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Corporate Overview March 2012 Jim Skippen, President & CEO
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Page 1: Investor presentation overview

Corporate Overview

March 2012

Jim Skippen, President & CEO

Page 2: Investor presentation overview

TSX:WIN / NASD:WILN 2

SAFE HARBOUR

This presentation may include predictions, estimates or other information relating to Wi-LAN Inc and its affiliates that

might be considered forward-looking, including statements constituting “forward-looking statements” or “forward-looking

information” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other United

States and Canadian laws. These forward-looking statements and forward-looking information are based upon current

expectations and assumptions regarding anticipated developments and other factors affecting Wi-LAN Inc. and its

affiliates. They are not historical facts, nor are they guarantees of future performance. Because these forward-looking

statements and forward-looking information involve risks and uncertainties, there are important factors that could cause

actual results to differ materially from those expressed or implied by these forward-looking statements and forward-

looking information. There can be no assurance that any forward-looking statements and forward-looking information

contained in this document will prove to be accurate. Actual results and future events could differ materially from those

anticipated in such statements.

These and all subsequent written and oral statements containing forward-looking statements and forward-looking

information are based on the estimates and opinions of management on the dates they are made and expressly

qualified in their entirety by this notice. Except as required by applicable laws, Wi-LAN Inc. assumes no obligation to

update forward-looking statements should circumstances or management's estimates or opinions change. Readers are

cautioned not to place undue reliance on any statements of forward-looking information that speak only as of the date

of this presentation. Additional information identifying risks and uncertainties relating to Wi-LAN Inc.’s business are

contained under the heading “Risk Factors” in Wi-LAN Inc.’s March 9, 2012 Annual Information Form and its other

filings with the various Canadian securities regulators which are avail0able online at www.sedar.com and with the U.S.

Securities and Exchange Commission available at www.sec.com. Throughout today’s presentation, we will attempt to

present some important factors relating to our business that may affect our predictions. You should also review our

SEDAR and SEC filings for a more complete discussion of our risk factors.

Unless otherwise noted, all dollar amounts are in U.S. currency.

Page 3: Investor presentation overview

TSX:WIN / NASD:WILN

ABOUT WiLAN

• US $600M+ market capitalization (March 6, 2012)

• Revenues: licensing large patent portfolio

• Established business model

3

Qualcomm

$4B

IBM

$2B

Annual Revenues

InterDigital

$300M

Tessera

$300M

WiLAN

$105M

RPX

$100MAcacia

$130M

Rambus

$300M

Page 4: Investor presentation overview

TSX:WIN / NASD:WILN

• Growing awareness of the value of patents

• Companies exploring how to unlock value

• Inefficient patent market

PATENTS AS AN ASSET CLASS

4

July 2, 2011, Wall Street Journal August 15, 2011, National Post

Page 5: Investor presentation overview

TSX:WIN / NASD:WILN

WORLD CLASS TEAM – LEADERSHIP

• 25 years licensing, $1B patent licensing

• MOSAID, Borden Elliot

Jim Skippen

President & CEO

• 20 years financial and executive leadership

• Breconridge, Calian

Shaun McEwan

CFO

• 15 years of IP licensing experience

• MOSAID

Michael Vladescu

COO

• 25 years IP law and licensing

• GPC, Black & Decker, ABB

Paul Lerner

Senior Legal Counsel

• 17 years engineering, marketing and licensing

• SIGE Semiconductor, Nortel

Andrew Parolin

SVP Licensing

• 15 years IP business and litigation

• ICAP, Altitude Capital, Baker Botts

Daniel Henry

VP Business Development

• 14 years corporate and IP law

• AGA Medical, Sikorsky Aircraft, Martin Marietta

Matt Pasulka

VP Patent Litigation

• 15 years engineering, marketing and licensing

• Nortel, Communications Research Centre

Christian Dubuc

VP Licensing Technologies

5

Page 6: Investor presentation overview

TSX:WIN / NASD:WILN

WORLD CLASS TEAM – MULTIPLE DISCIPLINES

• 54 employees, highest revenue/employee of any

Canadian public high-tech company ($2M)

