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  • TECHNOLOGY BREAKFASTat SCTE Cable-TEC Expo 2006

    Denver Press Club

    Denver, ColoradoJune 22, 2006

    Bob Stanzione, Chairman & CEOJim Lakin, President BroadbandJim Bauer, VP Investor Relations

    Todd Kessler, VP Product ManagementTom Cloonan, CTO Broadband

  • Welcome

    Bob StanzioneChairman & CEO

  • 3 SCTE Technology Breakfast June 2006

    Safe Harbor

    This presentation contains forward-looking statements concerning projections of revenues, income and other financial items; plans and objectives for future operations, products and services; future economic performance; and the assumptions underlying or relating to the foregoing. The statements in this presentation that use such words as believe," "expect," "intend," "anticipate," "contemplate," "estimate," or "plan," or similar expressions are also forward-looking statements. Actual results may differ materially from those contained in any forward-looking statement or from those which could be expected to accompany such statements. Specific factors which could cause such material differences include the following: the timing of the introduction and the performance factors of certain new ARRIS products; design or manufacturing defects in our products which could curtail sales and subject us to substantial costs for removal, replacement and reinstallation of such products; manufacturing or product development problems that we do not anticipate; an inability to absorb or adjust our costs in response to lower sales volumes than we anticipate; loss of key management, sales or technical employees; decisions by our larger customers to cancel contracts or orders as they are entitled to do or not to enter into new contracts or orders with us because of dissatisfaction, technological or competitive changes, changes in control or other reasons. Other risks involve capital spending levels by our customers based in part on demand for broadband services, customer adoption of our technologies, the development and marketing of technology by our competitors and the risks associated with potential acquisitions of competitors, additional lines of business and/or product and services offerings. The above listing of factors is representative of the factors which could affect our forward-looking statements and is not intended as an all encompassing list of such factors. We disclaim any obligation to update publicly or otherwise these statements, whether as a result of new information, future events or otherwise.

  • ARRIS FlexPath Solution DOCSIS-based Wideband Now !

    Todd KesslerVP Product Management

  • 5 SCTE Technology Breakfast June 2006

    ARRIS FlexPath Solution Agenda Market Situation for Wideband Service FlexPath Technology History and Overview Migration to FlexPath Service Conclusion

  • 6 SCTE Technology Breakfast June 2006

    Agenda

    Market Situation for Wideband Service FlexPath Technology History and Overview Migration to FlexPath Service Conclusion

  • 7 SCTE Technology Breakfast June 2006

    Market Trends Driving Wideband in the 2006-2007 Timeframe High-bandwidth applications are becoming real

    Increased Data, Voice, and IP Video traffic requires more bandwidth per subscriber

    Commercial services, video downloads, IPTV, & other applications will all require more bandwidth

    PacketCable Multimedia (PCMM) allows operators to monetize dynamic bandwidth needs (i.e., bandwidth on demand)

    DOCSIS 2.0 physical layer improvements are enabling higher upstream throughput

    Telco competitive threats are increasing

  • 8 SCTE Technology Breakfast June 2006

    New Services Create More Traffic and Consume More Bandwidth.

    E-Mail

    Digital MusicVoIP

    DigitalPhotos

    PodcastingOnline-Games

    VideoMail

    VideoBlogs

    All Video on DemandUnicast per Subscriber

    WebBrowsing

    Video onDemand

    High DefinitionVideo on Demand

    Advanced Services Demand More Bandwidth

    Video Mail

    0 102030405060708090

    100

    Meg

    abits

    per

    Sec

    ond

    per S

    ubsc

    riber

  • 9 SCTE Technology Breakfast June 2006

    Agenda

    Market Situation for Wideband Service FlexPath Technology History and Overview Migration to FlexPath Service Conclusion

  • 10 SCTE Technology Breakfast June 2006

    ARRIS FlexPath Solution Provides Immediate Answer to Higher Bandwidth Needs

    Competition is increasingly fierce, requiring MSOs to address competitive threats on market-by-market basis today

    DOCSIS 3.0 wideband support, along with many other important functions, may still be 2 years off

    ARRIS FlexPath technology enables MSOs to meet the competitive challenges TODAY! Wideband deployments now through software-only

    upgrade on the C4 CMTS Forward compatibility C4 CMTS support for both

    FlexPath and DOCSIS 3.0 in the future

    Protect revenues by addressing competitive threats more quickly

  • 11 SCTE Technology Breakfast June 2006

    ARRIS FlexPath Packet-basedChannel Bonding Demo & Trial History

    2004 2005 2006 2007

    2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

    Worlds 1st Channel Bonding Demo (FlexPath System at NCTA)

    Lab & Field Trials of ARRIS FlexPath Technology(ex: ntl, Hanaro and others)

    Worlds 2nd Channel Bonding Demo (FlexPath System at SCTE)

    GeneralAvailability

    (August 2006)

    This road map is subject to change.

