Athena Overview

OverviewOverview

Proprietary and Confidential - Athena Technology, Inc.Proprietary and Confidential - Athena Technology, Inc.

ABOUT ATHENAABOUT ATHENA

Athena Technology Inc.

Privately held since March 2007

Headquartered in Newport Beach ,CA

Carrier Ethernet Switching Technology

- Eliminating the Bottleneck

- The Changing Communications Landscape

Athena Technology Inc.

Privately held since March 2007

Headquartered in Newport Beach ,CA

Carrier Ethernet Switching Technology

- Eliminating the Bottleneck

- The Changing Communications Landscape


VISIONVISION

Our goal is simply stated. We desire to be the best Metro Ethernet products organization in the world Our goal is simply stated. We desire to be the best Metro Ethernet products organization in the world


ATHENA CAPITAL STRUCTUREATHENA CAPITAL STRUCTURE

25 Million Shares Authorized

5 Million Shares Issued 72% or 3.6 Million of the issued shares are Held by the

founders

28% or 1.4 Million are reserved for future employees Between $1.5 and $2 Million in cash from founders

(excludes “sweat equity”)

25 Million Shares Authorized

5 Million Shares Issued 72% or 3.6 Million of the issued shares are Held by the

founders

28% or 1.4 Million are reserved for future employees Between $1.5 and $2 Million in cash from founders

(excludes “sweat equity”)


FOUNDERS & MANAGEMENT TEAMFOUNDERS & MANAGEMENT TEAM Jim Fiedler

CEO of Summa Four, Inc. IPO & sold to Cisco for $400M COO of Timeplex, Inc. sold to Ascom for $420M Chairman and CEO of Coyote Systems

Ananda Perera CTO of Raptor Networks, Viacom, Amdahl and MCI Holder of multiple switching patents

Mark Perkell Senior Vice President and General Counsel for CityNet Telecommunications

John Moore General Manager -Timeplex Inc, Unisys, Fujitsu, Vice President - Raptor Networks

Sri Chaganty Ceeyes Group (Founder), HolonTech (CTO), NEC, GTE Telecom, Unisys 5 Patents in the area of high availability

Jim Fiedler CEO of Summa Four, Inc. IPO & sold to Cisco for $400M COO of Timeplex, Inc. sold to Ascom for $420M Chairman and CEO of Coyote Systems

Ananda Perera CTO of Raptor Networks, Viacom, Amdahl and MCI Holder of multiple switching patents

Mark Perkell Senior Vice President and General Counsel for CityNet Telecommunications

John Moore General Manager -Timeplex Inc, Unisys, Fujitsu, Vice President - Raptor Networks

Sri Chaganty Ceeyes Group (Founder), HolonTech (CTO), NEC, GTE Telecom, Unisys 5 Patents in the area of high availability


ATHENA MANAGEMENTATHENA MANAGEMENT

Over 100 years of successful senior management experience.

Direct successes in the telecommunications switching market.

Successful design and implementation of switching systems.

Ability to attract and retain superior employees.

In depth understanding of the IPO and M&A business.

Proven track record of increasing shareholders equity.

Over 100 years of successful senior management experience.

Direct successes in the telecommunications switching market.

Successful design and implementation of switching systems.

Ability to attract and retain superior employees.

In depth understanding of the IPO and M&A business.

Proven track record of increasing shareholders equity.


THE MARKET THE MARKET

Worldwide Carrier Ethernet Market• 2005 Ethernet Revenue $3.5

Billion• Projected growth to $10.5 Billion

in 2010• Application Growth

• Business Services 55%/year• Residential Services

30%/year Residential Drivers – Triple Play

• IPTV/VOIP• High Speed Data• Gaming/YouTube/Social Networks

Enterprise Drivers• Increased Global Reach• Increasingly Distributed IT• Global Outsourcing


CHANGING LANDSCAPECHANGING LANDSCAPE Internet Traffic Growth

• Internet Traffic will grow 50 fold by 2015 (AT&T)• 8 hours of video is loaded on to YouTube every minute• 80% of traffic will be video by 2010 (from existing 30%)

