1. Agilent Corporation and Aerospace and Defense Directions

2. Aerospace/Defense Directions April 2002 To revolutionize the way people live and work through technology Agilent’s Purpose

3. Aerospace/Defense Directions April 2002 Agilent’s Fields of Focus Electronics Communications Life Sciences and Chemical Analysis

4. Aerospace/Defense Directions April 2002 Agilent’s Organization Test & Measurement President and CEO Edward W. (Ned) Barnholt Electronic Products and Solutions Byron J. Anderson Automated Test John Scruggs Communications Solutions Thomas (Tom) White Semiconductor Products Dick M. Chang Life Sciences and Chemical Analysis Chris van Ingen General Counsel D. Craig Nordlund CFO Adrian T. Dillon HR Jean M. Halloran Corporate Relations William R. (Bill) Hahn CTO Thomas A. (Tom) Saponas COO William P. (Bill) Sullivan Sales, Mktg. & Customer Support Larry C. Holmberg Agilent Laboratories

5. Aerospace/Defense Directions April 2002 EPSG Aerospace and Defense Marsh Faber - Messaging Mike Granieri – U.S. Guy Harris - Satellite Bob Smallwood- Europe Bill Smith- Surveillance Orion Wood – Japan/Asia Carl Smolka Aerospace/Defense Manager Lynne Camp, V.P. Outbound/Channel Manager Mike Gasparian, V.P. & G.M. Multi Industries Business Unit Byron Anderson, S.V.P. & G.M. Electronic Products and Solutions Group

6. Aerospace/Defense Directions April 2002 Agilent Around the World  Customers in more than 120 countries  More than half of revenue generated outside U.S.  Global manufacturing and R&D

7. Aerospace/Defense Directions April 2002  Innovation and contribution  Trust, respect and teamwork  Uncompromising integrity  Speed  Focus  Accountability Agilent’s Values

8. Aerospace/Defense Directions April 2002 Business Segments as a Percentage of FY01 Net Revenue* 100% = $8.4 billion Semiconductor Products Test and Measurement Life Sciences and Chemical Analysis 13% 22% 65% *See note 2

9. Aerospace/Defense Directions April 2002 Agilent’s Road to Independence March 2, 1999 HP announces creation of two independent companies July 28, 1999 Agilent’s name is introduced November 18, 1999 Agilent’s IPO takes place June 2, 2000 Agilent becomes fully independent November 1, 1999 Agilent starts operating as an independent company

10. Aerospace/Defense Directions April 2002 Agilent’s History  Agilent dates back to the earliest days of Hewlett-Packard, which started as a test and measurement company in 1939  Agilent embodies historical commitment to innovation and contribution, uncompromising integrity, teamwork, trust and respect for the individual  Agilent’s headquarters is erected on the site of the first HP headquarters.

11. Aerospace/Defense Directions April 2002  Innovation and contribution  Trust, respect and teamwork  Uncompromising integrity  Speed  Focus  Accountability Agilent’s Values

12. Aerospace/Defense Directions April 2002 Agilent’s Core Technologies Communications/ElectronicsLife Sciences/Chemical Analysis Agilent Laboratories  Measurement science  Electronic circuit and systems design  Fiber Optic and Optoelectronic devices and systems  Applications software and solutions integration  Radio frequency/microwave  Optics/photonics  High-speed optoelectronics  High-speed electronics  Solid-state materials/devices  Communication protocols  Network monitoring/mgt.  Chemical separation/analysis  Molecular biology  Microfluidics

13. Aerospace/Defense Directions April 2002 Aerospace and Defense Directions

14. Aerospace/Defense Directions April 2002 The Aerospace/Defense Industry Sectors Space Air Land Sea NavCommsScienceIntellNavComms Radar ECMBcast Commercial Satellite Ncast EW Other Agencies Surv Recon Aerospace/Defense Commercial Aerospace Gov National Defense Military Satellite Commercial Aviation Commercial Aviation Surveillance Defense Electronics Defense Electronics Science & Technology

