1. ClearOne Due Diligence findings and other matters 07/20/2005 Converge Pro Presentation Confidential

2. RAV 600/900 ClearOne Solutions Portfolio Price Performance Premium Conferencing Delivering superior audio performance in every conferencing space Professional Conferencing Converge Pro Converge 560/590 Personal Conferencing Chat 50 Tabletop Conferencing MAX IP, Wired & Wireless Chat 150 1-15 Participants Desktop Executive Offices SOHO Road warrior 1-30 Participants Executive Offices Conference Room 8-30 Participants Conference Rooms Multimedia Rooms Video Conferencing Small Classrooms Boardrooms 20-200 Participants Boardrooms Training Rooms Courtrooms Multimedia Rooms Distance Learning Auditoriums House of Worship

3. Introducing Converge Pro Series - Any Conference - Any Room - Any Media

4. Professional Conferencing product line – Converge Pro Series Benefits  Superior Audio  ClearOne next generation algorithms  Field proven technology  Configuration flexibility  More models  Improved SR feature sets  Improved ease of use  Simplified programming  Reduced installation times  World Class customer service  Tech support  Field engineering Large-scale audio applications Models +Converge Pro 880 +Converge Pro 840T +Converge ProTH20 +Converge Pro 8I

5. Converge Pro Key Features- Connections & Communications  USB (Type B) Front Panel Control  Dual Port Ethernet Connection  PC Port  Network Port  Dual Port RJ-45 Expansion Bus Connection  Time Division Multiplexed Mix/Minus audio and control slots  Improved speed  Expanded distance to 125 feet between units  RS-232 Port  Up to 155 Kbaud  Cannot connect with console  GPIO Ports  Dual Port DB-25  Mini-Phoenix Audio channels connectors  Color coded based on channel type  Differential inputs/outputs

6. Converge Pro Key Features- Signal Processing  Acoustical Echo Cancellation Feature Additions  Smoothing Filters to reduce artifacts  Improved Adaption and Suppression routines  Automated Push-to-Talk microphone mode feature  AEC Freezing  Microphone Threshold  Pre AEC Channels  Bypasses AEC processing (4msec maximum delay)  Mixer feature additions  Gain/Gating control tracking  Cross Point Gain for channel volume control  4- Fader channels  Microphone Pre-Amp Gain  7dB Sets for improved microphone gain matching  Automatic Gain algorithms  Automatic Level Control  Automatic Gain Control

7. Converge Pro Key Features- Signal Processing  Telco feature additions  Caller ID  Type I & Type II ( US/EU)  Noise Cancellation on receive channel  ClearEffect algorithm  Receive Automatic Level Control (ALC)  G-Link (TH20)  Call Management/Processing additions  Ringer selection  Robust dial tone detection scheme  Improved ringer detection  International impedance matching  Off-Hook DTMF Generation

8. Converge Pro Key Features- Console Programming  Enhanced Views  Unit View  Route Indications/Table  Drag & Drop A/V Devices  High level audio controls  Channel View  Access to all signal processing  Set cross point  Channel object drag & drop  Database Builder  Create custom A/V devices or use C1  Create custom channel objects  Improved preset presentation  Automatically sets input row  Simplified check box on all frames

9. Converge Pro Key Features- System Diagnostics  Improved Signal Generator  White/Pink Noise Generator  Sweep Generator  Timed terminations  System Checks  Telco verification  Microphone checks  Output Checks  Clip/Presence Indications  Improved Metering  Peak & Hold Indications  Faster streaming

10. Converge Pro Key Features- Management  Timed Events  Embedded Web Server  Remote maintenance from web pages  Audio control/monitoring of channels  Site wide dial & control page  Site firmware updates  Access from standard web browser  Control API Improvements  GPIO Status Command  Delay Command  System Checks  Event/Device Logging

11. Converge Pro Key Features- Other  Convert/Compare Utility  Converts XAP site files to Converge files  Compare Converge files for parameter differences  Firmware Updates (XAP Net is built into the unit)  Point to Point mode  Point to Multipoint mode (Expansion Bus)  Update from Web or Console Application  Security  Three access levels  Administrator, Maintenance, End User  Password verification  Front Panel Control  Channel Gain/Mute control  Configuration Settings  Preset & Macro execution

12. Converge Pro Mixer Line- Channel Table ProductMic/Line Inputs Line Inputs Processing Channels Fader Channels Outputs Channel Telco Channels G-Link Converge Pro 880 8484120Yes Converge Pro 8I 848400Yes Converge Pro 840T 444491Yes Converge Pro TH20 020021Yes

13. ClearOne Audio Experience  ClearOne uses advanced audio technologies to enhance user experience Gentner® Distributed Echo Cancellation for natural sounding conversations Noise cancellation technology to filter ambient noise and produce cleaner transmitted audio Advanced microphone gating for greater mic control EQ’s and filters and enhanced sound

14. Introducing CHAT 50!! Delivers hands-free, un-tethered, high-quality full-duplex audio in a wide variety of settings.

15. Chat 50 – USB connection  Connected to a PC via USB cable:  Internet telephone  Skype, Vonage  VoIP softphone  Cisco, Nortel, Avaya, Inter- Tel etc.  Web conferencing  WebEx, Sametime, LiveMeeting  IM with chat  AOL, Yahoo, MSN  Audio playback -.mp3 files, CDs  PC-based gaming with TeamSpeak feature  Desktop videoconferencing

16. Chat 50 – Connect to your existing phone  Connected to telephone with headset jack:  Significant audio performance improvement over built-in speakerphone. Cable has 3.5mm jack for Chat 50 and RJ9 modular connection for the headset jack on your existing phone.

