Sierra Wireless Corporate Overview August 2011 Sierra Wireless

Sierra Wireless Corporate Overview August 2011 Sierra Wireless Proprietary and Confidential January 21, 2010 Page 1

Safe Harbor Statement Certain statements and information in this presentation are not based on historical facts and constitute forward-looking statements within the meaning a pplicable securities laws (“forward-looking statements”) including statements and information relating to our financial guidance summary for Q 3 2011 and fiscal year 2011, our guidance drivers for 2011 and our business outlook for 2011. Forward-looking statements are provided to help you understand our views of our short and longer term prospects. We caution you that forward-looking statements may not be appropriate for other purposes. We will not update or revise our forward-looking statements unless we are required to do so by securities laws. Forward-looking statements: ● typically include words about the future, such as: “look forward to”, “outlook”, “may”, “intend”, “believe”, “plan”, “anticipate”, “expect”, “goals”, “targets”, “forecasts”, “well positioned for”, “trending” and “will continue to”. ● are not promises or guarantees of future performance. They represent our current views and may change significantly; ● are based on a number of material assumptions, including those listed below, which could prove to be significantly incorrect : § Our ability to develop, manufacture and sell new products and services that meet the needs of our customers and gain commercial acceptance; § Our ability to continue to sell our products and services in the expected quantities at the expected prices and expected times; § Expected transition period to our 4 G products; § Expected cost of goods sold; § Expected component supply constraints; § Our ability to “win” new business; § That wireless network operators will deploy next generation networks when expected; § Our operations are not adversely disrupted by component shortages or other development, operating or regulatory risks; and § Expected tax rates and foreign exchange rates. ● are subject to substantial known and unknown material risks and uncertainties. Many factors could cause our actual results, achievements and developments in our business to differ significantly from those expressed or implied by our forward-looking statements, including, without limitation, the following factors, most of which are discussed in greater detail. These risk factors and others are discussed in our Annual Information Form and Management’s Discussion and Analysis of Financial Condition and Results of Operations, which may be found on SEDAR at www. sedar. com and on EDGAR at www. sec. gov and in our other regulatory filings with the Securities and Exchange Commission in the United States and the Provincial Securities Commissions in Canada. § Actual sales volumes or prices for our products and services may be lower than we expect for any reason including, without limitation, the continuing uncertain economic conditions, price and product competition, different product mix, the loss of any of our significant customers, competition from new or established wireless communication companies; § The cost of products sold may be higher than planned or necessary component supplies may not be available, are delayed or are not available on commercially reasonable terms; § We may be unable to enforce our intellectual property rights or may be subject to litigation that has an adverse outcome; § The development and timing of the introduction of our new products may be later than we expect or may be indefinitely delayed. § Transition periods associated with the migration to new technologies may be longer than we expect. USE OF NON-GAAP FINANCIAL MEASURES This presentation contains references to certain non-GAAP financial measures and should be viewed in conjunction with our press release and supplementary information on our website (www. sierrawireless. com), which present a complete reconciliation of GAAP and Non-GAAP results. © Sierra Wireless 2011 Page 2

Corporate Profile A leading provider of Mobile Computing and Machine-to-Machine cellular wireless solutions Broad range of high performance hardware & software solutions Proven innovator in new wireless technologies, embedded systems and end to end solutions Strong global presence. HQ in Vancouver, Canada R&D on three continents © Sierra Wireless 2011 Founded in 1993 Experienced leadership Approximately 900 employees worldwide 2010 Revenue $650 million NASDAQ TSX Page 3

Targeting Two Large, Growing Markets Global Market Size ($USD billion) Mobile Computing 18. 0 ‘ 10 -13 CAGR 23% Mobile Broadband 750 M+ notebooks, netbooks, tablets shipped per year 3, 7 2, 5 Connected Homes Mobile Consumer >1 billion middle-class households 5+ connected devices person Year 2020 “Everything Connected” 15. 5 12. 4 1, 8 9. 6 7. 7 1, 3 1, 2 Automotive & Transportation >1 billion people with >1 billion motor vehicles chronic welfare diseases 13, 0 Healthcare 14, 3 10, 6 6, 5 8, 3 Energy >3 billion utility meters 2009 2010 2011 2012 2013 Machine-to-Machine Source: ABI Research © Sierra Wireless 2011 Page 4

Global Leader in Wireless Solutions for M 2 M and Mobile Computing Machine-to-Machine Mobile Computing • #1 global market share • 4 G leadership • Leading product portfolio • Solid channel positions: AT&T, Sprint, Telstra • Highly differentiated • Global support • Solutions across the value chain • Mobile Hotspots & USB modems • Tier 1 PC OEM customers Leverage LTE Wi. MAX HSPA+ EVDO Core wireless technology © Sierra Wireless 2011 Global footprint Manufacturing and supply chain Page 5

