Research in Motion Acquisition Proposal

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Proposal for the Acquisition of

Research In MotionPrepared for:

Knights Investment Group (KIG)

Prepared by:

Christian C. Berry

iResearch Group, Inc.1 Downing Street, Ste. 445New York NY 10017

The information contained herein is of a confidential nature and is intended for the exclusive useof the persons or firm for whom it was prepared. Reproduction, publication, or dissemination ofall or portions hereof may not be made without prior approval from Knights Investment Group.


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ABSTRACT

December 2, 2012

Knights Investment GroupNew York Office1330 Avenue of the Americas36th FloorNew York, NY 10019

Dear Investment Team:

This is the right time to buy Research In Motion (RIM). Its past 6-month value andprice appreciation potential make it an extraordinary acquisition opportunity.

With Rims excellent positioning in the high-growth mobile technology and mobileservices industry, second only to Apple and Android, it has the global potential toattract many lucrative business partnerships.

Besides its data network still being used by the Canadian and U.S. Governments, themarriage of RIMs technology and services to large cap companies are numerous. Forexample, RIMs secure and encrypted email service is the best in the world technology giants, such as Microsoft, could enhance their own software platforms with

RIMs; RIMs manufacturing and design portfolio would also attract buyers such asSamsung; RIMs patents are the envy of companies like Apple; and, RIMssmartphone shell devices could attract mobile giants such as Nokia for its ailingsmartphone share of the market (Whittaker, 2012).

Sincerely,

Christian BerryPresidentiResearch Group, Inc.


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TABLE OF CONTENTS

EXECUTIVESUMMARY......................................................................................................................... 4

COMPANYBACKGROUND................................................................................................................... 5

WhoisRIM?................................................................................................................................5

NatureandHistoryofCompany.......................................................................................... 5

ProductandServiceInformation.......................................................................................5

TopManagementTeam.........................................................................................................6

CurrentOperations.................................................................................................................6CURRENTVALUATIONOFRESEARCHINMOTION.....................................................................7

MarketStrategy........................................................................................................................ 7

StockClassesandOwnership............................................................................................... 7

MarketDataandAnalysis.....................................................................................................7

SOWHYWOULDANYONEBUYRIM?...............................................................................................9

DataNetworkandPatentPortfolio....................................................................................9

TheNumber3SpotisaGoodPlacetobe......................................................................... 9

ProductDifferentiation.......................................................................................................10

TheKeyboard.........................................................................................................................10

MixingBusinesswithPleasure.........................................................................................10

FUTUREVALUATIONOFRESEARCHINMOTION.....................................................................11

RiskFactors.............................................................................................................................11

OverviewofValuationApproachesandMethodology.............................................11

INFORMATIONSOURCES.................................................................................................................13

APPENDIXA.........................................................................................................................................16

APPENDIXB.........................................................................................................................................25


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EXECUTIVE SUMMARY

This executive summary describes the proposal acquisition of Research In MotionLimited (hereafter called the Company). The Company is listed on the NASDAQstock exchange in the USA as well as the Toronto Stock Exchange, Canada. It is

engaged in the business of mobile services and products.

The acquisition proposal for this Company is even more heightened because of itsstock price. According to Q2 2013 results, the Company has lost $0.27 per share andis trading around the $11 mark as of this proposal. In addition, only 3 years ago orso, the Company was trading at over $100 and was valued at over $80 billion.

Today, the Company may not make it to next quarter without a substantial amount ofcash and revenue. Its valuation by Goldman Sachs puts the Company at $16 pershare, and analysts and investors are beginning to buy large amounts of stock.

The Company still holds onto the number 3 position in the mobile wireless industry,owns over 4266 patents with its recent acquisition of Nortel patents, and continues todifferentiate itself from other mobile giants, Apple and Android.

Through asset and market valuations, adding cash, and the Companys currentproduct line, we are proposing that Knights Investment Group purchase the Companyfor $8.4 billion.


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1RIMbegantosellontheTorontoStockExchangein1997.

COMPANY BACKGROUND

Who is RIM?

A self-proclaimed innovation leader, Research In Motion is most notably known forits BlackBerryproduct line, which currently includes the BlackBerryPlaybooktablet, the BlackBerrysmartphone, accessories and software for businesses(Research In Motion Limited, 2012). Based in Waterloo, Ontario, it has more than14,500 full-time employees worldwide (Research In Motion, 2012).

