Wi-Fi/Wi-MAX: Fast, Low Cost, Simple Today Ron Sege, President and CEO, Tropos NetworksOctober, 2004

© 2004 Tropos networks, Inc. Page 2 Wi-Fi/WiMAX—”The Ethernet of Radio” Ethernet Performance Over Time *2004*2005* Wi-Fi Client Devices (millions) 1999: IEEE b (“Wi- Fi”) standard adopted; Wireless NIC: $ : HP, Dell, IBM, Toshiba offer built-in wireless; Wireless NIC: $ : Wireless NIC: <$ : Wireless integrated onto PC motherboard; Wireless device proliferation: laptops, PDAs, video cameras, etc. 2004: 1,000+ devices WiFi certified Wi-Fi Client Shipments 5 years out Wi-Fi is shipping 3M units/month 10 years out Ethernet had shipped 1M units total

© 2004 Tropos networks, Inc. Page 3 Metro-Scale Open-Standard Radio in Action Multi-square mile Mesh Cell Gateways Clients Mesh Cell Nodes Wired IP Network Backhaul WiMAX Wi-Fi (Unlicensed) WiMAX (Licensed)

© 2004 Tropos networks, Inc. Page 4 Fast Wi-Fi/WiMAX: Real broadband b: 11 Mbps Circa g: 54 Mbps Circa d 70 MbpsCirca n: Mbps Circa e: QoS r: Roaming s: Meshing e: Mobility Average Throughput (Mbs) Today’s Cellular Architecture Tropos + Gains in Open Standard Radio spectral efficiency advances b -> 11g -> 11n Tropos Architectural Advances

© 2004 Tropos networks, Inc. Page 5 Low Cost Wi-Fi/WiMAX: Open-Standard Price/Cost curve Worldwide standard, 75M connections shipped since 1999 (List) Price/Mbps capacity: –1999: $ 202 –2001: $ 11 –2004: $ 1 –2006: $ 0.40 Metro-scale CAPEX/Mbps/home passed, fully-installed –2004: $ 1 –2006: $ 0.30 No handset subsidy, no truck roll, no license fee Greater Denver Metro Wi-Fi Model Source: Tropos

© 2004 Tropos networks, Inc. Page 6 Simple Wi-Fi/WiMAX: Everywhere for everybody Laptops, PDAs, cell phones, music players, cameras, televisions… Ample, open and increasing amount of ease-of-use software Any native IP service, including Virtual Private Networks, voice, video Fixed and mobile Wi-Fi Parking Meter Supply of Wi-Fi devices is creating its own service demand Source: Bear Sterns, TMNG

© 2004 Tropos networks, Inc. Page 7 Today: Five of 100+ Metro Examples Chaska, MN residential –20% penetration 1 month –Installed by City Manager Corpus Christi multi-use –Including AMR Philadelphia multi-use –Successful proof-of-concept –Competition + public safety + digital divide + economic development Oklahoma City public safety –400 sq mi Urban east-coast city VoWi-Fi –Prepaid city-wide mobility

© 2004 Tropos networks, Inc. Page 8 ++ Killer Combo: It just doesn’t get any better than this! <$.02/minute*<$100 unsubsidized<$6/sub/mo *SkypeOut Rate to POTS phone

© 2004 Tropos networks, Inc. Page 9 Wi-Fi/Wi-MAX: Fast, Low Cost, Simple, Today. So, Why Not?