1. CALEAMarket Overview Robert GoldenChief Research OfficerMerit NetworkCALEA and BeyondJanuary 31, 2007

2. Lawful Interception of Digital Communications of All Types Capture of Identifying Information Origin Direction Destination Termination Date/Time CALEA Intercept Legal Requirements Source: Frost & Sullivan, U.S. CALEA Market Insight 6841-63, 2003

3. 2005 Wiretaps by Type of Criminal Investigation Other*: Bribery, Kidnapping, Larceny & Theft, etc. Source: U.S. Courts Federal & State Wiretap Reports (1997 – 2005)

4. Categories of Surveillance Wire - land line, cellular, cordless & mobile Oral - microphone Electronic - incl. computer transmissions Source: U.S. Courts Federal & State Wiretap Reports (1997 – 2005)

5. Wiretap Growth Growth Accelerating Source: U.S. Courts Federal & State Wiretap Reports (1997 – 2005)

6. Cost of Compliance for Intercept Orders $57,186Per InterceptGrowing 5% to 7% per year Total Estimated Cost: $100+ Million/Year Source: U.S. Courts Federal & State Wiretap Reports (1997 – 2005)

7. 1. Apply an Equipment Solution to Each Piece of Equipment (e.g. each switch) 2. Utilize a Mediation Solution that works with all network elements to provide lawful interception 3. Engage a Trusted Third Party (TTP) Solution Options to Achieve CALEA Compliance

8. Access Function Delivery Function Collection Function Primary Functions to Achieve CALEA Compliance

9. 1. Access Function defines intercept access points in the network access points can either be: located at network equipment exits (routers, switches, gateways, etc.) or passive probes placed strategically in the network CALEA Functions

10. 2. Delivery Function warrant for the target is entered here communicates with the access function provides target identifying information phone number IP address email address chat handle, etc. CALEA Functions

11. 2. Delivery Function (continued) Receives intercepted traffic from all access functions in the network Processes intercepted traffic: formats it encapsulates it according to the interface standards delivers it to law enforcement Acts as bridge to Law Enforcement Agency CALEA Functions

12. 3. Collection Function (operated by LE Agency) Application that receives intercepted traffic Complies with delivery standards Provides advanced tools for: analyzing data building relationships between targets creating link charts tracking target activities and compiling evidence for court CALEA Functions

13. CALEA Costs Calculating the Cost Software Cost $$ Hardware Cost $$ FTE’s Administrative Cost $$ Tech Support $$ Maintenance $$ Legal $$ $$$

14. Fully Managed Service Providers (TTP) VeriSign – public key solutions (verisign.com) NeuStar – telecom directory services (neustar.biz) APOGEE – dormitory network systems (apogeenet.net) System Providers Narus– software suite (used by VeriSign – narus.com) SS8– mediation box manufacturer (SS8.com) AQSACOM– ALIS client/server platform (aqsacomna.com) Endace – traffic monitoring and capture systems (preparing a service solution – endace.com) CALEA Providers

15. TTP Providers

16. Merit’s Products and Services 1. Open Source Solutions • First Tool: An Open Source Program for Performing Access and Delivery Functions • Available at Beginning of 2nd Qtr 2007 2. CALEA Support Services • Technical Advisory Services • Hardware and Software Support Services • Trusted Third Party (TTP) Services