© February 2002 Confidential Information

Business Plan Presentation

This Business Plan presentation is intended solely for informational purposes. The information contained herein is believed to be reliable, but the management team makes no representations or warranties with respect to this information. The financial projections that are part of this plan represent estimates based on extensive research and on assumptions considered reasonable, but they are of course not guaranteed. The contents of this plan are confidential and are not to be reproduced without express written consent of Mobius Microsystems Inc.

Mobius Microsystems Inc.

3430 E. Jefferson Ave. #140

Detroit, MI 48207

313.205.3489

www.mobius-microsystems.com

management@mobius-microsystems.com

Spirit of Enterprise Business Plan Competition

Indianapolis, IN

February 22, 2002

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Overview

• Vision Statement

• Management Team

• Technology

• Industry, Market, and Competition

• Marketing and Sales

• Business System

• Financials

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Vision Statement

The world today is a mix of digital and analog technologies. Every day, system engineers are forced to assemble discrete components to meet the requirements of this mixed-signal world.

Mobius’ vision is to profitably deliver cutting edge mixed-signal technology solutions that enable a new generation of integrated high-performance, low-noise, mixed-signal silicon products, while significantly reducing price, size, and power consumption.

Vision Team Technology Industry Marketing B. System Financials

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Management Team

Vision Team Technology Industry Marketing B. System Financials

Richard J. Goldstein, President & Chief Executive Officer Richard is a veteran technology entrepreneur with twenty-five years of experience that includes 15 years of Profit & Loss leadership. His most recent position was as Chief Operating Officer at Synergetic Micro Systems of Downers Grove, IL. Synergetic completed and launched a three-year system-on-chip development program targeted at embedded communications. Synergetic was recently sold to a public company in multi-million dollar merger.

Michael S. McCorquodale, Chief Technology Officer Michael is a Ph.D. Candidate in Electrical Engineering at The University of Michigan. Michael also possesses significant industrial microsystems design experience with Hughes Space and Communications Company as well as experience engaged in collaborative research efforts with Analog Devices, IBM, and MOSIS. 

James Vincke, Chief Financial Officer Jim is a veteran entrepreneur with twenty years of experience in business development & technology. Jim was a critical part of the successes at Mechanical Dynamics of Ann Arbor, MI where he held several positions from manager of accounting and personnel to Chief Financial Officer.

Jeff Wilkins, Vice President of Business Development Jeff is currently an MBA student at the University of Michigan Business School, graduating in 2003 with a marketing strategy focus. Prior experience includes consulting, corporate banking, business development, and entrepreneurship.

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Technology Overview

Vision Team Technology Industry Marketing B. System Financials

Packaged Semiconductor Product

Semiconductor Device

Physical (Hard) MacroIntellectual Property (IP)

Semiconductor IP• Blocks that are placed into

larger designs• Variety of delivery formats• Many applications• Manufacturing is customer’s

responsibility• Low technology development

overhead• Low COGS• Successful Technology Model:

ARM, MIPS, RAMBUS

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How IP and Why IP is Used

Vision Team Technology Industry Marketing B. System Financials

Motorola is Building a Cell Phone• Market opportunity and window identified• System specification defined• Chip specification defined and handed off

Chip Designers Need to Meet Deadline and Budgets• Develop majority of chip in-house• Buy 3rd party IP (Mobius) for some functions• Integrate IP with their design and send to fabrication facility for

manufacturing

What Mobius Offers System Designers• Lower power to meet power budget• Less space so final product can be smaller• Considerable cost savings• Speed to market

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Microsystems Technology

Vision Team Technology Industry Marketing B. System Financials

MEMSMixed-Signal

Circuits

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Initial Product Opportunities

Vision Team Technology Industry Marketing B. System Financials

AMDAthlon

Processor(1 GHz)

ALL microprocessors, microcontrollers, and programmable logic devices require a clock signal to operate

So what makes it run at 1GHz?

Clock Generation Technology

Clock Signalfclk = 1GHz

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Initial Product Opportunities

Vision Team Technology Industry Marketing B. System Financials

Mobius replaces these crystal electronics with IP embedded inside the microprocessor!

microprocessor crystalelectronics

Part Cost

• Oscillator $ 1.88

• 48 MHz Crystal $ 0.39

• One resistor $ 0.02

• Two Capacitors $ 0.16

• Board Space $ 0.30

Total build cost $ 2.75

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Initial Product Opportunities

Vision Team Technology Industry Marketing B. System Financials

microprocessor crystalelectronics

vs.

