Goldman Stanley, Inc.

Project Aardvark
Presentation to the Board of Directors January 29, 2010

Goldman Stanley

Confidential Draft

Table Of Contents
Executive Summary 3

Aardvark Valuation
Potential Acquisitions Process Recommendations Appendix

5
11 16 19

Goldman Stanley

Executive Summary

Goldman Stanley

Executive Summary

As of January 29, 2010, Aardvarks share price and valuation are at all-time highs, having more than doubled since early 2009 As Aardvarks stock price has soared in value, it has also generated over $35B in cash & cash-equivalents As Aardvarks cash balance grows, it is likely to face shareholder pressure to reinvest the cash in its business and to make significant acquisitions Given Aardvarks strong currency and cash balance, it could easily make several tuck-in acquisitions or larger-scale acquisitions to acquire customers Such a strategy would allow Aardvark to capture more of the smartphone, laptop, and desktop markets, and significantly improve its software offerings Given Aardvarks cash position, such acquisitions could be made with 100% cash or in the case of a larger deal, stock could also be used

Goldman Stanley

Aardvark Valuation

Goldman Stanley

Valuation Summary

Aardvarks current share price of $192.61 far exceeds the value implied by comparable public companies Recent comparable transactions show higher implied valuation ranges due to flurry of consolidation and hardware M&A activity over 2009 Discounted Cash Flow Analysis under base-case assumptions shows implied valuation on-par with Aardvarks current share price, implying that share price is justified All valuation analysis is based on base-case financial projections in line with Wall Street analyst expectations Given Aardvarks cash balance and high valuation multiples vs. similar public companies, few competitors are well-positioned to make substantial acquisitions

Goldman Stanley

Aardvark Valuation Summary

($ in Millions Except Per Share Data)
Public Company Comparables(1)(2) 2009 EV / Revenue: 2010E EV / Revenue: 2009 EV / EBITDA: 2010E EV / EBITDA: 2009 P / E: 2010E P / E: Precedent Transactions(1) Min to 25th 25th to Median Median to 75th 75th to Max

Trailing EV / Revenue: Forward EV / Revenue: Trailing EV / EBITDA:

Forward EV / EBITDA:
Discounted Cash Flow Analysis

11-15% Discount Rate, 5-9x Terminal Multiple:

$0.00 $100.00 $200.00 $300.00 $400.00 $500.00 $600.00 $700.00

Goldman Stanley

(1) EBITDA excludes stock-based compensation and non-recurring charges. (2) Financial data as of January 29, 2010.

Aardvark Comparable Public Companies

US-Based Hardware & Networking Companies with Over $20 Billion Revenue ($ in Millions Except Per Share Data)

Comparable Public Companies Operating Metrics(1)

45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% (5.0%) (10.0%) 39% 29% 22% 18% 14% 8% 8% 7% (6%) 4% 31% 25% 2010E Revenue Growth 2009A EBITDA Margin

Comparable Public Companies Valuation Multiples(1)(2)

14.0 x 12.0 x 10.0 x 8.0 x 6.0 x 4.0 x 2.0 x 0.0 x 7.6 x 6.8 x 4.4 x 3.7 x 11.5 x 10.6 x 8.4 x 7.3 x 5.1 x 5.5 x 10.7 x 8.6 x

2009 EBITDA Multiple

2010E EBITDA Multiple

Goldman Stanley

(1) EBITDA excludes stock-based compensation and non-recurring charges. (2) Financial data as of January 29, 2010.

Aardvark Precedent Transactions

Networking & Hardware M&A Transactions Over $1 Billion with US-Based Sellers Since January 1, 2008 ($ in Millions Except Per Share Data)
Aardvark - Comparable M&A Transactions Equity Acquirer Name Hewlett-Packard Company Cisco Systems, Inc. Emerson Electric Co. EMC Corporation Oracle Corporation Brocade Communication Systems, Inc. Target Name Date Value 3Com 11/11/2009 $ 3,180 Starent Networks 10/13/2009 2,777 Avocent 10/6/2009 1,114 Data Domain 7/8/2009 2,362 Sun Microsystems 4/20/2009 7,075 Foundry Networks 7/21/2008 2,899 Maximum 75th Percentile Median 25th Percentile Minimum $ $ Enterprise Trailing Operating Metrics Forward Trailing EBITDA(1) $ 152 154 105 53 623 156 Forward EBITDA(1) $ 110 110 93 64 559 125 559 121 110 97 64 EV / Trailing Valuation Multiples EV / EV / Forward Trailing EV / Forward

