.Next-Gen Communications Opportunities Optical layer

4. Page 3 SUPPLY OF VENTURE CAPITAL II.Supply of Venture Capital Source: Venture One

5. Page 4 PRE ‘98‘98-’99‘99-’00 Stage } M E } Product Development Marketing Development L $100MM <$20MM - $25MM 4-5x 9 Months 2-3x 1-2 Years $200MM - $300MM <$25MM - $35MM $200MM - $300MM 5-10x 6 Months 2-3x 1-2 Years $400MM - $500M $40MM - $60MM <$10MM - $20MM 2-3x 1-2 Years 2-3x 1-2 Years $100MM TRENDS IN PRICING III.Private Market Pricing Dynamics

6. Page 5 LBO’s Buyout Firms Morgan Stanley Study (From 1/1/80 – 3/31/96) 801 Technology IPO’s Average IPO was $147MM Largest IPO was MSFT at $300MM $147MM Public Market $$$ Private VC Market $$$ Early Middle Late $100MM Dot.com IPO’s > $1BN $1BN PRICING EFFECTS IV.Public Market Pricing Dynamics = $50MM TCV and ICP “Crossover Funds” 1 = $950MM 2

7. Page 6 V.Macro Trends & Industry Structure Personal Computing Fortune 100 Businesses Fortune 1000 Businesses Every Business Millions of Households Billions of Consumers Communications 200 PTT’s 500 – 1,000 Wireless + LD + Local 5,000 Carriers 10,000 Carriers (B/C/D – LEC’s) Customer Industry Structure Supplier Industry Structure Retrenching Applications Microprocessors Databases Enterprise Applications Full-Service Lucent Cisco Nortel Alcatel Ericsson Siemens NEC CUSTOMER AND SUPPLIER INDUSTRY STRUCTURES Point Players ADC Ciena Motorola Tellabs Nokia Hitachi Toshiba North America Europe Japan 1998-99 Over Expansion 2000-01 IBMIBM Operating Systems SAP, Oracle Oracle Microsoft, Lotus Microsoft Intel

8. Page 7 EXITS – ACQUISITIONS vs. IPO’s VI.Exits – Acquisitions vs. IPO’s

9. Page 8 TELESOFT’S OPTICAL PORTFOLIO Process & MaterialsComponents Modules & Sub-systems SystemsCarriers AmberWaveVersatile Lynx-Photonic Catamaran Lara Networks ModeTek Novalux Calient WIN OnFiber KymataNP Photonic VII.Optical Value Chain – The Next Frontier