George FilleyVP and General ManagerInternet/Wireless Group

May 2008

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Mobile Information Revolution In December 2007, Nielsen mobile reported over 20 million unique users of

mobile mapping, local search, and social networking applications.

LocallyRelevant Dynamic

Deeper and Richer

Community Generated

LOCATION

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Application Categories - Share of Downloads / Revenue

0% 10% 20% 30% 40% 50% 60% 70%

Location Based Services

Chat/Community

Personal Organizer/Tools

Music

Sports

Weather

Wallpaper/Pictures

Maps/Directions

Entertainment

Storefront/Shopping

Share of Downloads Revenue Share

Location Based Services App is the most popular download category in Q1 2008 with 43% of all downloads to mobile phones and 62% of total revenue

The LBS application share has been growing. Q1 2007 LBS accounted for 21% of downloads and 31% of revenue.

Consumer Reception To LBS

Source: Nielsen Mobile Applications Report Q1 2008

No GPS

GPS

Share of Downloads: The total number of Applications downloaded for each Title, Category or Type expressed as a percentage of All Applications Downloaded during the reporting period.Share of Revenue: The total revenue from application download for each Title, Category, Type or Carrier expressed as a percentage to all revenue from all Application downloads.

US Mobile Subscriber universe includes post-paid, non-corporate liable subscriber from the top 4wireless providers (Cingular, Sprint Nextel, T-Mobile, Verizon)

4

Evolution of Mobile LBS From A User Perspective

Near Future

-2 years

Now

Turn by turn navigation

Turn by turn navigation

Local search with location

Vertically Enabled LBS

Hardware Value High

Services Pricing Availability

Premium prices

Limited to decks of 2 Carriers

Turn by turn navigation

Local search with location

Basic map viewer LBS

Falling prices for navigation

Selected subsidized services

5 Top Carriers on deck

Off-deck emerging

Ubiquitous Pay to use Subsidized services

Content Value High

5

The Scope Of LBS Services

Location Based Games

Location Based Commerce

Location Based Advertising

Navigation

Turn by Turn Driving/ walking Instructions

Find A Friend

Locate Another Person Within a Pre-Defined Geographic Area (opt-in)

Track My Movement

Show Location on Map and Track Movement in Real Time

Locate MyChild

Show Location of My Child (no opt out)

Information Services

Location is key for application to function

Location is an enhancement to the application

POI Look-up

Points of interest located based on location

Social Networking

Traffic/Weather Alerts

Traffic/weather reports delivered on demand or automatically

Emergency/ Roadside

Assistance

Emergency/ Roadside assistance dispatched based on location of wireless voice

call

Entertainment Personal Security

Mobile Resource Management

Asset/ Salesforce Tracking

Show Location on Map and Track Movement in Real Time

Fleet Management

Enterprise Text Messaging

6

End User Expectations for Mobile LBS

“I want to be able to access it from anywhere” “I want the information to be delivered to me in real time” “I want to be able to share the information with my friends at my

discretion” “I don’t really want to pay”

Consumer experiences/education with content on the Internet has trained them that they don’t have to pay full boat for content /services

7

The Hybrid Business Model…Maybe

Willing To Pay

Willing To Pay If

Convinced of Value

Expect Service To

Be Free

DifficultVery

DifficultExtremelyDifficult

Search Directory

Navigation

Games

Tracking(Enterprise)

Tracking(Consumer)

SocialNetworkingU

ser

Will

ing

nes

s T

o P

ay

Complexity

Subsidization Breakpoint

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Consumer Receptivity to Location Ads

Source: Arbitron National In-Car Study – 2003; and NAVTEQ and IPSOS Understanding UnLtd. 2007

NAVTEQ research shows:− Consumers are overwhelmingly willing to accept ads in exchange for valued content

and applications− Ads are not typically recognized as advertising when embedded within the results page

Arbitron research finds that the drive home is a key venue for impulse purchase decisions and ideal venue for delivery of advertising

9

Emergence of Mobile Subsidization Trend

Connectivity costs are dropping

Device capabilities are increasing− Processing and displays enable rich

(higher value) advertising− Audio, touch screens and voice

interactivity will eliminate the need for “banner” ads

WAP advertising growing rapidly and 5:1 more valuable per impression than online

Mobile advertising on WAP and some on games

Strong advertiser demand for new and innovative advertising forms

10

Innovation Around Location

Horizontal(Point to Point)

Vertical(Context)

I Am Here, What is Where?

Better Here to There

Traffic

Junction Views

3D CityModels

Mass Transit LinesPedestrian Paths

Neighborhood Boundaries

Speed Zones

Travel Guides

Fuel PricesParking Availability

Events

Weather

vertical enabler = new usage of new service

horizontal enabler = more usage of current

service

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NAVTEQ Role In Supporting Developers

2006: Created NAVTEQ 2006: Created NAVTEQ Network for Developers Network for Developers EcosystemEcosystem

2003: Launched LBS 2003: Launched LBS Challenge for Developers Challenge for Developers in North Americain North America

2006: Launched LBS 2006: Launched LBS Challenge for Developers Challenge for Developers in Europein Europe

2008: Launched LBS 2008: Launched LBS Challenge for Developers Challenge for Developers in Asiain Asia

2007: Executed !st 2007: Executed !st Connections Conference Connections Conference For Developers in North For Developers in North America and EuropeAmerica and Europe

2003 2004 2005 2006 2007 2008

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• Free sample data including beta versions on new content

• Developer guides, webinars, whitepapers, proprietary research

• Forums, newsletters, blogs

• One-on-one technical assistance available

NN4D: Best In Class Technical Support

http://www.navteq.com/developer

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The End Game

Its all about location and business model flexibility.

NAVTEQ will continue to innovate around new content to enable developers in the creation of unique / differentiated solutions.

Stay tuned for expanded support capabilities in 2008.

www.navteq.com/developer