Mobius’ On-Chip

Clock Macro

4mW 100mW0.09 mm2 0.5 in2

$0.39 $2.75100MHz – 1GHz Fixed

POWERSIZE

TUNINGCOST

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Technology Roadmap

Vision Team Technology Industry Marketing B. System Financials

On-Chip Clock: 1st Product• Patent Applications Submitted• Prototype Manufacturing in Process: IBM and TSMC

Analog Front End: Follow-on Product• Analog and Mixed-Signal Blocks for Sensing• Patent Applications Submitted• Prototype Manufacturing Complete: TSMC

Mixed-Signal System-on-Chip Library• Complete Mixed-Signal IP Library for System-on-Chip Design• Library will be Completed throughout Commercialization Effort

of Initial Products

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Industry, Market, and Competition

Vision Team Technology Industry Marketing B. System Financials

Industry Overview• Semiconductor Industry (2001): $150 Billion

– CAGR: 8% – Microprocessors, Microcontrollers, and

Programmable Logic Devices Represent 1/3 of This Market

• System-on-Chip (2001): $40 Billion– CAGR: 35%

• Semiconductor IP (2001): $1 Billion – CAGR: 55%

Largest growth in system-on-chip segment, afforded by faster time to market through 3rd party semiconductor IP

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Industry, Market, and Competition

Vision Team Technology Industry Marketing B. System Financials

Addressable Market• Currently no Semiconductor IP has Very Broad

Application• Mobius On-Chip Clock Addresses 1/3 of the Entire

Semiconductor Market• 11.85 Billion Units ($47.5 Billion)• Mobius Intends to Capture 1% of this Market in

Two Years

Mobius’ revenue potential is larger than the entire existing IP market due to the broad application of the on-chip clock

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Industry, Market, and Competition

Vision Team Technology Industry Marketing B. System Financials

Competitive Landscape• Indirect Competitors

– Discrete Component Clock Generation: Epson

• Potential Direct Competitors– Companies with Microsystems “know-how”

Motorola and Analog Devices

Greatest challenge is displacement of entrenched technology

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Industry, Market, and Competition

Vision Team Technology Industry Marketing B. System Financials

Mobius’ Sustainable Competitive Advantage• Patent-protected defensible Intellectual Property• Design cycle lead and Microsystems development

trade secrets• Industrial membership and “first-look” rights to IP

from The University of Michigan Center for Wireless Integrated Microsystems

• IP business model hindsight is 20/20

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Marketing and Sales Strategy

Vision Team Technology Industry Marketing B. System Financials

Marketing Push Strategy• By leveraging established relationships, Mobius can

create a strong market presence with low dollar expenditures in a short time

• Taiwan Semiconductor, IBM, National Semiconductor, and Atmel account for $10 Billion of semiconductor sales

• Manufacturing licenses with these companies will push the Mobius product down to their large customer base

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Marketing and Sales Strategy

Vision Team Technology Industry Marketing B. System Financials

Marketing Pull Strategy• Leverage established relationships

• Sell design licenses to chip designers

• Their demand forces manufacturers to purchase a fabrication license

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Business System

Vision Team Technology Industry Marketing B. System Financials

Revenue Model• Design or Manufacturing-only Licenses: $350,000• Design and Manufacturing License: $600,000• Royalties: $0.10 per unit

Business Location and Infrastructure• Corporate Offices and R&D: Detroit, MI• Sales Force: Silicon Valley, CA

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Financials

Vision Team Technology Industry Marketing B. System Financials

Financial Highlights• First Customer Contract and Revenue in 2002• Cash Flow Positive and Profitable in 2003• Small Initial Capital Offers Large ROI• Only Commercialization Effort Required for Initial

Product• Future R&D Funded by Cash Flow from

Operations • Expecting to Offer Investors Equity Exit 2006

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Investment Oportunities

Vision Team Technology Industry Marketing B. System Financials

• Seeking $1.5 Million in Angel Capital (2002)– Uses: CAD Hardware; Software Infrastructure On-Line;

Office Space and Personnel– Milestone: Delivery of First Product: On-Chip Clock; Secure

1st Customer Contract

• Seeking $5 Million in Institutional Capital (2003)– Uses: Expansion of Infrastructure and Personnel – Milestone: Delivery of Analog Front End Product and Second

Generation of On-Chip Clock

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The Mobius Strip

The ChallengesDisparate Digital and Analog Technologies

Discrete Components

Need for Size, Power, Price Reductions

The SolutionConvergence of Parts into One Whole

Mobius’ Mixed-Signal IP

Mobius’ Value Proposition

Mobius will continually transform challenges into solutions while changing the world as we know it...

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Closing

We welcome any questions