For Intelligent Networks Neokite Networks

Neokite Networks, Inc. Experienced professionals in RF, IP networking, and security. Develop, build and market wireless mesh network hardware and software . Improve scalability, and reduce deployment time and cost

Experienced professionals in RF, IP networking, and security.

Develop, build and market wireless mesh network hardware and software .

Improve scalability, and reduce deployment time and cost

Problem Coverage requires large hardware investment Volume of devices is an operations nightmare Installation costs matches hardware costs Requires RF and IT savvy personnel

Coverage requires large hardware investment

Volume of devices is an operations nightmare

Installation costs matches hardware costs

Requires RF and IT savvy personnel

Neokite Solution Requires little setup to form network Converts PC into “soft mesh node” with software Provides secure wireless communications Allows centralized management of all nodes

Requires little setup to form network

Converts PC into “soft mesh node” with software

Provides secure wireless communications

Allows centralized management of all nodes

“Secret Sauce” Ability to turn a PC into a soft mesh node Central Manager Modified wireless protocol to minimize interference Clientless solution for end user security

Ability to turn a PC into a soft mesh node

Central Manager

Modified wireless protocol to minimize interference

Clientless solution for end user security

Key Benefits Coverage increases as users join network Network traffic flow is optimized in real-time by central management Hard mesh Backbone Network Users/Soft mesh Access Network Users

Coverage increases as users join network

Network traffic flow is optimized in real-time by central management

Business Model Initially, direct model for better feedback Later, channel model to leverage relationships Smaller resellers with product focus but not wireless savvy Large integrators with service focus but not “product pushers”

Initially, direct model for better feedback

Later, channel model to leverage relationships

Smaller resellers with product focus but not wireless savvy

Large integrators with service focus but not “product pushers”

Competition Cisco, BelAir, Tropos, Nortel…many more Standard in 2009 Solution today 802.11s Brand, large installs Soft Mesh Node, Indoor Mesh, Portable Mesh, Multi radio Tropos Networks Advanced antenna design, triple radio, T1 modules Soft Mesh Node, Portable Mesh, Indoor Mesh BelAir Networks Strong Channel, Strong Brand, $$$$ Soft Mesh Node, Portable Mesh, Indoor Mesh Cisco We Haven’t, They Can We Can, They Haven’t Company

Cisco, BelAir, Tropos, Nortel…many more

Management Team Operations/Engineering Did something similar before Worked on billion dollar problem here Company name drop Degrees from fancy schools here Engineering Created embedded systems Techie companies here Degrees from fancy schools here Sales/Biz Dev Very large deals closed by Sales folks here Company names here Degrees from fancy schools here (Accounting…) Bigger the title the better Better Better

Operations/Engineering

Did something similar before

Worked on billion dollar problem here

Company name drop

Degrees from fancy schools here

Engineering

Created embedded systems

Techie companies here

Degrees from fancy schools here

Sales/Biz Dev

Very large deals closed by Sales folks here

Company names here

Degrees from fancy schools here

(Accounting…)

Bigger the title the better

Better

Better

Company Advisors Someone with experience here What they have done before How they can help you Experience here Another Advisor Another Advisor BOD Some key people Some key people

Someone with experience here

What they have done before

How they can help you

Experience here

Another Advisor

Another Advisor

BOD

Some key people

Some key people

Sales and Marketing Target hospitality vertical as well as Federal Government and Virginia, MD, DC Target “smaller guys” to partner on smaller projects Satellite dish service installers Fire prevention & security equipment installers Lend our expertise to design, install, and manage Provide managed service of hard and soft nodes to ensure quality service

Target hospitality vertical as well as Federal Government and Virginia, MD, DC

Target “smaller guys” to partner on smaller projects

Satellite dish service installers

Fire prevention & security equipment installers

Lend our expertise to design, install, and manage

Provide managed service of hard and soft nodes to ensure quality service

The Market (1) October 3, 2005 - Instat Wireless Mesh Network (WMN) infrastructure equipment market to grow from $33.5 (2004) million to $974.3 million (2009) WMN is a powerful and potentially disruptive technology Most WMN equipment sales are being completed in North America November 16, 2005 - ABI Research Global market for 802.11 mesh products will soar to $1.3 billion in five years Much of that will be spent by municipalities or service providers to offer low-cost wireless Internet access 2005 - Muniwireless Local governments will spend nearly $700 million to build wireless broadband networks by 2008. Annual growth rate of 134 percent between 2004 and 2007 and will exceed $400 million by 2007

October 3, 2005 - Instat

Wireless Mesh Network (WMN) infrastructure equipment market to grow from $33.5 (2004) million to $974.3 million (2009)

WMN is a powerful and potentially disruptive technology

Most WMN equipment sales are being completed in North America

November 16, 2005 - ABI Research

Global market for 802.11 mesh products will soar to $1.3 billion in five years

Much of that will be spent by municipalities or service providers to offer low-cost wireless Internet access

2005 - Muniwireless

Local governments will spend nearly $700 million to build wireless broadband networks by 2008.

Annual growth rate of 134 percent between 2004 and 2007 and will exceed $400 million by 2007

The Market (2) Leaders in market have less than 500 customers combined. No standards/technology gap High Margin Potential

Leaders in market have less than 500 customers combined.