Value Revenue Revenue $ 2,714 $ 1,265 $ 1,223 2,386 288 320 1,147 611 542 2,085 301 375 5,392 13,256 12,462 2,063 621 633

Revenue Revenue EBITDA(1) EBITDA(1) 2.1 x 2.2 x 17.8 x 24.6 x 8.3 x 7.5 x 15.5 x 21.6 x 1.9 x 2.1 x 10.9 x 12.3 x 6.9 x 5.6 x 39.7 x 32.8 x 0.4 x 0.4 x 8.7 x 9.6 x 3.3 x 3.3 x 13.2 x 16.5 x 8.3 x 6.0 x 2.7 x 1.9 x 0.4 x 7.5 x 5.0 x 2.7 x 2.1 x 0.4 x 39.7 x 17.3 x 14.4 x 11.5 x 8.7 x 32.8 x 23.9 x 19.1 x 13.4 x 9.6 x

7,075 $ 3,110 2,838 $ 2,466 1,114

5,392 $ 13,256 $ 12,462 $ 2,632 1,104 1,075 2,235 $ 616 $ 587 $ 2,068 378 417 1,147 288 320

623 $ 155 153 $ 117 53

Goldman Stanley

(1) Excludes stock-based compensation and non-recurring charges.

Aardvark Discounted Cash Flow Analysis

($ in Millions Except Per Share Data)
Aardvark - Cash Flow Projections FY 2010E FY 2011E FY 2012E FY 2013E FY 2014E

DCF Assumptions: Discount Rate: 12.5% 7.0 x

Revenue: EBITDA: Operating Income: Less: Taxes Plus: Depreciation Plus: Amortization Plus: Stock-Based Compensation Less: Increase in Working Capital: Less: Capital Expenditures Unlevered Free Cash Flow Present Value of Free Cash Flow

$53,631 $ 62,749 $ 69,651 $ 75,919 $ 81,234 $16,480 $ 19,282 $ 21,403 $ 23,329 $ 24,962 $14,635 $ 17,133 $ 19,030 $ 20,761 $ 22,218 ($4,391) $918 $40 $888 $2,136 ($1,430) ($5,140) $1,073 $37 $1,038 $1,815 ($1,673) ($5,709) $1,192 $28 $1,153 $1,374 ($1,857) ($6,228) $1,299 $13 $1,256 $1,248 ($2,024) ($6,665) $1,390 $10 $1,344 $1,058 ($2,166)

Terminal EBITDA Multiple:

Model Uses Base Case Financial Projections Mid-Year Convention Used For PV Of Cash Flows

$12,795 $ 14,284 $ 15,211 $ 16,324 $ 17,189 $12,064 $ 11,971 $ 11,332 $ 10,811 $ 10,119

Aardvark - Net Present Value Sensitivity - Terminal EBITDA Multiples Discount Rate $ 204.96 10.0% 11.0% 12.0% 13.0% 14.0% 4.0 x $ 170.39 $ 165.99 $ 161.81 $ 157.83 $ 154.03 5.0 x $ 187.23 $ 182.09 $ 177.20 $ 172.54 $ 168.11 6.0 x $ 204.06 $ 198.18 $ 192.59 $ 187.26 $ 182.19 7.0 x $ 220.90 $ 214.27 $ 207.97 $ 201.98 $ 196.28 8.0 x $ 237.74 $ 230.37 $ 223.36 $ 216.70 $ 210.36 9.0 x $ 254.58 $ 246.46 $ 238.75 $ 231.42 $ 224.44

15.0% $ 150.40 $ 163.88 $ 177.37 $ 190.85 $ 204.33 $ 217.81

16.0% $ 146.95 $ 159.86 $ 172.77 $ 185.68 $ 198.59 $ 211.50

Terminal EBITDA Multiple

Goldman Stanley

10

Potential Acquisitions

Goldman Stanley

11

Potential Acquisitions

Given Aardvarks large cash balance, it could make a wide variety of acquisitions ranging from small tuck-in deals to acquire technology and IP to larger deals driven by customer or market share acquisition

Tier 1 Potential Acquisitions

Tier 1 acquisition candidates are worth over $1 billion and would significantly boost Aardvarks market share or result in substantial revenue or cost synergies Leading candidates include ARM, for its chipset technology and integration with Aardvarks existing products, and Research in Motion to capture additional share in the corporate smartphone market

