1. Santa Clara 2008 Smart Meters and Home Automation Ember Corporation Bob Gohn VP Marketing bob.gohn@ember.com

2. Santa Clara 2008 Who is ? Ember is the leading supplier of ZigBee Semiconductors, Software, and Development Tools

3. Santa Clara 2008 Defining Home Automation (HA) Luxury Home Automation High-end ($1M+) homes Custom installers Mature market & growing Mainstream Home Automation Mid-range ($300K+) homes Custom installers + retail channels Emerging with very high growth DIY Home Automation “Hobbyist” homeowners Internet or home improvement stores Stalled early market, emerging growth Managed Home Automation Broad range of homeowners / renters Service providers (direct or indirect) Emerging, very high growth potential * Taxonomy courtesy of ABI Research, Home Automation and Security Report, 2008

4. Santa Clara 2008 Home Area Networks Key to Advanced Energy Management Home Area Networks are key component to Smart Metering / AMI initiatives – Time-of-use pricing – Demand Response – Load Control / Shedding ZigBee is the wireless HAN technology of choice – Mature, open standard – Proven, robust, secure – Selected by the leading AMI/HAN deployments Utility AMI Network Gas Meter Smart Appliances Tstat Lighting Controls In-Home Display Electric Meter HVAC System Home Automation System ZigBee HAN Energy Gateway Water Meter

5. Santa Clara 2008 ZigBee is the Leading Wireless Technology for Home Control ZigBee has been adopted by most leading HA system vendors…. …and leading-edge managed home automation providers… …and the top energy management “Home Area Network” suppliers Source: West Technology Research Solutions, Q1’2008 Wireless Sensor Network Technology Trends Report

6. Santa Clara 2008 ZigBee Smart Energy Profile ZigBee Smart Energy (ZSE) Profile defines HAN behaviors – Device messaging and actions – Security & authentication – Network management Collaboratively developed – Leading utilities – AMI meter & comms vendors – Government & regulatory bodies – Security experts – Semiconductor & s/w vendors – Industry bodies (OpenHAN, etc.) ZigBee Cluster Library ClosuresOthers… Safety & Security Lighting Measurement & Sensing HVAC General Others… Commercial Building Auto. Application Profiles Home Auto Smart Energy Dec‘07 Specification Balloted & Passed Multi-vendor “ZigFest” Interoperability Events May‘08 1 st Wave of Products Certified Many more product certifications in process Dec‘08

7. Santa Clara 2008 ZigBee ZSE Certification ZigBee Alliance announced first Smart Energy Profile products – Vendors from around the world – Diverse set of devices Smooths path to mainstream ZigBee HAN deployments – Solidifies ZigBee’s leadership as HAN technology of choice – Demonstrates strong momentum FOR IMMEDIATE RELEASE FIRST CERTIFIED ZIGBEE SMART ENERGY PRODUCTS ANNOUNCED Products Deliver the Final Connection Points of Smart Grids to Consumers San Ramon, Calif. – May 19, 2008 – The ZigBee Alliance, a global ecosystem of companies creating wireless solutions for use in energy management, commercial and consumer applications, today announced the official certification of products using the ZigBee® Smart Energy public application profile. This first group of products provides a broad range of services designed to help utility companies worldwide implement new home area networks for managing energy, helps consumers improve their own energy efficiency and delivers multi-vendor product interoperability.

8. Santa Clara 2008 How ZigBee Smart Energy Works 1)HAN devices join utility network ESP (trust center) & device authenticates using certificates Application-level link keys used between ESP & device 2)Demand Response events Utility sends DR event to ESP ESP forwards to DR device, which opts ‘in’ or ‘out’ based on consumer 3)Load Control events Utility sends DR event to ESP ESP forwards to LC device(s) 4)Pricing messages Unsecured messages to any device Utility AMI Network ZigBee HAN Programmable Communicating Thermostat (PCT) Energy Services Portal (Electric Meter or Gateway) HVAC System Load Control Device In-Home Display

9. Santa Clara 2008 ZSE Security and Authentication Security is critical utility requirement – Smart meter must have secure communications for safe smart grid – HAN devices & meters must have strong authentication to assure authorized devices and use Mature technology assures authentic, compliant & interoperable devices – Provides implicit certificates used to authenticate each meter or HAN device – Enable communication of unique keys per device for use with ZigBee AES encryption

10. Santa Clara 2008 Example Implementation: Ember Smart Energy Application Customer Applications Reference Apps Utilities Ember Silicon EmberZNet PRO Stack (Enhanced ZigBee PRO) Development Tools Main Program ZCL Utilities Specific Clusters..…. Device Specific Actions Complete ZSE application includes all SE Profile devices – Energy Service Portal – Meter – In-Premise Display – Prog Comm Thermostat – Load Control – Smart Appliance – Pre-payment terminal – Custom….. Full ZigBee certification assures fast final device certification Ember Smart Energy Application ECC Security

11. Santa Clara 2008 Smart Energy & Home Automation Utility AMI Network ZigBee HAN Programmable Communicating Thermostat (PCT) Energy Services Portal (Electric Meter or Gateway) HVAC System Load Control Device In-Home Display Urgent demand for Smart Energy + compatibility with mainstream Home Automation systems enables strong opportunity for growth

12. Santa Clara 2008 Summary Both Home Automation and ‘Smart Energy’ applications are going ‘mainstream’ Wireless control is a key enabler for this growth ZigBee is the leading wireless control technology