www.verimatrix.com

1

Leading Supplier ofDigital PayTV (IPTV) Software Security

Solutions

2 Proprietary & Confidential - Verimatrix, Inc. © 2008 2

Verimatrix Snapshot

World’s #1 supplier of IPTV software security solutionsWorld’s #1 supplier of IPTV software security solutions

Founded 2000

Headquarters San Diego, CA (small satellite offices in Boston, Hong Kong, Singapore, Nice & Tokyo; and additional representatives in Amsterdam, Atlanta, London, Moscow & Paris)

Employees 102 +

Customers 180+ operator customers in 32 countries, including 18 Tier 1’s and 2’s – protecting more than 6 million screens

Partners Over 100 ecosystem channel & integration partners including Ericsson, EDS, IBM, Motorola, Nokia Siemens Networks and Thomson, representing over 95% of total supplier base in the IPTV market

Investors Mission Ventures, Goldman Sachs, JKB, Sun America Ventures, Crescendo Ventures & Cipio Partners

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Large & Rapidly Growing Video Content Security Market

Software security implementations will dominate the nearly $3 billion video content security market by 2012

Software security implementations will dominate the nearly $3 billion video content security market by 2012

Required by content owners for licensing

Desired by service providers for premium content/release windows

Desired by service providers for revenue protection

Source: Based on third party subscriber rate estimates (ABI, Dataxis, iSuppli, et al)

TAM: Conditional Access and DRM for Digital TV ($M)

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2007 2008 2009 2010 2011 2012

Conditional Access Digital Rights Management

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The Need for Advanced Content Security?

Evolving threat

Evolvingcontent

protectionrequired

Evolving networks

and device proliferation

CRACKED HACKED

1980 1990 2000 2010

$18B$18B$2B

$750M

One-Way Digital to STB

One-Way Analog to TV

2-Way IP to any Device

Video piracyper MPAA

Analog scrambling Smartcard CAS Software CAS + DRM

Configurable / RenewableConfigurable / Renewable

The same device and network trends that enable advanced applications and services also enable piracy

The same device and network trends that enable advanced applications and services also enable piracy

5 Proprietary & Confidential - Verimatrix, Inc. © 2008

Content Owners

Video Service Providers

Consumers

Stakeholder Benefits

Maximum / renewable content security. “Camera-to-couch” tracking of stolen content.

Premium content licensing. New distribution mediums licensed. Theft of Service protection.

Expanded service offerings. Seamless experience across multiple devices. Privacy protection.

Our Solution and Its Value Proposition

Interlocking solution meets market needsInterlocking solution meets market needs

Security Perimeter

Video Service Headend Clone STB Television

Human Eye

Camcorder

Authorized STB

STB OutputSTB Input User / CEDomain

Video Source

Distribution Chain

Clone Detection Encryption

Forensic WatermarkingVerimatrix Product

Features

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DVB-H/FLO/3G/WiFi/WiMaxWireless Networks

DVB BroadcastNetwork

BroadcastContent

On-demandContent

3-Screen Support over Broadcast, Broadband and Mobile Networks

Head-endVideo

Processing.Encryption

by

BroadbandNetwork/Internet

DOCSIS Cable Modem

DVB-IP Hybrid STB

Memory Cards

7 Proprietary & Confidential - Verimatrix, Inc. © 2008

Thank You!