Agilent Corporation and Aerospace and Defense Directions Agilents

Agilent Corporation and Aerospace and Defense Directions

Agilent’s Purpose To revolutionize the way people live and work through technology Aerospace/Defense Directions April 2002

Agilent’s Fields of Focus Communications Life Sciences and Chemical Analysis Electronics Aerospace/Defense Directions April 2002

Agilent’s Organization President and CEO Edward W. (Ned) Barnholt COO William P. (Bill) Sullivan CFO Adrian T. Dillon General Counsel D. Craig Nordlund HR Jean M. Halloran Sales, Mktg. & Customer Support Larry C. Holmberg Test & Measurement Automated Test John Scruggs Semiconductor Products Dick M. Chang Communications Solutions Thomas (Tom) White Electronic Products and Solutions Byron J. Anderson Corporate Relations William R. (Bill) Hahn CTO Thomas A. (Tom) Saponas Aerospace/Defense Directions April 2002 Agilent Laboratories Life Sciences and Chemical Analysis Chris van Ingen

EPSG Aerospace and Defense Byron Anderson, S. V. P. & G. M. Electronic Products and Solutions Group Mike Gasparian, V. P. & G. M. Multi Industries Business Unit Lynne Camp, V. P. Outbound/Channel Manager Carl Smolka Aerospace/Defense Manager Marsh Faber - Messaging Mike Granieri – U. S. Guy Harris - Satellite Bob Smallwood- Europe Bill Smith- Surveillance Orion Wood – Japan/Asia Aerospace/Defense Directions April 2002

Agilent Around the World Customers in more than 120 countries More than half of revenue generated outside U. S. Global manufacturing and R&D Aerospace/Defense Directions April 2002

Agilent’s Values Innovation and contribution Trust, respect and teamwork Uncompromising integrity Speed Focus Accountability Aerospace/Defense Directions April 2002

Business Segments as a Percentage of FY 01 Net Revenue* Life Sciences and Chemical Analysis 13% Test and Measurement 65% Semiconductor Products 22% 100% = $8. 4 billion *See note 2 Aerospace/Defense Directions April 2002

Agilent’s Road to Independence March 2, 1999 November 1, 1999 June 2, 2000 HP announces creation of Agilent starts operating as. Agilent becomes two independent companiesan independent company fully independent July 28, 1999 Agilent’s name is introduced Aerospace/Defense Directions April 2002 November 18, 1999 Agilent’s IPO takes place

Agilent’s History Agilent dates back to the earliest days of Hewlett-Packard, which started as a test and measurement company in 1939 Agilent embodies historical commitment to innovation and contribution, uncompromising integrity, teamwork, trust and respect for the individual Agilent’s headquarters is erected on the site of the first HP headquarters. Aerospace/Defense Directions April 2002

Agilent’s Values Innovation and contribution Trust, respect and teamwork Uncompromising integrity Speed Focus Accountability Aerospace/Defense Directions April 2002

Agilent’s Core Technologies Communications/Electronics Life Sciences/Chemical Analysis Measurement science Electronic circuit and systems design Fiber Optic and Optoelectronic devices and systems Applications software and solutions integration Radio frequency/microwave Chemical separation/analysis Optics/photonics Molecular biology High-speed optoelectronics Microfluidics High-speed electronics Solid-state materials/devices Communication protocols Network monitoring/mgt. Agilent Laboratories Aerospace/Defense Directions April 2002

Aerospace and Defense Directions Aerospace/Defense Directions April 2002

The Aerospace/Defense Industry Sectors Aerospace/Defense Commercial Aerospace Science Comms Ncast Other Intell Comms Nav EW Agencies. Surv Recon Radar ECM Military Satellite Commercial Aviation Science & Technology Sea Land Aerospace/Defense Directions April 2002 Surveillance Commercial Satellite Air Space Bcast Nav National Defense Gov Defense Electronics