15. Aerospace/Defense Directions April 2002 Worldwide Defense Spending Distribution 25 50 75 100 125 150 175 200 225 250 275 300 United States PRC Russia France Japan United Kingdom Germany Italy Saudi Arabia S. KoreaBrazil TaiwanIndia IsraelAustralia 139 Others Total for 154 Nations: $ 922 B in $FY ‘01 Source: “World Military Expenditures and Arms Transfers 1998”, dated January 2000 US = 32% $301B in FY’01 Western Europe Japan – Asia/Pacific

16. Aerospace/Defense Directions April 2002 AD Industry Money Flow Defense Agencies “Platform” Providers Sub-system Providers Assembly Providers Component Providers SubsPrimesGovernment Commodities Test & Measurement Equipment Manufacturers Defense Spending Platform Spending Defense Electronics Assemblies Components All T&M Channels

17. Aerospace/Defense Directions April 2002 US Consolidation through 1998 General Dynamics Lockheed Martin Space Systems Loral Northrop Grumman Boeing TRW Raytheon Hughes Space Honeywell Through 19981998 – 1999 “Additions” Bath Iron Works General Dynamics GE Aerospace Martin Marietta Lockheed Loral LTV Grumman Northrop Westinghouse Boeing Rockwell McDonnell Douglas Magnavox Hughes E-Systems Raytheon Texas Instruments TRW BDM Allied Signal Honeywell Computer Devices GTE Government Systems National Steel and Ship Gulfstream COMSAT Satellite Network Systems Spectrum Satellite California Microwave Int’l Research Inst. Teledyne Ryan USSBC Primestar Allied Signal Communications Australia Technical Services Lucas Aerospace

18. Aerospace/Defense Directions April 2002 Source: DFI International Saab/ Celsius Saab/ Celsius Rheinmetall EADS Dassault Aviation Dassault Aviation Finnmeccanica Military Aircraft Joint Venture Dassault Owns 6% Racal The European Situation – Complex and Dynamic EADS Owns 4% EADS Owns 4% EADS Owns 47% EADS Owns 47% BAE Systems BAE Systems BAE Owns 35% BAE Owns 35% STN Atlas STN Atlas Thomson Marconi Sonar Thomson Marconi Sonar Alenia Marconi Systems Alenia Marconi Systems Astrium Eurofighter Astrium Eurofighter New MBD Airbus Industrie New MBD Airbus Industrie Thales

19. Aerospace/Defense Directions April 2002 Industry Attributes Reliability perspective MTBF often measured in hours; Failures place lives in jeopardy and impact READINESS Test and evaluation vital Need to be on leading edge of diagnostic technologies Security & Interoperability “Paradox” Security places lives in jeopardy Selective interoperability critical to effective coalition operations Clearances often required; software configurability and interoperability testing critical Industry Use Models All of the “normal” in food chain + 2/3 of end user lifecycle cost in O&M phase Contractors look like high tech manufacturers; End user focused on ATE and O&M AttributeState and TrendBusiness Implications Industry “Cycle Time” Slow (3-4 X other high tech) 15 Year Development Cycles > 30 Year Operational Life Long support life Forward/backward compatibility Looking for “reliable” partners Industry Volume and Complexity Low volume (fly prototype) Extreme complexity (Aircraft cost is > 50% electronics) Manufacturing looks like R&D –No One-box specialization

20. Aerospace/Defense Directions April 2002 Defense Electronics Equipment – History + Forecast $20 $40 $60 $80 $100 $120 $140 198019851990199520002005 Western Europe Japan – A/P Former USSR Cold War Scenario World Peace Scenario Rogues & Terrorists Scenario

21. Aerospace/Defense Directions April 2002 US Consolidation through 1998 General Dynamics Lockheed Martin Space Systems Loral Northrop Grumman Boeing TRW Raytheon Hughes Space Honeywell Through 19981998 – 1999 “Additions” Bath Iron Works General Dynamics GE Aerospace Martin Marietta Lockheed Loral LTV Grumman Northrop Westinghouse Boeing Rockwell McDonnell Douglas Magnavox Hughes E-Systems Raytheon Texas Instruments TRW BDM Allied Signal Honeywell Computer Devices GTE Government Systems National Steel and Ship Gulfstream COMSAT Satellite Network Systems Spectrum Satellite California Microwave Int’l Research Inst. Teledyne Ryan USSBC Primestar Allied Signal Communications Australia Technical Services Lucas Aerospace

