Wavecom - wireless solutions for M2M communication

WAVECOM Corporate Presentation Including Q1 2008 Financials

Forward-looking statements This presentation may contain forward-looking statements that relate to the Company's plans objectives, estimates and goals. Words such as "expects," "anticipates," "intends," "plans," "believes" and "estimates," and variations of such words and similar expressions identify such forward-looking statements. The Company's business is subject to numerous risks and uncertainties, including probable variability in the Company's quarterly operating results, manufacturing capacity constraints, dependence on a limited number of customers, variability in production yields, dependence on third parties, currency rate changes and risks associated with managing growth. These and other risks and uncertainties, which are described in more detail in the Company's most recent filings with the Securities and Exchange Commission, could cause the Company's actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.

Agenda
Smart wireless. Smart business.
Financial highlights Q1 2008
Conclusion

WAVECOM - Company Profile
A world leader in pre-packaged wireless communications solutions for automotive, industrial (machine-to-machine) and mobile professional applications
Publicly traded on the Euronext and Nasdaq exchanges
Headquartered in Paris with offices in Hong Kong (China), Beijing (China) Research Triangle Park, NC (USA), Farnborough (UK)
~500 total employees 70% focused on R&D
Fabless model with outsourced production
A worldwide network of more than 40 value-added distributors

Wavecom’s vision…
Vehicles are safer,
Energy consumption is optmimized,
Homes and offices are safe and secure,
Rural communities are connected,
Payments are easier…
To be the driving force in building a fully connected wireless world

A wide adressable market and a huge potential
« In Europe and the United States alone there are 1.1 billion generic machines , such as computers, photocopiers, burglar alarms and point-of-sales devices that could readilly be connected, yet during 2007, just 2% were »
Telecommunications Predictions, Deloitte, TMT Trends 2008

How Wavecom adresses its markets M2M Automotive Automotive Mobile Professional Tier One Car Manufacturer OEM Aftermarket Control & Monitoring Sales & Payment Home & Security Vehicle Remote Management Automatic Meter Management Fixed Voice Mobile Computing Entertainment

Huge markets to address
As the telecommunications sector could be impacted by a possible economic downturn, the growing M2M market demonstrated its viability, catalyzed by the imminent arrival of the 10$ mobile phone.
In Telecommunications Predictions , Deloitte, TMT Trends 2008
(*):Wavecom estimates CAGR (2008-10) Total available market (2008)(*) Wireless adoption Markets 36% 2,9M ~ 4% Industrial Vehicles 39% 2,6M ~ 5% Home & Security 14% 3,8M <1% Mobile professionals 31% 1,6M ~ 3% Control & Monitoring 20% 3,0M ~ 5% Metering 29% 6,3M ~3% Automotive

Wavecom has a history of innovation 2004 2006 2003 Open AT ® Software Suite Software suite complete with Integrated Development Environment making wireless M2M development easier and faster First wireless Module  Pre-packaged and pre-qualified for handsets and machine applications  Focus on intellectual property and software development Pioneer in Fleet Management Early applications for tracking mobile assets like vehicle fleets 1997 1993 Wavecom Founded The vision: everything could be connected wirelessly Wireless Microprocessor ® Breakthrough in high performance processing wireless connectivity on a single component 2000 inSIM ® Embedded SIM for automotive and industrial applications 2006 2007 Complete solutions Wavecom Intelligent Device Services combined with Anyware Technologies to offer first complete solution 2008

Typical Value Chain: Automotive Silicon Software Wireless CPU ® or Module System (e.g. car) Retail Sub-System (e.g. Telematics Platform) Wavecom + Wavecom suppliers Wavecom Wavecom Customer: Telematics Box Customer’s Customer: Volvo (Ford Premier Auto) Car Dealership Sells to consumer Service Provider Volvo on Call Wavecom Wavecom is evolving from a hardware and software company to a full solution provider

Unique Technology Ownership/Position …
Wavecom is unique in owning its own technology
Many hundreds of man years of development over the last fourteen years
Field proven in over 30 million devices
Licensed to semiconductor and handset companies
Key Owned Software
Protocol stack, GSM through UMTS/HSDPA
TCP/IP, evolving to IPv6
Real-time operating system
Integrated development environment, powered by Eclipse, C programming
Key Owned Silicon
GSM/GPRS/EDGE baseband
3G hardwired modem - FPGA available with live calls
NEW: client-server remote device management system
Core engine licensed from a third party who sold to handset business with complete rights to sublicense, & licensee cannot compete
Customized for Wavecom DOTA and industrial and automotive applications

