Annual Communications Conference Tel Aviv June 19

Annual Communications Conference Tel Aviv , June 19, 2001 Yuval Bar-On , CEO Actelis Networks is the first company to radically boost copper speed, range and reliability to achieve fiberperformance and quality.

Corporate Introduction § Founded October of 1998 § Headquarters in Fremont, CA, R&D Center in Tel Aviv, Israel, Sales offices in Washington and Atlanta § 13 U. S. Patents in process § Raised +$55 M to date § 110 employees; continue recruiting 2

Investors Early investors at Juniper Networks, Ascend, SUN Microsystems, 3 COM, Bay Networks and others 3

Industry Expert Insight – Marty Kaplan “Actelis has a phenomenal and tangible market opportunity. They have a winning technology and a winning team. Actelis products will enable even more information to flow into the networks, thus increasing the demand for bandwidth and will be complimentary to fiber and enhance overall fiber demand” Marty Kaplan, Chairman JDS Uniphase, former EVP at SBC and Pacific Bell 4

The Bandwidth Dilemma § Lack of Fiber in the Local Loop • Fiber fed buildings are generally isolated to the dense metro • In 2009 – 10. 9 M businesses (out of 18. 2 M) will not be fiber-fed Source: June 5, 2000, Morgan Stanley Dean Witter Fiber supply will continue to be outpaced by demand. 5

Bringing the Fiber Era to Small & Medium Businesses Customer Premises DS 3/OC 3 Meta. LIGHT Customer Premises Central Office Local Loop Meta. LIGHT Bridge 10/100 Ethernet Internet 10/100 Ethernet Meta. LIGHT Bridge Local Loop Meta. LIGHT DS 3/OC 3 Central Office 6

The competitive Landscape Reliability (BER) 10– 12 ACTELIS Fiber (SONET) 10– 10 IMA 10– 9 MMDS 10– 7 x. DSL LMDS Symmetrical Speed (Mbps) 1 3 10 10 G 7

Key Differentiators § Best Quality • Transforms voice-grade copper into fiberquality link § Longest Range • Breakthrough distances up to 21 K ft § Highest speeds • OCx speeds over copper § Fastest Deployment • No hit or miss line verification for first day deployment § Best Price Performance • 70% cost saving versus fiber • Focusing capital spending Radically boosts capacity beyond anything on the market today. 8

Financing §Series A - $7 M 6/99 §Series B - $22 M 11/99 §Series C – $26 M (6/01 in 1 st closing) 9

Prerequisites for fund raising in current environment § Level of comfort for the Investors • Big market, Compelling business case, Strong team • Commitment of the existing investors § Sense of urgency • Chicken & egg problem 10

Thank You 11