ClearOne Due Diligence findings and other matters07/20/2005

Chat Products

Introducing CHAT 50!!

Delivers hands-free, un-tethered, high-quality full-duplex audio in a wide variety of settings.

Chat 50 – USB connection

Connected to a PC via USB cable:> Internet telephone

- Skype, Vonage> VoIP softphone

- Cisco, Nortel, Avaya, Inter-Tel etc.

> Web conferencing- WebEx, Sametime,

LiveMeeting> IM with chat

- AOL, Yahoo, MSN> Audio playback - .mp3 files,

CDs> PC-based gaming with

TeamSpeak feature> Desktop videoconferencing

Chat 50 – Connect to your existing phone

Connected to telephone with headset jack:> Significant audio performance improvement over built-in

speakerphone. Cable has 3.5mm jack for Chat 50 and RJ9 modular connection for the headset jack on your existing phone.

Chat 50 – Connect to your cell phone

Connected to cell phones:> Significant audio performance improvement over built-in

speakerphone. Multiple cable options for different cell phones (3.5mm to Chat 50 on one end & 2.5mm to headset jack on cell phone)

Chat 50 – Connect to iPod/MP3 players

Chat 50 – Connect to a desktop videoconferencing device

Connected to desktop videoconferencing system:> Significant audio performance improvement over built-in mics

and speaker. Multiple cable options for different systems (3.5mm to Chat 50 with options for 3.5mm or RCA)

Chat 50 – product details

Pricing:> Chat 50 USB $149.99 – Includes: Chat 50 Personal Speakerphone

and USB cable> Chat 50 USB Plus $179.99 – Includes: Chat 50 Personal Speaker

Phone, USB cable, 2.5mm-3.5mm cell phone audio cable and power supply

> Chat 50 Global Traveler $209.99 – Includes: Chat 50 Personal Speaker Phone, USB cable, 2.5mm-3.5mm cell phone audio cable, power supply (with power supply clips for US, EUR, UK, AUS), hard shell travel case and iPod/MP3 interface cable

Accessories:> Hard shell travel case> Telephone interface cables> Cell phone cables> iPod/MP3 interface cable> Desktop videoconferencing cable

Chat 50 vs. Communicator

MSRP $149 - $209 Full-duplex Mute button USB Cell phone connection MP3 player connection Telephone connection Videoconferencing devices Built in DSP chip for AEC 2 year warranty

MSRP $129 Full-duplex Mute button USB No cell phone connection No MP3 player connection No telephone connection No videoconferencing

devices No built in DSP chip for

AEC 1 year warranty

Chat 150

True full-duplex performance Distributed Acoustical Echo

Cancellation Noise Cancellation Automatic level control Advanced microphone gating

algorithms Wideband audio frequency response

(20Hz-20kHz) Multiple connectivity options via

breakout boxes & USB 3 built in microphones (12ft

coverage) USB/analog mix feature for 3 way

calls Chat software

Chat 150 Usage Models

Audio conferencing peripheral for three categories of devices:

Enterprise handsets PC’s Video conferencing systems

Chat 150 – Enterprise Handsets

Instead of replacing your handset with a conference phone, add the Chat 150

Retain all of the features that you enjoy on your phone:

Access to company phone directory

Dialing ad-hoc (“meet me”) audio bridge

Retrieving voicemail Transferring calls

But replace the poor-quality speaker on your phone with a rich, high-quality solution

Chat 150 – Enterprise Handsets

Almost completely eliminates the issue of what kind of line do I need (analog, digital, VoIP)

Breakout boxes will be specific to manufacturer (some crossover may occur)

Current target list: Cisco Avaya Inter-Tel Nortel Siemens Alcatel NEC 3Com

Chat 150 – PC’s & Video conferencing

PC’s VoIP soft phones Web-based video

conferencing IM with chat Audio playback Skype

Video conferencing systems Set-top Installed Logical replacement for

AccuMic, although no daisy-chain capability

Chat 150 – Breakout Boxes

Handsets – Plugs into headset jack. Includes headset jack. Privacy button mutes Chat 150 and re-routes audio to headset jack. (RJ-9)

VC version – RCA in and out. Button mutes speaker on Chat 150 and re-routes speaker audio back to TV or in-room sound system.

Note that the USB port is located on Chat 150 and therefore all sku’s have PC capabilities.

Chat 150 – Pricing & Availability

Pricing: Chat 150 USB $399 Chat 150 VC $449 Chat 150 Cisco $449 Chat 150 Avaya$449 Chat 150 Inter-Tel $449 Etc.

Availability Mid-October 2006 USB, VC, Cisco Additional phone breakout

boxes coming soon

Chat 150 vs. SoundStation2 Avaya 2940

SoundStation2 Avaya 2940 $1,049 MSRP Full-duplex Automatic Gain Control Gated microphones 3 built in microphones 1 built in speaker 10 foot mic coverage No USB connection Not compatible with video No headset jack 1 year warranty

Chat 150 $449 MSRP Full-duplex Automatic Level Control Gated microphones 3 built in microphones 1 built in speaker 12 foot mic coverage USB to PC Videoconferencing

compatible RJ9 headset jack for privacy 2 year warranty