22. Aerospace/Defense Directions April 2002 Source: DFI International Saab/ Celsius Saab/ Celsius Rheinmetall EADS Dassault Aviation Dassault Aviation Finnmeccanica Military Aircraft Joint Venture Dassault Owns 6% Racal The European Situation – Complex and Dynamic EADS Owns 4% EADS Owns 4% EADS Owns 47% EADS Owns 47% BAE Systems BAE Systems BAE Owns 35% BAE Owns 35% STN Atlas STN Atlas Thomson Marconi Sonar Thomson Marconi Sonar Alenia Marconi Systems Alenia Marconi Systems Astrium Eurofighter Astrium Eurofighter New MBD Airbus Industrie New MBD Airbus Industrie Thales

23. Aerospace/Defense Directions April 2002 Defense Electronics and Defense Platforms  Aircraft  Includes UAV’s and Helicopters  Ships  Primary Shipboard Equipment  Vehicles  Wheeled and Tracked Terrestrial Platforms  Space  Lift, Payloads And Supporting Infrastructure  Low Mobility  Electronic /IT/ SW Systems not platform specific  Missiles  Ordnance / Weapons  Radar  Search, Detection and Tracking  Electronic Countermeasures  Detection and Deception  Communications  Voice and Data  Surveillance & Reconnaissance  Identification and Location  Navigation and Guidance  GPS and Landing Systems  Control and Computation  Control, Displays, Processors  Weapons  Ammunition and Armor  Propulsion  Engines, Fuel, Drive Train, Suspension

24. Aerospace/Defense Directions April 2002 Aerospace/Defense Example Defense Agencies “Platform” Providers Sub-system Providers Assembly Providers Component Providers SubsPrimesGovernment Commodities Fighter Air Forc e Radar Engines Airframe EW system Navigation &Guidance LOs and exciters Processors Power Supplies Power Converters A/D, D/A Converters Antennas Processors Power Supplies Power Converters A/D, D/A Converters Antennas Test & Measurement Equipment Manufacturers T&M Channels MMICs Power Transistors Circulators Interconne ct / Substrates Optoelectr o Amplifiers SAW Devices ASICs Oscillators Phase Shifters Power Transistors Circulators Interconne ct / Substrates Optoelectr o Amplifiers SAW Devices ASICs Oscillators Phase Shifters Comms Reconn & Surveillanc e Transmitter/ Receivers Mod/demod Signal Processin g

25. Aerospace/Defense Directions April 2002 AD Industry Value Delivery System Defense Agencies “Platform” Providers Sub-system Providers Assembly Providers Component Providers SubsPrimesGovernment Commodities Test & Measurement Equipment Manufacturers T&M Channels Processo rs Power Supplies Power Converter s A/D, D/A Converter s Antenna s Processo rs Power Supplies Power Converter s A/D, D/A Converter s Antenna s Power Transistor s Circulato rs Interconn/ Substrate s OE Amplifiers SAW Devices ASICs Oscillato rs Phase Shifters Power Transistor s Circulato rs Interconn/ Substrate s OE Amplifiers SAW Devices ASICs Oscillato rs Phase Shifters Lockheed Martin Raytheon ITT Industries Northrop Grumman Litton TRW L-3 Comms General Dynamics DaimlerChrysler BAE Systems Thales Lockheed Martin Raytheon Boeing BAE Systems EADS Thales Army Navy Air Force

26. Aerospace/Defense Directions April 2002 AD Industry Test And Measurement Perspective Defense Agencies “Platform” Providers Sub-system Providers Assembly Providers Component Providers SubsPrimesGovernment Commodities Test & Measurement Equipment Manufacturers T&M Channels G.P. Instruments Application Specific Instruments “SIMPLE” Parametric and Functional Test Systems” Environment Analysis & Simulation “COMPLEX” Parametric & Functional Test Systems Integrated Maintenance Portable ATE/ATS Bench Rep & Cal (GPTE)

27. Aerospace/Defense Directions April 2002 Key Forces, Trends and Implications Reliability Complexity Longevity Branch Centric Firepower Readiness Reliability Complexity Longevity Network-Centric Precision Force Affordability People die when systems fail 15 year developments 30 + year life-cycles System of Electronic systems Joint Operations Coalitions & Information Warfare (Sensor to Shooter) “Cold War” Scenario To “World Peace” To Rogues & Terrorists Manual repair & calibration moving to ATS & integrated diagnostics Signal/syste m simulation and analysis functionality & performance Seamless product migration plans Reduced test costs over all elements of system life-cycle FromTo T&M Implication Driver

