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 5

Potential Acquisitions 11

Process Recommendations 16

Appendix 19

Goldman Stanley 2
 Executive Summary

Goldman Stanley 3
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 re-

invest 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 4
 Aardvark Valuation

Goldman Stanley 5
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 6
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: Min to 25th

Precedent Transactions (1)
25th to Median

Trailing EV / Revenue: Median to 75th

75th to Max
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.
7
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% 39%
40.0%
35.0% 29% 31%
30.0% 25%
25.0% 22%
18% 2010E Revenue Growth
20.0% 14%
15.0% 8% 2009A EBITDA Margin
8% 7% 4%
10.0%
(6%)
5.0%
0.0%
(5.0%)
(10.0%)

Comparable Public Companies Valuation Multiples (1)(2)

14.0 x
11.5 x
12.0 x 10.6 x 10.7 x
10.0 x 8.6 x
8.4 x
7.6 x 7.3 x
8.0 x 6.8 x
5.5 x 2009 EBITDA Multiple
6.0 x 5.1 x
4.4 x
3.7 x 2010E EBITDA Multiple
4.0 x

2.0 x

0.0 x

Goldman Stanley (1) EBITDA excludes stock-based compensation and non-recurring charges.
(2) Financial data as of January 29, 2010.
8
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)

Goldman Stanley (1) Excludes stock-based compensation and non-recurring charges. 9

Aardvark Discounted Cash Flow Analysis
($ in Millions Except Per Share Data)
DCF Assumptions:

Discount Rate: 12.5%

Terminal EBITDA Multiple: 7.0 x

Model Uses Base Case Financial

Projections

Mid-Year Convention Used For PV

Of Cash Flows

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 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 Management Team:
intellectual property and components of digital
electronic products. It designs and licenses Warren East CEO
intellectual property rather than manufacturing and Tudor Brown President
selling semiconductor chips, and it licenses its IP to Graham Budd COO
ARM Holdings
a wide network of hardware, mobile, and Mike Muller CTO
Headquarters: Cambridge, UK networking companies. It also provides tools to Tim Score CFO
Employees: 1700 optimize system-on-chip designs. John Cornish EVP, Systems
Founded: 1990 Ian Drew EVP, Marketing
Antonio Viana EVP, Sales
Financial Information(1): Products: Key Partners:
Market Cap: $2.5B
Cash: $204M
Processors ARM provides 32-bit embedded Electronic Arts, LSI Logic,
2009 Revenue: $490M microprocessors based on a common Microsoft, National Semiconductor,
2009 EPS: $7.85 architecture that delivers high-performance, Nokia, NVIDIA, Rambus, Real
2010E Revenue: $531M power efficiency, and reduced system cost. Networks, Samsung, and Toshiba.
2010E EPS: $10.97 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.
Goldman Stanley (1) Financial data as of January 29, 2010. 14
Company Profile: Research In Motion
Research In Motion designs the BlackBerry Management Team:
smartphone and creates solutions for the
worldwide mobile communications market, Jim Balsillie Co-CEO
including a variety of software for the BlackBerry Mike Lazaridis Co-CEO
Research In Motion device. In addition to its line of BlackBerry devices, Don Morrison COO
the company also provides enterprise server Robin Bienfait CIO
Headquarters: Waterloo, ON
software to support businesses using the device. Brian Bidulka CFO
Employees: 12,000
Founded: 1984 David Yach CTO

Financial Information(1): Products: Key Partners:

Market Cap: $36B
Cash: $2.5B
BlackBerry Pearl 3G Provides Trackpad and AT&T, Brightstar, Digital China,
2009 Revenue: $13B dedicated media keys as well as SureType GPXS, Hewlett-Packard, IBM,
2009 EPS: $3.70 technology and 3G network support. Skype, Sprint, Tata Indicom, T-
2010E Revenue: $17B BlackBerry Bold Provides extended battery Mobile, Verizon, Virgin, and
2010E EPS: $5.03 life as well as GPS, Wi-Fi, and 3G network Vodafone,
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.

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 Broad Buy-Side M&A

< 5 parties 10 100 companies

6 months to 1 year Time required is highly variable

Close-ended Iterative process

Higher success probability Lower success probability

Goldman Stanley 17
Process Recommendation

Targeted
Specialized Highly Targeted
Discussions + Broad M&A Process
Negotiations With One Process
Broader Search
Party 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

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 Appendix

Goldman Stanley 19
Aardvark Projected Income Statement
($ in Millions Except Per Share Data)

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)

(1) Share prices as of January 29, 2010.

Goldman Stanley (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)

Goldman Stanley (1) Financial data as of January 29, 2010. 22