Video54 is a startup developing Wi-Fi solutions for high-performance digital media networks. Their technology, called Hyper-Diversity, uses a dynamic antenna array and real-time software control to provide consistent whole-home Wi-Fi coverage and throughput. This allows simultaneous streaming of multiple high-definition videos, audio, and data across a home network. Their standalone access point is planned for Q4 2004 and aims to enhance the performance of existing Wi-Fi devices for media applications without requiring new standards or chipsets.

1. Video54 Confidential. Do Not Distribute Without Video54’s Consent
Wi-Fi for Digital MediaWi-Fi for Digital Media

2. Video54 Confidential. Do Not Distribute Without Video54’s Consent
Video54 Introduction
Page 2
Who we are
• Series-A startup
 Funded by Sequoia Capital and private investors
• Developing Wi-Fi solutions for high performance
digital media networks
• Industry veterans with expertise in networking,
communications software, wireless, antennas,
home networking and consumer electronics
• R&D since September 2002
• Alpha stage technology prototype
 Real world testing in 15+ actual homes
 Extensive simulations

3. Video54 Confidential. Do Not Distribute Without Video54’s Consent
Video54 Introduction
Page 3
People
• Selina Lo, CEO
 Alteon, Nortel, Bay Networks, Centillion Networks, NET, HP
• Bill Kish, Founder and CTO
 Real-time networking systems & protocols
 Fore Systems, Berkeley Networks, Lightera/Ciena
• Victor Shtrom, Founder and Chief Wireless Architect
 Smart antennas, Wireless propagation, MIMO-OFDM
 Argo Systems, Boeing, Iospan Wireless
• Dominic Orr, Chairman
 Aruba Wireless, Alteon, Nortel, Bay Networks/Netgear, HP
• Gaurav Garg, Director
 Sequoia Capital
 Co-Founder Redback Networks

4. Video54 Confidential. Do Not Distribute Without Video54’s Consent
Video54 Introduction
Page 4
Media Networking: the New Growth Area
• 11M networked media devices
shipped in 2003, 89M by 2007
• 1% home networks carry
media traffic* in 2003,
9% by 2005, 25% by 2007
* Excluding online gaming
Source: In-Stat/MDR, 2004
Wi-Fi TV
Cellular
Satellite
Premium
Content
Wi-Fi TV
DVR
Game
Console
Set-top Box/PVR
TV with Media Adapter
Networked
Camcorder
Game
Console/PVR
Media Receiver
Wi-Fi TV
Wi-Fi
IP
Phone
Stereo w/
Media Adapter
Audio
Jukebox
Media Server
Wi-Fi
IP
Phone
Wi-Fi TV
Internet
DSL/Cable Wireless Router
Data NetworkData Network
Media NetworkMedia Network
• 28% home networks are Wi-Fi
in 2003, 69% by 2007

5. Video54 Confidential. Do Not Distribute Without Video54’s Consent
Video54 Introduction
Page 5
Media Networking Requirements
• Simultaneous media applications
 Streaming videos from PC to any TV at home
 Streaming music from PC/PDA/MP3-player to home stereo system
 Making VoIP calls across broadband WAN
 Multi-user gaming
 Streaming photos in PC/PDA/camera for viewing on TV
 Telemetry (security, meter-reading, etc)
• Multiple traffic streams requiring differentiated treatment, eg:
 1 DVD-quality video stream: 3.5-10 Mbps at < 50 ms jitter
 2 local gaming users: 7-20 Mbps at < 20-50 ms jitter
 2 VoWLAN streams: 0.128 Mbps at < 50-100 ms jitter (local)
 2 CD-quality audio streams: 0.256 Mbps
 ABR traffic: 0.386 Mpbs
 Total house: 13-31 Mbps continuous bandwidth w/ <50ms jitter
• Whole house coverage:
 Typically 30 – 150 ft range
 Typically 1 - 4 intervening walls

6. Video54 Confidential. Do Not Distribute Without Video54’s Consent
Video54 Introduction
Page 6
A Fundamental Problem
Show-stopper for digital media applications!
• Wi-Fi is unpredictable
 Irregular throughput due to inconsistent data rates
 Limited range
 Spotty coverage
 Inherently unreliable
• Interference & multipath
• Physical adds/moves/changes affect the network
• San Jose Mercury News: “I put the base station [of the Sharp Aquos Wi-Fi TV] in
the living room…. Reception was excellent within the living room, but faded in my bedroom just 25
feet away after passing through several walls…. When I turned on the microwave oven in my
kitchen, …, the Aquos immediately stopped, with an unmoving image and no sound…. June 2004

7. Video54 Confidential. Do Not Distribute Without Video54’s Consent
Video54 Introduction
Page 7
The Coverage Problem
Signal
Shadowed
Strong Signal
mirror
RF
Interference
RF
Interference
RF
Interference
Multipath Interference
AP
Multipath

8. Video54 Confidential. Do Not Distribute Without Video54’s Consent
Video54 Introduction
Page 8
Multipath Interference
Constant shifting of signal strength compounds the problem!
RelativeSignalStrength(dB)
1 foot
Red areas indicate > 5dB signal fade
System with 5dB margin will experience outage if antennas are located in red areas
time time
Top
view

9. Video54 Confidential. Do Not Distribute Without Video54’s Consent
Video54 Introduction
Page 9
Micro
Spatial
Polarization Pattern
TemporalFrequency
Macro
Spatial
Hyper
Diversity
Our Technology: Hyper-DiversityTM
• Hyper-diversityTM
Antenna
 Dynamic antenna array
 Many signal paths (orders of diversity)
• Real-time software antenna control based on
 Network condition
 Real-time calibration
• Extends range; full house coverage
• Protects against interference
• Provides consistent performance
• Compatible with 802.11 a/b/g
• Utilizes standard low-cost chipset
• “Soft MIMO”