Education and Designations*

Engineers 32

Masters/PhDs 27

Lawyers 9

MBAs 3

Patent Agents 6

Accountants 2

* Indicates # of employees with given education/designation, not # of employees serving in specific role

6

Page 7: Investor presentation overview

TSX:WIN / NASD:WILN

GROWING AND DIVERSE PATENT PORTFOLIO

7

20

280 300

750970

3000+

2006 2007 2008 2009 2010 2011

Technology Patents*

Wireless Communication 1000+

Wireline Communication 300+

Digital TV and Display 1500+

Other 200

* Issued and pending patents

Page 8: Investor presentation overview

TSX:WIN / NASD:WILN

LICENSING EXCELLENCE

• Over 255 companies licensed

• Major litigations settled in 2011

• Signed license agreements worth 100s of $M

8

Page 9: Investor presentation overview

TSX:WIN / NASD:WILN

STRONG REVENUE GROWTH

2006 2011

2,1

19,226,6

35,4

50,7

$105.8M

9

30%+ Annual Cash Revenue

Growth

+ Cash revenues

M

M+M

M

M

$

$$

$

$

2007 2008 2009 2010

Page 10: Investor presentation overview

TSX:WIN / NASD:WILN

POSITIVE EARNINGS

10

! Continuing operations

+ Adjusted Earnings are earnings from continuing operations before stock-based compensation expense, depreciation & amortization expense, interest expense, unrealized foreign exchange

gains or losses, provision for income taxes and certain other non-cash, one-time, or non-recurring charges

2004 2005 2006 2007 2008 2009 2010 2011

($5.9M)

($23.9M)

($1.4M!)

$4.8M$9M

$2.5M $4.8M

$71.5M

Dramatic earnings+ growth in 2011 due to litigation settlements

Page 11: Investor presentation overview

TSX:WIN / NASD:WILN

STRONG FINANCIAL POSITION

Net cash* $200M+

Long-term debt $0

Deferred tax asset $24M

Annual dividend+ CDN $0.12

• At December 31, 2011, excluding net proceeds raised and accrued interest on convertible debenture closed on September 8, 2011. + Annual Dividend approved for 2012, first quarterly eligible dividend of CDN $0.03 per common share declared with release of W iLAN’s FY 2011 Financial Results

Listed on NASDAQ Global Select Market

11

Page 12: Investor presentation overview

TSX:WIN / NASD:WILN

WILAN HAS JUST BEGUN – FIVE YEAR STRATEGY

• Realistic plan to increase revenue to $200M+

• Current programs

• Gladios IP – licensing partnerships

• New programs (acquisitions, R&D)

• Fair value of licenses has increased

• Larger portfolio, stronger patents

• US headquarters in Florida

12

+ Considers many third party factors including volumes of infringing products and wholesale value of infringing products,

Page 13: Investor presentation overview

TSX:WIN / NASD:WILN

REVENUE DRIVERS – CURRENT PROGRAMS

Sources: Display Search, Dell’Oro, Strategy Analytics, IDC, WiLAN

* Estimate considers unit volumes of infringing products, wholesale value of infringing products, fair royalty rates, remaining patent lives. Not an estimate of potential annual revenues.

