Business Plan Presentation

1. Mobius Microsystems Inc. 3430 E. Jefferson Ave. #140 Detroit, MI 48207 313.205.3489 www.mobius-microsystems.com management@mobius-microsystems.com Business Plan Presentation Spirit of Enterprise Business Plan Competition Indianapolis, IN February 22, 2002 This Business Plan presentation is intended solely for informational purposes. The information contained herein is believed to be reliable, but the management team makes no representations or warranties with respect to this information. The financial projections that are part of this plan represent estimates based on extensive research and on assumptions considered reasonable, but they are of course not guaranteed. The contents of this plan are confidential and are not to be reproduced without express written consent of Mobius Microsystems Inc. © February 2002 Confidential Information

2. Overview • Vision Statement • Management Team • Technology • Industry, Market, and Competition • Marketing and Sales • Business System • Financials

3. Vision Statement The world today is a mix of digital and analog technologies. Every day, system engineers are forced to assemble discrete components to meet the requirements of this mixed-signal world. Mobius’ vision is to profitably deliver cutting edge mixed-signal technology solutions that enable a new generation of integrated high-performance, low-noise, mixed-signal silicon products, while significantly reducing price, size, and power consumption. Vision Team Technology Industry Marketing B. System Financials

4. Management Team Richard J. Goldstein, President & Chief Executive OfficerRichard is a veteran technology entrepreneur with twenty-five years of experience that includes 15 years of Profit & Loss leadership. His most recent position was as Chief Operating Officer at Synergetic Micro Systems of Downers Grove, IL. Synergetic completed and launched a three-year system-on-chip development program targeted at embedded communications. Synergetic was recently sold to a public company in multi-million dollar merger. Michael S. McCorquodale, Chief Technology OfficerMichael is a Ph.D. Candidate in Electrical Engineering at The University of Michigan. Michael also possesses significant industrial microsystems design experience with Hughes Space and Communications Company as well as experience engaged in collaborative research efforts with Analog Devices, IBM, and MOSIS.  James Vincke, Chief Financial OfficerJim is a veteran entrepreneur with twenty years of experience in business development & technology. Jim was a critical part of the successes at Mechanical Dynamics of Ann Arbor, MI where he held several positions from manager of accounting and personnel to Chief Financial Officer. Jeff Wilkins, Vice President of Business DevelopmentJeff is currently an MBA student at the University of Michigan Business School, graduating in 2003 with a marketing strategy focus. Prior experience includes consulting, corporate banking, business development, and entrepreneurship. Vision Team Technology Industry Marketing B. System Financials

5. Physical (Hard) MacroIntellectual Property (IP) Semiconductor Device Packaged Semiconductor Product Technology Overview • Semiconductor IP • Blocks that are placed into larger designs • Variety of delivery formats • Many applications • Manufacturing is customer’s responsibility • Low technology development overhead • Low COGS • Successful Technology Model: ARM, MIPS, RAMBUS Vision Team Technology Industry Marketing B. System Financials

6. How IP and Why IP is Used Motorola is Building a Cell Phone • Market opportunity and window identified • System specification defined • Chip specification defined and handed off Chip Designers Need to Meet Deadline and Budgets • Develop majority of chip in-house • Buy 3rd party IP (Mobius) for some functions • Integrate IP with their design and send to fabrication facility for manufacturing What Mobius Offers System Designers • Lower power to meet power budget • Less space so final product can be smaller • Considerable cost savings • Speed to market Vision Team Technology Industry Marketing B. System Financials

7. Microsystems Technology Mixed-SignalCircuits MEMS Vision Team Technology Industry Marketing B. System Financials

8. Clock Generation Technology AMDAthlonProcessor (1 GHz) Clock Signalfclk= 1GHz Initial Product Opportunities So what makes it run at 1GHz? ALL microprocessors, microcontrollers, and programmable logic devices require a clock signal to operate Vision Team Technology Industry Marketing B. System Financials

9. microprocessor crystal electronics Initial Product Opportunities • PartCost • Oscillator $ 1.88 • 48 MHz Crystal $ 0.39 • One resistor $ 0.02 • Two Capacitors $ 0.16 • Board Space $ 0.30 Total build cost $ 2.75 Mobius replaces these crystal electronics with IP embedded inside the microprocessor! Vision Team Technology Industry Marketing B. System Financials

10. microprocessor crystal electronics Mobius’ On-ChipClock Macro 4mW POWER 100mW 0.09 mm2 SIZE 0.5 in2 100MHz – 1GHz TUNING Fixed $0.39 COST $2.75 Initial Product Opportunities vs. Vision Team Technology Industry Marketing B. System Financials

