1

X T E N D W A V E

October 2007

2

T H E I N I T I A L X T E N D W A V E S O L U T I O N

• Enable and provide extended reach of broadband to a greater percentage of existing

wire line customers without new build outs or network re-engineering

• Secure multiple revenue streams, increase customer ARPU and subsequent life

value for service providers

• Meet and exceed customer and regulator demands for broadband ubiquity

• Allow equipment providers to utilize and monetize spare DSLAM slots to increase

sales and service revenue by upgrade of line card

• Capitalize on initial opportunity to manufacture new products for

vast copper telco market

3

W H A T O U R S O L U T I O N I S N O T

• Xtendwave does not:

Break Shannon’s Law

Wire bond

Alter power

Utilize compression

• Xtendwave accelerates networks without:

The risk of untried technologies

The capital and time required for new builds

The need to change out or re-engineer existing systems

4

O U R S O L U T I O N U T I L I Z E S W A V E L E T S

STANDARD SINE-COSINE WAVE REPRESENTS

FREQUENCY ON TWO DIMENSIONS

WAVELET IS A TIME-SCALE

REPRESENTATION ON THREE DIMENSIONS

5

W A V E L E T S A R E N O T N E W

Wavelet technology has been a cornerstone of major innovations

in a variety of industries in the last century.

OIL AND GAS INDUSTRY MEDICAL INDUSTRY MUSIC AND VIDEO

6

W H Y N O W ?

Recent convergence of lower costs

and higher processing power makes

real-time calculation of wavelets

feasible for telecom applications.

7

X T E N D W A V E E X T E N D S I N C R E M E N T A L

B R O A D B A N D C O V E R A G E

8

Technology Patents Pending

• 17 utility patents

• 14 provisional patents

I P P R O T E C T I O N

9

H O W X T E N D W A V E W O R K S

Adaptive Filter Bank Modulation (AFBM)

• Longer reach • Over copper • Using existing plant

Bull Dozing & Trenching

$10,000 per home Minimum of 10,000 homes

Remote Terminals (External Cabinets)

$150,000 and up

12

C O

DSLAMXW CHIPSET

XtendWave Chip on both ends

$ per port

MODEMXW CHIPSET

COPPER

13

Broadband to every home with a dial tone

PRICELESS

C O

DSLAMXW CHIPSET

14

F U N D A M E N T A L A D V A N T A G E S O F A F B M

More efficient use of the bandwidth

• Better selection of wavelet for the symbols

• Better adaptive wavelet algorithms for the filter banks

• Better immunity to noise

• More symbols packed into each unit of bandwidth

• Continuous monitoring of the impulse response of the medium

15

I N I T I A L T H I R D - P A R T Y V A L I D A T I O N

16

I N I T I A L A P P L I C A T I O N S : C O P P E R

17

I N C R E M E N T A L O P P O R T U N I T I E S

• Cable• Wireless• WiFi • Mobile Devices;

PDAs, Set Top Boxes, Modems

AFBM has application across all forms of communications platforms.

18