Nature and History of Company

Throughout its almost 30 year history, RIM has been the leader in mobile technology(for a complete history of milestones see Appendix A.) Its three most notablemilestones are the following: - In 1984, Mike Lazaridis dropped out of the University ofWaterloo to start Research In Motion with James Balsillietheir first product was adevice that sent text wirelessly to electronic signs (WSJ Research, 2012). By 1999,they listed RIMs shares on the NASDAQ1 and launched its first BlackBerry

(WSJ

Research, 2012). Due to its continued losses in market share to Apple and Android,Messrs. Lazaridis and Balsillie stepped down as CEOs and Thorsten Heins wasappointed CEO on January 22, 2012 (WSJ Research, 2012).

Product and Service Information

RIMs portfolio of products and services are among the best in its class. Even though,it took a while to change with the times, RIM finally has an App world to boast about:BlackBerry Advertising Service, Payment Service, Push Service, Location Services,Reverse Geocoding, Travel Time, to just name a few highlights. But its most notabletechnologies are: - the first Mobitex mobile point-of-sale terminal (MPT), the first TypeII PCMCIA radio modem, the first two-way messaging pager, BlackBerry EnterpriseServer Software for Microsoft Exchange, the first wireless handheld based entirely onthe Java 2 Micro Edition (J2ME) platform, a new family of OEM radio modemsrunning GSM/GPRS wireless networks worldwide (some with walkie-talkie running onMotorolas iDEN network), its keyboard technology (which is later licensed to Palm andHandspring), BlackBerry Enterprise Server v4.0 receiving FIPS 140-2 security

certification (Research In Motion Limited, 2012).


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Top Management Team (Research in Motion Limited, 2012)

President and CEO Thorsten Heins Former RIM COO Former Product Engineer oversaw the BlackBerry

Smartphone portfolio world-wide Former Chief Technology Officer of Siemens

Communications Division Masters Degree in Science and Physics University of

Hannover, Germany

CFO Brian Bidulka Former Molson Inc. and Ernst & Young LLP Received his Chartered Accountants designation in

1989 Honors Bachelor of Commerce from McMaster

University

CIO Robin Bienfait Former senior leadership positions with AT&T Labs and

Global Network Services Currently oversees the Enterprise Business Unit,

BlackBerry Operations and Corporate IT Masters Degree in Management of Technology

Georgia Institute of Technology

Current Operations

RIM just recently cut its workforce by 5,000 employees; by doing so, it continues tostay in the black and keep its infrastructure intact (IDC, 2012). Currently, it operateswith the following divisions: corporate operations, customer support operations,BlackBerry infrastructure labs, information office, sales, marketing, software

engineering, hardware engineering, and its manufacturing and global supply chain.


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2RIMsCUSIPnumberforcommonsharesis76097510-2.

CURRENT VALUATION OF RESEARCH IN MOTION

We believe that RIM is one of the best deals to be made in todays global technologymarket. Its current value and market positioning make its price appreciation potential

phenomenal. The following outlines RIMs current global position.Marketing Strategy

RIMs betting it can turn around its slipping market share with the advent of its newoperating system. The newly revamped BlackBerry 10 OS is supposed to hit themarket on January 23, 2013 (Gillies, 2012).

In addition, RIMs two flagship products are its BlackBerry PlayBook and BlackBerry10 seen respectively here: -

RIM touts the PlayBook as the worlds first professional-grade tablet, and the 10 as thepremier class in trend setting technology for the next 10 years (Gillies, 2012).

Stock Classes and Ownership

RIM (NASDAQ:RIMM) is a publicly held company, having split its stock2 on twooccasions: the first was a 2-for-1 on June 4, 2004; the second was a 3-for-1 on August20, 2007 (Research In Motion, 2012). As of March 3, 2012, there are 524,159,844Common Shares outstanding, and as of November 30, 2012, they are selling for$11.59, giving RIM a market cap of almost $6.08 billion (Yahoo! Finance, 2012).However, its current stock price is a far cry from its peak price on June 20, 2008 whenits stock price hit $144.56 per share (Google, 2012) and the company was worth over$80 billion (Gillies, 2012).

