Spring 2005 Edition

A Message from the CEO

It is with a great deal of personal pride that I lead a remarkable team here at Continuous Computing. For the past seven years we have been on an incredible journey weathering difficult economic and market conditions.

It is interesting to note that our Network Service-Ready Platform™ strategy is basically unchanged from the original vision that I created with the other company co-founders. This strategy and superb execution have served us well. Continuous Computing now has thousands of systems deployed carrying billions of network transactions everyday.

I take enormous satisfaction in helping to build a company that is widely regarded as the best in the business. Even more, I enjoy the greatest satisfaction in sharing this success with a group of shareholders, employees and customers that I so highly esteem. Thank you for your continued support and interest.

- Ken Kalb, CEO & Chairman, Continuous Computing.

Seven-Year Anniversary

In January 2005, Continuous Computing celebrated its seven-year anniversary. More than 100 US employees, board members, family and friends gathered for a weekend-long celebration at La Quinta Spa & Resort in Palm Springs, CA. Approximately 30 Bangalore employees visited Kodaikanal in India and additional celebrations took place in Europe and Asia Pacific regions.

All of these events were designed to commemorate the company's milestones and achievements, including:

• Five consecutive record revenue quarters
• Approximate revenue $45M in CY04 (80% increase over $25M in CY03)
• Over 75 new hires in CY04, now over 200 employees worldwide
• Ten Continuous Computing global offices
• More than 125 active customers in the wireless and VoIP markets

New Brand Launch

On February 1, 2005, the company officially unveiled its new corporate brand, including an updated logo, tag line and web site. The new look, anchored by the company's tag line "Create | Deploy | Converge"™, clearly portrays our mission and positioning. Continuous Computing enables customers to create innovative solutions and rapidly deploy telecom infrastructure to converge wireless and VoIP networks. Experience the new web site at: http://www.ccpu.com

Cool Collateral & Spiffy Signage

Along with the new logo, the marketing team created a new business system, including business cards, letterhead, envelopes, templates, corporate brochure and folders. New product-line brochures, datasheets and customer testimonials will soon follow. We also have new Continuous Computing lobby and building signage at the San Diego and Dallas offices.

Expanding Roster

The company now has over 200 employees worldwide, with approximately 50 in overseas offices. Continuous Computing has offices in the US, China, India, Korea, Japan, the UK, France, Belgium and Spain. One particularly notable new addition to our team is industry veteran Chuck Hill, who joined us from Motorola Computer Group. Chuck was instrumental in the creation of AdvancedTCA industry standards. To Chuck Hill and all of our new employees, "welcome aboard!"

AdvancedTCA Seminars

In November 2004, Continuous Computing held a series of AdvancedTCA seminars with partners Adax, ADLINK, Intel, Interphase and MontaVista. The three seminars, in Seoul (Korea), Shenzhen (China) and Tokyo (Japan) drew in crowds of over 150 new and potential customers and were well received.

Donating Dollars & Days

In late December 2004, Continuous Computing invited employees to participate in a company-match donation program for Asia tsunami victims. More than 30 employees donated over US $10,000 and the company, through matching contributions, donated an additional $8,500. Furthermore, eight CCIN (India) employees personally volunteered in tsunami-damaged areas. We thank you all for your generosity and concern.

Product Highlights

• NEBS
  The company recently received Telcordia GR-63-CORE and GR-1089-CORE equipment certification through National Technical Systems for the Spatial Wireless Atrium Call Server. This certification, commonly referred to as NEBS (network equipment building standards), is a result of rigorous environmental testing and illustrates stable product operations.
• Trillium Stacks
  The company continued to expand its Trillium® stack product portfolio with key product enhancements. New products announced and enhancements to existing products include: MTP2 High Speed Links Support (HSL), IP BCP/IP BCTP, AAL2 Signaling (Q.2630.2 and Q.2630.3), FT/HA modules for MAP GSM/3G and CAP, MPC 8560 driver and updates for RLC, MAC and GCP DFT/HA .
• Lab Evaluations
  Continuous Computing recently began comprehensive AdvancedTCA platform lab evaluations. Evals began in January and focus on the company's new line of ATCA products announced in October 2004. For a full description of the company's ATCA product family, visit: http://www.ccpu.com/products/atca/

Eye on the Customer

In late 2004, one of our customer's sites for a key wireless carrier was faltering. The site provides critical network service to a large metropolitan city in the mid-west (a subscriber base of approximately two million), so it was imperative that service was not disrupted. Hector Altamira, Continuous Computing Field Support Engineer, quickly flew to the customer location and rapidly diagnosed and repaired the issue. His efficient response prevented a disruption of service for hundreds of thousands of wireless users. Great job, Hector!

Training & Support

Continuous Computing now has a three-day Flex21™ training seminar. Customers will learn about Flex21 architecture, installation operation and troubleshooting. The three-day course, held at Continuous Computing headquarters in San Diego or at a customer-requested location, is designed to give engineers and technicians the necessary skills to use, service, maintain, and support the Flex21. A more detailed description and schedule of product training is available at: http://www.ccpu.com/support/training/

©2005 Continuous Computing Corporation. Continuous Computing, the Continuous Computing logo, Flex21, Network Service-Ready Platform, Quick!Start, TAPA, and Trillium are trademarks or registered trademarks of Continuous Computing Corporation. Other names and brands may be claimed as the property of others.