NMS Communications Corporation Investor Summary

NMS Communications CorporationInvestor Summary

March 2008

www.nmscommunications.com www.livewiremobile.comSlide 2

Safe Harbor Statement

This presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of the company. While these statements represent management’s current judgment on the future direction of the business, actual results may differ materially from any future performance suggested in the company’s forward-looking statements. We refer you to the documents that the company files from time to time with the Securities and Exchange Commission. These documents contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements.

www.nmscommunications.com www.livewiremobile.com

Rev Run rate exiting FY08 $30 Million Long-Term Revenue Growth 40% + Accelerated Shift to Managed Services Model Non-GAAP Profitability 4Q 2008

$70M Business TTM w/ Gross Margins > 65% & Contribution Margins > 20%

25 Year History, Products Deployed in > 110 Countries Technology Leadership & VAS Market Growth Drive Demand

NMSS Two Businesses Sum of parts greater than whole

NMS Communications Corp. at a Glance

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The Leading Provider of Mobile Personalization Services

An integrated suite of music and video personalization services delivered from a single vendor

Slide 5

mobile personalization market

$10.7B in 2008 growing to $17.5B in 2012

Source: Juniper Research

$6.7B

$2.8 B

$3.3B

$4.7 B

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

2007 2008 2009 2010 2011 2012

Ringback Tones

Full Track Subscription

Full Track Download

Ringtones & Realtones

Groove Mobile Acquisition

• Paid $14.5 million in cash

• Greatly expands addressable market– Triples market size from

$3B to $10B in 2008

• Accelerates business plan in 2008– Managed services revenue greater than

50% and accelerates LiveWire Mobile profitability to 4Q 2008

• Combined service offering meets growing market demand

– Operator and subscriber challenges

• Adds significant customers and partnerships

– Operators and content relationships

Strategic Fit

Fu

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rack

V

ideo

Rin

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Platform

Service

Management

Storefront

Management

Customer Touch PointOperator

RelationshipCritical position to own

services Layer

Oth

er A

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Rin

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solution• An integrated suite of music and video

personalization services delivered from a single vendor

• For subscribers, they get– To focus on their favorite icons

or brands as a whole– Easy access to all related content – High value targeted offers

• For operators, they get– Increased service usage and adoption– An integrated content strategy solution– New capabilities to marketing more

effectively to their subscribers– A simplified business relationship

worldwide customer footprint

260 million subscribers reached42 operators15 million active subscribers

customers and partnerships

OperatorCustomers

ContentRelationships

Handset Partners

11

Service (2009)Product (2007)

Offering Software & Hardware Managed Service

Application Music Ringback Ringback+, Ringtones,

Fulltrack, Videos

Typical Revenue Per Sub $.50 one time $.50 - $2.00 per month

Shift To Managed Services

Go-to-market Indirect Direct

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Revenue One-Time/Less Predictable Subscription/Recurring

Virgin Mobile USA Customer Snapshot

“We selected LiveWire Mobile because of their impressive track record with deploying and managing mobile personalization services like ringback. Their Infuse Personalization Platform and Achieve Marketing Program are well-aligned with our focus on providing personalization services for our customers.”

Dominick Tolli, vice president, mobile data services for Virgin Mobile USA

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www.nmscommunications.com

NMS Communications

Slide 14

www.nmscommunications.com Slide 15

NMS Communications Market Focus

VAS - Enhanced Services/Applications Technology leader New application areas emerging

Mobile Highest growth area for VAS (>ARPU)

Video/Multi-media Central to next wave of applications +

investmentAsia – Global Innovation Leader Approach: Fast TTM w/New Apps “Applications Driven” Offerings

Landline

WirelessTriple-play

Broadband

VoiceSMS

Mobile Video Services


Business Model

Application Components

Servers, App Platforms

Ser

vice

s

Core Technologies• Mobile Video technology• Media Processors: boards + HMP• Signaling, protocols, global approvals• ATCA MRFP platform

• VXML servers• Application-specific Gateway Server• Signaling Server

• MobileTV• VideoSMS• VideoPortal

SI’sNEPs

Service Providers / Enterprises

Enabling NEPS and Systems Integrators to deliver Value Added Services quickly and efficiently –