Market Data and AnalysisHaving hit a share price bottom earlier this September of $6.22, analysts such asthose at Goldman Sachs, have recently upgraded the stock to buy because of its up-coming BlackBerry 10 release on January 23, 2013, stipulating a 30 percent chance of


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its success (Gillies, 2012). Furthermore, major funds, such as Toronto basedYacktman Asset Management have recently bought another 12.2 million RIM sharesto add to its $7.1 billion mutual fund portfolio (Miller, 2012). Donald Yacktmans buy iscompelling because his mutual fund has returned 12 percent over the past 5 years,

which puts it in the top 1 percent of comparable funds (Miller, 2012). Yacktman finds80 million worldwide users convincing enough to make his firm 4.5 percent owners ofRIM. The figure below shows RIMs growing BlackBerry subscriber base since 2005.

The other top investors have also increased their stakes in RIM especially in light ofBlackBerrys new OS being released in January 2013. The other top fund owners areseen below in Table 1.

0

10

20

30

40

50

60

70

80

Figure1-NumberofBlackberry

SubscribersWorldwide(Gupta,2012)

2012

2009

2005

0

10

20

30

40

50

60

Fairfax

Financial

Holdings

Vanguard

PRIMECAP

Yacktman

AmountofSharesinMln

%ofCompany

Figure2-Top3RIM

Owners(Perkins&

Marlow,2012)


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SO WHY WOULD ANYONE BUY RIM?

Data Network and Patent Portfolio

To answer this question, first, we would do well to remember that RIM is more than asmartphone company. According to Macquarie analysts, It has a data network and avalued $1.3 to $3 billion patent portfolio (Whittaker, 2012).

The Number 3 Spot is a Good Place to be

RIM has a firm hold on the number 3 spot after mobile giants Android and Apple.

Both Microsoft and Nokia would love to have the services BlackBerry has beenmaintaining for over a decade. In fact, BlackBerry has always been synonymous withenterprise. That is, BlackBerrys and BlackBerrys data network and services havebeen the businesspersons technology haven until the advent of the iPhone 4S/5 andmore recently the Samsung Galaxy portfolio running Googles Android. US, Canadian,European, and Asian governments still almost exclusively use BlackBerrys.

RIM is in good company behind Android and Apple iPhone iOS. While Android andiOS currently have 57 and 36 US million users respectively, RIM comes in 3 rd with 11.8million, while Microsoft has 4.2 million and Nokias Symbian has fewer than 1 million(Arthur, 2012).

The most recent numbers show the following handset market share: -

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ShipmentVolumes InstalledBase

Microsoft

Symbian

RIM

iOS

Android

Figure3-

RIM'sposition

inthemobile

market

(Arthur,2012)


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Product Differentiation

But Apples and Androids product differentiation gap is becoming smaller and smaller:

When I look at the marketplace today, I see two very big players in the me-toobattle. The mine is slightly better than yours, you have this, I have that race.Thats not where we want to play, RIMs CMO, Frank Boulben, told ABC News.

The paradigm now is click on the app, when you want to do something else,click the home button, and go to another app. Thats five years old now. TheBlackBerry 10 experience is completely different and unique. (Stern, 2012)

The KeyboardBlackBerrys keyboards have been the envy of all mobile giants, and RIM is bettingthat people will continue to use QWERTY keyboards on their handsets.

Mixing Business with PleasureWhat will be appealing to most consumers, especially corporations and governments,is BlackBerry 10s ability to segregate their data and app from users personal

selections and information (Austen, 2012).

All these things add up to one thing: RIMs future valuation is guaranteed.

0

50

100

150

200

250

300

350

RIM iPhone Android Other

2012

2011

2010

2009

2008

2007

Figure4

-Handset

Sales

(Statista,

2012;

IDC,2012)


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FUTURE VALUATION OF RESEARCH IN MOTION

