Introduction to PeerApp

November 2007

2

PeerApp – The Company

Established in 2004, predicting the growth and potential of P2P networks for media delivery, develop solutions for service providers to:

Cache files to cost effectively satisfy increased subscriber demand for multi-media

Accelerate content delivery to create competitive advantages and promote top tier broadband packages

Create premium value-added services to participate in the revenue chain associated with accelerating multi-media delivery

Received the first and only patent in area of P2P content acceleration

Management team with extensive experience in Internet, storage, and networking solutions

VC Funded

3

Key Market Factors

P2P delivery of multi-media files (BitTorrent), real time streaming (mlb.com) and the viewing video clips (YouTube) today consume 2/3 of broadband traffic.

Fast and efficient delivery of broadband video and games IS the killer application to drive subscriber growth and satisfaction

Most estimates project an 8 fold increase in the volume of bandwidth consumed by broadband households from 2006 to 2010.

Rapid growth of media consumption results in higher bandwidth costs for ISPs without added revenues.

Total Media Bandwidth Consumed - US

0.00

2000.00

4000.006000.00

8000.00

10000.00

12000.0014000.00

16000.00

18000.00

2002 2003 2004 2005 2006 2007 2008 2009 2010

Mil

lio

n G

B

2003 106.3%

2004 85.7%

2005 99.5%

2006 130.4%

2007 92.9%

2008 85.8%

2009 78.5%

2010 67.7%

% Market Growth

Source: AccuStream iMedia Research

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PeerApp Solutions

Caching: Most cost effective means to satisfy increase in media consumption (P2P and HTTP streaming). Media files are highly cacheable due to flash crowd effects

Control: Allows service provider to assert complete control over media delivery and resource allocation (speed, bandwidth, & performance)

Acceleration: Content Acceleration creates a distinct competitive advantage by delivering media at much faster rates to promote subscriber growth and top tier bandwidth packages.

Value-Added Services: Create premium value-added services to participate in the revenue chain associated with accelerating multi-media delivery.

5

ISP Subscribers

PeerApp UltraBand™ Caching Infrastructure

P2P Traffic Flows

BA

C

Internet P2P Users

Layer 7 Switch

PeerApp UltraBand

Intervenes and serves all traffic transparently

Integrated with DPI for only complete solution

Intervenes and serves P2P & HTTP transactions transparently

Scalable multi-gigabit bandwidth generation capabilities

Superior media delivery and user experience through download acceleration

Reduction of upstream bandwidth

Serves data at wire speeds

6

Connectivity Options

Solution design is based on multiple networking methodologies Policy Based Routing DPI based redirection Alteon Based Load Balancing Fully inline mode (up to 700Mbps)

Carrier-Grade scalable connectivity ranging from 100Mb to 10Gb

InternetInternetISP NetworkISP Network

10Gb Pipe10Gb Pipe

P2P equals to x%

of the pipe

X% of X% of P2P P2P

traffictraffic

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►Switch redirects P2P traffic to UltraBand (by L4 port or L7 signatures)

►PeerApp works in spoofing mode – non intrusive and transparent►If the file does not exist in the cache, UltraBand simultaneously caches

and forwards the downloaded file

How UltraBand Works:P2P Caching In

1

2

ISP subscribers request file

Files Cached Transparently

while being downloaded

Internet

UltraBand

L7 Redirector

ISPSubscriber

InternetUser

8

► If the file exists in the cache, the file is transmitted to the ISP subscriber transparently

►The session is maintained with the Internet user to ensure file availability

How UltraBand Works: Downstream Cache Out

1

2

3

ISP subscribers request file

File transfer stopped but connection kept alive for transparency

File Served fromCache transparently

Internet

UltraBand

ISPSubscriber

InternetUser

XKeep-Alive

L7 Redirector

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How UltraBand Works: Upstream Caching

