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					    air Semiconductor
New Enterprise Success Story for Swindon
(and impact of the 2008 / 2009 venture investment crisis)


                 David Tester
                Founder & CTO
New Enterprise Success Story for Swindon
… and impact of the 2008 / 2009 venture investment crisis …

   - The Market Opportunity

   - Why Swindon?
       - UK semiconductor technology clusters
       - Swindon Innovation Centre & Silicon South West
       - The M4

   - Air Semiconductor
         - Founders, Investors and the Air Team
         - Journey from initial idea to prototype and customers
         - GPS 2.0 and the digital camera market
         - Follow-on markets for proactive GPS
         - Development Costs and Investment

   - Impact of the 2008 / 2009 semiconductor venture investment crisis

   - Summary and Q&A
The Average (Good) Working Day in a High-Tech Start-Up
The Average (Bad) Working Day in a High-Tech Start-Up
Sell Tesco’s car park to Sainsbury’s



                                                   Car park
     Special offers at
    Sainsbury’s today!

    Press # for directions




    1_.@                3
                      DEF
            2ABC
   Location targeted advertising is only possible with
    4GHI          6  MNO
          5
    7
       ‘Always-ON’ positioning in mobile phones
    PQRS
              JKL

                  9  WXYZ
            8TUV
                       #
    *       0+
                                           ‘Always-ON’ GPS
                            The Key to Proactive Location Based Services


    Nokia 6233        Motorola RAZR V3i      Samsung E900          SEMC K610im       LG KG800 Chocolate   BenQ-Siemens SL91




 Minimum standby      Minimum standby       Minimum standby      Minimum standby      Minimum standby     Minimum standby
     current:             current:              current:             current:             current:            current:
     2.1 mA               2.4 mA                3.6 mA               2.6 mA              4.0 mA               3.1 mA
 Average current*:    Average current*:     Average current*:    Average current*:   Average current*:    Average current*:
    7.3 mA               7.8 mA               8.3 mA                9.4 mA              8.3 mA               9.9 mA
* Current draw based on “average” use assuming battery recharge once every 4 days

      How often does phone battery needs to be recharged if GPS active?
          GPS must be limited to 1-2mA (or 10% of phone power)
                                                        GPS 101
                           Receive Power is -130dBm to -160dBm … 20dB to 50dB below the Thermal Noise Floor!


       Earth radius                                                                                                                86 k
                                                                                                                                          m
                                                                                                                            35,7
        6,378 km


                                                             km                                                                               Geo-stationary
                                                       100
                                                    19,                                                        Regional geo-stationary
                                                                                                               augmentation satellites

                                                                  0 km
                                                        20,20                                                  WAAS
                                                                                                               Wide Area Augmentation System – USA

                                                                                                               EGNOS
                                                              23,222 km                                        European Geostationary Navigation Overlay
                                                                                                               System – Europe




GPS
6 orbital planes; 55° to equator                                                           Galileo
                                                                                                                            Moon
Galileo                                                                                                                     Approx. 400,000 km
3 orbital planes; 56° to equator

GLONASS
                                                                                   GPS
3 orbital planes; 65° to equator                                                   Orbit 11 hours 58 minutes
                                                                                   13,900 km/h

                                                                         GLONASS
Air Invents Continuous Adaptive GPS
   … offers both Low-Power & Position Accuracy




    Accuracy


                                        Low-Power




                                                    Competitor




                                                    Air
    Summary of UK Semiconductor ‘Hot Spots’



                                    Silicon Glen                Silicon Alley              Silicon Fen




UK Semiconductor Locations                    Semiconductor Locations around the M4



                                                 Sources: NMI Design Survey Report 2006
                     NMI Members Map: http://www.nmi.org.uk/about-us/members/members-map
Location, Location, Location: Swindon and the M4
           US 12/039,865 and US 99/999,999
        Tracking Loops for Always-ON GPS Receiver
Silicon South West and Swindon Innovation Centre
Overview of Air Semiconductor
     Investors, Awards and Founders
                                                  The Air Team
                            David Tester                                        Hugh Thomas
                                Founder & CTO                                                  CEO


            Steve Graham                              Andy Heaton                                    Hank Izumi
       Co-Founder & VP Marketing                           VP Operations                                VP Sales Asia


  RFIC Design                       System Design                         ASIC Design Software Design
              Staff                               Staff                               Staff                               Staff
Employee #1 (20 years experience)   Employee #3 (20 years experience)   Employee #4 (10 years experience)   Employee #7 (20 years experience)
Employee #2 (20 years experience)   Employee #1 (20 years experience)   Employee #5 (15 years experience)   Employee #8 (15 years experience)
                                                                        Employee #6 (15 years experience)

             Contract                                                                Contract                            Contract
Contract #1 (15 years experience)                                       Contract #3 (20 years experience)   Contract #8 (20 years experience)
Contract #2 (15 years experience)                                       Contract #4 (20 years experience)   Contract #9 (15 years experience)
                                                                        Contract #5 (20 years experience)
                                                                        2x Synopsys IC layout contractors




