Telanetix Corporation(OTC BB: TNXI)

Corporate PresentationOctober 2009

Safe Harbor Statement

This presentation includes forward-looking statements regarding Telanetix’s business, financial condition, products, competition, technology, customers and prospects that are subject to various risks and uncertainties that may cause actual results to differ materially from those referred to in the forward-looking statements.

The forward-looking statements made in this presentation are based on information known to us today and we do not undertake any obligation to update them.

We refer you to Telanetix's periodic filings with the Securities and Exchange Commission, including our most recent Form 10-K and Form 10-Q. These documents describe important risk factors that could cause actual results to differ materially from those contained in our projections and other forward-looking statements.

Communication is moving fromHardware to Software

HARDWIREDInto the Devices and the Network

SOFTWARE-BASEDFlexible Devices,

Separation from the Network

Paradigm Shift

An Historic Shift:

SMB Segment Spend

• Lock-in model of Long Term Contracts• High Cost Features

• Directory Assistance = $1.99/call• International Calling = $1.49/min• International Roaming = $1.29/min• Minimal Service Feature Innovation

• Complex Purchase Process

Paying Too Much for a Solution that Doesn’t Fit Their Needs

$37 Billion

cBeyond

Paradigm Change

Separation of the “Pipe” from the Application/Service allows

Data Pipe Provider (DSL, Broadband, Wireless)App or Service

Provider

• Reduced Cost• Enhance Features/Functionality

• Greater Service Flexibility• Simplified Implementation

Disrupting the Business Communications Industry

Disrupting Distribution

Disruptive Direct Model

1 of 10,000+ Regional Telco Agents SMB Market

Current Indirect Model

SMB Market National Coverage National Coverage Simple Simple Internet OrderingInternet Ordering

Purchase/Implementation Time: Weeks

Purchase/Implementation Time: Days

Business Voice Market

Over 25 Million Businesses in the U.S.

Business Voice Market

Number Of Businesses

In Each Segment

(US)

• SIP Trunking

• DPS

• Individual Services

• SIP Trunking

• Individual Services

Hosted Market Opportunity

23 Million U.S. Businesses Have Less Than 50 Employees

• Key Purchasing Criteria = Hosted Voice Services– Does this save us money? – Is it simple to buy, install and use? (normally small or no IT dept.)– Is feature rich?– And, I need great support

• Hosted Digital Phone Service– 25% of 23M SMB’s @ $200/mo = $1.15 Billion/Month– Monthly recurring market opportunity– Just 25% represents a $12 billion annual market opportunity

Our Product Offerings

• SIP Trunking:• VoIP Dial Tone

for existing voice service

• Up market solution

• Digital Phone Service:• Launched in 2008• VoIP Dial Tone on

your existing network• Business Phone

System• SMB focus

• Individual Services:• Virtual attendant• Conferencing• Find me/ follow me #• Toll free number• Voicemail & Fax

• The Best Fit works “with” existing network or voice solutions

Fortune 100 features

• Low Cost Provider AdvantageTechnology ownership – we provide applications ( SaaS margins)

• Easiest to Acquire, Implement and UseTechnology design is premised on “ease of use”

Key Channel Partners

76% Of Sales Are Made On One Of Our 18 Websites

Our Value Proposition

Traditional Business Voice

• Hardware– $1,500 upfront for 3 business

phone systems

• Installer (Indep. Telco Agent)

– $1,000 upfront installation– $100 per year maintenance

• Phone Service – $50+ per line per month

Total cost = $4,400

Hosted VoIP Solutions

• Telanetix Digital Phone Service– Bundled package includes:

– 3 business phones– 3 lines– No installation necessary– Full PBX feature set– Product support

Total cost = $1,800

60% COST SAVINGS

(SMB Example: 3 Phones + 3 Lines for 1 Year)

Competitive Advantage

LowHighCost

Simple

Complex

Sim

pli

city

AT&T

Telanetix

Verizon

8x8

Sprint

cBeyond

Qwest

Comcast

Talkswitch

Avaya

Emerging Private Co.

Carriers Premise Equipment

Bundlers

Hosted

Sales/Growth Strategy

• Increased Channel reach and Web/Marketing – Just beginning to ramp advertising to reach the market– With Internet advertising, clear ROI on dollars spent– Increasing each quarter

• Leveraging Brand Power and Exclusivity– Costco: “Business Phone Services”– Office Depot Click Through Rate: 2.1% (varies by product/campaign)– High channel loyalty/ long standing relationships

• Inorganic growth– New entrants and complimentary services

Investing For Growth In Hosted VoIP Solutions

Company overview andFinancials

Company Overview

• Founded: 2001

• Public: 2006 (reverse merger)

• Acquisition: AccessLine, 2007

• Customers Lines: 77,000 +

• Business Segment:• SMB

• Employees: 120 full time

• Key Partners: • Costco• Office Depot• Mitel

• Headquarters: Bellevue, WA

• 2008 Financial Results:• Revenues: $32.6M

• Voice: $26.1M• Video: $6.5M

• Gross Profit Margins: 49%

• Net Loss: $9.7M, or $0.36

• 1H09 Financial Results: • Revenues: $16.2M, up 3%

• Voice: $13.9M, up 11%• Video: $2.2M, down 27%

• Gross Profit Margins: 53%• Cash Flow Positive

• Video Business: • Exploring strategic alternatives

Hosted VoIP Solutions For Business Communication

Key Financials

Voice Revenue Engine

YTD thru Q209 2008 2009 Year over Year

SIP trunking (VoIP) $1,788 $2,561 43%

DPS $19 $651 3300%

Individual Services $6,317 $6,626 5%

Core Subtotal

$8,124 $9,742 18%

Legacy $4,477 $4,187 -9%

Total

Gross Margins

$12,601

53.2%

$13,929

58.1%

11%

490 BP increase

Balance Sheet

Period ended June 30, 2009

Cash and Cash Equivalents $1.1 M

Total Assets $32.9 M

Total Long-Term Debt* $17.3 M*Face value of debentures is $29.6 M

Total Liabilities $39.1 M

Shareholder’s Equity ($6.2 M)

Guidance

• Double digit annual growth in total voice business– Majority of growth in 2H09

• Cash flow positive by end of 2009

• Looking for strategic opportunities for Video business

Capitalization Table

Shares O/S

5% Stockholders:

Enable Capital ManagementEnable Growth PartnersAequitas Capital ManagementTom Szabo

2,221,158 / 7.1%2,002,738 / 6.4%1,915,712 / 6.1%2,422,929 / 7.7%

Named Executive Officers and Directors

Steven DavisJames EverlineDoug JohnsonPaul QuinnDavid Rane

All Named Executive Officers & Directors

132,500 / **268,500 / **256,033 / **

57,813 / **112,500 / **

827,346 / 2.6%

Total Shares Outstanding on June 30 31,366,662

Outstanding Options 9,900,000

Fully Diluted Shares on June 30 153,000,000

Investment Summary

• The New Telanetix – Well positioned– Focused on the high growth, Hosted SMB voice market

– While seeking strategic alternatives for video

• Significant Recurring Market Opportunity– Hosted voice market - $4.4 B monthly recurring market

• Significantly Improved Financial Results– Core Voice revenue at 18%

– Adjusted EBITDA loss improved to $129,000 versus $1.3 million last year

• Solid Guidance– Double digit annual growth in total voice revenue

– Cash flow positive by end of 2009

Telanetix Corporation(OTC BB: TNXI)