The Wavecom approach
The traditional approach is to add wireless modules and software in an existing system…
Wavecom proposes a complete embedded solutions, hardware + software + that can be directly integrated into end products with the add-on of post-installation services.
It is simple and cost effective since the application processing can be done directly on the Wavecom wireless CPU

Wavecom’s Basic Strategy four key principles
Integrate to remove redundant hardware
Most efficient supply chain
Updating of software remotely – Over-the-Air
Full value-chain solutions (Anyware Technologie)
Integrated Development Environment powered by Eclipse™
Software support – Standard C programming
Superior technical support
Unique technology ownership
Lowest cost of ownership Future investment protection Ease of Use Sustained leadership

Wavecom Solutions (Software+Hardware+Server+Subscription) OpenAT ® Software Suite Wireless Microprocessor ® Hardware inSIM ® Embedded SIM Remote Device Mgmt. Services
Lowest total cost of ownership
Ease of use
Investment protection
Sustained leadership

Intelligent Device Services (IDS)

Anyware: a strategic acquisition
A leader in M2M Solutions and Services
Complementary – IDS fits right in, plus global sales channel
A long term partner
Strong client portfolio (CBS Outdoor, EDF, Sogexi and Schneider Electric)
Expected synergies/developments
An accretive acquisition for Wavecom

Anyware M2M OperatingPortal & IDE Communication Device Management Data Logging Event Management Alerting APIs (web services, Java, SQL) M2M Middleware IDE Based On Eclipse Access Control Street Lighting Monitoring

Agenda
Financial highlights Q1 2008
Conclusion

Revenues and backlog In millions of euros 50 40 30 20 10 60 70 Q4 2007 Q1 2007 82.4 Q2 2007 70.9 Q3 2007 52.3 41.7 2007 Revenues: 202.3 million € Q1 2008 37.5 Quarter-end backlog Millions of €

Sales evolution on an annual basis Breakdown by region In millions of euros 2006 2007 Americas APAC Services and licensing Products by region 188.8 202.3 EMEA

Sales evolution per quarter Q1 2007 Q4 2007 Q1 2008 60 50 40 30 20 10 Americas APAC Breakdown by region In millions of euros Products by region Services /licences/Anyware 48.1 45.7 38.1 EMEA

Gross margin Q1 2007 Q3 2007 Q4 2007 Q2 2007 2007 average: 45.4% (product: 47.3%) (as % of revenues) Q1 2008

Results FY 2007 – US GAAP

Results Quarters – US GAAP

Employees worldwide 2006 2007 Q1 2008 571 440 483 88% 87% 85% Temporary employees and independent contractors Salaried employees

Agenda
FY 2007 highlights
Conclusion

Wavecom Trends and Objectives
Volumes increasing
Growth more in GSM than CDMA, customers switching globally
ASP of CDMA much higher than GSM
Introduction of new, low cost Wireless Microprocessor® products and subsystems
Best total cost of ownership for our customers
Ability to significantly reduce price and maintain margins
More contact with end-customers and service providers
Acquisitions of key strategic targets to continue, but focus will be on smaller deals

Wavecom’s acquisition strategy
External growth:
Transformational - Sony Ericsson M2M business
Technology-specific – Anyware Technologies
Acquisitions to continue – targeting companies that will give us specific technologies that enhance our product and/or service offer

2008 Business initiatives
Redeploying ressources to applications engineering to support design wins
Re-energize EMEA sales team and distributors
Expand customer and revenue base with Anyware model – software, services, system
Profitable growth

Capital structure
Total number of outstanding shares: 15 796 591 – Float : 58%
Dual listed
Euronext Compartment B, Isin code FR0000073066
Nasdaq: wvcm (ticker)
Financial calendar: July 23, 2008 Q2/H1 2008 results
58% 22% 6% 6% Treasury Float Founders 3% Sloane Robinson (UK) Jo Hambro (UK) 5% Lansdowne Partners (UK)

3, esplanade du Foncet - 92442 Issy-les-Moulineaux Cedex - France Tel: +33 (0)1 46 29 08 00 - Fax: +33 (0)1 46 29 08 08 _______________________________________________ 430 Davis Dr., Suite 300 P.O. Box 13920 - Research Triangle Park, North Carolina USA Tel: +1 919 237 4000 Fax: =1 919 237 4140 _______________________________________________ Unit 201 – 207, Second Floor, Bio-Informatics Centre No. 2 Science Park West Avenue Hong Kong Science Park, Shatin - New Territories, Hong Kong Tel: +852 2824 5225 - Fax: +852 2824 5488 WAVECOM S.A. WAVECOM, Inc. WAVECOM Asia Pacific

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Wavecom - wireless solutions for M2M communication

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