Your Gateway to Bandwidth

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Investor Presentation May 2009
Your Gateway to Bandwidth
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Forward-looking statements

• Certain statements in this presentation may
  constitute forward-looking statements which
  involve known and unknown risks, uncertainties
  and other factors which may cause the actual
  results, performance or achievements of the
  Company, or industry results, to be materially
  different from any future results, performance or
  achievements expressed or implied by such
  forward-looking statements. When used in this
  presentation, such statements are generally
  identified by the use of such words as "may",
  "will", "expect", "believe", "plan", "intend" and
  other similar terminology. These statements
  reflect Vecima's current expectations regarding
  future events and operating performance and speak
  only as of the date of this presentation.
  Forward-looking statements involve significant
  risks and uncertainties, should not be read as
  guarantees of future performance or results, and
  will not necessarily be accurate indications of
  whether or not such results will be achieved. A
  number of factors including, but not limited to,
  the factors discussed under "Risk Factors" in the
  Company's Annual Information Form dated September
  25, 2007 available on SEDAR (www.sedar.com),
  could cause actual results to differ materially
  from the results discussed in the forward-looking
  statements. Although the forward-looking
  statements contained in this presentation are
  based upon what management of the Company
  believes are reasonable assumptions, the Company
  cannot assure investors that actual results will
  be consistent with these forward-looking
  statements.These forward-looking statements are
  made as of the date of this presentation, and the
  Company assumes no obligation to update or revise
  them to reflect new events or circumstances.

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What is bandwidth?
1bit
0/1
a rate of transfer measured in bits per second
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The rise of bandwidth
Facebook
File Sharing
You Tube
VOIP
VOD
Skype
Gaming
PVR
Data over Cable
HDTV
Digital TV
Analog TV
Analog
Digital
Interactive
Personalized Content
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Its all about bandwidth

• Insatiable demand

Finite capacity
Legacy equipment and infrastructure limit access
to greater bandwidth
Users want more services, more choice and more
speed.
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Meeting the demand

• Long-term solution
• Install Fiber Optic Networks

Short-term solution Maximize Existing Network
Prohibitively expensive Infrastructure
disruption Offers substantial bandwidth expansion
Cost effective Utilizes in place
infrastructure Requires bandwidth maximization
through equipment upgrades
Verizon alone to pump 20 billion in to FiOS by
2010
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Gateway to bandwidth
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What we do

• Vecima productizes superior technology enabling
  access to more bandwidth by maximizing the
  capacity potential of current network
  infrastructure

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What we do
Radio Frequency
Embedded Software
Digital Signal Processing
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Accessing bandwidth

• Vecima improves access to bandwidth by
• Replacing analog signals with digital in portions
  of the network
• Efficiently managing digital signals before they
  reach the end user
• Using wireless technology where there is no
  network infrastructure

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Replacing analog with digital
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0
0
digital signals can fit into the bandwidth taken
up by 80 analog channels
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Replacing analog with digital
800
analog digital
digital
cable capacity
80
throughput
throughput
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Replacing analog with digital
Mix of analog digital signal network capacity
digital signal network capacity
cable cross sectionanalog and digital signal
cable cross sectionanalog and digital signal
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Efficiently managing digital signals
Non-switched video, all houses receive call
channels
Switched digital video only delivers the signals
being watched freeing up bandwidth for other uses
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Extending the network with wireless
Head end
wireless
node
curb
core network
premises
distributed network
Wire/fiber
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Gateway to success
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Proven and competent

• Superior, long-standing RF DSP expertise
• Leading edge proprietary technology
• Unmatched order-to-market development speed
• Proven growth management

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Fully integrated design-production-marketing
Design
Develop
Manufacture
Sell

• 167 engineers on staff (90 hardware, 77
  software. 23 of total staff focused on RD)

Specific expertise and flexible approach yields
short development timelines
Multi line, MSO-approved facility in Saskatoon,
Saskatchewan
Direct sales OEM relationships Distribution
channels Business development
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Customer-focused innovation

• Long-term relationships with key customers are
  generating a steady stream of new opportunities

• Focus on products, not technology
• One stop shop for customers
• Collaborative approach to solving customer
  challenges
• Full integration permits rapid order-to-market

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Gateway to growth
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0

• of data over cable globally flows through our
  products

OEM
MSO
Cisco Motorola Big Band Huawei
Time Warner Comcast Cox Charter Cablevision
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Growth strategy

