1. 1 of 12 AmberWave Systems 13 Garabedian Drive Salem, NH, 03079 Phone: 603-870-8700  Fax: 603-870-8607  www.amberwave.com “Enabling better chips through materials science research and development.” Richard Faubert President & CEO AmberWave Systems October 30, 2004 Financing: 1999Seed: $750kAdams Capital 2000Round 1$20MTeleSoft, Arch, Adams, Hillman 2002Round 2$25MHillman, Adams, Arch, TeleSoft, DOW 2004Round 3$21M3i,TeleSoft,Adams,Arch,Hillman

2. 2 of 12 The Industry’s Challenge 1B 19602010 1 19651970197519801985 Year N u m b e r o f t r a n s i s t o r s 1990199520002005 10 100 1K 10K 100K 1M 10M 100M 10B 100bit shift 64 bit bipolar array, IBM [2] 4Kbit DRAM 4004 [4] 8008 8080 80868088 80286 80386 80486 Pentium Pentium Pro Pentium III Itanium Itanium II Itanium III Pentium 4 Celeron 16Kbit DRAM 64Kbit DRAM 256Kbit DRAM 1Mbit DRAM 4Mbit DRAM 16Mbit DRAM Riva 128 GeForce 3 GeForce 4 64Mbit DRAM 256Mbit DRAM 2x/12 months 2x/24 months 2x/18 months [1] Stanley Mazor, "The History of the Microcomputer - Invention and Evolution“, [2] Bob Donlan and David Pricer, "Pushing the Limits: Looking Forward...Looking Back," Microelectronic Design, Vol. 1., (1987)., [3] "Inventions of the Modern Computer: Intel 1103 The World's First Available DRAM Chip,“, [4] Jonathan Cassell, "Who Really Invented the Microprocessor, [5] Gordon E. Moore, "Cramming more components onto integrated circuits," Electronics, Vol. 38, N. 8, Apr. (1965). Shown courtesy of WWW.ICKNOWLEDGE.COM Source Drain Gate Source Drain Gate Moore’s Law: Shrinks: 130nm node

3. 3 of 12 Materials are the Solution Andy Grove,“Changing Vectors of Moore’s Law”, presentation to 2002 IEDM,, Dec. 10, 2002

4. 4 of 12 AmberWave IP Position Current portfolio status: 44 issued patents (6 in foreign countries) 16 allowed patents 74 pending patents Areas of device coverage: In-process strain Bulk strained silicon Strained silicon on insulator (SSOI) Optoelectronics on silicon Future epitaxial strained layer technologies

5. 5 of 12 2007 TAM Estimates: Device Revenue: Total Revenue: $78.2 B x Royalties (1%) ______ Strained Si IP Revenue: $782 M Wafer Revenue: Total Revenue: $3.9B x Royalties (3%) ______ Strained Si IP Revenue: $117 M Strained Silicon’s primary market applications: Microprocessors SRAM memory Standard Cell ASICs Programmable Logic Devices Micro-controllers Graphics / Imaging Digital Signal Processing Gate Arrays Strained Silicon TAM Strained Silicon IP TAM: $900 million

6. 6 of 12 Competition Andy Grove,“Changing Vectors of Moore’s Law”, presentation to 2002 IEDM,, Dec. 10, 2002

7. 7 of 12 Strained-Si Channel Strained Si Customer Traction

8. 8 of 12 Revenues $832,000$1,030,000 $2,540,000

9. 9 of 12 Mitch Tyson Chairman Richie Faubert President & CEO William FrezzaAdams Capital Management Karen KerrArch Ventures Marko Maschek3i AmberWave Systems Wade Sheen Mkt. Sales. Tony Lochtefeld Research Bryan Lord Corp Dev & Admin Chris Vineis Process Lab Mayank Bulsara CTO Richie Faubert AmberWave Board The Team

10. 10 of 12 Thank you ~ Questions?