13

2010 Device Sales:

Over $100B (WW)

2010 Device Sales:

Over $26B (NA)

2010 Device Sales:

Over $140B (WW)

2014 Device Sales:

Over $25B (WW)

2010 Device Sales:

Over $100B (WW)

3G

Today Future

Page 14: Investor presentation overview

TSX:WIN / NASD:WILN

REVENUE DRIVERS – LICENSE OPPORTUNITIES

New

Licenses

Products In Litigation

Cellular

infrastructure

Yes

Cellular

handsets

Yes

Cellular

infrastructure

Yes

Cellular

handsets

Yes

Cellular

handsets

Yes

Cellular

handsets

Yes

DSL

infrastructure

Digital televisions

Renewed/Expanded

Licenses

Products In Litigation

Digital

televisions

Yes

Cellular

handsets

Cellular

handsets

Yes

Cellular

handsets

Digital

televisions

14

Page 15: Investor presentation overview

TSX:WIN / NASD:WILN

Technology Devices Remaining

Defendants

Agreements /

Settlements

Phase

V-Chip DTV LG

Summary

Judgment

3GPP Cellular

Base

Stations

Alcatel-Lucent,

Ericsson,

Sony Ericsson,

HTC

LG Discovery

Wi-Fi, CDMA Cellular

Handsets

Apple,

Alcatel-Lucent,

Dell, HP,

HTC, Kyocera,

Novatel Wireless,

Sierra Wireless

Initial

Pleadings

Bluetooth,

E-mail/Text

Editing

Cellular

Handsets

RIM Court Filing

REVENUE DRIVERS - SIGNIFICANT LITIGATIONS

15

Page 16: Investor presentation overview

TSX:WIN / NASD:WILN

REVENUE DRIVERS – GLADIOS IP

• WiLAN subsidiary

• Partnerships to generate additional revenue

with limited risk and investment

• Seven partnerships to date

• Technologies include remote access and internet

advertising

• 1st partner litigation launched in January 2012

16

Page 17: Investor presentation overview

TSX:WIN / NASD:WILN

NEW PROGRAMS – PATENT ACQUISITIONS

• Significant financial resources on hand –$200M+*

• Proven ability to acquire undervalued assets

DOCSIS patent

Bluetooth patents

Wireless patents

17

* At December 31, 2011, excluding net proceeds raised and accrued interest on convertible debenture closed on September 8, 2011.

At December 31, 2011, excluding net proceeds from convertible debenture closed on September 8, 2011.

Page 18: Investor presentation overview

TSX:WIN / NASD:WILN

PATENT ACQUISITIONS

18

Page 19: Investor presentation overview

TSX:WIN / NASD:WILN

RESEARCH AND DEVELOPMENT

• R&D drives future revenue prospects

and business opportunities

• Next generation wireless technology

• Spectrum sensing in Whitespace

• LTE in picocell networks

19

Page 20: Investor presentation overview

TSX:WIN / NASD:WILN

FINANCIAL HIGHLIGHTS

• Annual dividend increased 20% to $0.12 per

common share+

20

Q4 2011

Results

FY 2011

Results

Q1 2012

Revenues $24.2M,

up 120% y/y

$105.8M,

up 115% y/y

$21.6M^

Adjusted Earnings+ $17.8 M $71.5M $11M to $14M^

GAAP Earnings ($6.1M) $31.8M

+ Adjusted Earnings are earnings from continuing operations before stock-based compensation expense, depreciation & amortization expense, interest expense, unrealized foreign exchange gains or

losses, provision for income taxes and certain other non-cash, one-time or non-recurring charges.

Q1 2012 Financial Guidance

* $0.12 per share annual dividend approved for 2012, first quarterly eligible dividend of CDN $0.03 per common share declared with release of WiLAN’s FY 2011 Financial results

Page 21: Investor presentation overview

TSX:WIN / NASD:WILN

ANALYST COVERAGE

21

Analyst Rating

Byron Capital Markets Buy

Canaccord Genuity Buy

Craig-Hallum Capital Buy

CIBC Sector Outperform

Davenport & Co Buy

Fraser Mackenzie Strong Buy

Northland Capital Sector Outperform

Paradigm Capital Buy

Versant Partners Buy

All analysts have buy recommendations

Page 22: Investor presentation overview

TSX:WIN / NASD:WILN

CONCLUSION

• Significant value generated over last five years

• Just beginning to realize business potential

• Five year growth strategy to drive long-term

and sustained increase in shareholder value

22

VALUE GROWTH


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