• 8 Million Terabytes of traffic by 2011

Key trends moving forward – massive content growth• Early movers such as Apple’s iTunes succeeded in evangelizing their

technologies• Huge investments for R&D by early movers in digitizing content helped

market acceptance of the technologies

The Core Transport Network is being overwhelmed

Internet Traffic Growth• Internet Traffic will grow 50 fold by 2015 (AT&T)

• 8 hours of video is loaded on to YouTube every minute• 80% of traffic will be video by 2010 (from existing 30%)

• 8 Million Terabytes of traffic by 2011

Key trends moving forward – massive content growth• Early movers such as Apple’s iTunes succeeded in evangelizing their

technologies• Huge investments for R&D by early movers in digitizing content helped

market acceptance of the technologies

The Core Transport Network is being overwhelmed


SCOPE OF PROBLEMSCOPE OF PROBLEM

Cable Operators and Telephone Companies are struggling to meet and keep up with the bandwidth demand for customer services.

Telco carriers are losing millions of basic customers (over 25M in US alone, $625 million in monthly revenue) to competitors because they cannot offer competitive high speed services.

Ethernet switching equipment market was $3.5B in 2005, projected at $10.5B by 2010.

While “edge” applications, such as Youtube and AT&T’s U-verse, have lead in deployment, they have quickly outstripped the core network’s ability to support them.

Cable Operators and Telephone Companies are struggling to meet and keep up with the bandwidth demand for customer services.

Telco carriers are losing millions of basic customers (over 25M in US alone, $625 million in monthly revenue) to competitors because they cannot offer competitive high speed services.

Ethernet switching equipment market was $3.5B in 2005, projected at $10.5B by 2010.

While “edge” applications, such as Youtube and AT&T’s U-verse, have lead in deployment, they have quickly outstripped the core network’s ability to support them.


RECENT NEWS EVENTSRECENT NEWS EVENTS

“Only 60% of American households have speedy Net access. That puts the country in 15th place among developed nations, according to the Organization for Economic Cooperation and Development. It’s a mighty fall from 2001, when the U. S. ranked fourth.”

Roger O. CrockettBusiness Week, August 11, 2008

“It took 100 years to get 1 billion devices on the network. It will take less than 10 years to get the next billion.”

John Donovan: AT&T’s technology chief

quoted in USA Today, August 1, 2008

“Only 60% of American households have speedy Net access. That puts the country in 15th place among developed nations, according to the Organization for Economic Cooperation and Development. It’s a mighty fall from 2001, when the U. S. ranked fourth.”

Roger O. CrockettBusiness Week, August 11, 2008

“It took 100 years to get 1 billion devices on the network. It will take less than 10 years to get the next billion.”

John Donovan: AT&T’s technology chief

quoted in USA Today, August 1, 2008


Barriers to EntryBarriers to Entry

Architecture that allows for 1/3 of competitor’s pricing.

Patentable Intellectual Property.

180+ staff years of completed software development.

Tight coupling of the hardware/software interface.

Current competitors must redesign and re-architect.

Architecture that allows for 1/3 of competitor’s pricing.

Patentable Intellectual Property.

180+ staff years of completed software development.

Tight coupling of the hardware/software interface.

Current competitors must redesign and re-architect.


ATHENA CORE SWITCHATHENA CORE SWITCH 25.2 - Tbps switching fabric 144 - 576 ports of 10 Gigabit Ethernet 28 - CPU’s clustered for Control and Management 2 - CPU for Historical Data Collection 1152 - Ports of Gigabit Ethernet 787- Gbps bandwidth per slot 72 - Million Packets per second(Mpps)per 2x10GE ports

(system wide capacity of over 5.1 Bpps) Scalable MAC table (512k-1M) IPv4 and IPv6 unicast and multicast routing 100 Gbps Ethernet ready

