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BigBand Presentation For MIT/Cedar Event July 15, 2009 Ran Oz, CTO, EVP & Co-Founder

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Startup Now! Building it Right From the Start

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Page 1: Ran Oz   Big Band

BigBand Presentation For MIT/Cedar EventJuly 15, 2009

Ran Oz, CTO, EVP & Co-Founder

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Safe Harbor Language

The statements in this presentation may be forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause our actual results to differ materially, including, but not limited to: changes in demand for video services, the market acceptance of our products; the fluctuations in our gross margins; the concentration of our customer base; competitive developments including pricing pressures; the timing of recognition of a significant portion of our net revenues given the complex systems integration involved; our ability to manage operating expenses effectively; the level of orders that are received and can be shipped in a given quarter; and the general economic, industry or political conditions in the United States or internationally.

For a detailed discussion of these and other risk factors, please refer to BigBand’s Report on Form 10-K for the year ended December 31, 2008.

Stockholders of BigBand Networks are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. BigBand Networks does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this March 11, 2009 presentation, or to reflect the occurrence of unanticipated events.

In addition, we will also be presenting some non-GAAP financial information. A reconciliation of GAAP to non-GAAP items can be found on the investor relations section of our website.

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BigBand Founders

» Amir Bassan-Eskenazi – Chairman, President & CEOEducation: B.S. Electrical Engineering – Technion18+ years of experience in media technology companiesPrevious positions -Optibase

Chief Operating OfficerEVP Marketing and Business DevelopmentVarious roles in Engineering, Marketing, BD and Sales

» Ran Oz – CTO & EVPEducation: B.Sc. (1986-89), MSEE (91-92), MBA (95-97)Co-founder Optibase (1988-92) – (Nasdaq: OBAS)Co-founder VCON (1991-92) – IPO in France (NM)Israel Intelligence Forces, Visual Intel. Tech. Unit (92-98)Support in founding Peach Networks (1998)30+ Patents in the area of media networking

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BigBand Networks» incorporated in Delaware in December 1998 as Cedar Pre-Seed

» NASDAQ:BBND (Since Mar, 2007)

» Silicon Valley HQ, R&D in North America, EMEA, & APAC450 employees across centers in Tel Aviv, Boston, & Silicon Valley

» Recognized Video Innovator80+ patents granted or in process#1 Switched Digital Video—won the Emmy for Technology

» 9 out of 10 Largest Cable Operators60+ Million Subscribers Worldwide200+ Service Provider Customers

» Strong Balance Sheet with No DebtRevenues: $176M in ’07, $185M in ’08$175 million in cash and investments at 12-31-08

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We Power The World’s Largest Video Networks

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The Need For More Last Mile Bandwidth

Everything Goes HD» More On-Demand

» From Broadcast to Unicast (Addressability and Personalization)

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Slide 7 Slide 7

DVN – Where we sit in the network

Local

(Hub/VSO)20,000 HHP

AccessAcquisition

Broadcast VideoSwitched Video

Regional

(Headend/VHO)100,000 HHP

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SDV

RFTV

BVS

BB

ND

-DVN

1Q

AM

vIP

IPTV

Strategy

» Develop superior technology and highly innovative products

» Differentiate on DVN: network-based innovation

» Build carrier-class modular platforms

» Offer future proof solutions to the customer

» Benefit from footprint and expansion business model

» Partner with our customers

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Non-subscription Revenue

Robust Video Market Drivers…

HD Eclipsing SD

HDTV adoption

Color TV adoption0%

20%

40%

60%

80%

100%2011

2010

2009

2008

2007

19691970

19711972

1973

Source: Comcast 2007

Operator Competition is Growing

Content Personalization

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Slide 10 Slide 10

Switched Digital Video

» The Problem:Adding even more standard definition television

Adding even more high definition television

Building the infrastructure to increase levels of personalization

» The Solution:

SwitchedDigitalVideo

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Customer Example: Time Warner

EQAM

SDV SMSDV Client Protocols

Fulfillment Reports

Encryption

Clamping

BMR

SwitchedDigitalVideo

Provides bandwidth for HD

Builds a platform for personalization and IPTV

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USA San DiegoMetro

La JollaSuburb

La Jolla HillsNeighborhood

#2 Big Band Dr.La Jolla, CA

From Broadcast to Personalized

* DMA = Designated Market Area (Metro region)

Broadcast Regional (DMA) Local Zoned

(Zip+4) Personalized

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Characteristics Of Addressable Advertising

» Choose ads by geographic zone, postal code, or demographic

» Per-STB/device granularity for TV» Ads selected based on actual viewership» Real-time feedback on ad impressions by

demographic and/or zip code» Opt-in for better targeting

Personalization: Leveraging Network to Optimize User Experience and Grow Revenues

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Back To The Beginning - 1999

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Pre-seed

» We got our first $250K (Dec,98)

» Identified the market - cable

» Initial meetings with potential customersTraveling a lotProduct validation / market validation – relations with customersChanging product slides from meeting to meetingBrainstorm sessions with CedarFounders Bonding – Two is better than oneFirst Stories

» Lots of ideas for interactive video based apps…

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Bad News

Nice ideas

BUT

“We are Fresh Out of Bandwidth…”

Opportunity???

The BigBand Concept is born…

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TransmissionEquipment

6 MHzChannels

DigitalBroadcast

To node A

To node B

To node C

High Speed Internet

VOD

VoIP

Without BigBand: Fixed Resource Allocation

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TransmissionEquipment

6 MHzChannels

DigitalBroadcast

To node A

To node B

To node C

High Speed Internet

VOD

VoIP

NewService Flexible Edge

Infrastructure

Switched NetworkFor Any Media

With BigBand: Next Generation Network

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We Are Starting a Start-up (Mid 99)

» Raising money

» Building the initial team

» First team stories

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On the Roller Coaster

» From Round to RoundBuilding a companyBuilding a productBuilding customer’s traction

» During good times and bad times

» Innovation, Execution and Scale

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Cedar Fund

Evergreen Investments

Redpoint Ventures

Pilot House Ventures

Star Ventures

Time Warner Ventures

Charles River Ventures

Lauder Partners

Eastward Capital Partners

Meritech Capital Partners

Cedar Fund

Evergreen Investments

Redpoint Ventures

Pilot House Ventures

Star Ventures

Time Warner Ventures

Charles River Ventures

Lauder Partners

Eastward Capital Partners

Meritech Capital Partners

Have converted funding toinnovative offerings, profitable operations

$100 Million of VC Backing

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$0.4 MM $10 MM$22 MM

$35 MM

$98 MM

$177 MM

First cable HDTV

First Digital Simulcast

First national Telco TV rollout

First Switched Broadcast

Innovation, Execution and Scale

2001 2002 2003 2004 2005 2006

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We Must Continue to Beat the Competition…

…through continued Innovation that meet our

customers needs and flawless Execution