Per AnderssonCEO

Tornado Market Growth

A really big tornado is forming on the horizon.

“Bigger than the world’s telephone network, more revolutionary than the Internet, and with the potential to create more wealth than the PC industry.”

“In our opinion, the next tornado will be the deployment of a broadband, packet-based public network.” Source:

http://www.nextgenerationnetworks.com

TerminalAccess net

or LANISP or

EnterpriseBackbone Transmission

Network Anatomy

Copper & wireless Interconnect OpticalCopper & wireless Interconnect Optical

Complexity Switching SpeedComplexity Switching Speed

= Switch orRouter

Moore’s Law

Electronics evolve exponentially• Both Logic speed &

complexity(the number of functions per chip)double every 18 months

• Driven by fabrication technology

• Demand for network capacity growths even faster!

What is microelectronics?

Chip, or Integrated Circuit, in opened package

System built from severalpackaged chips

Fabrication of Integrated Circuits

Chip, also called die

Wafer, a discof silicon

Design to Win!

FunctionalDesign

PhysicalImplementation

Form Similar to software Patterns on silicon

Challenge ComplexityArea, power,pin-count

Key tool Architecture, i.e.,conceptual solution

Structure andregularity

Quality Powerful Simple

The Technology is a Methodology

Simple and RegularSilicon Structures

SwitchCore’sCXE-technology

PowerfulNetworking

Architectures

SwitchCore’s Unique Edge

Networking Powerthrough

Silicon Simplicity

Networking Powerthrough

Silicon Simplicity

Step-by-step development

• Four-step process• Each step results in a prototype• Simulation, evaluation and

improvement

Switch prototype

First generation products

• CXE-16; Wire speed IP-switch/router for 16 ports running Gigabit Ethernet on single chip

• Well ahead of competition

• Complementary and companion products to address other market segments

• Limited scalability

Marketing Strategy

• Strategic Relationships– Customers– Partners– Industry Analysts– Media

• Marketing Communications (Marcom)– Contributed Articles– Quotes in Articles– Trade Shows– World Wide Web

Business Development Strategy• Focused development on the market

leaders– Build / Continue Relationships with key

decision makers at each customer site

• Provide a high interaction experience – Frequent person to person contact

• Provide prompt technical support– Have highly trained support personnel

Sales Process

• Five phases to sales process

• Each phase has a definite start and stop point

• All phases must be completed for a design win (sale) to be complete

Phase 1 - The Introduction

• Initial first level of meeting• Show non-confidential presentation• Judge level of interest and synergy• Build the groundwork for confidence

and trust in SwitchCore

Introduction

Phase 2 - The Disclosure

• Present confidential information• Exchange data sheet and customer

requirements• Receive feedback on data sheet• Show demonstration of evaluation

board

DisclosureIntroduction

Phase 3 - The Proof

• This phase gives the best indication on

the level of interest from customers

• Customer test the evaluation boards

themselves

ProofDisclosureIntroduction

Phase 4 - The Design Win

• Sample order placement from customer

• SwitchCore holds a design review with the customer on customer’s design

• Design win is announced to public

Design WinProofDisclosureIntroduction

Phase 5 - Production

• Completed testing of the customer design with SwitchCore products

• First production quantity purchase order is placed

• On-going support begins

ProductionDesign WinProofDisclosureIntroduction

The Company

Research village Ideon in Lund, Sweden– Headquarters– Design team– 32 employees

Stockholm, Sweden– Reference design– 12 employees

Silicon Valley, San Jose, CA– Worldwide sales and marketing– 8 employees

Quote from Dataquest report

“...10/100/1000-Mbps Layer 3/4 chipsets are currently under development with vendors such as SwitchCore leading the charge.”

Dataquest, July 1999, by Jeremey Donovan