WAVECOM 2005 All rights reserved 2007 Wavecom Distributor

Our opportunities to grow CAGR 27, 5% 36, 5% WAVECOM© 2005. All rights reserved 26, 6% è 5 M additional module sales in 2007 – – – 2 Growth from existing successful customers selling more products or new projects at existing customers New entrants and our competitors’ customers

But first………. è We need to keep our existing customers satisfied and coming back for more time and time again. è Value for money WAVECOM© 2005. All rights reserved – – 3 On time deliveries High quality, reliable product Responsive support Continuity of product

DELIVERY PERFORMANCE – Direct Flow OTD 98% WAVECOM© 2005. All rights reserved CRD 90%

WAVECOM© 2005. All rights reserved Product Reliability Quality Overall, we achieved product reliability to

Certification Status è Certification ISO 9001 V 2000 – – – Certificate obtained in November 2005 Follow up audit in September & October 2006 Closing meeting : 24 st of October – No non conformities • Wavecom is ISO 9001: 2000 certified by SGS – WAVECOM© 2005. All rights reserved è In regards of ISO/TS 16949 – – Wavecom is not eligible to ISO/TS as we are fab-less (according to IATF rules 2004), nevertheless • • 6 Registration number : FR 05/1246 QU SOLECTRON , our contract manufacturer has been certified ISO/TS in SUZHOU on our product line Auditors for our certification audit were all ISO/TS to look at the specifics that concerned our activities

Extended Warranty Professional Service Standard Extended Warranty Terms: same as the Standards Sales Terms and Conditions (Replace / Repair or Credit pieces falling under warranty) è WAVECOM© 2005. All rights reserved è Products: New Q 24 Series è 7 Q 26 Series Ordering: add one extra line on your order for extension period

Continuity of Product …. Migration. . è Continuity evolves with Q 24, Q 26 and GR 64 è Different reasons forcing migration – Ro. HS compliance • – End of Life of Chipsets and components • • WAVECOM© 2005. All rights reserved • • – 8 Q 24 to Q 24 Classic, Plus and Extended Integra M 2106 to M 2106+ Fastrack to Fastrack Supreme 10 and 20 Q 2438 F to Q 2438 J Third party software • è GR 47 to GR 64 E-device to WIPSoft The loyalty shown by our customers is a testament to your strong customer relationships, your skills and perseverance.

Migration: Has benefits for the future. è New functionalities and services – è Intelligent Device Services Own software inside WM product – Control of our own destiny, not that of our suppliers • • – No more complaints of not enough volume to maintain or add features I would love to use your product but WM has a feature that does x. Migration path from Fastrack to WMP all based on the same software and development platform WAVECOM© 2005. All rights reserved Same Open AT® Software Suite 9

Selling to New Entrants Conventional Approach Appl. Wavecom Approach Appl. OS Open AT® RTOS Memory WAVECOM© 2005. All rights reserved u. P Appl. Memory IDE Wavecom’s Wireless CPU® or Wireless Microprocessor ® Memory I/O “Module” 10 Wavecom’s ownership of protocol stack allows system partitioning and running both radio and applications simultaneously, thus eliminating excess hardware and reducing cost. By the way, the “module, ” or Wireless CPU®, has the performance of a c. 1995 PC. Open AT® IDE

New projects – project/sales lifecycle Concept CTO Hardware Design WAVECOM© 2005. All rights reserved D&D Purchasing Operations 11 Business Case Marketing Software Development D&D Production Operations Initial costing Purchasing Integration D&D Installation Operations Feasibility Study D&D/Marketing Verification D&D Maintenance Operations

Deliver the right speech to the right people è All messages will not be of interest to everyone at your customer Contacts WAVECOM© 2005. All rights reserved Preferred Topics TCO Components 12 Purchasing Operations Management Engineer Architect Marketing Price & Performance Cost & Integration Value & Roadmap Visible Costs (BOM) Hidden Costs

Typical Value Chain – M 2 M Industry System Specifier WAVECOM© 2005. All rights reserved Electricity Generator Product Lifetime IDS 13 Design House Wavecom’s target? Open AT Training APIs Manufacturer Distributor’s customer System Integration Legacy supplier of metering equipment OTD, WISIM Pick & Place Protocol specific plug ins Service Provider Billing company IDS, Quality IPR

Well structured Go To Market Key Accounts Platinum, Golden & Silver SIs, VARs &

Our competitors customers è 5 M new modules sales in 2007 but what about the non WM market? è 9 M devices in 2006 or 11. 5 M in 2007? è Ready made volumes, business cases coherent, quicker TTR è Customers may be restricted by limitations of resource, they may have just finished their designs and may not want to take the risk of changing. WAVECOM© 2005. All rights reserved 2006 estimation 15

When does the low cost integrator model work? Wireless WAN 2006 TAM: 15 M units Competitor A: Discount Price Competitor B: Value Price Hypothetically gets 50% share Has 40% share WAVECOM© 2005. All rights reserved 400 h/c @ $200 k pp = $80 M 100 h/c @ $200 k pp = $20 M 400 h/c @ $50 k pp = $20 M è 16 The low cost model works if almost all of the people in the company are in a low cost region (e. g. China), and/or the volumes are extremely high

Features of Wavecom allowing you to sell Value IPR è Financial stability è Software ownership è SMT Wireless Microprocessor è Product Continuity è Lowest TCO è Patent ownership è TTM è WAVECOM© 2005. All rights reserved è Own 3 G stack è Eclipse Development tools è IDS è Best Quality è Open AT è Best in class manufacture è Reliability è Future/Roadmap è Technical support è Certification 17