3 ways to win emerging apps

Slide 16


Real-World Deployments:Mobile TV: Hong Kong CSL

Hong Kong CSL launch Mobile Video TV

Built on NMS Vision VxML servers and Golden Dynamic’s VOIR Mobile TV Application

Slide 17


NTT Comware

Nippon Telegraph and Telephone—required an IP based Integrated Voice Response and Conference Server for Japanese Telecom providers

NTT Comware chose NMS platforms for new IVR application Natural Access API support of conferencing—new feature

built for NTT Comware Scalable media processor allows for subscriber growth Support of IP and TDM vocoders on a single platform

Slide 18


Siemens

European car manufacturer used Siemens AG’s HiPath Corporate Connect Solution for follow-me service anywhere in the world

NMS won Siemens HiPath solution NMS scalable and low cost per port Open Access media

processors and APIs Single number service vs. managing 2-3 numbers per

employee Cost savings through least call routing via internal network

to remote locations

Siemens expanded client’s communication infrastructure due to NMS flexibility and integration capabilities

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NMS Communications Performance

Slide 20

Market Challenges Industry Consolidation China 3G Delays Low end erosion

Growth Drivers New Design Wins Mobile Subscriber & VAS Demand New Technologies R&D investment 18% growing to 20% +

Continued Strength in Margins > 65% Gross Margin > 20% Contribution Margin


Financial Overview


NMS Communications

(non-GAAP) $s MFY'06 FY'07

Revenues $ 87.1 $ 69.2

Gross Margin 59.6 48.2

Cont Margin $ 32.1 $ 20.1

FY'06 FY'07

$ 8.9 $ 13.2

4.6 4.1

$ (9.4) $ (9.3)

LiveWire Mobile

NMS Communications Corp

Long-TermModel

100%

65-68%

25-28%

Long-TermModel

100%

68-72%

17-22%

(Non-GAAP)* $s MQ1 '07 Q2 '07 Q3 '07 Q4 '07

Revenues $18.0 $20.6 $21.2 $22.7

Gross Margin $10.7 $12.8 $14.1 $14.7

Operating Income ($3.0) ($0.8) $0.4 $0.7

* Non-GAAP excludes stock-based

compensation and amortization

of acquired intangible assets

Q107-$1.6M Q207-$1.6M

Q307-$1.5M Q407-$1.5M

Groove Acquisition:

Guidance as of 3/18/08: Exit ’08 at $30M run rate. Profitable in Q4 ’08.


Balance Sheet(In $Millions except DSO and Inventory Turns)

Dec '06 Dec '07

Cash & Securities $32.3 $30.2

Inventory $3.6 $2.7

Accounts Receivable $13.3 $13.6

Other Assets $20.2 $21.1

Total Assets $69.3 $67.6

Liabilities $14.3 $17.1

Deferred Revenue $4.4 $3.4

Stockholders' Equity $50.6 $47.1

Total Liab. & S.E. $69.3 $67.6

DSO with Deferred Revenue 55 Days 51 Days

Inventory Turns with Deferred Inventory 8.5X 9.9X


Q1 & FY ’08 Guidance

Guidance as of February 7, 2008: Q108 revenues higher than Q107…approximately 10% - 15% down

from Q407 Expect a modest operating loss for Q108 on a non-GAAP basis FY08 full year revenue growth of 40%-45% in LiveWire Mobile over

2007, and revenues about flat for NMS Communications business Expect to be modestly profitable for the year on a non-GAAP basis

Guidance on impact of acquisition of Groove Mobile, March 18, 2008: Expect LiveWire Mobile to exit 2008 with rev run rate > $30 million Groove Mobile acquisition to be accretive to non-GAAP earnings per

share by $0.02 to $0.04 to the overall results of NMS Communications Corporation on a full year basis

LiveWire Mobile profitable in Q4 2008


Investment Summary

LiveWire Mobile Rapid growth… accelerated business model shift…profitability

in 4Q 2008

NMS Communications Highly Profitable… flat growth near-term and modest growth

long-term

Corporate Separating the two businesses to better serve distinct markets

and to enhance shareholder value


Documents

NMS Communications Corporation Investor Summary