Corporate ProfileApril, 2007

AVerMedia Overview
Founded in 1990, Specializing in Designing, Manufacturingand Marketing of Multimedia Entertainment, Presentation andDigital Surveillance Products.

 Annual Turnover (2006): US$ 104.9 Million

 Consecutive profitable years: 16 years

 Consecutive profitable quarters: 64 quarters

 Employees (AVerMedia Group): 917

 Branding / ODM with premium value : 70% / 30%

Updated on Mar. 2007

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2006 Taiwan Superior Brand• Based on the evaluation by the 2006 Taiwan Superior Brand
committee, the company is awarded for its outstanding
performance and innovation in research and development,
product quality, branding strategy, and branding achievement.

3

Global Marketing & Service Network
Milton Keynes,London,
UKParis,FranceRuesselsheim,Frankfurt,
Germany
Kun ShanShanghai
ChinaMadrid,
Spain

Taipei,TaiwanBangkok ,Thailand

Milpitas,
CAUSA

Subsidiaries and Global Network of Distributors, System
Integrators, VARs, and ODMs Over 75 Countries4Performance comparison 06/05/04
Amount : US$ k2006 ☆

2005

2004

Net Sales

104,932

100 %

90,191100 %

87,452

100 %

COGS

(58,184)(55)%(49,806)(55)%(49,705)(57)%

GP46,748

45 %

40,38545 %

37,74843 %Operating Expense(30,415)(29)%(26,769)(30)%(23,607)(27)%

Operating Income

16,33316 %

13,61615 %14,141

16 %

2330%

430%

5131%

16,566

16 %

13,65915 %

14,654

17 %

651

1%

1,1371%

(205)

(0)%

17,21716 %

14,79616 %

14,44917 %Net Non-op Items
Income before Tax
Income Tax
Net Income
Fully Diluted EPS(NT$)

3.03

3.00

3.06 ※

Sales Grew

16 %

3%

18 %

EPS Grew

1%

(2)%

30 %

☆Y2006's results are before CPA's audit※Y2004 EPS are converted to “Fully Diluted”

5Balance sheet highlights
2006

Amount : US$ k2005

2004

Cash &Equivalent54,60141 %

61,35449 %

51,62348 %Accounts
Receivable

16,92013 %14,757

12 %

9,776

9%

Inventory

13,57310 %10,867

9%

8,601

8%

L-T Investment

3,430

3%

5,277

4%

5,408

5%

Fixed Assets

28,43421 %

20,69517 %

20,58619 %Total Assets

133,979 100 %124,705

100 %

107,759

100 %Liabilities

34,78826 %

36,76529 %

43,82741 %Equities

99,19274 %

87,94071 %63,93259 %Full consolidated base6

Key Financial indicators
2006

2005

2004

ROE

17.24 %

16.82 %

22.60 %

ROA

12.93 %

11.86 %

14.65 %AR Turnover

57 days

60 days

42 daysInventory Turnover

86 days

79 days

74 days

Debt ratio

25.96 %

29.48 %

40.67 %

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Breakdown of ROE
25.00 %

180.00 %154.29 %126.92 %20.00 %

141.81 %141.67 %133.35 %160.00 %140.00 %120.00 %15.00 %

88.66 %

90.49 %

72.32 %

72.52 %

10.00 %
12.71 %
5.00 %

13.81 %

17.91 %

22.60 %

100.00 %80.00 %

16.82 %

16.52 %

13.97 %

79.37 %

17.24 %

16.40 %

16.29 %

60.00 %
40.00 %
20.00 %

0.00 %

0.00 %
2002

2003

2004

2005

2006

ROE = Profit / Net Equity

Profit / Sales

Assets / Net Equity

Assets / Net Equity

2002

2003

2004

2005

2006

Profit / Sales

13.81 %

13.97 %

16.52 %

16.40 %

16.29 %

Sales / Assets

72.52 %

90.49 %

88.66 %

72.32 %

79.37 %

Assets / Net Equity

126.92 %141.67 %154.29 %141.81 %133.35 %ROE = Profit / Net Equity

12.71 %

17.91 %

22.60 %

16.82 %

17.24 %
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Revenue evolution
120,000
100,000

