STA’s PRODUCT MISSION

CURRENT SITUATION Who do you Believe ? “In 2001 approximately 3.5 M Key/PBX Stations will ship in the STA Market. The IP Based systems will account for 5% of New Systems. The Penetration over the next 2 years will be 10%.” Gartner, 8/31/01 “Today’s Convergence story is Mostly just that: a Story.” “ Reliability is the Key and there are fundamental disagreements on how we are going to get it.” Phillips Group “More than half of the large enterprise organizations have or will deploy VoIP in the next 12 months.” 10/2000 Sage Research

There is more ……….. “In the near future, IP Telephony will begin to offer much more than a cost-based complement to PSTN” Gartner 8/31/01 “90% of enterprises with multiple locations will start switching to IP solutions for voice over the next 5 years” Phillips Group 6/01 “What makes VoIP market significant is the vendor push behind it.” Gartner 3/26/01 “VoIP is the long term solution – question is when, rather than if.” Ibid.

The IP Telephony market projections by Frost & Sullivan done in 1997 are still being pushed out $64M $128M $380M $745M $1,547M 2001 revenue estimates are $300M

IF IP TELEPHONY IS NOT REACHING THE PROJECTIONS, WHY NOT? Traditional digital systems represent more than a decade of technical maturity and have earned a reputation for reliability. The IP technology is still new – there hasn’t been sufficient time to measure reliability improvements. IP PBX systems have feature deficiencies over traditional systems. IP PBX systems are expensive. There is no “Killer App”.

WHAT ARE THE MARKET TRENDS There is a reluctance by corporations to undertake massive forklift activity for a newer solution that is relatively unproven. There is a market place perception that IP Telephony systems are not as reliable as the current Digital systems Feature parity with the legacy systems still has not been achieved by IP PBX systems. Trend is toward proprietary protocols. Delay by buyers in making decisions while waiting on more robust and affordable solutions to emerge. IP-Enabled solutions will provide a smoother transition for customers with traditional systems to migrate over to IP-based solutions. By enabling systems, customers protect their original investment. (Frost & Sullivan IP PBX Market Overview}

WHY BUY IP TELEPHONY SOLUTIONS There are only three reasons for adopting a new technology: 1.The current implementation suffers from serious, unfixable problems an must be replaced before catastrophic failure occurs. 2.There are cost savings to customers at this time. 3.There is much needed functionality that this technology can provide.

WHAT ARE THE BENEFITS FOR IP TELEPHONY Significantly lower costs for international calls. Utilization of existing WANS and Intranets to connect voice. Ease of system administration via Internet. Greater facilitation of applications in the IP environment Telecommuting Wireless via LAN Remote stations Call Center Applications

At SAMSUNG TELECOMMUNICATIONS AMERICA we have developed and believe whole heartily in the following I P Telephony strategy: evolutionary and not revolutionary. migration to the new technology maintaining backward compatibility. superior investment protection enhancing our current legacy products 1. Graceful Convergence -

2. No Compromise on Quality – Reliability and Quality must remain the same Provide the customer the same experience 3. Launch and Learn – Should be able to “Try” I P Telephony Become familiar and comfortable with the sales and support

4. Survival of the Fittest – “Best-of-Breed” to survive Better in certain markets Invest in training Insist our dealers be prepared

10 STA20 STA30 STA40 STA50 STA60 STA70 STA<70 STA $150 $200 $250 $ COMPACT DCS 50si DCS DCS 400si SVMi 4 Voice Mail CADENCE Voice Mail CADENCE 400 Voice Mail FALCON Key Sets STA PRODUCT LINE-UP 2001

iDCS ITMITM Router Internet/Intranet International Toll Branch Offices IP ENABLED

10 STA20 STA30 STA40 STA50 STA60 STA70 STA<70 STA $150 $200 $250 $300 COMPACT iDCS 100 (Q3 02) iDCS 500 (Jan 02) SVMi 4 Voice Mail SVMi 8 Voice Mail (Jan 02) Compact IAP System STA PRODUCT LINE-UP 2002 FALCON Key Sets

Compact IAP TRK DLI SLI MGC CONF Compact IAP PSTN Ethernet LAN Router IP Network LOCAL Coming Soon

IP TELEPHONY NETWORK SIDE MGCMGC MGCMGC LAN Router INTERNET INTRANET VPN SYSTEM NETWORKING DSL IP Telephone TELECOMUTTING INTERNATIONAL TOLL CALLS iDCS Early 2003

iDCS 500/100 MGC Gateway WAP b Wireless LAN IP Telephones (wired) IP TELEPHONY - STATION SIDE 2003 Cordless IP

GETTING ALL THE PIECES TO FIT VOICE DATA BANDWIDTH ETHERNET VIDEO INTRENET WIRELESS TCP/IP PSTN H.323 MGCP