Tier 2 Potential Acquisitions Tier 2 acquisition candidates are worth less than $1 billion and would enhance Aardvarks core technology and fill in gaps in existing products Potential acquisitions include specialized chipset and semiconductor companies as well as Web 2.0, social media, and mobile software companies

Goldman Stanley

12

Potential Acquisition Candidates

Tier 1 Acquisition Candidates

Tier 2 Acquisition Candidates

Goldman Stanley

13

Company Profile: ARM

ARM Holdings is a supplier of semiconductor intellectual property and components of digital electronic products. It designs and licenses intellectual property rather than manufacturing and selling semiconductor chips, and it licenses its IP to a wide network of hardware, mobile, and networking companies. It also provides tools to optimize system-on-chip designs. Management Team: Warren East Tudor Brown Graham Budd Mike Muller Tim Score John Cornish Ian Drew Antonio Viana CEO President COO CTO CFO EVP, Systems EVP, Marketing EVP, Sales

ARM Holdings Headquarters: Employees: Founded: Cambridge, UK 1700 1990

Financial Information(1): Market Cap: Cash: 2009 Revenue: 2009 EPS: 2010E Revenue: 2010E EPS:
$250.00

Products: Processors ARM provides 32-bit embedded microprocessors based on a common architecture that delivers high-performance, power efficiency, and reduced system cost. System IP Serves as the connection between processors, memory, and peripherals to ensure optimum performance. Multimedia ARM provides graphics processors that enable embedded graphics, audio, and video applications. Physical IP Provides SoC integrated circuits and logic, embedded memory, and interface IP. Tools ARM subsidiaries provide compilers, debuggers, simulators, and other optimization tools for a wide variety of chip and processor families.
(1) Financial data as of January 29, 2010.

Key Partners: Electronic Arts, LSI Logic, Microsoft, National Semiconductor, Nokia, NVIDIA, Rambus, Real Networks, Samsung, and Toshiba.

$2.5B $204M $490M $7.85 $531M $10.97

20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0

$200.00
Share Price
$150.00

$100.00
$50.00 $0.00

Volume (MM)

Goldman Stanley

14

Company Profile: Research In Motion

Research In Motion designs the BlackBerry smartphone and creates solutions for the worldwide mobile communications market, including a variety of software for the BlackBerry device. In addition to its line of BlackBerry devices, the company also provides enterprise server software to support businesses using the device. Management Team: Jim Balsillie Mike Lazaridis Don Morrison Robin Bienfait Brian Bidulka David Yach Key Partners: AT&T, Brightstar, Digital China, GPXS, Hewlett-Packard, IBM, Skype, Sprint, Tata Indicom, TMobile, Verizon, Virgin, and Vodafone, Co-CEO Co-CEO COO CIO CFO CTO

Research In Motion Headquarters: Employees: Founded: Waterloo, ON 12,000 1984

Financial Information(1): Market Cap: Cash: 2009 Revenue: 2009 EPS: 2010E Revenue: 2010E EPS:
$100.00 $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00

Products: BlackBerry Pearl 3G Provides Trackpad and dedicated media keys as well as SureType technology and 3G network support. BlackBerry Bold Provides extended battery life as well as GPS, Wi-Fi, and 3G network support. BlackBerry Curve 8500 Includes Trackpad and dedicated media keys, easy media sharing, and 2.0 MP camera. BlackBerry Tour 9630 Provides GPS, worldwide compatibility, and 3.2 MP camera. BlackBerry Storm Features Wi-Fi, SurePress technology, and 3G network support. BlackBerry Curve 8900 Features thin, lightweight design as well as GPS and Wi-Fi support and 3.2 MP camera.

$36B $2.5B $13B $3.70 $17B $5.03

100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0

Volume (MM)

Share Price

Goldman Stanley

(1) Financial data as of January 29, 2010.

15

Process Recommendations

Goldman Stanley

16

Key Recommendations

We recommend engaging in targeted discussions with the Tier 1 acquisition candidates and assessing their receptiveness to M&A discussions At the same time, Goldman Stanley will reach out to Tier 2 candidates and introduce Aardvark as a potential acquirer M&A process with Tier 1 candidates will take significantly longer due to the scale of the companies, so we recommend conducting both processes simultaneously Depending on responses from Tier 1 and Tier 2 candidates, Goldman Stanley and Aardvark may do additional research to determine other potential acquisitions and then approach them Targeted Buy-Side M&A < 5 parties 6 months to 1 year Close-ended Higher success probability Broad Buy-Side M&A 10 100 companies Time required is highly variable Iterative process Lower success probability
17