17. Chat 50 – Connect to your cell phone  Connected to cell phones:  Significant audio performance improvement over built-in speakerphone. Multiple cable options for different cell phones (3.5mm to Chat 50 on one end & 2.5mm to headset jack on cell phone)

18. Chat 50 – Connect to iPod/MP3 players

19. Chat 50 – Connect to a desktop videoconferencing device  Connected to desktop videoconferencing system:  Significant audio performance improvement over built-in mics and speaker. Multiple cable options for different systems (3.5mm to Chat 50 with options for 3.5mm or RCA)

20. Chat 50 – product details  Pricing:  Chat 50 USB $149.99 – Includes: Chat 50 Personal Speakerphone and USB cable  Chat 50 USB Plus $179.99 – Includes: Chat 50 Personal Speaker Phone, USB cable, 2.5mm-3.5mm cell phone audio cable and power supply  Chat 50 Global Traveler $209.99 – Includes: Chat 50 Personal Speaker Phone, USB cable, 2.5mm-3.5mm cell phone audio cable, power supply (with power supply clips for US, EUR, UK, AUS), hard shell travel case and iPod/MP3 interface cable  Accessories:  Hard shell travel case  Telephone interface cables  Cell phone cables  iPod/MP3 interface cable  Desktop videoconferencing cable

21. Chat 50 vs. Communicator  MSRP $149 - $209  Full-duplex  Mute button  USB  Cell phone connection  MP3 player connection  Telephone connection  Videoconferencing devices  Built in DSP chip for AEC  2 year warranty  MSRP $129  Full-duplex  Mute button  USB  No cell phone connection  No MP3 player connection  No telephone connection  No videoconferencing devices  No built in DSP chip for AEC  1 year warranty

22. Chat 150  True full-duplex performance  Distributed Acoustical Echo Cancellation  Noise Cancellation  Automatic level control  Advanced microphone gating algorithms  Wideband audio frequency response (20Hz-20kHz)  Multiple connectivity options via breakout boxes & USB  3 built in microphones (12ft coverage)  USB/analog mix feature for 3 way calls  Chat software

23. Chat 150 Usage Models Audio conferencing peripheral for three categories of devices:  Enterprise handsets  PC’s  Video conferencing systems

24. Chat 150 – Enterprise Handsets  Instead of replacing your handset with a conference phone, add the Chat 150  Retain all of the features that you enjoy on your phone:  Access to company phone directory  Dialing ad-hoc (“meet me”) audio bridge  Retrieving voicemail  Transferring calls  But replace the poor-quality speaker on your phone with a rich, high-quality solution

25. Chat 150 – Enterprise Handsets  Almost completely eliminates the issue of what kind of line do I need (analog, digital, VoIP)  Breakout boxes will be specific to manufacturer (some crossover may occur)  Current target list:  Cisco  Avaya  Inter-Tel  Nortel  Siemens  Alcatel  NEC  3Com

26. Chat 150 – PC’s & Video conferencing  PC’s  VoIP soft phones  Web-based video conferencing  IM with chat  Audio playback  Skype  Video conferencing systems  Set-top  Installed  Logical replacement for AccuMic, although no daisy-chain capability

27. Chat 150 – Breakout Boxes  Handsets – Plugs into headset jack. Includes headset jack. Privacy button mutes Chat 150 and re-routes audio to headset jack. (RJ-9)  VC version – RCA in and out. Button mutes speaker on Chat 150 and re-routes speaker audio back to TV or in-room sound system.  Note that the USB port is located on Chat 150 and therefore all sku’s have PC capabilities.

28. Chat 150 – Pricing & Availability  Pricing:  Chat 150 USB$399  Chat 150 VC$449  Chat 150 Cisco$449  Chat 150 Avaya$449  Chat 150 Inter-Tel$449  Etc.  Availability  Mid-October 2006  USB, VC, Cisco  Additional phone breakout boxes coming soon

29. Chat 150 vs. SoundStation2 Avaya 2940 SoundStation2 Avaya 2940  $1,049 MSRP  Full-duplex  Automatic Gain Control  Gated microphones  3 built in microphones  1 built in speaker  10 foot mic coverage  No USB connection  Not compatible with video  No headset jack  1 year warranty Chat 150  $449 MSRP  Full-duplex  Automatic Level Control  Gated microphones  3 built in microphones  1 built in speaker  12 foot mic coverage  USB to PC  Videoconferencing compatible  RJ9 headset jack for privacy  2 year warranty

30. Ask Dave!! Dave is now home!!  1. My customer had problems seeing the Chat 50 when he hooked it up to his computer. Shouldn’t it be just plug and play?  2. I can’t seem to get any mindshare from the sales staff on Chat 50. What successes have we had out in field I can hang my hat on.  3. Also, the RAV products. The sales staff seemed to embrace it at first and now it has become a hard sell. What do you think is the reason for the down turn and how do we get them turned back around? Or is this not what you’re seeing nationally?  4. Does MAX IP now work with all networks? I’ve had to take back a couple because they didn’t? Explain why we had issues and how they’ve been corrected.  5. Concerning the IP issues, is everybody in the same boat?