ICSI Speech Intelligibilty Keith Mc Millen President CEO

ICSI Speech Intelligibilty Keith Mc. Millen President / CEO mcmillen@octiv. com Phone: 510 -280 -5013

Company Background n 2000 • Operations and first products launched • VCs include 3 i, Novus and Intel Capital n Today • Focused on telephony products • Positioning ourselves for consumer product integration • Continue to support solutions for Internet, pro audio and broadcast n Future • Expand telephony product line • IP licensing as standard feature on consumer electronics OCTIV CONFIDENTIAL

Professional Audio & Broadcast Customers Media Customers OCTIV CONFIDENTIAL Application Description Product Name Octivation of over 1, 400, 000 songs for online broadcast Octifier. Pro Create quality differentiation for free and subscriber services Octifier. Pro Octivating video streams Octi. Max Stream. Pro AV Surround Sound Processor - HDTV Octi. Rama

Technology Advancements § Octiv delivers professional strength audio products to the consumer mass markets $10, 000 § Consumer penetration grows as cost of technology decreases $1, 000 $1 OCTIV CONFIDENTIAL

i. Tunes Plugin n Mac i. Tunes plug-in launched Jan. 5, 2004 n PC i. Tunes plug-in version now in alpha n Other versions available for launch over next 3 months: • Music. Match • Windows Media • Real OCTIV CONFIDENTIAL

Multi-band Processing Overview • HPF – High Pass Filter - filters out signals below 5 hz to balance the signal • Xover – Crossover - filter with 2 outputs that splits broadband signals into multiples • AGC – Automatic Gain Control - system that responds to changes in dynamic levels • Control – keeps the bass from being amplified more than master signal from the AGC OCTIV CONFIDENTIAL • Mixer – combines multiple signals into one • Band Drives 1 -5 – 5 band input gain controls • Neg Att Time Dyn Proc – Negative Attack Time Dynamics Processor - controls excessive peaks in the system • Output Mix Drive – 5 band output gain control

Conference Audio Corrections Original Octivated OCTIV CONFIDENTIAL

Dynamics Processing Overview Better Peak to Average Ratio n Rail to Rail Amplitude n Dynamic Noise Gating n OCTIV CONFIDENTIAL Spectral Optimization n Dynamic Peak Limiting n Rich Voice Quality n

Original Full Scale Excursion Original Peak-to-Average Ratio OCTIV CONFIDENTIAL Octivated Full Scale Excursion Octivated Peak-to-Average Ratio

Mean Opinion Score (MOS) Better Than Toll Quality! Very Satisfied 4. 0 MOS Scores From Dynastat, Inc. OCTIV CONFIDENTIAL Some Users Dissatisfied Many Users Dissatisfied Toll Quality Octi. Vox Quality Satisfied Nearly All Users Dissatisfied Not Recommended

Hear the Difference! n Windows Net Meeting n AOL Voice Chat n Octi. Vox Toolkit OCTIV CONFIDENTIAL Echo No Echo Latency Normalization

PC Latency Comparison OCTIV CONFIDENTIAL

Clear Call Phone Accessory n What is it? • Hear what you’ve been missing • Accessory that plugs into your phone to make conference calls more intelligible n What does it do? • • Adjusts the audio not the working environment Provides professional strength volume matching for all incoming calls § How does it affect my phone? • Compatible with most conference phones and speakerphones OCTIV CONFIDENTIAL

Octi. Vox W 2 W Application n. Full adjustable feature set n. Customizable & Presetable n. Metering for Visibility n. Batch Processing OCTIV CONFIDENTIAL