Provide Upstream traffic from cache without affecting user rating

Move “Last Mile” traffic to the cache & improve the neighboring customers internet experience

Assert control over P2P traffic

P2P Customers

YouTube Users

Basic HTTP Services Users

NeighborhoodInternetInternetISP Network

P2P users

P2P users

Request Hash Pieces

Provide requested Hash Pieces

Congestion of last mile affects

all users

Maintain user rating

Respond on behalf of the ISP customer

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UltraBand Product Family

Decoupled Hardware & Software Highest Performance & Highest Scalability

Cache Element

Scalable Storage

Overview 3Gbps bandwidth capacity in 14U

Up to 10 I/O blades per chassis

N+1 Redundancy

Shared SAN storage, storage capacity up to 64TB

Proprietary clustered I/O layer

Hitless upgrade and system restart

Hot swappable

Dual power, backplane, fans, etc.

1Gbps bandwidth capacity

1U cache element; 2U storage

Directly attached storage

Storage capacity up to 8TB

High availability server

Dual power and fans

High swappable drives

Dell PowerEdge™ Blade Server

EMC CLARiiON™ CX3 Storage Array

Dell PowerVault™Storage

UB1000UB2000

Dell PowerEdge™ Server

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Business Drivers

Households shift to the Internet for all forms of digital consumption P2P, movie downloads, TV-on-demand, games, video clips, SW

upgrades, etc. Need to economically satisfy the growth of bandwidth consumption

per household

Subscriber Satisfaction Satisfy increase in bandwidth consumption Reduce Churn Reduce call center volume

Promote top tier bandwidth packages to increase revenue 10x improvement in download time with PeerApp Justify premium price points

Competitive Advantages Fast and efficient media delivery at wire speeds Promote subscriber growth

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PeerApp UltraBand Content Acceleration

ISP

Internet

ISP

Peer: Video File Source 1GB Film

Download Time = 8+ Hrs

Download Time = 20 Min

PeerApp Enabled ISP

UltraBand

PeerApp UltraBand = 24x Improvement in Download Time = Customer Satisfaction

8 Gb/s 2Gb/s

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PeerApp Content Acceleration

Assumes a 218MB video file (about 30 minute TV program) 6 Minutes vs. 6 hours download time Promotes top-tier broadband packages driving more revenue

10x improvement from 512Kb to 5Mb

P2P Download Performance

5829 20 13 6

455 441 422 404383

97 8358

32

146

0

50

100

150

200

250

300

350

400

450

500

512 Kbps 1024 Kbps 1536 Kbps 2560 Kbps 5120 Kbps

Access Speed

Min

ute

s

With PeerApp P2P without PeerApp Hybrid CDN

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Smart Bandwidth™ Generation

In traffic 440M + PeerApp 770M =Total 1210M

Economically satisfy increase in consumer bandwidth demand

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Media Cache for Subscriber Growth

Efficiently deliver media inside your network at WIRE SPEEDS Satisfy subscriber demand for monthly media consumption in a cost effective

manner Supports subscriber and bandwidth consumption growth per subscriber

27.5% subscriber growth 123% increase in total media consumed (75% increase/sub) Reduced backhaul charges and only 19% increase in last mile

Actual Service Provider Example

Before PeerApp After PeerApp

Total Last-Mile Throughput

5,700 Mbps 7,100 Mbps

Active subscribers 120,000 153,000

Avg. Bandwidth Consumed per Sub

8GB/month 14GB/month

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Summary

Satisfied Subscribers Consuming more media Faster media delivery

More efficient Network for media delivery Media files are highly cacheable and drive flash crowd behavior Reduce need to expand Transit links Intelligent caching to manage peak traffic on last mile Manage upstream bandwidth from P2P Ability to integrate with DPI for complete traffic management solution

Generate Revenue Promote subscriber growth Promote top tier bandwidth packages Distinct competitive advantage Delivery enhanced services based on acceleration

17

Thank you