    Tested and reliable solutions speed deployment and reduce

    operational costs

  • 12 SCTE Technology Breakfast June 2006

    ARRIS FlexPath Solution Wideband Now! What is the FlexPath Solution?

    DOCSIS 3.0-based channel bonding software solution for higher bandwidths downstream and upstream

    ARRIS FlexPath Design Goals Leverage C4 CMTS hardware already deployed

    Software-only upgrade to launch service Implement downstream and upstream bonding that

    Addresses primary marketsDelivers a solution early in the market window

    Provides additional speeds MSOs require before DOCSIS 3.0 products become available Available before DOCSIS 3.0 spec is finalized

    Cost effective solution ready today!

  • 13 SCTE Technology Breakfast June 2006

    ARRIS FlexPath Operation Utilizes Existing Cadant C4 CMTS with Software Update

    New TouchstoneWideband Modem with FlexPath software(160 Mbps downstream120 Mbps upstream)

    Any legacy DOCSISCable modem on any downstream or upstream

    Up to four separate downstreams from multiple Cadant C4 Cable Access Modules (CAMs)

    Up to four separate upstreams to Cadant C4

    CAMs

    Todays Cadant C4 CMTS with a FlexPath Software Upgrade

    40 Mbps

    40 Mbps

    40 Mbps

    40 Mbps

    30 Mbps30 Mbps30 Mbps30 Mbps

    Deployed Cadant C4 CMTS Chassis Are FlexPath Solution Hardware Ready!

  • 14 SCTE Technology Breakfast June 2006

    Mainstream Adoption of New Applications Requires Increased Upstream Bandwidth

    Markets require increased upstream bandwidth Increasing upstream throughput has great value for

    enterprise subscribersLeased Line SubstituteSmall Office/Home Office (SOHO)

    Residential customers also need more upstream bandwidth due to adoption of new broadband applications

    ARRIS FlexPath solution implements an upstream channel aggregation scheme that

    Addresses these primary marketsDoes not impact overall delivery schedule

    Capture revenues from mainstream residential and business subscribers quickly

  • 15 SCTE Technology Breakfast June 2006

    Example Subscriber Using FlexPathUpstream Channel Aggregation

    Video Chat

    Send E-Mail Attachment

    VPN Connection

    Sling Video

    Video Phone

    Etc.

    Multiple Applications, spread across four upstream channels

    Home RouterNetwork Address

    Translation (NAT)

  • 16 SCTE Technology Breakfast June 2006

    Agenda

    Market Situation for Wideband Service FlexPath Technology History and Overview Migration to FlexPath Service Conclusion

  • 17 SCTE Technology Breakfast June 2006

    MSO Migration to FlexPath

    Most wideband solutions require the MSO to dedicate downstream channels to wideband cable modems

    ARRIS FlexPath solution was designed to evolve from the MSOs existing architecture FlexPath solution allows all channels to be shared with

    standard DOCSIS 1.0/1.1/2.0 cable modems Cost effective for early deployments Can also be deployed in a dedicated manner

    Software upgrade only No new hardware investment needed

    Protect existing hardware investment

  • 18 SCTE Technology Breakfast June 2006

    Simplified DS Combining Network Example Standard Service

    Node1

    Node2

    Node3

    Node4

    DS DS DS DS

    2Dx12U CAM #1(in existing C4 base)

    2Dx12U CAM #2(in existing C4 base)

  • 19 SCTE Technology Breakfast June 2006

    Simplified DS Combining Network Example FlexPath Wideband Service

    Node1

    Node2

    Node3

    Node4

    2Dx12U CAM #1(in existing C4 base)

    2Dx12U CAM #2(in existing C4 base)

    DS DS DS DS

    SplittersSplitters

  • 20 SCTE Technology Breakfast June 2006

    FlexPath Enables Easy and Cost-effective Migration to Wideband Today

    Revenue from early adopters pays for additional capacity No new downstreams required for currently deployed C4

    CMTS Same number of downstreams cover the same number of

    nodes for the initial deployment Very low incremental cost to initially deploy wideband services

    FlexPath modems and the existing population of standard DOCSIS modems can coexist

    As

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