Aerospace/Defense Directions April 2002 139 Others Australia Israel Western Europe India 25 Japan – Asia/Pacific Taiwan 50 Japan 75 France 100 Russia 125 PRC 150 Brazil 175 Total for 154 Nations: $ 922 B in $FY ‘ 01 S. Korea 200 US = 32% $301 B in FY’ 01 Saudi Arabia 225 Italy 250 Germany 275 Source: “World Military Expenditures and Arms Transfers 1998”, dated January 2000 United Kingdom 300 United States Worldwide Defense Spending Distribution

AD Industry Money Flow Commodities Subs Primes Component Providers Assembly Providers Sub-system Providers Components Assemblies Defense Electronics Government Defense “Platform” Agencies Providers Platform Spending All T&M Channels Test & Measurement Equipment Manufacturers Aerospace/Defense Directions April 2002 Defense Spending

US Consolidation through 1998 Through 1998 Bath Iron Works General Dynamics GE Aerospace Martin Marietta Lockheed Loral LTV Grumman Northrop Westinghouse Boeing Rockwell Mc. Donnell Douglas Magnavox Hughes E-Systems Raytheon Texas Instruments TRW BDM Allied Signal Honeywell Aerospace/Defense Directions April 2002 General Dynamics Lockheed Martin Space Systems Loral Northrop Grumman Boeing Hughes Space Raytheon TRW 1998 – 1999 “Additions” Computer Devices GTE Government Systems National Steel and Ship Gulfstream COMSAT Satellite Network Systems Spectrum Satellite California Microwave Int’l Research Inst. Teledyne Ryan USSBC Primestar Allied Signal Communications Australia Technical Services Lucas Aerospace Honeywell

The European Situation – Complex and Dynamic Racal Dassault Owns 6% Thales Thomson Marconi Sonar Saab/ Celsius BAE Systems BAE Owns 35% Rheinmetall STN Atlas EADS Owns 4% New MBD Airbus Industrie Astrium Eurofighter Alenia Marconi Systems EADS Military Aircraft Joint Venture Finnmeccanica Source: DFI International Aerospace/Defense Directions April 2002 EADS Owns 47% Dassault Aviation

Industry Attributes Attribute Industry “Cycle Time” State and Trend Slow (3 -4 X other high tech) 15 Year Development Cycles > 30 Year Operational Life Industry Volume Low volume (fly prototype) and Complexity Extreme complexity (Aircraft cost is > 50% electronics) Reliability MTBF often measured in perspective hours; Failures place lives in jeopardy and impact Security & Security places lives in READINESS Interoperability jeopardy “Paradox” Selective interoperability critical to effective coalition All of the “normal” in food Industry Use operations chain + Models 2/3 of end user lifecycle cost in O&M phase Aerospace/Defense Directions April 2002 Business Implications Long support life Forward/backward compatibility Looking for “reliable” partners Manufacturing looks like R&D –No One-box specialization Test and evaluation vital Need to be on leading edge of diagnostic technologies Clearances often required; software configurability and interoperability testing critical Contractors look like high tech manufacturers; End user focused on ATE and O&M

Defense Electronics Equipment – History + Forecast $140 World Peace Scenario Cold War Scenario $120 Rogues & Terrorists Scenario Former USSR $100 $80 Japan – A/P $60 Western Europe $40 $20 1980 Aerospace/Defense Directions April 2002 1985 1990 1995 2000 2005

US Consolidation through 1998 Through 1998 Bath Iron Works General Dynamics GE Aerospace Martin Marietta Lockheed Loral LTV Grumman Northrop Westinghouse Boeing Rockwell Mc. Donnell Douglas Magnavox Hughes E-Systems Raytheon Texas Instruments TRW BDM Allied Signal Honeywell Aerospace/Defense Directions April 2002 General Dynamics Lockheed Martin Space Systems Loral Northrop Grumman Boeing Hughes Space Raytheon TRW 1998 – 1999 “Additions” Computer Devices GTE Government Systems National Steel and Ship Gulfstream COMSAT Satellite Network Systems Spectrum Satellite California Microwave Int’l Research Inst. Teledyne Ryan USSBC Primestar Allied Signal Communications Australia Technical Services Lucas Aerospace Honeywell