104,932

CAGR : 21.73%
87,45280,00090,191

74,20060,00040,00047,78820,0000

2002
Amount : US$ k

2003

2004

2005

2006

Net Sales

Amount :US$ k

2002

2003

2004

2005

2006

Net Sales

47,78874,20087,452

90,191

104,932

Compound Annual Growth Rate : 21.73 %9

R&D Expenditures
12,000CAGR : 21.89%

10,000

10,310 9,903
8,448

8,000

6,392

6,000

4,487

4,000
2,000
0
Amount :US$ k

2002

2003

2004

2005

2006

Amount : US$ k

2002

2003

2004

2005

2006

R&D Expenditures

4,487

6,392

8,448

10,3109,903

Compound Annual Growth Rate : 21.89%
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2007 1st Quarter Financial Results, YoY
2007 1st Quarter Financial Results, YoY
Amount : US$ k2007 1-Q [CPA-Draft]

YoY%

2006 1-Q

Net Sales

26,496100 %

21,444

100 %

24 %

COGS(16,229)(61)%(13,265)

(62)%

22 %

GP

10,267

39 %

8,179

38 %

26 %

Operating Expense(5,043)(19)%(4,797)(22)%

5%

Operating Income

4,415

17 %

3,382

16 %

31 %

380%

(230)

(1)%

4,453

17 %

3,152

15 %

613

2%

394

2%

5,066

19 %

3,546

17 %

Net Non-op Items
Income before Tax
Income Tax
Net Income
Fully Diluted EPS(NT$)

0.88

0.62

41 %43 %43 %
112005~07-1Q Quarterly Revenue/Profit
35,00030,00025,00020,00015,00010,000
5,000
0

8,000
6,000
4,000
2,000
0

2005- 2005- 2005- 2005- 2006- 2006- 2006- 2006- 2007Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Revenue
Net Income
Amount : US$ k
Amount :US$ k

2005Q1

2005Q2

2005Q4

2006Q1

2006Q2

2006Q3

2006Q4

2007Q1

Revenue

21,21917,146 22,140 29,686

21,444

23,66029,111

26,35526,496Net Income

3,150

1,780

3,546

2,826

5,500

6,516

5,066

2005Q3

3,636

6,230

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Dividends distribution
3.26

3.5

3.00

EPSCashStock3
2.5

3.05

2.34

2
1.5

1.43
1.02

10.502001

2002

Year2003

2004

Cash2005

Stock2006

Total

2006

2.00

85 %

0.365

15 %

2.365

2005

1.37

58 %

1.00

42 %

2.37

2004

1.57

55 %

1.26

45 %

2.83

2003

1.52

60 %

1.01

40 %

2.53

2002

0.79

44 %

0.99

56 %

1.78

2001

0.51

50 %

0.51

50 %

1.02

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Product Portfolio
Multimedia Product- Watch TV on NB solution- Analog TV Tuner- Hybrid TV Tuner- Digital TV Tuner- Digital Home Solution (ViiV, MCE & Vista)- External TV Tuner Box

Presentation Product- Document Camera

Network Video Product- Digital Video Surveillance
14External marketing trend• Multimedia Products– Strong demand in Notebook PCs: annual demand of
75 million sets ( less than 5% of attachment rate ofTV Tuner in Notebook PCs )15

Notebook demands
Business ()Home ()

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ODM solution

Hybrid Mini cardHybrid Mini PCI

Hybrid DVB-T

Analog Worldwide

DVB-T Mini cardHybrid ATSC

Analog Worldwide

Hybrid DVB-T

DVB-H SDIO

DVB-H Mini card

Analog Worldwide Hybrid DVB-T

ATSC

DVB-T

DVB-T USB

Hybrid PCIe17

MiniPCI TV Tuner card for NB

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ODM main customers19

Sony Notebook TV inside

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Sony Desktop TV inside

RB Series - HomeLS1 Series - Home21

http://event.asus.com/2006/nb/fullline/mobiletv/eng/
22acer Aspire TV Inside

Aspire 9800/9810

Aspire 9520

Aspire 5650/5670

Aspire 9120

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DELL Desktop

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Analog TV Tuner / PVR
 Watch, Record & Enjoy TV / Video on PC

 Desktop PC Solution

 Notebook PC Solution

AVerTV PVR PCI

AVerTV Studio

H/W MPEG II,TV Tuner Card

High-Quality TV Tuner Card

AVerTV CardBus
Notebook TV Tuner

AVerTV USB2.0
USB2.0 TV Tuner
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Deadline of the digital TV broadcasting
Emerging digital TV broadcasting in the forthcoming years.
Area

