Scott Boulevard, Suite 201 Santa Clara, CA 95054, USA Tel: (408) , Fax: (408) Web: Residential VOD Supplemental Handout

Confidential Information2 US Installation With MSO’s

Confidential Information3 China Installations with MSO’s

Confidential Information4 Digital Subscriber Growth Average 30% growth compound * Per NCTA (National Cable Television Association) millions

Confidential Information5 MSO VOD Business Model Per Video Viewing –$4 per movie title –$1 to $1.5 per regular broadcast title –$20 to several hundred per special event Per Day Viewing –$3.95 Hits, $1.95-$2.95 Library Film SVOD Viewing –$40 per month for 25 titles Free VOD Viewing –Advertisement PAID VOD

Confidential Information6 MSO Requirements Each building block serves 1,000 simultaneous streams –Each stream is 3Mbps minimum –Storage for 2,000 hours of titles and no content replication allowed –Capable of splicing in ad clips with 5 to 30 seconds in length Compatible with other vendors –Content vendors: iNDEMAND, TVN and … –Distribution vendors: N2 Broadband and … –Billing software vendors: CableData, Convergy and … –EPG vendors: TV Guide and … –Middleware vendors: OpenTV, Liberate and … Business model support –Full business model support with digital content management –Trick modes, SVOD and SPVR support Less than $200 per stream price * Time Warner Cable

Confidential Information7 Other Vendors Competition – Incumbent Return on Investment  RAID-X TM, distributed computing architecture  High performance and extreme reliability  Complete head end turnkey solution, one stop shopping  Scalable from small to large MSO’s  Profitable business model for MSO’s  Worldwide system deployments

Confidential Information8 Competition – New Comer Companies –Broadbus: $12 million funding, Q by Battery Ventures –MidStream: $26 million funding, Q by Canaan Venture Partners –Kasenna: $10 million funding –Entone Weaknesses –Broadbus and MidStream are startups and have a long way to a deployable server system –Kasenna and Entone do not have proven records in the cable industry Kassena’s major market has been in education environment Entone sells to Telecom industry

Confidential Information9 RAID-X™ Disk Array Fibre Channel Switch Video Server Fibre Channel Switch Video Server nSTREAMS MediaSphere 

Confidential Information10 Customer Comments Chris, HN: “You showed us the MPEG based menu three years ago, that was such a technology advancement. You’ve done it again.” Chris, HN: “Everything is working great.” Steve, Cox San Diego: “You guys have a great product.” Kevin, Cox Phoenix: “The timing of this thing is perfect.” Ginny, HN: “This is the best system I have ever used.” Larry, HN: “I like your price.” There is a WOW factor in everyone’s comment

Confidential Information11 Operation Strategy Low Operating Expenditure –US Technology; off shore R&D and manufacturing –US Sales, Marketing and support –China Sales, Marketing and support R&D –Core technology:US –Set top box applications:US and off-shore –Graphics and customization:Off-shore –System integration:US and off-shore Majority work off-shore –Quality assurance:US and off-shore Portion to be done in house Outsource the final stage quality assurance