Moxa Company Introduction and Industrial Ethernet Market Trend Overview Andrew Hsu/EMEA Sales manager Moxa Networking

2 Vision To be the Leading Brand of World-Class Device Networking Solutions for Industrial Automation. BuildingAutomation Utility Transportation FactoryAutomation POS/ATM Telcom

3 Mission: Serial Connectivity,& Embedded Computing &I/O Networking Solutions 46 employees Mission: *Industrial Ethernet *DVN solution Started up since 1987, USD$47M Turn over 250 employees Moxa Group ICS ; ECC ; I /O Division IEI ; DVN Division Moxa Technology Moxa Networking

4 Moxa Group Revenue Growth Moxa Group Average Annual Sales Growth: 25% Moxa Networking 2005 Growth rate :90% than 2004 Unit: US$ Million

5 Our Key Customers :

6 Award and Certificate

7 Y2005 news in Moxa Moxa CPU ready

8 Y2005 news in Moxa Launch Launch Got iF award And the first Moxa InnoVa award

9 MOXA HQ MCNMCN MUSMUS Distributors MOXA Global Sale/Service Network Quick Response to Your Inquiries MEUMEU

10 MOXA Core Competence Great repatuation Total Networking connectivity solution 18years R&D Experience, fast and flexible product development Worldwide Service Net Brand Focus Technology Service ISO 9001,14001Certification, 5 Year Warranty Core Competence Quality

Industrial Ethernet Market Trend Overview

12 Industrial Control & Automation Market Segments - Automotive - Aerospace & Defense - Electrical - Electronic&Semiconductor - Building Automation - Furniture & Wood Products - Apparel & Leather Pro. - Plastic & Rubber Pro. - Printing & Publishing Discrete Industries Process Industries - Oil & Gas - Chemical& Petrochemicals - Electric Power - Food & Beverage - Cement & Glass - Pharmaceutical - Pulp & Paper - Textiles - Water & Wastewater - Mining Hybrid - Food & Beverage - Pharmaceuticals - Biotech - Chemical - Water& Wastewater

13 Type of PLC (Programmable of Controller ) Large PLC (Over 512 I/O) Nano PLC (Under 15 I/O) Micro PLC ( I/O) Medium PLC ( I/O) Device LevelControl Level (7%) (32%) (20%) (29%) ( ): Average Percent of Installed PLCs Support Ethernet Port

14 Advanced Open Control System 1. ABB Automation 2. Emerson Process Management 3. Yokogawa Electric 4. Honeywell IACD 5. Siemens A&D Group 1. GE Fanuc Automation 2. Siemens A& Group 3. ABB Automation 4. Elecktro Beckhoff 5. OPTO Siemens A&D Group 2. Rockwell Automaton Allen-Bradley 3. Mitsubishi Electric 4. GE Fanuc Automation 5. Yokogawa Electric Ethernet PC-Based Control DCS Control PLC Control (20%)(45%)(35%) Market Share in 2005

15 Trend I: Move to PC Architecture Trend II: Move to Distributed Architecture central yesterday De-central today distributed tomorrow 1990 PLC PC Intelligent Field Devices PLC PC Mega Trend in Control & Automation

16 Trend III: Integrate IT technologies into Control&Automation Consistent communication for vertical integration Combine with ERP and MES Trend IV: Use of Open Standards in Control&Automation Ethernet TCP/IP OPC, XML, COM/DCOM, ActiveX Object Oriented Design Microsoft Office ® Applications Ethernet Automati- sierungs- System Field Level ERPInterfaces Mega Trend in Control & Automation

17 Industrial Networking MULTIBIT NETWORKS MULTIBYTE NETWORKS MESSAGING NETWORKS DEVICENET PROFIBUS DP ETHERN E T ASI SERIPLEX INTERBUS-S ControlNET LONWORKS BACNET MODBUS SERIAL I/O NETWORKS Device Level Info Level Control Level

18 From just 500Kbps (Performance) From Limited Management From Single Vendor (Proprietary) From Isolation (Migration) From Many Wiring Scheme From Cost Challenge for Todays Network

19 Just 500Kbps10,100, Giga Limited SNMP/OPC management managementoptions ProprietaryOpen standards Single vendorMultiple vendors Isolation WWW connectivity Ethernet Is the Solution Current Challenge Solution Ethernet

20 Why not Use Ethernet in Control and Automation ?

21 Industrial Ethernet Device Shipment (Thousands of Nodes) Source: ARC Advisory Group 2005 Industrial Ethernet Device Shipment Growth Seen at 51.4% (CAGR)

22 Industrial Ethernet Protocol Sponsoring Organizations Target Applications Transport Layer Application Layer EtherNet/IP ODVA, Control-Net International, Rockwell Automation, Omron, Any discrete or hybrid manufacturing TCP and UDP Control and Information Protocol (CIP) Foundation Fieldbus-HSE Fieldbus Foundation Process control UDP Fieldbus Function Blocks IDA-Modbus IDA Group, Schneider, Jetter, Sick, Kuka, Phoenix Contact Discrete manufacturing especially motion control TCP IDA Object model (Modbus/TCP) PROFInet Profibus International Complex Machinery UDP, TCP plus proprietary DCOM, PROFI-net Object Model Source: AR C Advisory Group 2003

23 All Major Automation Players Now Offering Schneider – Transparent Ready SIEMENS – ITlution Rockwell – NetLinx ABB – Industrial IT