                 Board of Directors
                                                                                                                            Support Staff
                 Hugh Thomas          CEO                    ex-CEO TapRoot                                              1x General Admin
                                                                                                                        1x Finance Manager
                 David Tester         CTO
                                                             ex-CEO Andromedia (acquired Macromedia ‘99)
                 Kent Godfrey         Pond Ventures
                                                             ex-CEO Frictionless Commerce (acquired SAP ‘06)
                 Michael Gera         Pond Ventures
                                                             ex-CEO PortalPlayer (NASDAQ: PLAY)
                 Gary Johnson         Independent            ex-CEO S3 (NASDAQ: SIII)
Initial Idea (in 2005) to Prototype Silicon (in 2009)
                         Dual-Mode GPS
                         system design

                                                                             Dual-Mode GPS
                                                                             software design

                                                                            Acquisition DSP
                           Tracking DSP                                       Architecture
                           Architecture
                                                                              Tracking DSP
                           Tracking DSP                                      Implementation
                          Implementation
                                                                            Acquisition DSP
                                                                            Implementation



     J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

                         Radio IC                              Radio IC                            A1250
                                                                                                                     A1250 silicon evaluation
                      Implementation                        Implementation                       IC design
                                                                                                                    Air tracks GPS satellites with RFIC
                                                        Tracking DSP
                                                                                                                    March ‘08
                                                        Architecture
                                                                                                                    RFIC + FGPA platform
                                                           PVT &                                                    May ‘08
                                                        Kalman Filter
                                                                                                                    Air tracks GPS satellites with RFIC + FPGA
                                                         A1225 RFIC (v1)                                            June ‘08
                                                         April ‘07                                                  Air first PVT, confirms lab in Swindon
                                                                                                                    June ‘08
                                                          A1225 RFIC (v2)
                                                                                                                    A1250 single die GPS receiver
                                                             February ‘08
                                                                                                                    January ‘09


     J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D


            2006                                      2007                                     2008                        2009
     J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

                                                                                                             Electra Start-Up of the Year 2008
                                                                                                             November ‘08
                        Gary Johnson joins Board of Directors
                        2x NASDAQ CEO (PortalPlayer & S3)                                                    IET Start-Up of the Year 2008
                        May ‘07                                                                              November '08

                                                                                                             Prof Izzet Kale joins Technical Advisory Board
                                                                                                             October ‘08
                         Engage with TSMC for silicon
                         Sept ‘06
                                                                                                             Demonstrate GPS technology
                                                                                                             July ‘08
                         Development starts!
                         June ‘06                                                                            Recruit external CEO
                                                                                                             May ‘08
                         Air Inc + Ltd incorporated
                         May ‘06                                                                             Red Herring 100 Europe 2008
                                                                                                             April ‘08
                         Series-A Termsheet
                         April ‘06                                                                           Exit stealth mode
                                                                                                             Announce 1st product
                                                                                                             January ‘08
airwave1 system development platform
  and prototype sample silicon module
       Prototype Product Performance
         Unfiltered CEP50 position accuracy is 2.8 metres

                                               Push-to-Fix TTF @ -130dBm: 2.5s
                                               Push-to-Fix TTF @ -150dBm: 2.5s
                                               (Future push-to-fix TTF will be <1s)

                                               Unaided cold start:      -140dBm
                                               Unaided hot start        -150dBm
                                               (Future hot start sensitivity -154dBm)

                                               Tracking sensitivity:     -152dBm
                                               (Future tracking sensitivity -160dBm)




Plot shows 20m (x axis) by 20m (z axis)
Positions grouped into 20cm x 20cm bins
Stationary receiver over 12 hour period
Air Technical Demonstration Platform … in Japan
Air Technical Demonstration Platform … in USA
GPS with airwave1 silicon
 Initial Market: Digital Camera Market and Geotagging


        GPS enabled DSC's     DSC shipments

                                  160 M       164 M
            150 M     155 M
146 M




                                              62 M
                                  38 M
                       22 M
             9M

2008        2009      2010        2011        2012


                                                      GPS modules developed by DSC partners
Customer Status: 174 Active Customer Leads
Markets:
Camera, Cellphone, Laptop PC, Netbook, Digital Watch, Asset Tracking
37 active leads generated proactively by Air
Including: Ability; Apple; Canon; Casio; DoCoMo; Foxconn; Fujifilm; LG; NEC; Nikon;
Nokia; Olympus; Panasonic; Pentax; Ricoh; Samsung Electronics; Samsung Techwin;
Sanyo Digital Imaging; Sony Ericsson; Softbank; Sony
20 active leads from VC introductions
Including: Google; Motorola; O2; Spreadtrum; Swatch; Vodafone
117 unsolicited enquiries resulting from PR activity
Including: Mediatek; Microsoft; RIM; Altek; Fujitsu; Hitachi; HTC; Mitac; Compal
                                                   Proactive




                                                               VC Introductions
        Unsolicited enquiries
CSR / SiRF follow Air Semiconductor Always-ON
                                                                                                          Monthly Burn ($K)




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                                                                                                                                         Development Cost and Investment Profile




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Success = Vision + Market + Money + Timing + Execution + Luck

				
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