NEXT GENERATION DEVICES Jim Conti, Vice President DigitWireless

“ The market for stand alone handhelds is stagnant, but the market for telephony-enabled devices is increasing rapidly ” Alex Slawsby, Research Analyst, IDC RCR, 3/31/2003

Sneakerphone New category, appealing to youth market and more casual business attire Largest color screen of any converged device Choice of left or right shoe models Auxilary battery option in opposite shoe

PDA Set Top Box Web Pad Games Console WID Messaging Contacts Agenda Secure personal data Fax Corporate data Internet WAP Phone Universal Internet Access Work PC Home PC

Why are the Devices important 406 Million handsets in Million projected by end of % of handset sales=new subscribers in 2002 Terminals are the gateways to services and applications Terminal functionality is increasing Ease of use=USE Mobile Applications (HDTV)

Device Categories Basic Phone Enhanced Phone RIM client Blackberry*, AIM Smart phone Microsoft Smart phone OS* Clamshell type PDA Handspring Treo Tablet PDA

Basic phone:-51% Enhanced: 22% Smart phone: 189% Clamshell PDA: 134% Tablet PDA: 156% Source:Gartner Dataquest, January 2003

Market Drivers The Wireless Carrier: Mobile data and content Gaming, news and information, m-commerce Enterprise Applications Youth focus and adoption Increased advertising (American Idol) 2.5G/3G networks are launching Messaging, USA/Europe, SMS. MMS, IM 1 Billion SMS messages per month (GSM Association) Mobile (carrying 2 devices) RIM Blackberry/Treo success

Market Drivers Falling Handset Prices Market penetration and falling voice revenues Data speeds are coming up Competition and number portability Device availability and options Content providers New and innovative ODM’s Portal providers SMS.ac, UPOC, Fox TV, Club Nokia

Market Resistance The Wireless Carriers Wireless coverage/voice and data Carrier rollouts/Market License Technology of networks (GSM/CDMA) Education Consumer and Point of Sale Mobile experience versus “PC” Lack of content and the “killer application” Lack of devices to support network and content Confusing and non-competitive Pricing models

Market Resistance The Handsets and Devices Lack of processing power Screen size Network compatibility issues (within carrier) GSM vs. CDMA (some Analog) Size “2 devices”, one for voice and one for data User Interface*

Market Resistance User Interfaces for Mobile Data Input** Triple Tapping Predictive Software:Tegic T9, iTap, Zi Stylus based Handwriting Recognition Voice Recognition Keyboards (“PC like”) Accessories: Folding, chatboard, etc. QWERTY, universal?

NEXT GENERATION DEVICES What’s new?

Research In Motion –Blackberry 6210 –Mobile –GSM/GPRS –Voice (speaker and mic) –Full QWERTY –Web applications –No pricing

PC E-Phone 10 ounces with a 640x480 display on a 4" LCD touch-sensitive screen. Cost $1,500 to $2,000 range initially but expects prices to fall to around $1,200.

Kyocera 7135 –Clamshell PDA –CDMA only –Palm OS –Wireless –Surf the web –MP3 player –$699 (no service)

Panasonic GD** –Prototype* –Ti OMAP – Fastap keypad –Camera –Messaging –Data Capable –No price published

Wildseed –Kyocera “Kurv” –“Smart skins” –MP3 player –Airtext messaging –Camera –Internet browser –No pricing

Orange SPV Smart phone –MSFT Smart phone OS –Ti OMAP –GSM only –Color screen –T9 predictive text –MSN capable

Palm Tungsten –Palm OS –Ti OMAP –Voice and Data –Color Screen –Graffiti –Full keyboard –$549

Handspring Treo –CDMA/GSM –Palm OS –Web browsing –Full QWERTY –Color screen – and Organizer –$299-$399 “We absolutely see this as where the market is going”- Joe Sipher, VP of Marketing

Tablet PC –Notebook evolution –Pen based text –Slate or Convertible designs –Windows XP –No voice capability –$1600-$3000

MOBILE FUTURES

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