TWOWAY

TWOWAY

-2-

VoIP,

Cell PhonewirelessQuad Play

Data/Voice

Data/VoiceJCOM/Japan

FTTX

TWOWAY

-3-

(/2007) $74.7 billion $26.9 billion

-

Source: NCTA and TWOWAY/ACI Tech. Center

TWOWAY

-4-

-

Source: NCTA and TWOWAY/ACI Tech. Center

-

TWOWAY

Source: NCTA and TWOWAY/ACI Tech. Center

-

65.6 million 100%VOD

-

TWOWAY

-6-

DSL-

VS

5~15MbpsDSL1.5~6Mbps

28.9 millionDSL

Source: NCTA and TWOWAY/ACI Tech. Center

-

TWOWAY

-7-

-

69,500,0002100%

Cable VoIP

Source: NCTA and TWOWAY/ACI Tech. Center

-

International OnePrice

TWOWAY

-8-

-

Quad Play-:

Source: NCTA and TWOWAY/ACI Tech. Center

-

TWOWAY

-9-

-

Source: NCTA and TWOWAY/ACI Tech. Center

-

TWOWAY

-10-

/ (HFC Network)

TWOWAY

-11-

HFC

HFC: Hybrid Fiber and CoaxialNode Trunk/ Bridge Amp

Tap

F/O Cable Coex Coex

Line Amp

H/E TX/RX

1992 1997 2002 2008

Node+6 Amp N+3 N+0 (?) FTTX (?)

TWOWAY

-12-

More Digital Channels

Analog TV Signals

Digital TV+Data+

Voice Signals

HFC

TWOWAY

-13-

HFPC: Hybrid Fiber and Passive Coax Network

/ HFPC

(1/2)

RF

Headend/TX Node 1

H/E

CMTS

F/O Cable

Coex

Drop Amp

TVs

Cable Modem

STB

IP Phone

Coex

To Other Homes

Other Nodes

Node 1 Covering Area

Other Nodes Covering Areas

Coex

TWOWAY

-14-

(2/2)

Ethernet: 1490nm (Downstream), 1310nm (Upstream)Video signal: 1550nm (Downstream, Third wavelength)

FTTHVideo RF Overlay or RF over Glass

V-ONU P

S TV

F/O Cable

TWOWAY

-15-

Company Profile

19921015

6.05

Optical/RF

(MSOs)

TWOWAY

-16-

TWOWAY Communications, INC.Taiwan

ACI Communication, Inc.USA

ACI Japan, Inc.Japan

ACI KoreaSales Office

TWOWAY Communications, Inc.

TWOWAY

-17-

ACI

TWOWAY

-18-

ACI

Arris

GI

Antec GI

More than 10/~ year 2000 Only 4/Present

TWOWAY

-19-

Vendor Equipment Country of

Origin

SA/Cisco Mexico or China

GI/Motorola MexicoOptical

Transmitter, Receiver and RF Amplifier

C-Cor/Arris Mexico

ACI/TWOWAY Taiwan or USA

CATV

TWOWAY

-20-

CATV

TWOWAY

-21-

HFC : Hybrid Fiber andCoaxial Network

HFPC: Hybrid Fiber andPassive Coax Network

FTTx : Fiber to the HomeBuilding, Curb, etc

HFC NetworkHFPC, FTTxNetwork Turn-key

CMTS + Cable Modemc.LINKWireless Broadband Internet Access

Home Control/Automation/Security/Entertainment

ODM

TWOWAY

-22-

CATV

TWOWAY

-23-

A8KMF3-3U rack mount platform-16 modules High density and flexibility design-Hot-swappable modules-Built-in FAN module-Remote SNMP monitor and control

A8KFT31310nm FWDtransmitter

A8KDRR/QRRDual / Quad return receivers

A8KEAM1550nm EDFA

A8KFR1-1RU FWD dual receiver -Current sharing P/S-Remote SNMP monitorand control

1550 nm Transmitter

EDFA

CATV

TWOWAY

-24-

ACION 3880

TWOWAY

-25-

RF

TWOWAY

-26-

V-ONU 770/870/1G/1.5G/2.7G V-ONU w/Housing

1550 nm Transmitter EDFA

Power Supply and Inserter

TWOWAY

-27-

Design and Mapping On-Site Survey Basic Mapping Electronic File Design Mapping

Equipment Installation

Equipment Supply Standard Workmanship

Providing Integrated Installation On-Site Alignment

Government Compliant Test

Maintenance Plan

TWOWAY

HFCHFCACI

--DSL----HFC HFC (1/2) (2/2)ACICATVCATVCATVCATV