Corporate and Portfolio Overview

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Corporate and Portfolio Overview
Ian Buchanan VP of Sales 972-692-1166
x20 Ian.Buchanan_at_epygi.com
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Company Overview

• The Company
• Founded (January 2000) and funded by Sam
  Simonian, former Chairman of Inet Technologies
  (NASDAQ INET), which was sold to Tektronix for
  500m (Sept 04)
• Epygi produces a Full suite of SMB communications
  solutions featuring
• (i) a combined router (VPN, firewall, IDS), VoIP
  gateway, small IP-PBX,
• (ii) a very cost effective E1/T1 VoIP gateway
• (iii) an IP Audio Conference Server,.
• Selling products since mid-2004
• 2005 product revenue was 6x 2004, expect to more
  than double in 2006
• Forecast profitability in 3Q06
• Over (3000) systems in (40) countries worldwide
• 129 employees with offices in Dallas (12) and
  Armenia (117)
• Conducted SIP/VoIP Interoperability testing with
  (28) carriers worldwide

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Epygi Quadro-Product Line
IP PBX
Voice Gateways
Conference Server
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Worldwide Sales Channels

• Deployed in over (40) countries and homologated
  in over (25) countries
• 31 distributors that have a base of 3,000
  resellers
• More than 14 direct resellers

Key Worldwide Distribution Partners
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Strong Partnerships Interoperability with
Industry Leaders

• Interoperable with any VoIP service provider
  platform
• Received interoperability certifications from 13
  leading switch and IP phone vendors
• Qualified with more than 25 leading VoIP service
  providers throughout the world
• In the process of adding

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Thank You for Attending VoIP Sizzles!!!
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Welcome to ABPs VoIP Sizzles Roadshow!!!
Peter A. Pizzutelli Director of
Sales 585.421.3850 ext. 117 PPizzutelli_at_Allworx.c
om www.Allworx.com
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Who we are

• Founded July, 1998, Located in Rochester, NY

• Product Division
• Product Allworx Systems
• Integrated IT Telephony solution
• Phone System
• Network Server
• Software Options
• Market Launch March 2003
• Target Markets Small Businesses
• Sales Channels
• Established Interconnect Data VARs
• Strategic telecomm equip distributors

• Consulting Division
• Services Engineering/Product Development
• Digital hardware design
• Embedded software design
• Systems database programming
• Web PC applications
• Target Clients F500
• Established and Growing Business

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InSciTek Consulting Division

• High-end Engineering Services
• Hardware software competencies
• Digital product development
• Windows NT Unix System Programming
• Top 5 - Engineering Talent
• Strong Foundation for Allworx Division
• F500, International Customer Base
• Strong Growth Potential

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Current Products
Every Allworx system includes.
1 Phone System
2 Network Server
3 Advanced Features

• Automated back-up
• Email / Web server
• Internet Security
• LAN management
• WAN access

• Call Assistant
• Call Queuing
• Group calendaring
• Internet Call Access
• VPN

• Full PBX Key system
• Remote user
• Site-to-site access
• Unified messaging
• Voice over Internet

Customers use what they need when they need it.
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What makes Allworx different?

• Lowest Install Cost in the Industry
• The absolute lowest install investment
• No hidden charges
• Complete Set of Small Business Features
• True Key Systems Features
• The only phone system with analog AND VoIP
  calling capabilities
• A complete set of communication and productivity
  features
• Customers Move at Their Own Pace
• Customers decide when and how to transition to
  VoIP
• Allworx has largest set of traditional telephone
  capabilities of any VoIP solution
• Easiest to Use
• Providing the simplicity and speed of
  installation. (less than one day)
• Intuitive interface makes it the easiest to
  set-up and administer

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Allworx Products
Calendaring
Call Queuing
Internet Call Access
VPN
9102
9112
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Internet Telephony Product of the Year
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Internet TelephonyKey System Killer
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Why Compromise?
communications without compromise
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Market Challenges
Minimal Customer knowledge of VoIP Limited
experience Mixed Messages Unclear benefit
statements Risky purchase Consultative
selling- solutions not products Many camps
Promoting individual agendas Hardware vs.
systems vs. network Consumer vs. Business
Grade Small site vs. Small business End to end
solutions Market Entry appears
expensive Training not incremental (start
from scratch) Demo equipment Support
Tools Available anytime anywhere and all
inclusive
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Market Challenges
Limited/ineffective Industry Marketing Technolo
gy focus vs. application or solutions focus Why
VoIP the key customer question! Messages with
quantifiable and qualifiable benefits How do
Resellers make money? Maintenance
contracts Equipment margins Investment vs.
Return Network design work Define your
differentiation - Sell your expertise Who are
the target customers? Installed base VoIP
Knowledgeable Enterprise vs. SMB Do it
yourselfers Leverage your partners contacts
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US Market Potential
Huge Potential
Source NAICS Codes US Census 2003
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Target Size Businesses by IndustrySorted by
Telcom Expense (Local Long Distance Only)
Our Target Markets
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Large Market Opportunity

• 2.6 Million Small businesses (5-100 employees)
• 1.7M expansions annually in US
• 11 growth year over year
• 38 plan to increase capital outlays
• 60 will increase their use of the Internet
• 283B spend in IT/Services
• 57 of small business total telecommunications
  expenses are used for local and long distance
  phone charges.

Sources US Census Bureau 2002, NFIB 2004, CRN
2004
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• Start-ups strong in USA, softer abroad
• Posted 7/10/2006 1055 PM ET
• By Jim Hopkins, USA TODAY
• SAN FRANCISCO U.S. entrepreneurship is growing
  while Western Europe's start-up activity is
  threatened by aging populations there, says a
  study with implications for the debate on
  immigration reform.
• The U.S. population also is aging with the
  graying of more than 75 million baby boomers. But
  the USA's more liberal policy on immigration is
  providing a steady source of young people more
  likely to start companies.
• The study, by researchers at Babson College near
  Boston and Canada's University of Waterloo, comes
  as Congress debates restrictions on immigration
  that could dampen entrepreneurship, says Babson
  economics professor Maria Minniti.

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SMB Market Potential

• VoIP Penetration
• Only 3.3 all of small businesses use VoIP
  services within the SMB market (lt100
  employees/site )
• Huge potential
• Bundled Services
• 79 of small businesses would prefer to buy
  telecommunications services in a bundle
• 85 of these small businesses would prefer their
  services combined on a single bill
• Allworx has relationships with many ITSPs that
  allow customized billing

Source 2005 Telecom Report Hot Issues Facing
the Industry Harris Interactive VoIP Study
October 2005A Survey of Small Businesses
Telecommunications Use Spending TeleNomic
Research March 2004
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Target Customer Segment

• Allworx 10x 100 Employees or Less
• Allworx 6x 30 Employees or Less
• Key Market Segments
• Finance Insurance
• Engineering, Architecture, Accounting
• Legal
• Medical
• Real Estate
• Retail

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What is your Value Proposition???
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Target Customer Triggers

• A customer
• Moving their office or needing to install a new
  phone system
• Evaluating phone system options because due to
  business changes or expansions
• Upgrading an outdated phone system
• Considering a system that will take less time to
  administer
• Looking to improve your PC network
• Investigating productivity features to make the
  business more efficient
• Looking for a 30-50 savings on telephone and
  operational expenses

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Thank You for Attending VoIP Sizzles!!!

• Questions Welcome

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