Air presentation at SSEP 2009 conference

1. air Semiconductor
New Enterprise Success Story for Swindon
(and impact of the 2008 / 2009 venture investment crisis)
David Tester
Founder & CTO

2. New Enterprise Success Story for Swindon
… and impact of the 2008 / 2009 venture investment crisis …
- The Market Opportunity
- Why Swindon?
- UK semiconductor technology clusters
- Swindon Innovation Centre & Silicon South West
- The M4
- Air Semiconductor
- Founders, Investors and the Air Team
- Journey from initial idea to prototype and customers
- GPS 2.0 and the digital camera market
- Follow-on markets for proactive GPS
- Development Costs and Investment
- Impact of the 2008 / 2009 semiconductor venture investment crisis
- Summary and Q&A

3. The Average (Good) Working Day in a High-Tech Start-Up

4. The Average (Bad) Working Day in a High-Tech Start-Up

5. Sell Tesco’s car park to Sainsbury’s
Car park
Special offers at
Sainsbury’s today!
Press # for directions
1_.@ 3
DEF
2ABC
Location targeted advertising is only possible with
4GHI 6 MNO
5
7
‘Always-ON’ positioning in mobile phones
PQRS
JKL
9 WXYZ
8TUV
#
* 0+

6. ‘Always-ON’ GPS
The Key to Proactive Location Based Services
Nokia 6233 Motorola RAZR V3i Samsung E900 SEMC K610im LG KG800 Chocolate BenQ-Siemens SL91
Minimum standby Minimum standby Minimum standby Minimum standby Minimum standby Minimum standby
current: current: current: current: current: current:
2.1 mA 2.4 mA 3.6 mA 2.6 mA 4.0 mA 3.1 mA
Average current*: Average current*: Average current*: Average current*: Average current*: Average current*:
7.3 mA 7.8 mA 8.3 mA 9.4 mA 8.3 mA 9.9 mA
* Current draw based on “average” use assuming battery recharge once every 4 days
How often does phone battery needs to be recharged if GPS active?
GPS must be limited to 1-2mA (or 10% of phone power)

7. GPS 101
Receive Power is -130dBm to -160dBm … 20dB to 50dB below the Thermal Noise Floor!
Earth radius 86 k
m
35,7
6,378 km
km Geo-stationary
100
19, Regional geo-stationary
augmentation satellites
0 km
20,20 WAAS
Wide Area Augmentation System – USA
EGNOS
23,222 km European Geostationary Navigation Overlay
System – Europe
GPS
6 orbital planes; 55° to equator Galileo
Moon
Galileo Approx. 400,000 km
3 orbital planes; 56° to equator
GLONASS
GPS
3 orbital planes; 65° to equator Orbit 11 hours 58 minutes
13,900 km/h
GLONASS

8. Air Invents Continuous Adaptive GPS
… offers both Low-Power & Position Accuracy
Accuracy
Low-Power
Competitor
Air

9. Summary of UK Semiconductor ‘Hot Spots’
Silicon Glen Silicon Alley Silicon Fen
UK Semiconductor Locations Semiconductor Locations around the M4
Sources: NMI Design Survey Report 2006
NMI Members Map: http://www.nmi.org.uk/about-us/members/members-map

10. Location, Location, Location: Swindon and the M4
US 12/039,865 and US 99/999,999
Tracking Loops for Always-ON GPS Receiver

11. Silicon South West and Swindon Innovation Centre

12. Overview of Air Semiconductor
Investors, Awards and Founders

13. The Air Team
David Tester Hugh Thomas
Founder & CTO CEO
Steve Graham Andy Heaton Hank Izumi
Co-Founder & VP Marketing VP Operations VP Sales Asia
RFIC Design System Design ASIC Design Software Design
Staff Staff Staff Staff
Employee #1 (20 years experience) Employee #3 (20 years experience) Employee #4 (10 years experience) Employee #7 (20 years experience)
Employee #2 (20 years experience) Employee #1 (20 years experience) Employee #5 (15 years experience) Employee #8 (15 years experience)
Employee #6 (15 years experience)
Contract Contract Contract
Contract #1 (15 years experience) Contract #3 (20 years experience) Contract #8 (20 years experience)
Contract #2 (15 years experience) Contract #4 (20 years experience) Contract #9 (15 years experience)
Contract #5 (20 years experience)
2x Synopsys IC layout contractors
Board of Directors
Support Staff
Hugh Thomas CEO ex-CEO TapRoot 1x General Admin
1x Finance Manager
David Tester CTO
ex-CEO Andromedia (acquired Macromedia ‘99)
Kent Godfrey Pond Ventures
ex-CEO Frictionless Commerce (acquired SAP ‘06)
Michael Gera Pond Ventures
ex-CEO PortalPlayer (NASDAQ: PLAY)
Gary Johnson Independent ex-CEO S3 (NASDAQ: SIII)