Goldman Stanley

Process Recommendation
Targeted Discussions + Broader Search

Specialized Negotiations With One Party

Highly Targeted Process

Broad M&A Process

Broad Marketing

RECOMMENDED
Combination of targeted discussions plus broader search conducted in background maximizes success probability and minimizes disruption to Aardvark Additional parties contacted depend on responsiveness of Tier 1 and Tier 2 companies Interested parties would sign NDAs and then proceed into due diligence and valuation discussions with Aardvark

Goldman Stanley

18

Appendix

Goldman Stanley

19

Aardvark Projected Income Statement

($ in Millions Except Per Share Data)
Income Statement FY 2007 Revenue: Cost of Goods Sold: Gross Profit: Operating Expenses: Research & Development: Selling, General & Administrative: Total Operating Expenses: Depreciation & Amortization of PP&E: Amortization of Intangibles: Stock-Based Compensation: Operating Income: Interest Income: Interest Expense: Other Income & Expense: Pre-Tax Income: Income Tax Provision: Net Income: Earnings Per Share (EPS): Diluted Shares Outstanding: EBIT(1): EBITDA : Levered Free Cash Flow: Book Value Per Share (BV):
(1)

FY 2008 $37,491 $24,049 $13,442 $759 $3,345 $4,103 $496 $0 $516

FY 2009 FY 2010E FY 2011E FY 2012E FY 2013E FY 2014E $42,905 $25,324 $17,581 $830 $3,566 $4,397 $734 $0 $710 $53,631 $31,655 $21,976 $1,038 $4,458 $5,496 $918 $40 $888 $62,749 $37,037 $25,712 $1,214 $5,216 $6,430 $1,073 $37 $1,038 $69,651 $41,111 $28,540 $1,348 $5,789 $7,137 $1,192 $28 $1,153 $75,919 $44,811 $31,109 $1,469 $6,311 $7,780 $1,299 $13 $1,256 $81,234 $47,948 $33,286 $1,572 $6,752 $8,324 $1,390 $10 $1,344

$24,578 $16,282 $8,296 $596 $2,724 $3,320 $327 $0 $242 $4,407 $647 $0 ($48) $5,006 $1,511 $3,495 $3.93 889,292 $4,649 $4,976 $4,735

$8,327 $11,740 $14,635 $17,133 $19,030 $20,761 $22,218 $653 $407 $424 $568 $1,443 $1,780 $3,223 $0 $0 ($45) ($90) ($90) ($90) ($90) ($33) ($81) $0 $0 $0 $0 $0 $8,947 $12,066 $15,014 $17,610 $20,383 $22,450 $25,351 $2,828 $3,831 $4,504 $5,283 $6,115 $6,735 $7,605 $6,119 $6.78 902,139 $8,843 $9,339 $8,505 $24.17 $8,235 $9.08 907,005 $12,450 $13,184 $10,311 $34.56 $10,510 $11.59 907,005 $15,523 $16,480 $13,061 $47.17 $12,327 $13.59 907,005 $18,171 $19,282 $14,618 $61.94 $14,268 $15.73 907,005 $20,183 $21,403 $16,158 $78.98 $15,715 $17.33 907,005 $22,017 $23,329 $17,507 $97.70 $17,746 $19.56 907,005 $23,562 $24,962 $19,382 $118.76

Goldman Stanley

(1) Excludes stock-based compensation and non-recurring charges.

20

Aardvark Comparable Public Companies

US-Based Hardware & Networking Companies with Over $20 Billion Revenue ($ in Millions Except Per Share Data)
Operating Statistics Share Company Name Hewlett-Packard Company Dell Inc. Cisco Systems, Inc. Intel Corporation Motorola, Inc. Maximum 75th Percentile Median 25th Percentile Minimum Aardvark
(1)

Capitalization Equity Enterprise Revenue EBITDA

(2)

Projected EPS Revenue

(3)

EBITDA Margin(2) 2009 14.3% 6.7% 28.9% 38.8% 3.9% 38.8% 28.9% 14.3% 6.7% 3.9% 30.7% 2010E 14.6% 7.5% 31.0% 45.9% 8.7% 45.9% 31.0% 14.6% 8.7% 7.5% 30.7%

