Harnessing the Value of a Developer Community Gregory

Harnessing the Value of a Developer Community Gregory Stoner Vice President of Business Development and Strategy

Corporate Profile Leading manufacturer of professional software development tools ¨Headquarters: Austin, Texas; Employees Worldwide: 550 (350 in R&D) ¨Independent subsidiary of Motorola SPS: September 1999 ¨Worldwide Presence: more than 17 offices in 14 countries Sweden Russia Romania Quebec, Canada Montreal, Canada Cupertino, CA Austin, TX Germany UK Switzerland France Boston, MA Tokyo, Japan China Hong Kong Israel India

Selected Customers & Partners Networking Transportation Wireless Entertainment All supported by the Code. Warrior IDE for a common look-and-feel across architectures

Building on the Successful Platforms Strong experience enabling platforms, increasing market success for platform & device vendors The majority of commercial Mac applications are built with Code. Warrior tools. Over 76% of Sony Play. Station 2 titles are built with Code. Warrior tools built the Palm OS platform. Now have the largest community of Palm OS developers.

Wireless Technology Leadership Product Leadership • Second Java licensee from Sun in 1995 • First to support J 2 ME MIDP and Personal Java • First to market a Wireless Development Kit • First to support KVM • First to support direct to device KVM debugging • Only Tool and Solution Vendor with GPRS and CDMA Wireless Lab • 80% Market share of Palm development tools • Selected tools provider by Symbian • Selected by Sun to develop only the Java Card development tools available • Selected tools provider for TAO/Intent • 400, 000+ Code. Warrior licenses sold worldwide • Code. Warrior dominates SONY Play. Station 2 and Nintendo games development

Some our Current High Value Developer Relationships Nintendo of America Capcom Konami Electronic Arts Koei Lucas. Arts Rare Acclaim THQ Activision Interplay Midway Ubisoft Intrinsic Graphics Eurocom Eidos Kuju Entertainment Kalisto Entertainment DMA Design AOL Bethesda Softworks Zipper Interactive High Voltage Volition Criterion Software Kodiak Interactive Rainbow Studios Infogrames Sony Computer Entertainment Real Networks Sega Titus Cryo Interactive Eden Studios VIS Interactive Monolith/Lith. Tech Sierra Online Stormfront Studios Retro Studios

Entertainment Statistics $17. 7 billion in 2001 Console Games Revenue 10, 000 Developers Leverage Brand Equity longevity and Revenue Staying Power via a Franchise ¨James Bond: 48 Years of Entertainment ¨Book novel Casino Royale (1953) , ¨Radio ¨Movies First 1962 ¨Game(N 64, PSX, PC, Dreamcast, PS/2) ¨Metal Gear Solid: First Game 1987 -14 Years of service ¨First on SNES 1987 ¨Smash Hit on PS/one 1998 ¨ 2001 PS/2 Debut ¨Sonic Hedgehog 10 th Birthday this year ¨Mario Bros (began with Donkey Kong in the arcade and first console was ¨Atari 2600) ¨Zelda (SNES) ¨Number One Selling Christmas Entertainment Title December 1999 N 64 ¨Madden Football (Sega Genesis) 1989 ¨Crash Bandicoot (Sony key property from PSX) ¨Harry Potter: Books, Movie (200)1, Game(PS/2)(2001)

Gaming Success is also Mobile Game Boy (Introduced 1989) ¨ 8 Bit Monochrome and Color Handheld Gaming Device ¨Total Number of Game Boy Software Unit sold Worldwide 400 Million ¨Average Number of Game Boy Software Units Sold every hour 1000 (July 2001) ¨Game Boy Color game Pokemon Crystal between July 29 th to Aug 4 th sold 218, 743 units at $6, 107, 782 Million in revenue in the US Market ¨Current Generation Device Game Boy Advances May 2002 30 Million Units Worldwide 11. 3 Million Units North America ¨In the Second Quarter Top 2 Games Sold were for the Game Boy Advanced ¨DRAGONBALL Z: GOKU $31 550, 000 units sold 3 weeks (June 2002) USD $17, 050, 000 ¨SUPER MARIO ADVANCED 2 $30 total units sold until March 2002 US 311, 000 Units USD $9, 330, 000 ¨Sega Sonic Advanced $39. 95 1, 000 Unit to Date (July 1 2002) USD $39, 950, 000

