China’s Largest Manufacturer of SOHO Networking Products.

China’s Largest Manufacturerof SOHO Networking Products

Company Summary

• Built in 1996 and specializing in networking and communications till now

• Located in Shenzhen, near Hong Kong

• About 1300 employees in Feb. 2006, including close to 100 R&D engineers and about 60 QC staff

• Registered capital is USD6.25 million

• R&D, manufacturing and selling all products, over 100 product models independently, including wireless, router, switch, ADSL and so on

• No.1 market share holder in mainland China with a number of products taking more than 50% market share

• ISO 9001:2000 issued by SGS United Kingdom LTD

Sales Growth

Sales(Million USD)

year

110

78

37.5

12.5

3.75

Sales Volume Growth

Sales Volume (Million Units)

year

12

Average Sales Volume

Growth Rate of 50% per year!

Accumulated Equipment Investment

A.I (Million USD)

year

5.8

4.1

3.32.6

1.9

R&D Experience

• 10 years R&D experience, developed TP-LINK first ISA LAN card independently in 1996

• Developing all software and hardware for all our products independently

• All from first-class universities, such as Tsinghua University

• Many main engineers have served TP-LINK more than 3 years

• Our chief engineer has more than 15 years working experience for networking and communications

100 experienced engineers

40 software engineers

R&D Capability

• Developed up to 200 person*month R&D project including software and hardware

• Software developing level is better than or equal to that of Sercomm or Cybertan（ fed back from our chipset suppliers）

• Well-equipped R&D laboratory with world-class testing equipments, such as Agilent for wireless, Spirent SmartBits and ADSL Line Simulator

• Effective development managing process

• Effective R&D testing system and up to 20 testing engineers

• Most first designed PCBs pass the certifications, like FCC and CE

• Continuously introduce new products for the worldwide market

Employees:

from 100 now to 150 in one year

New product technologies :

VOIP, VPN, multimedia, high-end switches

Satisfy the fast-growing

international

OEM business

R&D Plan

Chipset Supplier Partnerships

• Close and strategic partner relationship with world-class main chipset vendors, like Broadcom, Marvell, Atheros, Vitesse, Realtek and Ralink

• Direct customer of Atheros and Realtek

• Newest product R&D information, first-time samples and demo boards

• Open software source codes

• Monthly visit, close high executive contact

• Direct engineer contact

Newest Products and Customizing Capability

• Ability to launch the newest products under our R&D capability and supports from our chipset vendors

• Our own reliable software source codes

• Smooth and fast software porting between different hardware platforms

• Special R&D and sales resources for OEM business

• OEM business experience: more than 5 years

• Experienced hardware and software customization according to customer requirements

• Good after-sales service

Supply Chain System• Most suppliers from the Pearl River Delta Region,

which is the primary source of electronic products in China

• Our suppliers should be large scale, good quality

and able to supply an extra 20% to 40% of components immediately

• Most electronic components are from Taiwanese or

Japanese companies, including resistance and capacitance

• On time delivery: more than 90%

• Most of them are long-term and stable partners of TP-LINK

Factory

• Area: 16, 000 square meters

• Employees: more than 1000

• 27 SMT machines, 13 SMT production lines

• Daily production capacity of 20, 000 for NIC,

10,000 for Switch, 12,000 for Router, 8,000 for Wireless products

• ISO 9001:2000 issued by SGS United Kingdom LTD

Quality Control System

• Employees: approximately 60

• Effective quality control system

• Complies with ISO 9001:2000

• Advanced testing equipments, such as Smartbits 2000 and ND5000E

• Full check and FQA (Final Quality Assurance) for all delivery

• First testing pass rate: more than 98%

• FQA pass rate: more than 97%

OEM Business in TP-LINK

• 10% of total sales

• Has become one of the most important businesses in TP-LINK

• Led directly by our company chairman

Thank you！