Price Value Value 2009 2010E 2009 2010E 2009 2010E Growth $ 47.07 $ 114,779 $ 124,430 $ 114,552 $ 124,179 $ 16,433 $ 18,186 $ 3.14 $ 3.87 8.4% 12.90 25,241 15,080 51,430 55,380 3,426 4,129 0.79 1.18 7.7% 22.47 131,739 106,671 34,807 41,163 10,076 12,774 0.97 1.38 18.3% 19.40 107,224 92,786 32,784 39,941 12,708 18,332 0.41 1.17 21.8% 6.15 14,239 10,665 23,457 22,056 926 1,927 (1.70) 0.14 (6.0%) $ 47.07 $ 131,739 $ 124,430 $ 114,552 $ 124,179 $ 16,433 $ 18,332 $ 22.47 114,779 106,671 51,430 55,380 12,708 18,186 $ 19.40 $ 107,224 $ 92,786 $ 34,807 $ 41,163 $ 10,076 $ 12,774 $ 12.90 25,241 15,080 32,784 39,941 3,426 4,129 6.15 14,239 10,665 23,457 22,056 926 1,927 $ 192.06 $ 176,796 $ 141,401 $42,905 $ 53,631 $13,184 $16,480 3.14 $ 0.97 0.79 $ 0.41 (1.70) $9.08 $ 3.87 1.38 1.18 1.17 0.14 11.59 21.8% 18.3% 8.4% 7.7% (6.0%) 25.0%

Valuation Statistics Share Company Name Hewlett-Packard Company Dell Inc. Cisco Systems, Inc. Intel Corporation Motorola, Inc. Maximum 75th Percentile Median 25th Percentile Minimum Aardvark
(1)

Capitalization Equity Enterprise Price Value Value $ 47.07 $ 114,779 $ 124,430 12.90 25,241 15,080 22.47 131,739 106,671 19.40 107,224 92,786 6.15 14,239 10,665 $ 47.07 $ 131,739 $ 124,430 22.47 114,779 106,671 $ 19.40 $ 107,224 $ 92,786 12.90 25,241 15,080 6.15 14,239 10,665 $ 192.06 $ 176,796 $ 141,401

Enterprise Value / Revenue 2009 1.1 x 0.3 x 3.1 x 2.8 x 0.5 x 3.1 x 2.8 x 1.1 x 0.5 x 0.3 x 3.3 x 2010E 1.0 x 0.3 x 2.6 x 2.3 x 0.5 x 2.6 x 2.3 x 1.0 x 0.5 x 0.3 x 2.6 x

Enterprise Value / EBITDA(2) 2009 7.6 x 4.4 x 10.6 x 7.3 x 11.5 x 11.5 x 10.6 x 7.6 x 7.3 x 4.4 x 10.7 x 2010E 6.8 x 3.7 x 8.4 x 5.1 x 5.5 x 8.4 x 6.8 x 5.5 x 5.1 x 3.7 x 8.6 x P / E Multiple 2009 15.0 x 16.4 x 23.1 x 47.2 x NM 47.2 x 29.1 x 19.7 x 16.1 x 15.0 x 21.2 x 2010E 12.2 x 10.9 x 16.3 x 16.6 x 44.6 x 44.6 x 16.6 x 16.3 x 12.2 x 10.9 x 16.6 x

Goldman Stanley

(1) Share prices as of January 29, 2010. (2) Excludes stock-based compensation and non-recurring charges. (3) Revenue growth from Apples FY2009 through FY2010E.

21

Aardvark DCF Analysis WACC Calculation

($ in Millions Except Per Share Data)
Discount Rate Calculation - Assumptions Risk-Free Rate: Equity Risk Premium: Interest Rate on Debt: 4.38% 7.00% 9.00%

Comparable Companies - Unlevered Beta Calculation Levered Equity Name Hewlett-Packard Company Dell Inc. Cisco Systems, Inc. Intel Corporation Motorola, Inc. Median Aardvark Beta Debt Value Tax Rate 1.04 $ 15,830 $ 114,779 20.0% 1.31 3,793 25,241 27.0% 1.23 10,273 131,739 22.0% 1.17 2,224 107,224 33.0% 1.87 3,925 14,239 34.0% 1.23 1.57
(1) (1) (1)

Unlevered Beta 0.94 1.18 1.16 1.15 1.58 1.16

Aardvark - Levered Beta & WACC Calculation Unlevered Beta Aardvark 1.16 Debt
(1)

Equity Value
(1)

Levered Tax Rate 30% Beta 1.16 12.50% 15.37% 12.50%

$0 $ 176,796

Cost of Equity Based on Comparables: Cost of Equity Based on Historical Beta: WACC

Goldman Stanley

(1) Financial data as of January 29, 2010.

22