Where we are at in the Mobile Wireless Market • Limited Story on how you are going to build advanced content on the mobile devices • No Clear Story for productizing and delivery these advanced products • No Clear Story on how you get to market with your products and services • Weak Story on promotion and marketing around software that publisher bring in to support the wireless market. • Weak story how you are going to attach and collect revenues from the products and services Current developer/publishing market and the consumer are dazed and confused buy all the hype For example Game Boy and Playstation II ¨Nintendo and Sony have strong developer program which comprise of the following ¨Clear Story on how to Create Advanced Content ¨Developer Program, Regional Developer Conference, Tools, continually upgraded SDK, Middleware, Training, Developer System available to them prior to Launch, Business Support ¨Clear Product Delivery Mechanisms: physical media (CD, DVD, Cartridge) in Packaging ¨Clear path to Market: Publisher access the consumer via established traditional retail and online retail channels ¨Clear Story on the promotion and marketing of device and software that support it ¨PR Campaigns, Trade Shows E 3, Review Placement, Website Campaigns, etc ¨Clear Story how Revenues are comes back to the Publisher

Understand the Developer Business Models A point to think about First For Electronic Arts to agree to publish a console title they are look for a minimum of 20 Million Dollar Payback against the current worldwide console market. What does that mean to you for high value content you need to consider true cost of bring a product to market. What the developer/publisher needs to cover • Intellectual Property License Fees and Royalties, Developer Costs, Overheads, Marketing Cost, Operating Costs etc. • 3 Applications developed: 2 Engineers $75, 000 Per Year, 250, 000 Marketing Costs, $1, 000 IP License(Payed over 4 years), Operating Costs 200, 000 • 150, 000 + 250, 000 + 200, 000= $850, 000 USD Break Even Revenues First Year • Revenue with 40 Percent Margin. $1, 190, 000 USD

Why do Carriers Need a Managed Developer Program? Create a portfolio of value-added high impact applications, products, and services to drive economic growth through your products Bringing Business Opportunities to promote the success of new Business Partners Developing and Distributing tools for the creation of value added complements which drive the platforms vendors vision (SDK’s and DDK’s) Build External Trust of the Development Community Creation of Competitive Stimulus/Catalyst to help drive standards and which help developers move up to the next level of innovation Create a compelling and loyal community of Customers, Developers and Partners Provide a highly effective channel for communications to help drive current and new platform initiatives which are agnostic to the changes in technology. Provide a responsive support environment for the needs of Enterprise Customers, Developers and Partners Bottom line: Increase profits $$$ Increased brand awareness

Finite Number of Developer spread into Overlapping Developer Communities Unix & Linux Developer Community GAME Developer Community Enterprise Developer Java Developer Community Win 32 Developer Community Windows CE Embedded Community Game Console and Apple PALM APPLE MACINTOSH

Drive Customer Attachment through Managed Digital Content Ecosystem Monetization Content Creation Distribution Technologies Platforms Content Services Content Aggregation Content Delivery

The cooperative value chain – Carrier & Developer Wireless application value chain Concepts Prototypes Enablers Technologies Physical work Developer space relations Test labs, Marketing, Web site, Prototype Events, Documents, Handsets, Conference White papers, Consultancy, s, Discussion Hands-on Newsletters, forums, training Open days, FAQs classes, Advertising Certification services Virtual work space Professional Software Development Toolkits Technical support for toolkits, handsets, platforms, enablers, technologies, APIs Carrier value chain Analysis of technical fit Analysis of strategic fit Business model Partnerships Integration Deployment

MDP accelerates evolution of Carrier’s chosen platforms!! Revenue/profit Critical Mass of Mass Market Application Developers Critical Mass of Enterprise Developers Critical Mass of Third Party Developers Critical Mass of Middleware Vendors Critical Mass of First Party Developers Platform Creation 15

Drive to a Systematic Application Delivery Process Metrowerks: Applications and Developers sourcing Tech support Training Web site IDEs and SDKs Handsets Developer program relationship Identify interesting developers/ applications Evaluate potential partners -Technical -Commercial Finalize business case and business model Wireless lab Commercial Opportunity Contractual agreement Commercial Launch Developer Community Carrier: Commercial Relationship

Bounding the ISV and Middleware Vendors Recruitment: - A Tiered Approach Budget Focus Tier 1: Cornerstone • 1 to 1 marketing • Vendor brought into Strategic Customer Account • Strategic Partnerships with ISV • Participate in product definitions • Will fund if necessary • ISV Delivers High Value Content or Service Tier 2: Strategic: Nice-to-Have • ISV Commented Long term Marketing and Development resources • Early access to Product specs • May fund if necessary • May Give ISV Goods and Services 80% • Marketing Driven • i. e. . Direct Email, Direct Mail • Electronic Catalog • Joint promotion program • Run Feature ISV in • Quarterly customer 15% newsletter Tier 3: Tactical: Opportunistic • Member of the Entry Level Developer Program • Self promoted and funded • Access to product specs of announced products • Vendors purchases Training and Development Boards and Tools 5%