No standards/technology gap

High Margin Potential

The Market (3) July 6, 2005 – JupiterResearch Average cost of building and maintaining a network is about $150,000 per square mile for five years. Half of current initiatives won't break even, even if customers are charged $25 per month. Room for solution with simpler management and lower operating costs

July 6, 2005 – JupiterResearch

Average cost of building and maintaining a network is about $150,000 per square mile for five years.

Half of current initiatives won't break even, even if customers are charged $25 per month.

Room for solution with simpler management and lower operating costs

Financial Projections Funding sought - $ X million X full-time salary equivalents X for year 1 operations X for year 2 operations Breakeven/profit prediction Revenue large deployment = 1 sq mile = 20 units = $60k = $30k profit 2 large deployments per quarter for first year = $360k = $180k profit 2 large deployments per month for second year = $1.4 million = $700k profit Service revenue from managing/monitoring 20 square miles of deployments = $100k/year = $5k /year/sq mile

Funding sought - $ X million

X full-time salary equivalents

X for year 1 operations

X for year 2 operations

Breakeven/profit prediction

Revenue

large deployment = 1 sq mile = 20 units = $60k = $30k profit

2 large deployments per quarter for first year = $360k = $180k profit

2 large deployments per month for second year = $1.4 million = $700k profit

Service revenue from managing/monitoring 20 square miles of deployments = $100k/year = $5k /year/sq mile

Financial Metrics Customers 8 large customers in first year 24 additional large customers in second year All within 4 hour driving radius of HQ location Resellers/Integrators 4 Commercial (2 small, 2 large) 3 Federal (1 small business, 2 large integrators) All within 4 hour driving radius of HQ location

Customers

8 large customers in first year

24 additional large customers in second year

All within 4 hour driving radius of HQ location

Resellers/Integrators

4 Commercial (2 small, 2 large)

3 Federal (1 small business, 2 large integrators)

All within 4 hour driving radius of HQ location

Current Status Current Status Hard Mesh Nodes Architecture completed Hardware selected Beta version completed Soft Mesh Nodes Architecture completed Alpha version completed Central Manager Design phase

Current Status

Hard Mesh Nodes

Architecture completed

Hardware selected

Beta version completed

Soft Mesh Nodes

Architecture completed

Alpha version completed

Central Manager

Design phase

Product Preview Indoor Mesh Aluminum Enclosure POE Portable Mesh ABS Plastic NEMA/IP67 Rated POE Outdoor Mesh Aluminum Enclosure NEMA/IP67 Rated POE

Indoor Mesh

Aluminum Enclosure

POE

Portable Mesh

ABS Plastic

NEMA/IP67 Rated

POE

Outdoor Mesh

Aluminum Enclosure

NEMA/IP67 Rated

POE

Disruptive Technology Cheaper to purchase and install Via website, self install kit Simpler to install, configure, and manage Ladder, truck, and zero-config Smaller and lighter Install on wall, on light pole, place on desk More convenient to use Central management

Cheaper to purchase and install

Via website, self install kit

Simpler to install, configure, and manage

Ladder, truck, and zero-config

Smaller and lighter

Install on wall, on light pole, place on desk

More convenient to use

Central management

Leverage Industry Trends Moore’s Law Our hardware has improved performance and reliability compared to older solutions at lower price Metcalfe's Law We leverage end user devices to enhance network coverage McGuire’s Law/Law of Mobility Our solution feeds public’s demand for anywhere, anytime access to information. We offer portable mesh nodes in addition to indoor and outdoor mesh nodes

Moore’s Law

Our hardware has improved performance and reliability compared to older solutions at lower price

Metcalfe's Law

We leverage end user devices to enhance network coverage

McGuire’s Law/Law of Mobility

Our solution feeds public’s demand for anywhere, anytime access to information. We offer portable mesh nodes in addition to indoor and outdoor mesh nodes

Closing Slide Value Proposition

Value Proposition

Backup

Wireless Investments to Hit All-Time High This Year San Francisco -- Bucking a general trend of venture-capital decline over the past five years, investments in wireless technologies are on the rise and expected to hit an all-time high in 2006, according to a new report by telecommunications research firm Visiongain. Last year, 152 wireless-related companies received about $1.3 billion in funding, a 24% increase over the prior year. "Wireless is where the action is, and this is a great time to be a wireless start-up in search of venture funding," said Visiongain analyst Lynne Gregg. "As the U.S. public markets remain weak and private equity investing grows outside the U.S., we will see many more IPOs of wireless companies taking place in the public markets outside the U.S." http://www.visiongainintelligence.com/pressReleaseDetail.aspx?pressReleaseId=1047

San Francisco -- Bucking a general trend of venture-capital decline over the past five years, investments in wireless technologies are on the rise and expected to hit an all-time high in 2006, according to a new report by telecommunications research firm Visiongain. Last year, 152 wireless-related companies received about $1.3 billion in funding, a 24% increase over the prior year. "Wireless is where the action is, and this is a great time to be a wireless start-up in search of venture funding," said Visiongain analyst Lynne Gregg. "As the U.S. public markets remain weak and private equity investing grows outside the U.S., we will see many more IPOs of wireless companies taking place in the public markets outside the U.S."

http://www.visiongainintelligence.com/pressReleaseDetail.aspx?pressReleaseId=1047

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