10. Video54 Confidential. Do Not Distribute Without Video54’s Consent
Video54 Introduction
Page 10
How Hyper-Diversity Antenna Works
• Software learns and tracks changes in the environment
• Dynamically controls antenna patterns for different end points
• Selects optimal antenna configuration to maximize received power and
avoid link outages
• Can be implemented on transmit-only, receive-only or both sides
Video54 Hyper-diversity antenna
Situation causing a change in multipath locations, eg, dog walking by, door opening or shutting, etc
time

11. Video54 Confidential. Do Not Distribute Without Video54’s Consent
Video54 Introduction
Page 11
Our Technology: Media QoS
• Intelligent bandwidth and traffic control
for delay sensitive applications
• 802.11e and more
• Media optimized at all levels
 Flow classification
 Rate selection via intelligent antenna
switching
 Contention Window Management
minimizes delay for real-time streams
 Retransmission Strategy
• TCP specific MAC enhancements
 TCP treats loss as congestion, not the case
with Wi-Fi
Traffic Classification
TCP/UDP
IP
Media QoS
Rate
Selection
Re-
transmission
Queue
Mgmt
Video
Enhancements
Dynamic Antenna Control
Security & Configuration

12. Video54 Confidential. Do Not Distribute Without Video54’s Consent
Video54 Introduction
Page 12
0
5
10
15
20
25
30
35
40
0 10 20 30 40 50 60 70 80 90 100
High Definition MPEG-2
DVD MPEG-2
WM9 Standard Definition
WM9 High Definition
IP-LayerThroughput(Mbps)
Distance (ft)
Video54 802.11g AP
Off-the-shelf 802.11g AP
Typical household (signals
traversed up to 4 walls)
Throughput and Range Improvements
HDTV (Japan)
2X throughput at 36 feet (through 3 walls)
>1.8X distance improvement at 25Mbps

13. Video54 Confidential. Do Not Distribute Without Video54’s Consent
Video54 Introduction
Page 13
0.0001
0.001
0.01
0.1
1
35 40 45 50 55 60 65 70 75 80
0.0001
0.001
0.01
0.1
1
35 40
Service Consistency and Reliability
36Mbps PHY rate performance with walls at 19, 38, 56 and 75ft
Distance (ft)
LinkOutageProbability
90%
99%
99.9%
99.99%
LinkAvailability(%)
Two antenna
Maximal Ratio Combining
* higher performance than
anntennas in off-the-shelf APs
Video54
Hyper-DiversityTM
1% probability =
more than one
outage a minute

14. Video54 Confidential. Do Not Distribute Without Video54’s Consent
Video54 Introduction
Page 14
3
4
5
6
7
8
9
10
11
80 90 100 110 120
Receiver with standard Antennas: Atheros 5211 mini-PCI card, Micro Mobio MMPA745 power amp, two 4dBi DWL-AB520 off-the-shelf omni antennas.
Video54 receiver uses same power amp and PCI card equipped with our Hyper Diversity Antennas
Video54 Hyper-Diversity Antenna vs Typical Omni Antenna
Measured SNR GainVideo54ReceivedSNRgain(dB)
Total Pathloss (dB)
Multipath Region

15. Video54 Confidential. Do Not Distribute Without Video54’s Consent
Video54 Introduction
Page 15
Home Networking Technologies
Band-
width Reach QoSCompetitors Cost Notes
Vendor
Support
Consumer
AdoptionG
ood
G
ood
G
ood
G
ood
G
ood
G
ood
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Fair
Excellent
Excellent
Excellent
Excellent
Excellent
Excellent
Excellent
Excellent
Excellent
Excellent
Excellent
Excellent
Poor
G
ood
Poor
N
/A
N/A
N/A
N
/A
N/A
Video54
G
ood+
G
ood+
Excellent
Excellent
Excellent
Excellent
Source:
In-stat/MDR
4/04
Available Q4 2004

16. Video54 Confidential. Do Not Distribute Without Video54’s Consent
Video54 Introduction
Page 16
Home Networking Technologies: Penetration Forecast

17. Video54 Confidential. Do Not Distribute Without Video54’s Consent
Video54 Introduction
Page 17
Video54 Go to Market Strategy
• Standalone AP
• CE Integrated AP or Client systems
• Establish Video54 brand in high performance
Wireless Media Networking
• Partner for mass distribution

18. Video54 Confidential. Do Not Distribute Without Video54’s Consent
Video54 Introduction
Page 18
What is in it for you?
• First to market with enhancements to a proven technology
that solves a real problem in a huge growing market
• No customer resistence
 No change to existing home network and device interfaces
 Single network for data and media
 No new installation complexity
• Free you to focus on your core competence
 Content delivery
 Broadband infrastructure
 Next generation CE capabilities

19. Video54 Confidential. Do Not Distribute Without Video54’s Consent
Video54 Introduction
Page 19
Video54 Advantages
• Maximize customer experience
 Eliminates nerve-racking variability due to Wi-Fi interference
 Media and data connectivity anywhere, anyway, at home
• Performance
 Multiple simultaneous video, audio and data streams
 HDTV-ready Wi-Fi
• Availability
 Video54 Media WiFi Access Point: Q4 2004
 Enhances all existing 802.11 devices
 No need to wait for new standards/protocols/chipsets
 Technology can be integrated in media centers (eg, STBs) as AP or
Client NIC
• Low cost
 Use of off-the-shelf Wi-Fi components
 Minimal incremental costs compared to current Wi-Fi products