Intel Capital The Digital Home Curt J. Nicols VP & Director Digital Home Initiative, Intel October 29, 2004

Intel Capital Four Pillars of Intel Strategy  Architecture  Manufacturing  Brand  Investments Build ecosystems Develop international presence Foster silicon technology Scout new technologies

Intel Capital Intel Capital Mission Make And Manage Financially Attractive Investments In Support Of Intel’s Strategic Objectives External and Internal Investments StrategicFinancial ICap

Intel Capital Investment Themes Communication Infrastructure Digital Home Mobile / Internet Clients Enterprise / Digital Office Next-Gen Si Production & Design Int’l & Emerging Markets

Intel Capital Content Anytime, Anywhere, Any Device Digital Home Vision

Intel Capital Intel is Serious about the Digital Home Awesome Performance for Audio, Image & Video Processing Intel® Pentium® 4 Processor on 90nm Technology Alderwood & Grantsdale NetBurst™ Microarchitecture Enhancements Enhancements to HT Technology 800 MHz FSB 1MB L2 Cache 13 New Instructions (SSE3) PCI Express* x16 Discrete Graphics High Definition Audio RAID 0/1 Dual Channel DDR2-533 Integrated AP Next Gen, Intel Integrated Graphics* *Integrated Graphics available on Grantsdale only

Intel Capital The Industry is Serious: DLNA Digital Living Network Alliance >140 Member Companies** *Other brand and names are the property of their respective owners.

Intel Capital Three Reasons for VCs to get Serious in Digital Home

Intel Capital Three Reasons for VCs to get Serious in Digital Home 1. There are real problems to solve! 1. There are real problems to solve! Ease of Use is a Disaster Today –Home network setup and management is difficult: Device set up, interoperability, simple connecting –Content not easily viewed on any device: DRM, CA, Transportability, Licensing Difficult Technical Requirements –Moving HD streams over home networks with QOS –Network infrastructure to support IP video service

Intel Capital Three Reasons for VCs to get Serious in Digital Home 2. New applications & usage models will emerge! 2. New applications & usage models will emerge! Trends Coming Together: –Broadband + Digital Content + Home Networks + Mobile Devices + IP Services Analog is Internet, this Internet for the Home –Opportunity for new Digital Content & Services Ex: Movies/Sports  Advertising

Intel Capital Three Reasons for VCs to get Serious in Digital Home 3. Massive Disruption in CE Industry 3. Massive Disruption in CE Industry Traditionally Vertical, now Transforming to Standard building blocks –Rapid rate of change in products –Rapid technical change (comms, networking, etc) –ODMs, PC OEMS entering CE space 100B$+ CE Industry is “tipping on its side” –Creates investment potential at layers of the stack

Intel Capital Digital Home Transformation Network Operating System Middleware Systems Digital Content & Dist. Applications TVs Traditional CE Emerging Standards Networks DigitalContent ODM/OEM Drivers Silicon Stereo DVD Player PVR PC

Intel Capital $200M Digital Home Fund  Companies aimed at: –Accelerating innovation & new technologies –Convergence of PC & CE market segments  Focus on HW, SW & Services  Worldwide investments

Intel Capital Thank You!