The European Situation – Complex and Dynamic Racal Dassault Owns 6% Thales Thomson Marconi Sonar Saab/ Celsius BAE Systems BAE Owns 35% Rheinmetall STN Atlas EADS Owns 4% New MBD Airbus Industrie Astrium Eurofighter Alenia Marconi Systems EADS Military Aircraft Joint Venture Finnmeccanica Source: DFI International Aerospace/Defense Directions April 2002 EADS Owns 47% Dassault Aviation

Defense Electronics and Defense Platforms q Radar q Aircraft v Search, Detection and Tracking q Electronic Countermeasures v Detection and Deception q Communications v Voice and Data q Surveillance & Reconnaissance v Identification and Location q Navigation and Guidance q. Control and Computation v GPS and Landing Systems v. Control, Displays, Processors q. Weapons v. Ammunition and Armor q. Propulsion v. Engines, Fuel, Drive Train, Suspension Aerospace/Defense Directions April 2002 v Includes UAV’s and Helicopters q Ships v Primary Shipboard Equipment q Vehicles v Wheeled and Tracked Terrestrial Platforms q Space v Lift, Payloads And Supporting Infrastructure q Low Mobility v Electronic /IT/ SW Systems not platform specific q Missiles q Ordnance Weapons /

Aerospace/Defense Example Commodities Component Providers MMICs • Power Transistors • Circulators • Interconne ct / Substrates • Optoelectro Amplifiers • SAW Devices • ASICs • Oscillators • Phase Shifters Subs Primes Assembly Providers Sub-system Providers Transmitter/ Receivers Radar LOs and exciters EW system Mod/demod Signal Processin g Comms • Processors • Power Supplies • Power Converters • A/D, D/A Converters • Antennas Government Defense “Platform” Agencies Providers Fighter Navigation &Guidance Reconn & Surveillanc e Engines Airframe T&M Channels Test & Measurement Equipment Manufacturers Aerospace/Defense Directions April 2002 Air Forc e

AD Industry Value Delivery System Commodities Subs Component Assembly Providers • Power Transistor s • Circulato rs Interconn / Substrate s • OE Amplifiers • SAW Devices • ASICs • Oscillato rs • Phase Shifters • Processo rs • Power Supplies • Power Converter s • A/D, D/A Converter s • Antennas Primes Sub-system Providers Lockheed Martin Raytheon ITT Industries Northrop Grumman Litton TRW L-3 Comms General Dynamics Daimler. Chrysler BAE Systems Thales Government “Platform” Providers Lockheed Martin Raytheon Boeing BAE Systems EADS Thales T&M Channels Test & Measurement Equipment Manufacturers Aerospace/Defense Directions April 2002 Defense Agencies Army Navy Air Force

AD Industry Test And Measurement Commodities Subs Primes Government Perspective Defense Sub-system “Platform” Component Assembly Providers Agencies Providers Application Specific Instruments G. P. Instruments “COMPLEX” Parametric “SIMPLE” & Functional Parametric and Functional Test Systems” Systems Integrated Maintenance Environment Analysis & Simulation Providers Portable Bench Rep & Cal (GPTE) ATE/ATS T&M Channels Test & Measurement Equipment Manufacturers Aerospace/Defense Directions April 2002

Key Forces, Trends and Implications From Reliability Complexity Longevity Driver People die when systems fail System of Electronic systems 15 year developments 30 + year life-cycles To Reliability Complexity Longevity T&M Implication Manual repair & calibration moving to ATS & integrated diagnostics Seamless product migration plans Signal/syste Branch Centric Network-Centric m Coalitions & simulation and analysis Firepower Information Warfare Precision Force (Sensor to Shooter) functionality & “Cold War” Scenario Reduced test Readiness Affordability performance To “World Peace” costs over all To Rogues & Terrorists elements of system life-cycle Aerospace/Defense Directions Joint Operations April 2002

