Pepper, Inc'

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Pepper Digital Home Technology The next
revolution in digital technology will be in the
home - Craig Barrett, Intel The winners in the
emerging mobile marketplace will be the products
that combine portability, ease of use and a great
set of features. - Chris Shipley
Len Kawell, CEO - len.kawell_at_pepper.com Pepper
Computer, Inc. 10 Maguire Rd, Lexington,
MA 781-862-2500 pepper.com
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PepperFounded January 2002

• Pepper is a Digital Home technology company
• Were veterans from DEC, Iris/Lotus/IBM,
  Glassbook/Adobe and OpenMarket
• Our mission is to deliver a total user experience
  that makes technology fun to use and a pleasure
  to own
• We create and market software, services and
  hardware designs
• Our first product is the portable wireless Pepper
  Pad for instant Internet and home control
• Need for more broadband endpoints very large
  market
• We market and distribute through retailers, OEMs,
  broadband providers and home control providers

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Problem and OpportunityConsumers and Providers
Want Broadband Throughout the Home

• Consumers want rich broadband access throughout
  the home
• PCs flexible but time-consuming costly to
  maintain
• Mobile phone displays too small for videos Web
• Set-top boxes not portable and tied to TVs
• Portability and total user experience are
  fundamental
• Mobile phones voice, Blackberry e-mail,
  iPod/iTunes music
• Broadband providers need more end-points per home
• Investing billions on infrastructure and services
  (75BB in US)
• PCs and set-top boxes are currently the only
  end-points
• Need revenue from new subscribers, services,
  digital content
• Need simple to use and support solutions for IPTV
  and VoIP
• Addressable Market - Broadband subscribers
• 30M US homes (22) and 125M homes worldwide
• Growing to 325M homes by 2008
• 16M US homes have both broadband and Wi-Fi

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A New Kind of Device is NeededPortable Device
Between Phone/PDA and Laptop
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Why Now?The winners in the emerging mobile
marketplace will be the products that combine
portability, ease of use and a great set of
features. - Chris Shipley

• Voracious demand for Internet services digital
  media
• Shopping, research, e-mail, IM, sharing,
  blogging, etc.
• Digital photos, music and videos
• Homes becoming filled with devices requiring
  control
• Home theaters, media servers, smart appliances,
  etc.
• Its a jungle out there too many mixmatch
  products
• Marketplace values total user experience
  products
• Integrate software, hardware and service
• Theres a lot of road-kill behind us
• Past attempts weak solutions, too early
• Media-rich Internet is the new baseline
• Delivering the total user experience is critical

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Our AnswerA Total User Experience for Broadband
Home Control

• Pepper Pad software hardware
• Software
• Broadband application framework
• Built-in downloadable applications
• Web, E-mail, IM, Video, Music, Photos
• Games, Remote Control
• OEMable Platform
• Hardware
• 2.3 lb, ruggedized, lighted keypads
• 8.4 screen, 20 GB disk
• Wi-Fi, Bluetooth, infrared, USB, SD
• Intel Xscale and media processors
• Pepper Pad services
• Pepper provided
• Downloadable application distribution
• Sharing, collaboration, archiving
• Partner provided / Pepper integrated
• Shopping, mail, instant messaging, music, videos
• Photo sharing, blogging, IPTV and VoIP

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The SoftwareInstant Internet Home Control
Software Platform

• High-fidelity Internet access
• Web Mozilla, Macromedia Flash
• IM AIM, peer-to-peer (and MSN)
• E-mail POP, IMAP
• Digital Media
• Music MP3, AAC, WAV (and Real, WMA)
• Video MPEG2, MPEG4 (and Real, WMV)
• Photos JPEG, PNG, etc.
• Home Control
• IR, Web (and UPnP)
• Sharing Collaboration
• Two-way Peer-to-peer sharing
• Via IM e-mail
• Part of every application
• Technology
• Linux, Web, Java, XML, XSL, HTML, Javascript,
  CSS, etc.

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Why Buy Something New?Consumers crave convenience

• Instant Internet for the entire home and family
• Instant-on and wireless - just pick-up and and
  use
• Lightweight portability - room-to-room,
  home-to-home, hotspots
• Ruggedized - coffee table, kitchen counter, night
  stand, porch, etc
• Low maintenance - no time or expense for upkeep
• Easy to use - everyone in the family can enjoy
• WiFi, USB, BT, IR - Connect to existing and
  future PCs and devices
• 2005 customer
• Affluent tech-savvy adults with broadband and
  Wi-Fi

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Usage ScenariosInstant Internet, Digital Media
and Home Control
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Portable Digital DevicesCurrently Available
Products Platforms
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For More Info on the Digital Home

• www.engadget.com - First look at digital gear
• www.nytimes.com/circuits - Consumer IT
• www.upnp.org - UPnP Forum
• www.dlna.org - Digital Living Network Alliance
• www.avsforum.com - Audio/Video Science Forumand
  of course,
• www.pepper.com - Peppers Web site