11. Technology Roadmap On-Chip Clock: 1st Product • Patent Applications Submitted • Prototype Manufacturing in Process: IBM and TSMC Analog Front End: Follow-on Product • Analog and Mixed-Signal Blocks for Sensing • Patent Applications Submitted • Prototype Manufacturing Complete: TSMC Mixed-Signal System-on-Chip Library • Complete Mixed-Signal IP Library for System-on-Chip Design • Library will be Completed throughout Commercialization Effort of Initial Products Vision Team Technology Industry Marketing B. System Financials

12. Industry, Market, and Competition Industry Overview • Semiconductor Industry (2001): $150 Billion • CAGR: 8% • Microprocessors, Microcontrollers, and Programmable Logic Devices Represent 1/3 of This Market • System-on-Chip (2001): $40 Billion • CAGR: 35% • Semiconductor IP (2001): $1 Billion • CAGR: 55% Largest growth in system-on-chip segment, afforded by faster time to market through 3rd party semiconductor IP Vision Team Technology Industry Marketing B. System Financials

13. Industry, Market, and Competition Addressable Market • Currently no Semiconductor IP has Very Broad Application • Mobius On-Chip Clock Addresses 1/3 of the Entire Semiconductor Market • 11.85 Billion Units ($47.5 Billion) • Mobius Intends to Capture 1% of this Market in Two Years Mobius’ revenue potential is larger than the entire existing IP market due to the broad application of the on-chip clock Vision Team Technology Industry Marketing B. System Financials

14. Industry, Market, and Competition Competitive Landscape • Indirect Competitors • Discrete Component Clock Generation: Epson • Potential Direct Competitors • Companies with Microsystems “know-how” Motorola and Analog Devices Greatest challenge is displacement of entrenched technology Vision Team Technology Industry Marketing B. System Financials

15. Industry, Market, and Competition Mobius’ Sustainable Competitive Advantage • Patent-protected defensible Intellectual Property • Design cycle lead and Microsystems development trade secrets • Industrial membership and “first-look” rights to IP from The University of Michigan Center for Wireless Integrated Microsystems • IP business model hindsight is 20/20 Vision Team Technology Industry Marketing B. System Financials

16. Marketing and Sales Strategy Marketing Push Strategy • By leveraging established relationships, Mobius can create a strong market presence with low dollar expenditures in a short time • Taiwan Semiconductor, IBM, National Semiconductor, and Atmel account for $10 Billion of semiconductor sales • Manufacturing licenses with these companies will push the Mobius product down to their large customer base Vision Team Technology Industry Marketing B. System Financials

17. Marketing and Sales Strategy Marketing Pull Strategy • Leverage established relationships • Sell design licenses to chip designers • Their demand forces manufacturers to purchase a fabrication license Vision Team Technology Industry Marketing B. System Financials

18. Business System Revenue Model • Design or Manufacturing-only Licenses: $350,000 • Design and Manufacturing License: $600,000 • Royalties: $0.10 per unit Business Location and Infrastructure • Corporate Offices and R&D: Detroit, MI • Sales Force: Silicon Valley, CA Vision Team Technology Industry Marketing B. System Financials

19. Financials Financial Highlights • First Customer Contract and Revenue in 2002 • Cash Flow Positive and Profitable in 2003 • Small Initial Capital Offers Large ROI • Only Commercialization Effort Required for Initial Product • Future R&D Funded by Cash Flow from Operations • Expecting to Offer Investors Equity Exit 2006 Vision Team Technology Industry Marketing B. System Financials

20. Investment Oportunities • Seeking $1.5 Million in Angel Capital (2002) • Uses: CAD Hardware; Software Infrastructure On-Line; Office Space and Personnel • Milestone: Delivery of First Product: On-Chip Clock; Secure 1st Customer Contract • Seeking $5 Million in Institutional Capital (2003) • Uses: Expansion of Infrastructure and Personnel • Milestone: Delivery of Analog Front End Product and Second Generation of On-Chip Clock Vision Team Technology Industry Marketing B. System Financials

21. The Mobius Strip The Challenges Disparate Digital and Analog Technologies Discrete Components Need for Size, Power, Price Reductions The Solution Convergence of Parts into One Whole Mobius’ Mixed-Signal IP Mobius’ Value Proposition Mobius will continually transform challenges into solutions while changing the world as we know it...

22. Closing We welcome any questions