Investor Presentation

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SUPERCOMM 2002 TELECOM INVESTOR FORUM
Brian Barry, CEO Hyperchip inc June 6, 2002
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Driving The Economy to a New Level
To drive the world economy to a new level of
growth,the Internet requires next-generation IP
networking equipment that cost-effectively
routeshigh quality, media-rich content as
reliably ascircuit switched voice.
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Driving The Economy to a New Level
Hyperchips technology enables service providers
to build scalable, high-margin infrastructures
with flexible network configuration and simple
network management on a reliable and
cost-effective IP platform.
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Service Providers Equipment Requirements

• Carrier-class performance
• Scalability flexibility to support future
  demands without forklift upgrades,and protect
  current investments through industry-wide
  interoperability
• Reliability redundant components within a single
  box, distributed softwareprocessing for
  in-service maintenance, and guaranteed QoS
  throughputfor an always-on IP network - zero
  downtime!
• Simplicity reducing architectural complexity and
  network managementwhile simplifying network
  expansion.
• New profitable sources of revenues
• core IP system pushing high bandwidth and
  time-sensitive applications while reducing Capex
  and Opex

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The Hyperchip Difference
To Hyperchip PBR 1280 Core IP
System Transforming the best effort
unpredictable nature of Internet services into an
always-on dependable offering as reliable as
circuit switches transport voice and eliminating
equipment duplication.
From current offerings A 5ESS switch doesnt
even have an on/off switch. You install it, hook
it to the grid, and it runs until you retire
it. We can achieve reliability today, but it
takes twice as many boxes as we need.
Source Yankee Group, Carrier Convergence
Infrastructure Core Routers Challengers and
Challenges to the Status Quo Oct 2001
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The Hyperchip DifferenceCarrier Class means
Current offerings Sources of downtime
Hyperchip PBR1280 Core IP System Zero downtime!

• In-Service SW Upgrades
• In-Service HW Upgrades
• Full Hot-swap

Congestion (5)
Other (11)
Router Operations (36)

• MPLS Fast Re-route
• Link Aggregation
• SONET APS

Router Failures (21)

• Multi processor architecture
• SW process isolation and redundancy
• 99.999 HW availability

Link Failures (27)

• Intelligent TM mechanisms
• MPLS-TE

Source University of Michigan

• Fail-safe mechanisms

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Current Offerings Growth Proposition
Optical Backbone
? To scale the core alone
Core
Complex, unreliable, inefficient and expensive
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The Fundamental Issue
High Opex driven by operational complexity from
multilayer architecture and lack of scalability
Low Opex driven by highly-scalable solution
Bandwidth
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The Next Generation PoP
Optical Backbone
Core
Aggregation
Edge
Access
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The Hyperchip Difference Streamlining the PoP
High quality bandwidth _at_ lower cost
Happy Consumers!
Higher revenue with fewer headaches AND lower
costs
Profitable Carriers!
Hyperchip PBR-1280 IP Core System can give 5X to
10X in Capex and Opex savings
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The Hyperchip Difference
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exclusive Hyperchip PBR-1280 System

• Unique Massive Scalability
• Up to 65K ports per system 640 Gbps per 7ft rack
• Maintainable efficiency
• Linearly scalability
• Intelligent Traffic Management
• Distributed arbitration
• Non-blocking guarantee across multiple stages
• Precise congestion control between line cards
• Balanced traffic load distribution

• Robust Software
• Distributed signaling, processing and routing
  information
• Faster convergence routing
• Architecture contains built-in redundancy
• Resiliency / Reliability
• Distributed routing information
• Multiplane switching architecture
• Link aggregation
• Patents
• Issued and pending Switch Fabric ASIC
• Pending Software and Traffic Engineering
  Algorithms

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Hyperchip Awards
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Conclusion

• Trends
• Bandwidth continues to grow
• The legacy approach to IP network expansion is no
  longer acceptable

• Hyperchip brings a new breed of networking
  equipment

The PBR-1280 core IP system offers reliable,
high-quality bandwidth at a fraction of the
current costs, enabling carriers to deploy
high-margin services to bring profitability to
their data network.