• Expand number and size of OEM and MSO
  relationships
• Leverage bandwidth reclamation and emerging
  digital technologies (DOCSIS 3.0) opportunities
• Target wireless opportunities associated with
  broader fixed WiMAX adoption
• Selectively acquire complementary
  products/expertise
• Maximize value of and monetize non-core assets
• Commercial applications for software defined radio

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Multiple growth opportunities

• Converged wired

Wireless

• Analog reclamation
• Digital simulcast
• Deep digital (multi-unit buildings)
• Next generation digital
• DOCSIS 3.0 and beyond (own products and OEM
  modules)
• Video on demand / switched digital video / HDTV

• WiMAX
• Spectrum Signal Processing Commercial SDR

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Analog Reclamation
approximately
Size of market
1.5B globally
Business segment
Converged wired
Key products
CableVista, MDU-DTA
Current penetration
Vecima products widely deployed

• MSOs need to reclaim bandwidth and operate
  digitally in core network
• Analog conversion for multiple dwelling units
• Digital conversion February 2009

Drivers/milestones for growth
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Next generation digital
2008
2011
Size of market
860M
.4B
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Business segment
Converged wired
Key products
HyperQAM, EdgeQAM, OEM Modules
Current penetration
Early-stage sales coming online

• Increased implementation by leading MSOs
• Rollout in other countries
• Growing demand for HDTV and interactive services

Drivers/milestones for growth
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Wireless
2007
2011
Size of market
800M
.7B
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Business segment
Wireless
Key products
VistaMAX, commercial SDR
Current penetration
Pilot scale

• Growing demand for services, even on remote
  /emerging areas
• WiMAX Forum Wave 2 Certification
• Results of pilot testing
• Conclude first full-scale deployment

Drivers/milestones for growth
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Recent Highlights Progress Against Strategy

• SSP partners with Live TV LLC for next generation
  radios to support in-flight e-mail (Q1 09)
• Signed agreement with Cisco to supply a next
  generation upconverter module for use in CMTS
  products (Q4 08)
• Launched 3.65 GHz WiMAX solution for US (Q4 08)
• Signed supply agreement with U.S. Cable MSO to
  support conversion to all digital network (Q4 08)
• Entered into co-branding agreement with Motorola
  on CableVista Edge Decoder product (Q3 08)

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Gateway to value
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Strategic assets
Commercial spectrum
Your Link
Real estate

• 855 licenses
• Avg. cost 1,500
• B.C., AB, Ottawa, rural Ont.
• More than 4B in licenses recently auctioned by
  Cdn. government

Wholly-owned sub 7 cable TV service providers in
BC, and ISP in Sask. Recurring revenue Test bed
for new products
Approximately 35 million
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Reported business segments
Converged wired
Wireless
Your Link

• Products for digital video and data over cable
• A range of services includingbroadcast digital
  video
• Switched digital video
• HDTV broadcast
• Video on demand
• DOCSIS data services

Broadband wireless products WiMAX Spectrum signal
processing software defined radios
Wholly-owned sub 7 cable TV service providers in
BC Broadband video and ISP in Saskatchewan Recurri
ng revenue Test Bed for new products
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Strong track record

• Revenue

Net Income

• Fiscal years ended June 30
• C millions

• Fiscal years ended June 30
• C millions

CAGR 30 (41 on a US basis)
120.6
15.5
93.7
80.0
11.9
63.0
10.3
10.6
9.5
2.1
44.3
6.6
32.1
2.8
2003
2004
2005
2006
2007
2008
2003
2004
2005
2006
2007
2008
Extraordinary Earnings
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Financial review business segments
2008

• Vecima has transitioned to report revenues broken
  down into three overall market segments

Your Link
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Broadband Wireless

• Converged Wired Solution
• Broadband Wireless
• YourLink (service provision)

Converged wired
79
2007
Your Link
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Broadband Wireless
In fiscal 2008, the Company focused on near-term
opportunities in its converged wired business and
reduced production of wireless products.
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Converged wired
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Fiscal years ended June 30
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Two-year financial summary
Selected Quarterly Consolidated Financial
Information and Other Data (in thousands of
dollars except for net income per share data)
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Solid balance sheet
1 Based on share outstanding at end of period
2Some numbers have been restated
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Management team
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Board of directors
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Investment highlights

• Industry-leading technological expertise
• Fully integrated, customer-focused operations
• Growing, diverse blue-chip customer base
• Multiple significant growth opportunities
• Powerful operational and financial discipline
• 30 CAGR in revenue over the last five years
• 20 consecutive years of profitability
• Focused growth strategy
• Strong management team

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Market data
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Investor Presentation May 2009
Your Gateway to Bandwidth