Rick Dwyer Vice President, Sales and Marketing General Manager, Embedded Sales Group

1. Rick Dwyer Vice President, Sales and Marketing General Manager, Embedded Sales Group Changing the Game to Secure Your Future: Evolving In A Global Market Material in this presentation does not represent the strategy or views of Intel Corporation they are the independent opinions of the presenter Rick Dwyer.

2. Agenda • The Opportunity For Growth • The Semiconductor Market • The Mature Market Challenge • Opportunities For Change Material in this presentation does not represent the strategy or views of Intel Corporation they are the independent opinions of the presenter Rick Dwyer.

3. Why Am I Excited To Be Here Today? Number of Employees Per Firm Number of Branch Offices Per Firm Number of Firms Number of Firms Branch Offices Per Firm Employees Per Firm Manufacturers Reps are a formidable Business Asset!

4. Evolution of Our Industry Phase 1: 1960’s IC’s Phase 2: 1970’s-80’s Compute Phase 3: 1990’s Internet

5. What’s Driving Growth Today Global IP Traffic PB per Month 46% CAGR Forecast Source: Cisco  Internet Growth Continues

6. Evolution of Our IndustryPhase 4: Everything Connected

7. In-Vehicle Infotainment Digital Signage Home Automation IP Cameras IP Media Phones Telemedicine • By 2012… • 40M - IP Cameras shipping • 22M - Enterprise Printers  • 80M - Cars shipping  • 155M - Telematics subscribers • 30M - IP Media Phones • 20M - Home automation systems • 85M - Residential Gateways Opportunity

8. 180 nm 1999 130 nm 2001 90 nm 2003 65 nm 2005 45 nm 2007 32 nm 2009 22 nm 2011 Semiconductor Technology Is “THE” Internet Growth Enabler • World’s first working 22nm test circuits: Intel continues to relentlessly pursue Moore’s Law and provide its benefits to end users. • The test chip packs 2.9 billion transistors, at approximately double the density of the previous 32nm generation, in an area as small as a fingernail.

9. Industry Trends

11. Semiconductor Billings By Geography Americas’ 2009 Revenue = 15% of Global Revenue Source: Semiconductor Industry Association

12. Rep Commission/Compensation Data • Split Commission over 10 yrs. • Local High Case = 55% • Local Low Case = 10% • (Source: Interviews, Sep. ’09) • Commission for ‘08 (147 firms) • 47% ‘08 up from ’07 • 30% ’08 down from ’07 • 23% flat • (Source: ERA Comp Survey) We All Know ’09 Will Be Significantly Different Than ‘08

13. The Mature Market Challenge Market Forces Driving The Transition OEM OPEX + CAPEX pressure Time to Market = Competitive advantage Buy vs. Design decision OEM Value and differentiation Shifting from H/W to S/W in Many Cases How do these shifts effect a Rep Firm’s value? A Distributor’s value?

14. Silicon Supplier Silicon Distributor Manf. Rep’s Original Equipment Manufacturers (OEMs) End Customers The “Good Old Days”

15. EMS/CM’s ODM TPBV’s/Platform Providers ISV Distributor/VAR/VAD/SI “Pure” SI’s OSV BIOS Chassis Silicon Supplier Silicon Distributor Manf. Rep’s ISV OSV BIOS Chassis Eng. Services Original Equipment Manufacturers (OEMs) End Customers How Is Rep Value Optimized In This Complex Flow?

16. Are You Evolving To Meet The Needs Of Your Customers? • Do you have a growth strategy? • Are you deployed to reach tomorrow’s customers? • Are you making the right line card decisions? • Are you enabling your customers to make the right product decisions? • Are you solving your customers’ problems?

17. Challenge 1 - Globalization • Does anyone expect a dramatic reversal of outsourcing? • How does Globalization effect compensation going forward? • How much collective bandwidth goes into tracking vs. selling? • How do Mature Market Rep Firms prosper in a Global Market? What actions can we/you take to begin to address this issue? • Is there value in ERA driving a Global Strategy across it’s member base? • Could there be a collective investment by mature market Reps to proactively address the Global challenge? • What are your thoughts on this?

18. Challenge 2 – Demand Creation • Are the mature market Design Win engines optimized? • Who is the predominant DW entity? • Distribution? Reps? • How much wasted energy and positioning goes into this debate? • What redundancies could be minimized or removed? Might There Be More Efficient Alternatives? • Is there an opportunity for ERA & Distribution to form a more strategic alliance? • Is there a more efficient way to collectively fund Demand Creation resources? • What are your thoughts?

19. Challenge 3 – Strategic Partnerships How many firms: • Have customers that now Buy vs. Design? • Realize compensation selling at a higher Level of Integration vs. Components? • Have a relationship & commission stream that comes from ODMs or OEMs? • Have a S/W vendor (O/S, Middleware, or Application Vendor) on their Line Card? • Have a Professional Services or Design Services Principal on their Line Card? Is it in your business interest to consider these new relationships? • Is your current Talent Pool structured to optimize your ability to offer your customers the “Value” they are shopping for? • Should you be Strategically Aligning resources and partnerships around “Solutions”? • What Are Your Thoughts?

20. Summary • There are no easy answers… But there is no other option than evolveor becomemuch less relevant • The challenges require principles, Reps, and Distribution to work together to optimize the model… We must tackle these challenges together. It’s time to take ACTION. Material in this presentation does not represent the strategy or views of Intel Corporation they are the independent opinions of the presenter Rick Dwyer.

21. Thank you.