Broad Product Offering Targeting Key Verticals Mobile Consumer Mobile Computing Security Automotive Networking Transportation Sales & Payment Energy Industrial & Infrastructure Field Services & Logistics Healthcare Sierra Wireless Products and Solutions Mobile Broadband Devices © Sierra Wireless 2011 Embedded Wireless Modules Intelligent Gateways & Routers M 2 M Cloud Platfrom Page 6

Air. Card® Mobile Broadband Devices Mobile broadband devices for global operators, including: USB modems, mobile hotspots, PC cards, and express cards Leading provider of high speed 4 G air interfaces: LTE, Dual-Carrier HSPA+, Dual-Mode Wi. MAX / CDMA Ranked top global vendor in 2009 by ABI Research © Sierra Wireless 2011 Page 7

Air. Prime Embedded Wireless Modules Wireless modules, software and services for OEMs embedded modules • • LTE HSPA/HSPA+ EVDO TD-SCMDA EDGE 1 x. RTT GSM/GPRS GPS software solutions and services embedded SIM development tools © Sierra Wireless 2011 e-readers, tablets notebooks, netbooks automotive sales and payment smart grid, smart metering networking security healthcare embedded applications management services professional services Page 8

Air. Link ® Intelligent Gateways & Routers Wireless terminals for M 2 M and mobile applications gateways and routers security sales & payment tracking business continuity utilities & infrastructure fleet management & field service • Ruggedized and commercial grade • 2 G and 3 G platforms in-vehicle platforms commercial grade routers M 2 M gateways programmable gateways software solutions and services device management and diagnostics © Sierra Wireless 2011 embedded intelligence and security Page 9

Air. Vantage M 2 M Cloud Platform Services platform accelerates M 2 M application development Development Tools Ready Agent Asset Communication Device Operator Networks Air. Vantage Services Platform Operating Portal • Subscription Mgmt • Device Mgmt • Asset Mgmt Intelligent Gateways and Routers Applications • Web Applications • Mobile Applications Intelligent Embedded Modules Smart Automation 3 rd Party Portable Agent © Sierra Wireless 2011 Fully-Integrated With Operator Networks Secure Operation Hosted in the Cloud Open Standards Based Development Page 10

Superior Global Footprint London Munich Silicon Valley Vancouver, Canada Corporate Headquarters Beijing Toulouse Tokyo Flextronics Suzhou San Diego Paris Sierra Wireless operates worldwide serving global network operators, OEMs, enterprises • R&D • Sales • Technical Support & Services • Manufacturing Hong Kong and Shenzhen Melbourne Johannesburg = R&D, Marketing, Sales, Operations = Manufacturing = Additional Major Offices © Sierra Wireless 2011 Page 11

2010 Financial Highlights 2010 Revenue by Business Line 2010 Full Year Results ($USD) Revenue Gross Margin (% of revenue) Non-GAAP Earnings from Operations Non-GAAP Earnings per Share Cash Balance as of Dec 31, 2010 $650. 3 million M 2 M 29. 3% $22. 4 million $0. 64 per share $111. 8 million 2010 Revenue by Geography 40% 46% 14% © Sierra Wireless 2011 Mobile Computing 49% 51% Americas EMEA APAC Page 12

Summary Sierra Wireless is the company that operators, OEMs and enterprises around the world count on for wireless solutions • Innovative Mobile Computing and M 2 M applications • Broadest product portfolio – mobile broadband devices, embedded modules, M 2 M gateways and routers, M 2 M cloud services platform • Global reach – R&D and technical services in North America, Europe and Asia, sales and distribution in more than 100 countries • Fastest time to market and lowest total cost of ownership • Financial strength and stability Global leader in wireless solutions for M 2 M and Mobile Computing © Sierra Wireless 2011 Page 13

Q 2 2011 Financial Results © Sierra Wireless 2011 Page 14

Q 2 Overview Q 2 results roughly in line with expectations Q 2 2011 Revenue (USD millions) $159. 1 $139. 9 $24. 9 • Revenue of $139. 9 million – down 12% year-over-year • Non-GAAP gross margin of 28% – up from Q 1 • Non-GAAP operating expenses of $40. 0 million – decrease of $3. 2 million from Q 1 • Non-GAAP loss from operations of $0. 8 million – better than expected Executing to strategy $139. 9 $134. 2 • M 2 M: Leadership, Value chain expansion • Mobile Computing: 4 G growth opportunity, PC OEMs Growth drivers intact; some launch delays Q 2 '10 Q 2 '11 • Steady Core M 2 M growth • Launch of 4 G Air. Card products • PC OEM gains Barnes & Noble and Clearwire © Sierra Wireless 2011 Page 15