In Entertainment Key Brand are Critical to Success of Our Products Titles Revenues Top 5 % 60% Next 20 % 25% Bottom 75 % 15%

Need for a Controlled Product Release for Consumer Entertainment Products Maximize Revenue via controlled release of High Value Properties minimizing the dilution to many choice Large Revenue Optimal for Premium Content and Good Business Dynamics Revenue/Title Small Number of Title Large

What is a Managed Developer Program? A robust service platform that enables AT&T Wireless to nurture and cultivate profitable developer relationships!!! Metrowerks Services Developer Support Typical Carrier Services Application Business § Unified web presence § Tech support § Application Testing § Pre-Launch Device § Certification access § Training § Evangelism and Seminars § Consultancy § Technical § Global Lab Access Documentation § Developer open days § Conference Participation $ Investment $ Cost Recovery Increasing Developer Loyalty § Application Publishing/ Distribution § § § Digital Download Billing Services Revenue Sharing Development tools Compelling Business Model $$ Revenue

MDP Program Components Technical Support Marketing Services Developer Strategy Account Management People Community Management Process Engineering Development Project Management Content Creation Services Alliance Mgmt Managed Developer Program Data Mining Integration Labs Customer Relationship Mgmt Tools ECommerce Learning Management Systems IT Integration Technology Analytics Certification Systems MDP Web System Developer Community MGT Application Sourcing

Developer Program Portfolio MDP Products & Services üIndustry Leading Wireless Tools üEarly Device Access üDeveloper Support üSDK Development and Support üField Application Engineers üGo to Market Strategies üDeveloper Portals/Communities üAcademic Programs üTraining, Developer Education üComprehensive Partner Program üApplication Test Labs üApplication Libraries (3 rd party apps) üApplications Mining üProgram Marketing üApplications Certification üWorldwide Presence

Rollout Professional Development Solution to Third Parties Early in your Mobile Platform Development Cycle • Example • Enterprise APP • J 2 ME Game • Example • Native App • GAME • PV APP • Middleware • Example • PV Codec Development • Beatnik Codec • MMI • VM • General Consumption • Mainstream Production • Version X. 01 Community Tools • Beta • Engineering Samples • Beta Community Tools • Limited First Party Content Developer • • ALPHA • Development System • Platform Development Tools • Limited Number of First Party Systems Developers

Metrowerks Wireless Development Solutions Optimized Development Solutions for Wireless Developers • Enable Faster Time to Market § Handset with or without carrier service § Development Tools § Symbian and J 2 ME Development SDKs § Cables and Gateways § Complete Documentation • Vertical Market Focused Kits § Enterprise § Gaming § Messaging

Wireless Tools Leadership Metrowerks delivers a comprehensive portfolio of software and hardware development tools for wireless developers ¨Symbian OS tools (official toolset for Symbian OS) ¨Java tools (1 st to comprehensively support J 2 ME & Personal. Java) ¨Palm OS tools (de facto standard toolset for Palm OS) ¨Linux tools (best-selling commercial toolset for Linux) ¨Java Card tools (1 st integrated toolset for Java Card) ¨Core Processor Tools (ARM, Dragonball, Xscale, Hitachi, M-Core, Star. Core, DSPs, and others) 25

Code. Warrior University Code. Warrior. U. com ¨ World’s largest source for online training in programming ¨ Approximately 100, 000 registrations to date ¨ Free instructor-led courses ¨ Current Courses for Wireless Developers: ¨ C and C++ ¨ Palm OS ¨ Java certification ¨ J 2 ME

Academic Initiatives Over 1, 400 educational institutions teach Computer Science with Code. Warrior ¨ CS Advanced Placement (AP) Exam was ported from Pascal to C++ using Code. Warrior Free Online programming courses offered at “Code. Warrior. U. com” ¨ Largest education website worldwide for learning how to program ¨ 40, 000 registered students in first 12 weeks

Code. Warrior Wireless Studio 7 The Ultimate Wireless Development Tool Code. Warrior Wireless Studio 7 is the most advanced development tool for wireless Java development including J 2 ME and Personal Java Integrated support for creating applications for every major handset, Javaenabled Palm, Linux and Pocket. PC device