25.2 - Tbps switching fabric 144 - 576 ports of 10 Gigabit Ethernet 28 - CPU’s clustered for Control and Management 2 - CPU for Historical Data Collection 1152 - Ports of Gigabit Ethernet 787- Gbps bandwidth per slot 72 - Million Packets per second(Mpps)per 2x10GE ports

(system wide capacity of over 5.1 Bpps) Scalable MAC table (512k-1M) IPv4 and IPv6 unicast and multicast routing 100 Gbps Ethernet ready


ATHENA ACCESS SWITCHATHENA ACCESS SWITCH■ 3U High

■ 2 Load Balanced Power Supplies

■ 1 CPU for Control and Management

■ Anthem Software suite

■ Option Line Cards Line card A 8x10GE Ports (OC192, DWDM, 10GE) Line card B 2x40GE Ports (OC768, STM-256) Line card C48 x 1GE ports Line card E48 x 1GE ports & 4x 10GB Ports (OC192, 10GE, DWDM) Line Card E 64 x 1 GE Ports

■ 3U High

■ 2 Load Balanced Power Supplies

■ 1 CPU for Control and Management

■ Anthem Software suite

■ Option Line Cards Line card A 8x10GE Ports (OC192, DWDM, 10GE) Line card B 2x40GE Ports (OC768, STM-256) Line card C48 x 1GE ports Line card E48 x 1GE ports & 4x 10GB Ports (OC192, 10GE, DWDM) Line Card E 64 x 1 GE Ports


Cisco 6513

JuniperMX960

Force10E1200

Athena288

Line Rate Interfaces

20 10G410 1G

48 10G480 1G

56 10G672 1G

288 10G1152 1G

Switch Fabric Capacity

N/A 1.8 TBS 1.68TBS 12TBS

Full Mesh Forwarding

Capacity

400 MPPS

720MPPS 1 BPPS 3 BPPS

Back Plane Capacity

720 GBS 1 TBS 5 TBS 20TBS

Line Card Slots

9 12 14 24

Price/ 10GE $25,000 $23,000 $18,000 $8,000

Competition Competition

Features

Vendor


RECENT M&A TRANSACTIONSRECENT M&A TRANSACTIONS

World Wide Packets (March, 2008) – 10 x 10Gb ports, $21,000 per 10GE port, acquired by Cienna for $300 million, revenue of $16 million

Foundry Networks (July, 2008) – 128 x 10Gb Ports, not carrier grade, $17,000 per port acquired by Brocade for $3 billion, revenue of $600 million

Atrica, Inc. (Oct, 2007) – 15 x 10Gb Ports, $13,000 per port, acquired by Nokia Siemens Networks for $300 million, revenue of $17 million

World Wide Packets (March, 2008) – 10 x 10Gb ports, $21,000 per 10GE port, acquired by Cienna for $300 million, revenue of $16 million

Foundry Networks (July, 2008) – 128 x 10Gb Ports, not carrier grade, $17,000 per port acquired by Brocade for $3 billion, revenue of $600 million

Atrica, Inc. (Oct, 2007) – 15 x 10Gb Ports, $13,000 per port, acquired by Nokia Siemens Networks for $300 million, revenue of $17 million