Summary of Key Financial Metrics Q 2 2011 Financial Metrics ($USD millions, except EPS and Margin %) GAAP Actual Non-GAAP* Guidance Revenue $139. 9 $140 – $145 Gross Margin (%) 28. 0% Operating Expenses $45. 4 $40. 0 Earnings (Loss) from Operations ($6. 3) ($0. 8) Operating Margin (%) (4. 5%) (0. 6%) Net Earnings (Loss) ($6. 8) ($1. 0) ($3. 8) – ($2. 2) Earnings (Loss) Per Share ($0. 22) ($0. 03) ($0. 12) – ($0. 07) ($5. 0) – ($3. 0) * Non-GAAP results exclude the impact of: stock-based compensation expense, acquisition amortization, integration costs, restructuring costs, foreign exchange gains or losses on translation of balance sheet accounts and tax adjustments. © Sierra Wireless 2011 Page 16

Strong Cash Position and Debt Free Cash Balance (USD millions, at end of quarter) $110. 8 $119. 2 Cash generated in Q 2: $8. 4 million • Cash flow from operations of $17. 2 million • Capital expenditures of $8. 8 million Cash balance per diluted share: $3. 81 Q 1 '11 © Sierra Wireless 2011 Q 2 '11 Page 17

Financial Guidance Summary Non-GAAP* Financial Guidance (USD millions, except EPS) Q 3 2011 Non-GAAP Revenue $150 to $155 million Earnings (Loss) from Operations $1. 0 to $2. 0 million Net Earnings (Loss) $0. 8 to $1. 6 million Earnings (Loss) per Share $0. 03 to $0. 05 / share * Non-GAAP results exclude the impact of: stock-based compensation expense, acquisition amortization, integration costs, restructuring costs, foreign exchange gains or losses on translation of balance sheet accounts and tax adjustments. © Sierra Wireless 2011 Page 18

Machine-to-Machine Segment Overview © Sierra Wireless 2011 Page 19

Market Focus Automotive Typical applications Sample Customers Market Dynamics CAGR 37%/35% Crash Safety (eg. e. Call) $328 m 8. 15 mu (Vol/Rev 2009 -2014) $74 m 1. 7 mu Telematics & Navigation Source: ABI 2009 2014 Market demand drivers: Regulation In Vehicle Internet Increasing post-crash survival rates Regulation & Consumer Pull Tracking stolen vehicles Consumer Demand In vehicle comms & entertainment Tier 1 OEM Market moving to higher bandwidth requirements for internet, entertainment, etc… © Sierra Wireless 2011 Page 20

Market Focus Transportation Sample Customers Stolen Vehicle Tracking Market Dynamics CAGR 31%/29% (Vol/Rev 2009 -2014) 6. 4 mu $230 m Fleet management Source: ABI 2009 e. Toll & e. Tax Collect $831 m 24. 5 mu Typical applications 2014 Market demand through efficiency Fleet & collection efficiency Less fuel/CO 2, shorter routes, faster deliveries, road toll revenue Personal & business road assets Stolen vehicle recovery, insurance premiums tuned, on-road efficiency and pay-as-you-drive insurance, ITS (Intelligent Transport Systems), etc… © Sierra Wireless 2011 Page 21

Market Focus Energy Electricity – Gas – Water Sample Customers Market Dynamics CAGR 18%/11% (Vol/Rev 2009 -2014) $270 m 11. 3 mu Typical applications Smart Metering Transmission & Distribution Renewable Energy Management 5 mu $158 m Source: ABI 2009 2014 Demand drivers: regulation, grid efficiency, social conscience Energy Efficiency - Green Energy CO 2 emissions targets, smart grid: load management/optimization, grid contribution by consumer Consumer monitored energy Web based home monitoring © Sierra Wireless 2011 Page 22

Market Focus Security Sample Customers Premise Monitoring Market Dynamics CAGR 29%/33% (Vol/Rev 2009 -2014) $232 m 8. 5 mu Typical applications Personal Security 2 mu $63 m Source: ABI 2009 Video Surveillance 2014 Market demand drivers: Consumer pull Protecting homes and loved ones Business pull Protecting premises and assets Anti-terrorism Protecting citizens and criminal trackers, high value asset tracking and much more… © Sierra Wireless 2011 Page 23

Market Focus Sales & Payment Point of Sale Sample Customers Market Dynamics CAGR 24%/16% (Vol/Rev 2009 -2014) 1. 6 mu $54 m ATM & Cash Registers Source: ABI 2009 Vending $113 m 4. 6 mu Typical applications 2014 Market driven by “cashless” society Convenience & security Pay for anything, anytime, anywhere, securely. Government regulation Electronic VAT collection to avoid fraud. © Sierra Wireless 2011 Page 24

Market Focus Networking Enterprise Sample Customers Market Dynamics CAGR 14%/12% (Vol/Rev 2009 -2015) $505 m 17 mu Typical applications Residential 7. 7 mu $291 m Source: ABI 2009 2015 Market demand through Broadband proliferation Safety & Industrial 3 G and LTE technology provide end user experience to wireline access Media applications possible Internet access 24 hr/24 hr Enables service provider to provide access (primary or backup) where wireline infrastructure is inadequate © Sierra Wireless 2011 Page 25