Java VMs and Emulators ¨Sun Java JDK up to version 1. 4. 0 (*) ¨Sun Wireless Toolkit (*) ¨Sun Personal. Java Emulator PJEE 3. 1 (*) ¨Motorola J 2 ME SDK 1. 0 ¨Moto. SDK 7. 5 ¨Nokia Developer Suite (-) ¨Sony-Ericsson Device Support ¨Siemens Mobility Toolkit for M 50 ¨Sprint-PCS Development Kit ¨Insignia’s Jeode Personal. Java VM (-) SDK supported but not shipped with product (*) SDK on tools CD

Code. Warrior for Symbian OS Metrowerks is Symbian’s strategic tools partner Professional and OEM tools to enable device creation ¨ Designed specifically for Symbian OS device creation community ¨ Delivered earlier than corresponding OS release ISV Tools to enable applications development ¨ Derivatives of Professional and OEM product lines ¨ Arrangement between Metrowerks and licensee ¨ Delivered in line with ISV SDK schedules Code. Warrior Java support “Code. Warrior is the Tool Chain of the Future” - Collin Meyers, CEO - Symbian

Code. Warrior for Palm OS Code. Warrior The Essential Tool for Palm OS® Development Java Symbian Palm OS 80% of Palm Development Tools Market (Gartner, Oct 2001) “. . the development tool of choice among Palm OS® platform developers” “. . the most convenient and powerful way to develop C/C++ Palm software. ” Top Pick – 5 stars “The Best overall development tool for Palm OS” Handheld Computing, December 2001 Java Card ARM intent

Back Up Slides

Product Family Code. Warrior for Java Code. Warrior for Symbian OS Code. Warrior for Palm OS Code. Warrior for Java Card Code. Warrior for ARM Embedded Code. Warrior for intent

Features Overview Powerful J 2 ME development üCompile, Preverify, Obfuscate, Package and Run or Emulate your application in a single step üSupports J 2 ME, Personal Java and J 2 SE Support for most devices üIncludes SDKs from Sun, Motorola, Siemens, Sony Ericsson, Sprint üWorks with Nokia, Insignia, Kada, Esmertec, Savaje, Zentek üJDK switching, multiple targets for same application Unrivaled Testing and Debugging üOn device debugging – conditional breakpoints, watchpoints, etc. Productivity üCode Completion, Class Browser, Wizards, Stationery üRAD tools for drag and drop MIDP LCDUI / AWT development

Code. Warrior Wireless Studio Features Powerful J 2 ME development üCompile, Preverify, Obfuscate, Package and Run or Emulate your application in a single step üSupports J 2 ME, Personal Java and J 2 SE Support for most devices üIncludes SDKs from Sun, Motorola, Siemens, Sony Ericsson, Sprint üWorks with Nokia, Insignia, Kada, Esmertec, Savaje, Zentek üJDK switching, multiple targets for same application Unrivaled Testing and Debugging üOn device debugging – conditional breakpoints, watchpoints, etc. Productivity üCode Completion, Class Browser, Wizards, Stationery üRAD tools for drag and drop MIDP LCDUI / AWT development

Code. Warrior Wireless Studio Features Create applications that connect to the Enterprise üPoint. Base Micro 100% Java powerful database üXML parser and SOAP implementations for J 2 ME üSoftwired i. BUS//Mobile JMS for powerful, reliable messaging Award Winning Code. Warrior IDE üFully customizable, scriptable, modular IDE üBlazing fast, mature and proven

Wireless Studio Endorsement "I believe developers will be impressed with the wide functionality and testing abilities found in this latest version of Code. Warrior, the Code. Warrior Wireless Studio 7. “ -C. Enrique Ortiz, Coauthor of the MIDP for J 2 ME Professional Developer's Guide “Developers who want to be successful in the wireless industry should look to Code. Warrior Wireless Studio 7 as their standard development tool. ” – Joe Colletta, VP of Applications, Motorola PCS “Developers can't go wrong with Code. Warrior Wireless Studio. “ - Clint Patterson, VP, Handango "Metrowerks' strong support for J 2 ME, Personal. Java, and the Java Card platform, will go a long way in helping developers create applications and content for a wide variety of Java technologybased wireless devices, " said Ken Tallman, Group Manager for Java Software at Sun Microsystems, Inc. "We believe Code. Warrior Wireless Studio 7 is the most advanced development tool for wireless Java technology, " said Cameron Mc. Eachern, EVP, Sales and Marketing for Point. Base. “… the best development tool for creating Java applications that run on … devices such as the Compaq i. PAQ and Sharp's Zaurus. “ - Mark Mc. Millan, president, Insignia Solutions.