January 17 th 2007

1. Daily Revenue Recognition SolutionKuldeep TanwarManager Business ApplicationsWind River Systems, Inc January 17th 2007

2. Wind River: Device Software Optimization Wind River enables companies to develop and run device software faster, better, at lower cost, and more reliably.

3. Wind River Leading the DSO Industry • Established in 1983 • Public company (1.4B market cap) • #1 market share (40%) • #1 revenues ($266MFY06) DSO Leader • 1st connected RTOS • 1st IDE • 1st device software develop-and-run platforms • 1st industry-specific services practices Technology Leader • 40,000 users • 300M deployed devices • Global operations, services, and support • #1 DSO solution MarketLeader

4. Wind River’s Customer’s Our customers make differentiated devices by focusing on intelligent, connected device software.

5. Wind River’s Applications Footprint • Finance & HR • General Ledger • Accounts Payables • Accounts Receivables • Cash Management • Fixed Assets • Collections • Purchasing • Customers Online • Human Resources • OrderManagement • Order Management • Accounts Receivables • Advanced Pricing • Marketing & Sales • Siebel Accounts • Siebel Contacts • Siebel Opportunities • Siebel Quotes • Siebel Campaign • Customers Online • Plan to Fulfill • MRP • Inventory • Item/BOM • WIP • Security & Monitoring • 10G Grid • OID – Single Sign On • Services • TeleService • iSupport • Service Contracts • Install Base • Project Mgmt • Project Resource Mgmt • Time & Labor • iExpense • Project Accounting • Project Billing • Learning Mgmt Systems • iLearning • 3rd party Bolt-ons • Business Intelligence • 6i Reports • Drake – Rich EULs • Portal – BI Dashboards

6. Daily Revenue Recognition Solution Overview

7. Business Issue • Wind River has subscription and maintenance contracts of variable lengths • Lack of flexibility in Oracle variable accounting led to incorrect system revenue recognition for most ratable contracts • Large contracts adjusted by individual manual journal entry • Smaller contracts adjusted by “convention journal” • Entire process subject to higher level of risk due to the amount of manual processing • Added complexity to revenue close and to revenue and deferred revenue reconciliations

8. Scope • Enabling daily revenue recognition calculation for all operating units. Manual revenue calculations using spreadsheets and manual journal entries will be discontinued resulting in lower cost, productivity gains and risk reduction. • Business Units: Wind River Worldwide Finance • Americas (US, Canada) • EMEA (UK, France, Germany, Italy, Sweden, Netherlands, Israel) • Asia Pacific (China, India, Korea, Singapore, Taiwan) • Japan

9. Legacy Manual Process BAU 1. AR Interface Table 5. GL Interface 6. GL Interface Table 7. Import from GL Interface 3. Auto Invoice 4. Rev Rec 8.5 Post Journals 8.1 Cal Rev Adj 2. Pre Auto Invoice 8.3 Enter Adjustments in ADI 8.4 Import Journals 8.2 WR Rev Adj Red boxes indicate manual process

10. New Process BAU 1. AR Interface Table 5. GL Interface 6. GL Interface Table 7. Import from GL Interface 3. Auto Invoice 4. Rev Rec No re-work Required 8.5 Post Journals 8.1 Cal Rev Adj 2. Pre Auto Invoice (Add module to insert new rules & Update RA Interface Table 8.3 Enter Adjustments in ADI 8.4 Import Journals 8.2 WR Rev Adj Red boxes indicate manual process

11. Approach • Order is booked & shipped with accounting rule “WRS Variable” • Before Auto Invoice runs, a bolt on module will update the “WRS Variable” with a new rule based on the beginning and end dates of the service agreement and the length of the agreement. • These new accounting rules have been created in the system as part of the solution deployment. • Next steps are Business As Usual (BAU), i.e. Run Auto Invoice, Revenue Recognition, GL Transfer … Above approach is applicable for invoices created after go-live from OM and SC Modules. All old invoices (i.e. created before go live) will continue to use the “WRS Variable” accounting rule. Current biz process will be followed for old invoices.

12. What are the New Accounting Rules?

13. Realized Business Benefits • Plug and play solution • Improved accuracy of revenue - achieved objective of daily calculation convention • Reduced complexity in close process and resulting in a faster close • Correct accounting distribution is visible in A/R • Did not increase the number accounting distribution lines in A/R and G/L • No additional manual G/L entries were required • Improved the reconciliation process • Leveraged existing reporting structure without having to make any changes to reports • Easy to test and audit – beauty in the solution’s simplicity • Approved by our auditors • No impact of upgrades on solution

14. WIN Wind River, the global leader in device software optimization (DSO), enables companies to develop and run software faster, better, at lower cost, and more reliably.

15. Backup slide - Pros and Cons PROS: • Will utilize the Standard Oracle functionality with minimal customization • Revenue distributions will be visible thru AR. • No journal or GL adjustments will be required. • Solution is upgradeable and supportable. • Solution will not increase the number of lines in AR or in GL. • Extension will be written as in a manner to easily facilitate decommissioning at a later date. • Little to no user intervention in creating and maintaining the rules. • Minimizes re-work to replicate additional reporting. • Will run automatically prior to Auto Invoice, so there will be no timing differences in AR. • “ Oracle” Team liked this approach over other approaches (because it was non-invasive). CONS: • Daily “rules” will be created and maintained behind the scenes so there will be no visibility thru applications. • System will have to generate accounting rules and populate the accounting rules tables (non standard) , 60K rules will be created