1. Title Interactive Analyst Briefing: Bluetooth Network Infrastructure Market 13th December 2002 Michael Wall Industry Analyst - Wireless European ICT Group Frost & Sullivan

2. Agenda Introduction to Bluetooth Networking Market Participators Enterprise Public Access Industrial SoHo Home Market Forecasts Geographic Adoptions Future Trends Conclusions Question & Answer

3. Introduction Hardware controller/gateways & access points Software network platforms & middleware Usage Environments/Models: Enterprise & Enterprise Vertical Public Access Industrial Home SoHo

4. Some Significant Participants All images are the property of their respective owners

5. Enterprise Adoption In the office environment Opportunity as WLAN for PDA type devices interference not necessarily problems security concerns need to be addressed Wireless PBX solutions reduce cellular telephony costs increase flexibility & employee performance status of cordless telephony profile a problem

6. Enterprise Vertical Adoption Enterprise Verticals Healthcare low power for safety reasons Warehousing/Transportation common wireless access platform can complement 802.11a/b/g/h Exhibitions (museums/conferences) delegate information access Retail marketing/promotion channel legal & ethical issues proliferation of devices is key

7. Public Access (Hotspots) Overshadowed by 802.11 secondary importance to service providers networks designed to support multiple radios Massive potential market when Bluetooth becomes ubiquitous! shift in socio-economic scope tie in with retail applications (marketing channel) Similar issues to 802.11 Hotspots technical problems business model unclear

8. Industrial Applications Theoretical/speculative applications Industrial Automation Command & control Diagnostic technology Automotive Industry Automotive diagnostics Suitability of Bluetooth is questionable!!! environmental factors cost factors Zigbee is targeting this space

9. SoHo Similar benefits to office adoption Targeting home workers with high portable device count Common platform for all devices Cost too high compared to cheap WLAN kit Wi-Fi access point/routers sub $ 150 Product not moving through distribution channels lack of demand lack of promotion

10. Home Bluetooth Home Gateway Set Top Box Solutions expect to see by the end of 2003 integrated home network availability of complementary products Cordless Telephony Solutions cost too high at present lack of cordless telephony profile in cellular handsets range an issue potential for dual technology solutions

11. Market Forecasts

12. Geographic Breakdown

13. Market Trends Vertical markets to remain the key flexible common connectivity platform Dual mode products modular approach to network access interference concerns declining Higher data rates to drive new applications 2 mbps + in 2003 Software based networking software defined access points

14. Conclusions Applications still need more work little opportunity for mass market adoption at present Cost too high volumes should drive down cost Better channel development needed resellers & systems integrators need incentives Clearer ROI must be shown too much competition from other technologies

15. 21/01/99 21:13 Page 15 Thank you for participating in today’s briefing. I will now answer any questions you may have. Michael.Wall@frost.com +44 20 7343 8329