1. Insights and Opportunities Bob Schechter President and CEO NMS

2. www.nmscommunications.com Disruptive Trends Mobile Internet Fixed-Mobile Convergence VoIP Everywhere Explosive Subscriber Growth Intense Competition

3. www.nmscommunications.com Changes in the World Faster, less predictable changes in markets, competition, technology, politics, and economies Shorter duration of competitive advantage and of proprietary innovations Size and speed of economic “tsunamis” that create entirely new markets Mobility of capital and talent toward new opportunities amplifying swings India and China — the advent of “white knuckle competition,” chronic overcapacity, and price/wage pressure in developed world Copyright McKinsey & Company

4. www.nmscommunications.com Wireless — Where the Action Is 1.7 billion mobile phone users worldwide 26% penetration of the global population Global wireless service revenues US$554B in 2005 Mobile phone shipments exceeded 500M units Wireless Phone Shipments 2002 – 2007 Source Yankee Group 2004

5. www.nmscommunications.com Wireless — Trends Subscriber growth continues Green field uptake Fixed-line replacement Service provider consolidation Global groups A few large operators per country Mobile Virtual Network Operators (MVNO) Early success Consumer brands Asia Mobile Subscriber Growth

6. www.nmscommunications.com Wireless — Applications and Usage Mobile voice MOU increasing Voice $ declining Push-To-Talk Text messaging (SMS) An “oldie but goodie” Mobile data Still small but growing Picture messaging (MMS) Music Video Instant messaging Presence/location

7. www.nmscommunications.com Broad Range of Advanced Services Being Sought

8. www.nmscommunications.com Where Opportunity Lies Mobile Operators Deliver on mobile Internet promise MVNOs Apps and services that match their customers New players — Yahoo, eBay, AOL, Google Important new market Emerging markets Fastest subscriber growth Remember the end user experience Make it easy

9. www.nmscommunications.com Investing for Growth New Vision family of application-ready servers Media Server, VoiceXML Server, Signaling Server, Video Gateway, Video Transcoder New Open Access boards and APIs 2 nd Generation CG 6xxx media processing family Video Access 2.0 for broadband IP video Expanded SS7 software offering New MG Series for AdvancedTCA solutions Natural Access MX for autonomous operation New channels for applications and solutions

10. Questions? Contact Info: bob_schechter@nmss.com