Prospects/PartnersProspects/Partners

Carrier Providers Level 3, XO Communications

Carriers• Regional/Independent Telco's• International PTT’s • Verizon• AT&T

Cable Multiple System Operators Telcom/Cable Equipment Manufacturers

• Tellabs• Alcatel/Lucent

Carrier Providers Level 3, XO Communications

Carriers• Regional/Independent Telco's• International PTT’s • Verizon• AT&T

Cable Multiple System Operators Telcom/Cable Equipment Manufacturers

• Tellabs• Alcatel/Lucent


MilestonesMilestones

Architectural design signoff Complete

Software Port “Reference Design” Complete

Functional Test complete 12 Mo after funding

Live demonstration 12 Mo after funding

System Test complete 14 Mo after funding

Architectural design signoff Complete

Software Port “Reference Design” Complete

Functional Test complete 12 Mo after funding

Live demonstration 12 Mo after funding

System Test complete 14 Mo after funding


BUSINESS MODELBUSINESS MODEL

2011 2012 2013 2014Average Switch Price $ 554k $ 416k $ 277k $ 277k

Revenue $12M $30M $55M $75M

Cost of Goods 16.7% 20.1% 25.1% 22.6%

Gross Profit 83.3% 79.9% 74.9% 77.4%

Expenses 74.5% 40.2% 28.8% 24.3%

Pretax Profit 8.8% 39.7% 46.1% 53.1%

Net Profit 8.8% 31.6% 30.0% 34.5%


ATHENA’S ROLE IN THE NETWORK

ATHENA’S ROLE IN THE NETWORK


Carrier Ethernet

Business Ethernet Edge

Ethernet Aggregation

Access Ethernet Switching Core

CORE SWITCHING BACKBONECORE SWITCHING BACKBONE

Ethernet Aggregation

Access

Cable MSOs

Broadband Ethernet Edge

Telco's

Ethernet AggregationSwitch

Ethernet AggregationSwitch

OLT


TOPOLOGY FLEXIBILITYTOPOLOGY FLEXIBILITY

Ring & Spoke topology

Ethernet resilient ring Carrier Ethernet

Hub & spoke topology

Bus topologyWiMax BTS Athena

Athena

Athena

Athena


LEASED ETHERNET WIMAX SERVICE DELIVERY OPTIONS

LEASED ETHERNET WIMAX SERVICE DELIVERY OPTIONS

SONET/SDHAccess ring

Ethernet over TDM

WiMax BTS

Ethernet resilient ringNative Carrier Ethernet

Ethernet over PDH(T1/E1)

SONET/SDH

Carrier Ethernet

10 Gbe

Athena

Athena


ETHERNET SOLUTIONS FOR WIMAX,2G/3G BASE STATIONS

ETHERNET SOLUTIONS FOR WIMAX,2G/3G BASE STATIONS

Carrier Ethernet

Ethernet resilient ring

WiMax BTS

WiMax BTS

ATM

2G/3G base Station

T1/E1

WiMax BTS

SONET/SDHAccess ring

2G/3G base Station

Ethernet radio

Microwave

Pseudo-Wire backhaul:WiMax co-located with CDMA/GSM/UMTS

Microwave backhaul:WiMax co-located with CDMA/GSM/UMTS

Microwave Radio Microwave Radio

WiMax BTS

WiMax BTS

WiMax BTS

Campus Ethernet

10 GbE

10 GbE

Ethernet over PDH(T1/E1)

Athena

Athena

Athena

Athena

WiMax BTS

Secure RouterIP/PPP

10/1000/1000


CONCLUSIONCONCLUSION

Proprietary and Confidential - Athena Technology, Inc.Proprietary and Confidential - Athena Technology, Inc.25

• Optimized Software

• High Density

• Carrier Grade

Athena SwitchesAthena Switches

Completely none blocking

Robust Management Software

Meets all Carrier requirements for placement in the Core Network

Higher Capacity than any competitor

Operates at the speed of the lines

• Aggressive Cost/Price Model

• High Performance

16% of Competitor’s Cost30% of Competitor’s Price


ATHENA BENEFITSATHENA BENEFITS Compatibility

Industry standard provisioning and operationIndustry standard communication interfacesCoexistence with present equipment

PerformanceCompletely non-blockingLine speed operation across the systemLatency neutrality providing Stratum 1 clock capability

ScalabilityUp to 576 10GE ports in a single chassisUp to 1152 1GE ports Low basic unit cost

CostPricing at 1/2 to 1/3 of competitionNo expensive “forklift” replacement

CompatibilityIndustry standard provisioning and operationIndustry standard communication interfacesCoexistence with present equipment

PerformanceCompletely non-blockingLine speed operation across the systemLatency neutrality providing Stratum 1 clock capability

ScalabilityUp to 576 10GE ports in a single chassisUp to 1152 1GE ports Low basic unit cost

CostPricing at 1/2 to 1/3 of competitionNo expensive “forklift” replacement

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Athena Overview

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