Amedia's business model can be summarized as follows:

1. Fulfill the need of carriers for service gateways and IP-Ethernet access solutions as their businesses transition from delivering a limited class of services over multiple networks to delivering a more comprehensive set of services over a consolidated Ethernet network.

• Huge market opportunity … estimates from multiple market research firms suggest over $10B worldwide by 2009, with $2.2B in North America alone.
  
• Carriers are quickly converting to Ethernet bases systems and eliminating more costly legacy infrastructure in order to minimize OpEx.
  
• Ethernet has its origins in the Xerox Corporation's Palo Alto Research Center in the mid 1970's. The fact that it is so widely deployed in today's business premises, and more recently in the home, is testimony to its flexibility and robustness. Over the years, the standard has been modified to increase both its speed and its reliability.
  
• The Service Gateway manages the bandwidth profiles appropriate for each of the multiple and simultaneous services being delivered to relevant devices at the subscriber's location. This is the new network element that will replace most of the modems and routers found in use today.
  

2. Provide essential value to carriers pursuing both a Fiber-to-the-Premises as well as a Fiber-to-the-Node strategy.

•  Most major carriers are following one of these strategies to push optical fibers closer to their subscribers in order to offer the services necessary to compete in today's transforming market. We support both implementations with a range of very competitive products.

•  We have one of the most economic means for carriers deploying FTTP to reach their customers residing in Multiple Dwelling Units – which is true of 24% of all households in the U.S. today, and up to 63% in areas such as New York Metro.

3. Minimize the time-to-market by:

•  employing a multi-faceted channel strategy, (encompassing a small direct sales team, resellers, and strategic vendor partners) as well as

•  an out-sourcing model that includes certain administrative functions as well as non-core development.

4. Establish market leadership based on our core assets.

• Several of o ur products are based on multiple patents licensed to Amedia for specific access applications by Lucent's Bell Laboratories.
  
• We have assembled a top notch management team with extensive experience in real world networking issues from both the data and the telephony industries. We understand what it means to design “carrier-grade” products.