Pryor-Hale Business Plan Competition April 18, 2001 Michael McCorquodale, Chief Executive Officer Keith Kraver, Chief Technical Officer Mobius Integrated Systems Corporation 1001 E. Jefferson Ave. Suite 105 Detroit, MI

Presentation Agenda The Mission of Mobius Integrated Systems Problems with Embedded Systems The Mobius’ Solution Management Team Market Competition Funding and Financials Why Invest in Mobius? AgendaMissionProblemsSolutionTeamMarketComp.FundingWhy?

The Mission of Mobius Mobius Integrated Systems Utilizes Microsystems Technology to Deliver True System-On-A-Chip (TSoC) Solutions to the Embedded Systems Market The Engine Control Module (ECM) is an example of an embedded system: Inside the engine a sensor detects the fuel-to-air ratio and transmits the signal to the ECM so the fuel injection can be adjusted accordingly What is an embedded system? AgendaMissionProblemsSolutionTeamMarketComp.FundingWhy?

Problems with Implementation What’s the problem?  Packaging costs high  Power too high  Size too large  Engineering resources spent designing board  Functionality low  Applications limited AgendaMissionProblemsSolutionTeamMarketComp.FundingWhy? Board Level Implementation Antenna Microprocessor Wireless Interface Frequency Reference Sensor/Actuator Interface Sensor Actuator Data Conversion Baseband Modem

The Mobius Solution True System-on-a-Chip Implementation (TSoC) AgendaMissionProblemsSolutionTeamMarketComp.FundingWhy? Board Level Implementation Antenna Microprocessor Wireless Interface Frequency Reference Sensor/Actuator Interface Sensor Actuator Data Conversion Baseband Modem

The Mobius’ Solution TSoC Implementation Packaging costs reduced: Fewer Circuits Power reduced: Less Input/Output Size Reduced: Fewer Circuits, Fewer Pins Fewer Engineering Resources: Simpler System Increased Reliability: Longer Operating Life Possibilities for increased functionality Possibilities for new applications The MS-8 prototype developed at The University of Michigan AgendaMissionProblemsSolutionTeamMarketComp.FundingWhy?

Realizing The Mobius’ Solution How is it Done? Utilizing emerging technology: MEMS Integrating existing technology: RF + Analog + Digital New application in existing technology: Si Wireless Support Emerging Standards: Bluetooth Vision TSoC solutions require competency in all technologies Who will integrate these technologies? Si RF, SOI, MEMS, etc. No Intel of Microsystems Exists Recognizing MEMS as an enabling technology: Prototype MEMS resonators developed at The University of Michigan AgendaMissionProblemsSolutionTeamMarketComp.FundingWhy?

The Mobius Team: Founders Michael McCorquodale –Chief Executive Officer –Ph.D. Candidate: Wireless Integrated Circuit and MEMS Research –Embedded Circuit Development with Hughes Space and Communications Keith Kraver –Chief Technical Officer –Ph.D. Candidate: Low-Power, Low-Voltage, Mixed-Signal IC Research –Embedded Analog Circuit Development with National Semiconductor Matt Guthaus –Chief Operations Officer –Ph.D. Candidate: Low-Power Microarchitecture Research –Automotive Microcontroller Development with National Semiconductor AgendaMissionProblemsSolutionTeamMarketComp.FundingWhy?

The Mobius Team: Advisory Board AgendaMissionProblemsSolutionTeamMarketComp.FundingWhy? Dr. Richard Brown –Chairman of Advisory Board –Founder, Sensicore Corporation: A Chemical Sensor Company –Associate Chair Electrical Engineering Division, University of Michigan Joe Giachino –Member, Automotive Microsystems Specialist –Technical Chairman, Michigan Microsystems Consortium –Over 30 Years Experience in Automotive Microsystems, Ford/Visteon Dr. Dennis Grimmard –Member, Semiconductor Manufacturing Specialist –Manager, Solid-State Electronics Laboratory, University of Michigan

Market Overview System-on-a-Chip (SoC) Market: –Total Available Market: Currently $5 Billion –Projected to be $17 Billion by 2002 (Cahner’s InStat) –Currently SoC 30% of Integrated Circuit (IC) Market –Projected to be 70% of IC Market by 2003 (Semico Research) Additional Markets –Scaling in Additional Markets: biomedical, environmental monitoring, industrial, manufacturing, communications, etc. AgendaMissionProblemsSolutionTeamMarketComp.FundingWhy? Automotive ECM Market: –Total Accessible Market: 15 Million Units per Year –Target Market: 100k ECMs in First Automobile Line –Automotive Market is Driving Microsystems and MEMS Industry: 60 Million Units Deployed (ForbesASAP, April 2001)

Mobius vs. Competition Shading indicates level of integration AgendaMissionProblemsSolutionTeamMarketComp.FundingWhy?

Funding Sought AgendaMissionProblemsSolutionTeamMarketComp.FundingWhy? Capital Sought –$3MM First Round to Initial Product Delivery Expenditures –Development, Management, and Sales Teams –Office Space, Computer Hardware, CAD Tools –Design, Manufacturing, and Testing of Initial Product

Mobius Financials Revenue Projections (in thousands) SoC Units Sold ,562 4,567 14,168 Ave Selling Price$ - $17.94 $18.25 $15.51 $13.19 Net Revenues$ - $4,354 $28,514 $70,849 $186,807 COGS Projections Fabrication: Foundry$ - $ 111 $ 503 $1,268 $ 3,643 Fabrication: MEMS ,929 Wafer Level Test ,487 7,143 Packaging0780 3,553 8,953 25,716 Post-Package Test ,539 3,879 11,143 Initial Design Costs ,496 3,366 8,789 Total 0 1,879 $8,345 $20,627 $58,365 Gross MarginNA57% 71% 71% 69% AgendaMissionProblemsSolutionTeamMarketComp.FundingWhy?

(in thousands) Revenues $ - $ 4,354 $ 28,514 $ 70,849 $186,807 Gross Profit - 2,475 20,168 50, ,442 Oper. Income (900) (1,118) (864) 10,397 22,886 Net Income (900) (1,118)(864) 7,278 16,020 Cumm. Income (900) (2,018) (2,882) 4,396 20,416 Cash from Oper. (908) (1,169) (4,838) 5,331 9,530 Capital Exp ,781 3,422 7,793 16,813 Funding Needs 3,000 5,000 16, Ending Cash 1,792 2,841 10,582 8, Mobius Financials AgendaMissionProblemsSolutionTeamMarketComp.FundingWhy?

Why Invest in Mobius? Reasons to Invest in Mobius Strong, Scalable, Needed Technology with Significant Added Value Motivated, Experienced, Talented Team Tremendously Expanding Market Applications in Broad Spectrum of Markets Opportunity to Capitalize on Emerging Applications AgendaMissionProblemsSolutionTeamMarketComp.FundingWhy?

AgendaMissionProblemsSolutionTeamMarketComp.FundingWhy? Current Strategy Full Business Plan just Completed Prototypes Developed, Manufactured, and Tested Seeking Start-Up Capital From Angel Investors and Venture Capitalists Looking to Fill Gaps: Management and Partnerships Developing Specification for Initial Product Offerings R&D underway for Bluetooth Enabled ECM Why Invest in Mobius?