Company Presentation July 2000

Management

Jonathan Gad, Co - founder & CEO

Yigal Korolevski, Co - founder & CTO

Amit Kleinmann, VP R&D

Advisory Board

• Professor Ran Giladi Head of the Communication Systems Engineering at Ben-Gurion University

• Dr Debby KorenDirector of Internet Technology at RAD Data CommunicationsLecturer at Tel-Aviv University & TechnionEditorial Advisory Board of the Journal of Network Management

• Pini LozowickVP Marketing at Chiaro Networks

• Moshe VoloshinEngineering Program Manager at Cisco Systems

The Selis Networks Vision

To become the leading vendor of To become the leading vendor of Business Service monitoring Business Service monitoring

and management solutions in and management solutions in the SMB market for enterprises the SMB market for enterprises

and service providersand service providers

Traditional Approach

Next Generation Approach

What are Business Services?

Intelligent information channels which can be logically combined.

Networking for Application Delivery

Impossible to effectively manage aMulti-vendor environment

Current Solutions

All these solutions monitor the technical

aspects and not the business service impact

Point Solutions

Do - it - yourself

Frameworks(e.g. CA, Tivoli/IBM,HP)

The Gap in the marketPrice(K$)

Percentage of Enterprise Managed

100

50

Gold

MRTG What’s

Up

WebTrends

CiscoworksOptivity

Frontline Manage.com Riversoft

TAVVE

HP-OV

Concord

TivoliCA

Unicenter

Frameworks

Point Solutions

• Business services and SLA monitoring and management portal

• Business services and SLA monitoring and management portal

The breadth of a framework without the complexity

• Trend analysis with Intelligent Surfacing™ for proactive maintenance• Wizard-based installation & configuration • 3-clicks architecture

• Real-time monitoring of all business services, networks, systems & applications and their SLAs

• Integrates with point solutions & frameworks

• Real-time monitoring of all business services, networks, systems & applications and their SLAs

• Trend analysis with Intelligent Surfacing™ for proactive maintenance

• Wizard-based installation & configuration

• 3-clicks architecture

• Integrates with point solutions & frameworks

The Selis Solution: B - Watch

B – Watch Main Screen

B – Watch Main Screen

B – Watch Main Screen

B – Watch Main Screen

B – Watch Main Screen

B – Watch Main Screen

B – Watch Main Screen

B – Watch Architecture

B – Watch Features & Benefits

Feature Benefit

Target Market: SMBs

SME(499 ports)

45%

Enterprise(500 – 999

ports)12%

Large Enterprise

(1000 +ports)19%

ISPs12%

SOHO(<20 ports)

12%

Source: Cisco

“The market reached $8.6 billion in 1999, and is expected to reach $21 billion in 2004.”

“The whole small-to-midrange market continues to be under penetrated”

*Gartner Group, September 2000

Window of Opportunity

SMB Channel Strategies

SMB’s spent $23 Billion in 1999

OEM Channel Candidates

• Nortel and Cisco made significant inroads…

• Cisco is investing significant resources…into the SMB market

• Nortel …launch… its SMB Solutions Division

• Intel’s small business group continued to create and execute

Kingston1111

HP108

SMC/Accton95

Netgear86

Cisco Systems713

D-Link6NR

NDC54

Nortel Networks47

Linksys33

Intel22

3Com11

VendorRank H2.99

Rank H1.99

SMB Network Hardware Candidates

Source: In-Stat, April 2000

MSP Channel

Selis Networks and MSPs• B-Watch ships MSP-Ready™• Special B - Watch MSP version

Selis Networks Strategy

• Launch multi-functional product

• Development of new modules

• Low pricing for wide penetration

• Network manager group through company portal

Current Status

R&D center operational in Israel

Highly respected Advisory Board

Back-end service modules in Unitest

Europe-based VP European Sales recruited

US-based VP Sales candidates being

interviewed

Customer Beta installation expected Q1.2000

Product release expected Q2.2001 Discussions underway with potential OEM

and distribution partners

Future Directions

• Future Features:– Voice/IP support– Self-Healing

• Future Products:– B-Watch MSP – B-Watch appliance (Nokia ?)– Porting to Unix

Investment Highlights

• B-Watch enables networking for business services delivery without complexity

• Fills niche in the multi-billion dollar NSM market• OEM, two-tier distribution and MSP-ReadyTM

strategy enables quick ramp up & wide penetration

• Experienced management team with over 30 years in networking companies

• Product development progressing• Positive feedback from potential OEM customers

Product Situation

• Customer Beta installation expected Q1.2000

• Product Release expected Q2.2000

• Discussion underway with potential OEM and distribution partners