HyperCloud™

HyperCloud™ Overview

November 2009
 Forward Looking Statements

During the course of this presentation, we will make forward-looking statements regarding future
events and the future performance of the Company.

These forward-looking statements are only predictions and entail various significant risks and
uncertainties that could cause our actual results to differ materially from those expressed in such forward-
looking statements. We cannot guarantee future results, levels of activity, performance or achievements.

The words “believe”, “anticipate”, “expect”, “estimate”, “intend”, ”plan”, “may”, “will” and other similar
expressions generally identify forward-looking statements. Examples of such forward-looking statements
include, but are not limited to, the ability of the Company to successfully produce and commercialize
HyperCloud or any other product, the functionality the Company's products, demand for the Company’s
products, the Company’s position in the market, and references to future technology and products. In
addition, any statements other than those of historical fact, such as those that refer to expectations,
projections or other characterizations of future events or circumstances, are forward-looking statements.
Investors are cautioned not to place undue reliance on these forward-looking statements, which speak
only as of the date hereof. They are subject to risks and uncertainties described in the Company’s
annual report on Form 10-K dated March 30, 2009 and subsequent filings with U.S. Securities and
Exchange Commission that could cause results to differ materially from those contained in any forward-
looking statements. The Company does not undertake a duty to update any of the information contained
in any forward-looking statement, except as required by law.

November, 2009

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Company Overview

Products High performance memory subsystems

Servers, storage, high performance computing

Applications
and communications equipment

Customers Tier-1 OEMs

Cornerstone IP VLP, Planar-X, rank multiplication, & load reduction

Headquarter in Irvine, California

Locations
Manufacturing in Suzhou, China (May, 07)

NASDAQ – NLST

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Netlist Core Competencies

High Performance Memory Subsystems

ASIC Technology

Planar-X
Design

Custom Board
Design

Thermal Solutions

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 Mega Datacenter – Markets

Maximizing Server Utilization is Key For Datacenter Optimization

Video Virtualization Storage High Performance

Database
Services • Local Area Networks • Direct Attached Storage Computing
• Search Engines • Video Downloads • External SAN
• Storage Area Networks • Oil and Gas Exploration
• E-Commerce • Movies-on-Demand • Global Security & Defense
• Social Networks • Online Gaming
App
App App • Biotech Research
App

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 Mega Datacenter Challenges

Challenges % Data Center Power Usage

Electrical Power Limitations

Cooling Challenges

Space Limitations

Performance Limitations
Servers Storage Network

Higher Costs

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Memory is the bottleneck

Memory
I/O Performance Capacity & Speed

CPU
Performance

Server Not Balanced

CPUs have become multi-core with increased MIPs

I/O performance has increased with 10 Gigabit Ethernet

Memory is the bottleneck with respect to capacity and speed

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 System Challenge: Rank & Speed Limitation

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Side 1
2
Rank Identification
Example of 4-Rank DIMM
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Side 2
4

Intel Nehalem Platform Nehalem Nehalem = 4-rank DIMM

CPU CPU
Dual Socket Server

Rank & Speed Limitation

CPUs recognize 8 ranks per channel
Result
Two 4-rank DIMMs per channel allowed with 8 rank limitation
Poor Application Performance

Limits capacity to twelve 16GB 4-Rank DIMMs

Three DIMMs per channel speed limitation: 800 MT/s
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 HyperCloudTM 2 vRank DDR3 RDIMMs

Netlist Patented
2 vRank Rank Multiplication &
Load Reduction Technology

Register Device

Isolation Device

Features:

4GB, 8GB, 16GB 2 vRank RDIMM options

Rank multiplication & load reduction

Planar and Planar-X form factor options

Scalable to 4 DIMM slots per channel

Increases DRAM server capacity up to 384GB

Supports 1333MT/s transfer rates at 4DPC

Low latency

No bios changes required

Interoperable with JEDEC DDR3 RDIMMs

JEDEC compatible

Industry 1st Standard Virtual Rank Memory Module

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Rank Multiplication: Increased Memory Capacity

Server CPU with 3

Memory Control Handlers (MCH)

2 vRanks
2 vRanks
2 vRanks
2 vRanks
8 Total vRanks

Rank Multiplication

Each MCH can only address 8 ranks

HyperCloud presents 4 physical ranks as 2 virtual
ranks (vRanks) to the memory controller

Result: four 4-rank (2 vRank) DIMMs per channel
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Load Reduction: Increasing Memory Bandwidth

Server CPU with 3

Memory Control Handlers (MCH)

single load

All DIMMs Run at 1333 MT/s

Load Reduction

HyperCloud makes 4 loads look like a single load

Result: 1333 MT/s with 4 DIMMs per channel

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 Up to 384GB per Dual Socket Server

Dual Socket Server

2 CPUs per server 16GB 2 vRank

4 DIMMs per channel

384GB DRAM per server

Transfer Rate: 1333 MT/s on all channels

100% More Capacity

66% Higher Memory Bandwidth
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 HyperCloudTM Value Proposition

HyperCloudTM Maximizes Server Utilization (Virtualization Case Study)

Increases Computational Power by 50% - Improved Application Performance

Increases Memory Capacity by 100% - Fewer Servers Required

Reduces Server Cluster Power Consumption by 36%

Lowers Datacenter Hardware/Software Costs by 20%
Assumptions:
• Server Cluster for 2880 VMs
• 4GB DRAM per VM
• Projections based on 384GB per Server vs 192GB
• Savings for Cooling, I/O Overhead, and Cabling not included in analysis
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Thank You

November 2009