Defense Electronics – Key Technology Trends ‘ 80 s and ‘ 90 s Today Future Single T/R Single mode Radar EW Comms Specific Function Low BW analog Sat Tac Analog Radio Surveillance Nav/Guide ATS/ATE Single Signal Type (“hardwired”) Digital radio GPS infrastructure upgrades Per service Per sub-system comprehensive testers ATS Bench Rep/Cal Wide variety of test equipment Aerospace/Defense Directions April 2002 Phased Array (AESA) Multiple modes Multimode Conformal digital Fully integrated Fully Integrated High BW secure digital Software-Defined radio Multiple Signal Types (reconfigurable) Joint synthetic instrument ATS Few, highly capable instruments

Radar Performance Evolution Past Mechanically Steered Antenna (MSA) Fixed channel analog receiver q Simple waveform set q Low noise RF q Standard A/D and D/A conversion q Aerospace/Defense Directions April 2002 Current Active Electronically Steered Antenna (AESA) Fixed multichannel analog receiver q Complex waveform set q Very low noise RF q High speed large dynamic range A/D and D/A q Future Digital Radar Variable channel digital receiver q Direct digital synthesis waveforms q Extremely low noise RF q Module level high speed A/D & D/A conversion q

EW Performance Evolution Past Single Function Current Multifunction q Loose integration q Mode switching Dedicated “aperture” q q Little attention to power management q q Focus on detection q q Single mode and single function Aerospace/Defense Directions April 2002 Future Fully Integrated q Fully integrated system Focus on power management q Multiple modes q Shared “apertures” Focus on friend or foe determination q Focus on identification and discrimination

Tactical Radio Evolution Past Analog Radio q Analog (voice) traffic q Designed in interoperability (stovepipe) q Point-to-Point Aerospace/Defense Directions April 2002 Current Digital radio q Analog and Digital traffic (voice/data) q Limited interoperability q Some network client capability Future Software Defined radio q Multimedia traffic (voice/data/video) q Software defined security and interoperability q Full network participant

Signal Monitoring/Intelligence Evolution Past Analog Channels q q q Current Analog & Digital Channels Unique “hardwired” configuration per signal type q Custom “Rack and Stack” receivers q Analog signal processing Aerospace/Defense Directions April 2002 q Unique “Firmware” configuration per signal type Future Software Defined Channels q Software configurable signal types q Wider bandwidth down conversions q More sophisticated digital signal processing Analog block down conversion Digital signal processing

Military Communications Satellite Evolution Past Current Analog “Bent Pipe” Future Digital Regenerative Digital Transparent q Analog (voice & video) traffic q Analog and digital traffic q Wideband digital traffic q Analog modulation q Vector modulation q Signal amplification in satellite q Analog signal amplification in satellite q Digital signal regeneration in satellite q 36 MHz channels q 36 -72 -120 MHz channels Aerospace/Defense Directions April 2002

Automatic Test System Evolution Past Per Service and Per Platform ATS Current Per Service but Platform Common ATS Future Joint Service Common Platform ATS q Unique configuration per system q Focus on “longlife” HW architectures q Focus on more capable HW architectures q Primarily “Rack and Stack” instruments q Hybrid mix of instruments and “modules” q Any signal on any pin at any time q Unique Test Program Sets (TPS) of fixturing, Aerospace/Defense Directions and SW April 2002 q Optimize TPS coverage q Preserve TPS investment

Repair & Calibration Test System Evolution Past Current Hundreds of Makes/Models Future One Very Capable Make/Model Tens of Makes/Models Multimeters = 100 Oscilloscopes = 250 q q Test equipment specified by equipment supplier Cost plus focus discourages commonality Aerospace/Defense Directions April 2002 q q Test equipment constrained by equipment buyer Affordability realized by inventory reduction q Test equipment capability a given q Affordability and Readiness maximized q Technology refresh paths enhanced

Thank you Aerospace/Defense Directions April 2002