1. Alex Ferrara, June 23rd, 2010 Mobile Computing Roadmap Confidential

2. 1 Agenda State of Mobile Computing Potential Investment Opportunities

4. Three self-reinforcing trends are driving global adoption of mass mobile computing: Moore’s Law continues to drive performance/price improvements in smart phones, netbook PCs, and tablet PCs making them increasingly affordable 3G telecom network roll-outs have enabled mobile broadband applications The massive success of the iPhone has broken the carrier walled garden and created competitionamong platforms Smart phone adoption has reached a tipping point; network effects now maintain momentum Why now? Mobile Computing in a Post iPhone World

5. With iPhone, Apple introduced a new mobile computing paradigm that consumers and competitors have embraced 4 User Interface Evolution Over Past 30 Years Text Touch Graphical User Interface Keyboard Fingers Mouse Input Device Consumers now have in their pockets: Fast processor Larger memory High-res screen Broadband Internet Camera GPS Multi-touch UI Magnetometer Accelerometer Wifi & Bluetooth Good battery life Source: Morgan Stanley, T-Mobile

6. 12minutes 33minutes 28minutes 27minutes This is paradigm is more about data, apps, and content than voice and SMS Daily Usage Breakdown % of Mobile Users Who Consume Digital Content 65% Average iPhone user spends50% more time per day, 20 minutes, using device All that extra time is spent on data features and apps 48% 21% Smart phone consumer value is more about data than voice Source: Morgan Stanley, iSuppli, CTIA, comScoreMobiLens

7. Mobile Internet NTT docomoi-mode Launched 6/99 … and it has been a tremendous success iPhone + iTouch vs. NTT docomoi-mode vs. AOL vs. Netscape Users First 20 Quarters Since Launch ~85MM Mobile Internet iPhone + iTouch Launched 6/07 Desktop Internet Netscape* Launched 12/94 ~31MM ~18MM Desktop Internet AOL* v 2.0 Launched 9/94 ~8MM Note: *AOL subscribers data not available before CQ3:94; Netscape users limited to US only. Morgan Stanley Research estimates ~50MM netbooks have shipped in first 10 quarters since launch (10/07). Source: Company Reports , Morgan Stanley Research. Source: Morgan Stanley, Katy Huberty

8. One implication is that what were devices are becoming features 7 There is (or will be) an app for that Source: Qualcomm

9. … and unlike the desktop, consumers are willing to pay for apps and content 8 Wall Street Journal 10,000 paid app iPad installs @ $17.29 per month in 60 days $3.3m in total annualized revenue ($2.1m subscription + $1.2m in advertising) WSJ.com, a decade-and-a-half old subscription site, has about 400,000 online-only subscribers In two months the iPad has added 2.5 percent to that number. The Times of London 5,000 copies sold in the first 3 days @ £9.99 £49,950 in first 3 days Early but promising Source: Graphic by Tom Fishburne

11. Mobile Commerce may be around the cornerSource: Morgan Stanley Research

13. Consumers face unprecedented choice of mobile applications and content

14. Today the value is accruing to consumers and platform vendors

15. As platforms become more open, value will accrue to consumersSource: Adapted from Anderson & Williams, “Unbundling the Mobile Value Chain”

16. Evidence Seen in the Success of App Ecosystems Source: Morgan Stanley, Distimo, Nokia, Apple, Google, RIM, Nielsen Nokia apps exclude wallpapers and ring tones RIM/Nokia excludes older devices that cannot support App stores

17. … and in Apple’s stock price performance 5 Year Dividend Adjusted Stock Price: Apple, Google, Microsoft, Palm, RIM, Nokia, AT&T, Verizon, Sprint Apple +500% Google, RIM +100% Everyone Else Market cap of Apple now exceeds that of Microsoft Source: Capital IQ, May 25 2010

19. 23% CAGR for Smartphone (2008 – 2013)AT&T Ends Unlimited Data Plan FTC clears Google/Admob

21. Android share has increased from 0% to 10% in 18 months

22. RIM and MSFT also making big investments

23. Winning platforms are consumer-focused with rich content and applicationsSource: Gartner

24. While iPhone & Android Shipment Shares Remain Low, They Have a Disproportionate Share of Web Usage 15 Global Smartphone Share of HTML Mobile Page View / Mobile Internet + App Usage / Unit Shipments Note: Net Applications collects data from ~160MM monthly visitors on mobile devices that render full HTML pages and JavaScript. Visits to WAP pages are excluded. Source: AdMob Mobile Metrics Report (3/10), Net Applications (5/10), Gartner (Q1:10).

27. Smaller install base (for now)

28. Frequent OS updates

32. Growing audience across many countries

34. Apple approval process

35. No Flash / 3rd party SDKs

36. Objective C

37. iAd Payment tollAndroid May 2010 Source: Google, Admob

38. Mobile Platform Competition and a Dynamic Ecosystem Create Opportunities for Innovative Startups and VC Mobile computing growth is creating a land grab among Strategic buyers… Mobile M&A Transactions Announced in Last 9 Months 17 … and generating interest among VCs Financings in Last 60 days

39. 18 Agenda State of Mobile Computing Potential Investment Opportunities (Redacted for Public)

40. Mobile health Mobile applications for eldercare Mobile payments Online video Multi-device synchronization & staging (e.g. Evernote, Dropbox) Retail/ecommerce Mobile enterprise Helping carriers avoid becoming dumb pipes Potential Investment Opportunities (Redacted for Public)

41. Thoughts or Comments? Contact me at alex@bvp.com Thank You

42. Thank You Confidential