28. Aerospace/Defense Directions April 2002 Defense Electronics – Key Technology Trends Radar EW Comms Tac Nav/Guide Surveillance Sat ATS/ATE Bench Rep/Cal Single T/R Single mode Conformal digital Fully integrated Phased Array (AESA) Multiple modes Specific Function MultimodeFully Integrated Single Signal Type (“hardwired”) Multiple Signal Types (reconfigurable) GPS infrastructure upgrades Per sub-system testers Per service comprehensive ATS Joint synthetic instrument ATS Wide variety of test equipment Few, highly capable instruments Low BW analogHigh BW secure digital Analog RadioDigital radioSoftware-Defined radio ‘80s and ‘90sTodayFuture

29. Aerospace/Defense Directions April 2002 Radar Performance Evolution  Fixed channel analog receiver  Simple waveform set  Low noise RF  Standard A/D and D/A conversion  Fixed multi- channel analog receiver  Complex waveform set  Very low noise RF  High speed large dynamic range A/D and D/A conversion  Variable channel digital receiver  Direct digital synthesis waveforms  Extremely low noise RF  Module level high speed A/D & D/A conversion Past Mechanically Steered Antenna (MSA) Current Active Electronically Steered Antenna (AESA) Future Digital Radar

30. Aerospace/Defense Directions April 2002 EW Performance Evolution  Single mode and single function  Dedicated “aperture”  Little attention to power management  Focus on detection  Loose integration  Mode switching  Focus on power management  Focus on friend or foe determination  Fully integrated system  Multiple modes  Shared “apertures”  Focus on identification and discrimination Past Single Function Current Multifunction Future Fully Integrated

31. Aerospace/Defense Directions April 2002 Tactical Radio Evolution Past Analog Radio Current Digital radio Future Software Defined radio  Analog (voice) traffic  Designed in interoperability (stovepipe)  Point-to-Point  Analog and Digital traffic (voice/data)  Limited interoperability  Some network client capability  Multimedia traffic (voice/data/video)  Software defined security and interoperability  Full network participant

32. Aerospace/Defense Directions April 2002 Signal Monitoring/Intelligence Evolution Past Analog Channels Current Analog & Digital Channels Future Software Defined Channels  Unique “hardwired” configuration per signal type  Custom “Rack and Stack” receivers  Analog signal processing  Software configurable signal types  Wider bandwidth down conversions  More sophisticated digital signal processing  Unique “Firmware” configuration per signal type  Analog block down conversion  Digital signal processing

33. Aerospace/Defense Directions April 2002 Military Communications Satellite Evolution Past Analog “Bent Pipe” Current Digital Transparent Future Digital Regenerative  Analog (voice & video) traffic  Analog modulation  Signal amplification in satellite  36 MHz channels  Analog and digital traffic  Vector modulation  Analog signal amplification in satellite  36 MHz channels  Wideband digital traffic  Vector modulation  Digital signal regeneration in satellite  36-72-120 MHz channels

34. Aerospace/Defense Directions April 2002 Automatic Test System Evolution Past Per Service and Per Platform ATS Current Per Service but Platform Common ATS Future Joint Service Common Platform ATS  Unique configuration per system  Primarily “Rack and Stack” instruments  Unique Test Program Sets (TPS) of fixturing, and SW  Focus on “long- life” HW architectures  Hybrid mix of instruments and “modules”  Preserve TPS investment  Focus on more capable HW architectures  Any signal on any pin at any time  Optimize TPS coverage

35. Aerospace/Defense Directions April 2002 Repair & Calibration Test System Evolution Past Hundreds of Makes/Models Current Tens of Makes/Models Future One Very Capable Make/Model  Test equipment specified by equipment supplier  Cost plus focus discourages commonality  Test equipment constrained by equipment buyer  Affordability realized by inventory reduction  Test equipment capability a given  Affordability and Readiness maximized  Technology refresh paths enhanced Multimeters = 100 Oscilloscopes = 250

36. Aerospace/Defense Directions April 2002 Thank you