Digital TV Broadcasting Standard
Terrestrial Cable

Satellite

Deadline ofAnalog TV
Terminated

USAATSC

Open Cable DSS, DVB-S 2008

Europe

DVB-T

DVB-C

DVB-S

2010-2015

Japan

ISDB-T

DVB-C

DVB-S

2010

Taiwan

DVB-T

DVB-C

DVB-S

2006

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Hybrid TV Tuner Card
 Watch Digital Terrestrial and Analog TV on PC

MiniPCI Solution
Analog TV

EXPress Card Solution

DVB-T

CardBus Solution
VCD\DVD Player
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PCI Solution

Viiv & Windows Vista••Microsoft will launch Windows Vista at the beginning of 2007.
Most significantly, Windows Vista includes all of the Windows Media Center capabilities forturning your PC into an all-in-one home entertainment center. Windows Media Center inWindows Vista provides new ways for you to enjoy your music, photos, DVD movies. andrecord and watch your favorite TV shows (even HDTV).

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Windows OS vs PC Shipment

Vista VersionPriceTV Function

Windows Vista Business$ 299 (199)

X

Windows Vista Enterprisenot available for retail

X

Windows Vista Home Premium$ 239 (159)

V

Windows Vista Home Basic$ 199 ( 99)X

Windows Vista Ultimate$ 399 (259)

VSanta Rosa

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Watch DVB-H TV Solution

South of Taiwan is start tobroadcast trial stage
AVerMedia DVB-H solution is30

External TV Tuner BOX Watch Digital Terrestrial TV on PC Monitor/TVor

AVerTV DVB-T STB5
Digital Terrestrial TV Set-top-Box

 Watch Analog TV / Video on PC Monitor

31

Portable Document Camera Display 3D Objects or Documents on Projector /Monitor / TV

AVerVision530
Digital Platform DocCam
w/Optical Zoom, Smart Focus

AVerVision110

AVerVision300i

Gooseneck DocCam

AVerVision330

Digital Portable DocCam

Digital Portable DocCam
w/Optical Zoom, Smart Focus

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DocCam Application

33

Top 10 wish list as selected byAmericans in education field

34

Central Monitoring System Software

The AVerDiGi Central Monitoring System Software (CM3000)enables users toaccess and monitor multiple DVRs simultaneously for a wide range of applications.
Features include: instant notification on DVR latest status or events, supports remote
PTZ and I/O control for alarm events, up to quad monitor outputs, full remote DVR
control, etc.

35

Network Video Surveillance

NV Series

MP Series

Eyes Pro Series

Windows PVRs

EB 1304 Series

Standalone PVRs
36

Internal organization capability
Multimedia
Product•Culture•Technology•Brand

Network Video
ProductPresentation
ProductGrowth Drivers

37

Culture• Core Value– Down-to-Earth•Culture– Value Creation•Technology– Self- Devotion•Brand– Service to Society• Humanity- Self Awareness / Transcendence / Honesty& Integrity38 Technology– Video conversion between analog and digital– Leading technology for TV tuners in the field ofNotebook PCs– Patents : 77 of patents being granted, 234 of patents
application in the process•Culture– Product awards•Technology•Brand39

Brand•MultiMedia products: Brand premium in certain
geographical areas, like Spain, Russia and EastEurope etc.
•DoCam: Distinguished as one of the firstmovers with strong presence in K12.

•Culture•Technology•Brand•Education market in the U.S. with brandrecognition inherited from the glamour of previous
product lines.

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Presentation Products Potential market size

• No statistic data investigating the market size ofDocCam.
– Market of Projectors: 30% of projectors will go to institutions
every year, considering the sales data of projectors from 2004 to2006, it will be around 1M to 1.3M units a year as its potential
market size.
– Number of schools: the maximum market size can be derived
from number of schools. Take USA as an example, there are
90,792 K-12 schools in the US with about 48 millions
students. If we assume each school has 20 classrooms and eachclassroom shall install one DocCam, the potential market is 1.8
M units in total.
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Quality & Environment Management
 ISO 14001 Environment Manage System- Lead – Free Process (by the end of 2006)
 ISO9001: 2000 Version Quality System
 OHSAS:18001
 Passed the Quality System Audit by first tier companies.

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