14. Initial Idea (in 2005) to Prototype Silicon (in 2009)
Dual-Mode GPS
system design
Dual-Mode GPS
software design
Acquisition DSP
Tracking DSP Architecture
Architecture
Tracking DSP
Tracking DSP Implementation
Implementation
Acquisition DSP
Implementation
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
Radio IC Radio IC A1250
A1250 silicon evaluation
Implementation Implementation IC design
Air tracks GPS satellites with RFIC
Tracking DSP
March ‘08
Architecture
RFIC + FGPA platform
PVT & May ‘08
Kalman Filter
Air tracks GPS satellites with RFIC + FPGA
A1225 RFIC (v1) June ‘08
April ‘07 Air first PVT, confirms lab in Swindon
June ‘08
A1225 RFIC (v2)
A1250 single die GPS receiver
February ‘08
January ‘09
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
2006 2007 2008 2009
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
Electra Start-Up of the Year 2008
November ‘08
Gary Johnson joins Board of Directors
2x NASDAQ CEO (PortalPlayer & S3) IET Start-Up of the Year 2008
May ‘07 November '08
Prof Izzet Kale joins Technical Advisory Board
October ‘08
Engage with TSMC for silicon
Sept ‘06
Demonstrate GPS technology
July ‘08
Development starts!
June ‘06 Recruit external CEO
May ‘08
Air Inc + Ltd incorporated
May ‘06 Red Herring 100 Europe 2008
April ‘08
Series-A Termsheet
April ‘06 Exit stealth mode
Announce 1st product
January ‘08

15. airwave1 system development platform
and prototype sample silicon module

16. Prototype Product Performance
Unfiltered CEP50 position accuracy is 2.8 metres
Push-to-Fix TTF @ -130dBm: 2.5s
Push-to-Fix TTF @ -150dBm: 2.5s
(Future push-to-fix TTF will be <1s)
Unaided cold start: -140dBm
Unaided hot start -150dBm
(Future hot start sensitivity -154dBm)
Tracking sensitivity: -152dBm
(Future tracking sensitivity -160dBm)
Plot shows 20m (x axis) by 20m (z axis)
Positions grouped into 20cm x 20cm bins
Stationary receiver over 12 hour period

17. Air Technical Demonstration Platform … in Japan

18. Air Technical Demonstration Platform … in USA

19. GPS with airwave1 silicon

20. Initial Market: Digital Camera Market and Geotagging
GPS enabled DSC's DSC shipments
160 M 164 M
150 M 155 M
146 M
62 M
38 M
22 M
9M
2008 2009 2010 2011 2012
GPS modules developed by DSC partners

21. Customer Status: 174 Active Customer Leads
Markets:
Camera, Cellphone, Laptop PC, Netbook, Digital Watch, Asset Tracking
37 active leads generated proactively by Air
Including: Ability; Apple; Canon; Casio; DoCoMo; Foxconn; Fujifilm; LG; NEC; Nikon;
Nokia; Olympus; Panasonic; Pentax; Ricoh; Samsung Electronics; Samsung Techwin;
Sanyo Digital Imaging; Sony Ericsson; Softbank; Sony
20 active leads from VC introductions
Including: Google; Motorola; O2; Spreadtrum; Swatch; Vodafone
117 unsolicited enquiries resulting from PR activity
Including: Mediatek; Microsoft; RIM; Altek; Fujitsu; Hitachi; HTC; Mitac; Compal
Proactive
VC Introductions
Unsolicited enquiries

22. CSR / SiRF follow Air Semiconductor Always-ON

23. Monthly Burn ($K)
$50
$100
$250
$300
$350
$400
$450
$500
$600
$150
$200
$550
$0
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Monthly Burn $K
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2008
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2009
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Development Cost and Investment Profile
Sep…
$0
$1
$3
$4
$5
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$8
$9
$2
$6
$11
$10
Total Burn ($M)

24. Success = Vision + Market + Money + Timing + Execution + Luck