Risk Factors

RIMs future is dependent on a number of factors, including, but not limited to,historical trends and current market conditions (Research In Motion Limited, 2012).Trends and conditions are in daily flux, effecting future earnings. Such futureconditions are contingent upon the following (source Research in Motion Limited,2012): - Products and services at competitive prices Competition from competitors and changing market strategies by carrier partners Supply chain in the global economy Import restrictions due to encryption of the products and services RIMs BlackBerry App World Litigation

o To say that the life of litigation in technology is commonplace is an

understatement, even more so in the world of mobile handsets andwireless technology.o The most recent example is a dispute with Nokias WLAN (wireless local

access network) patents. In an agreement dating back to 2003, Nokiaargued and won in arbitration, that RIM needed to pay royalties for Nokiaspatents, which RIM believed to have been covered under the initialagreement (Reisinger, Nokia wins key victory in RIM patent dispute, 2012).

o However, RIM is in good company with recent lawsuits coming fromTouchscreen Gestures who claim that both Apple and RIM violated fourpatents related to a host of smartphone gestures, including dragging,tapping on a display, and scrolling (Reisinger, Patent suit thumps Apple,

RIM over drag, tap, and scroll, 2012). Some have estimated that RIMs patents are at last 4,266 (House,2012).

Reduced spending by customers due to global economy Wireless spectrum regulation

Overview of Valuation Approaches and Methodology

The approaches taken to determine an appropriate buyout price for RIM were 1) assetapproach, 2) income approach, 3) market approach, 4) conditions appropriate toconsider for RIM.

The assets (cash, patent portfolio and network) were already shown to be worthanywhere from $4 to $6 billion. Even though RIM has $2.1 billion in cash, $1.1 billionin cash flow and $4.2 billion in revenue (Epstein, 2012), its income, according to RIMsmost recent quarter results, is in the red. RIM lost $0.27 a share (see Appendix B). Itscurrent market potential value is $16 per share according Goldman Sachs most recent52-week valuation (Morningstar, 2012).


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Looking at RIMs stock history above and current valuations then, it isiResearchs opinion that Knights Investment Group acquire RIM anywhere from$4 billion to cover its patents and network to $8.4 billion to cover the potentialprice of the stock.


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INFORMATION SOURCES (REFERENCES)

Arthur, C. (2012, August 16).Apps Blog. Retrieved November 15, 2012, fromtheguardian: http://www.guardian.co.uk/technology/appsblog/2012/aug/16/ android-winning-apps-china-smartphone

Associated Press. (2012, July 6). More legal moves in NFL's bounty case. RetrievedSeptember 19, 2012, from St. Louis Post-Dispatch:http://www.stltoday.com/sports/football/more-legal-moves-in-nfl-s-bounty-case/article_716bb831-8fcb-5dea-b2ce-629db75d81f9.html

Austen, I. (2012, September 25). Bits: RIM Shows Off New BlackBerry 10 Phones, butGives No Firm Release Date. Retrieved November 18, 2012, from The New YorkTimes: bits.blogs.nytimes.com/2012/09/25/rim-shows-off-new- blackberry-10-phones-but-gives-no-firm-release-date

Epstein, Z. (2012, March 29). RIM Reports Q4 Miss; Balsillie Resigns as Director, CTOand COO Both Out. Retrieved November 15, 2012, from BGR:http://bgr.com/2012/03/29/rim-reports-q4-miss-balsillie-resigns-as-director-cto- out/

General Guidelines for a Formal Report. (n.d.). Retrieved October 21, 2012, from MBANotesworld: http://www.mbanotesworld.in/2007/09/general-guidelines-for- formal-report.html

Gillies, R. (2012, November 29). RIM stock rises after Goldman Sachs upgrade.Retrieved December 02, 2012, from Yahoo! News: http://news.yahoo.com/rim- stock-rises-goldman-sachs-upgrade-171351358.html

Google. (2012, November 28). Finance - Research In Motion Limited (USA). RetrievedNovember 28, 2012, from Google Finance:http://www.google.com/finance?q=NASDAQ:RIMM

Gupta, P. (2012, September 26). RIM says subscriber base grows to 80 mln; sharesump. Retrieved November 15, 2012, from Reuters:http://in.reuters.com/article/2012/09/25/rim-devcon-idINDEE88O0C320120925

House, J. Matthew (2012, May 7). How Much is Research In Motion Really Worth?Retrieved December 02, 2012, from Seeking Alpha:http://seekingalpha.com/article/564341-how-much-is-research-in-motion-really-worth

IDC. (2012, November 2012). IDC - Press Release. Retrieved November 2012, 2012,from IDC - Analyze the Future:http://www.idc.com/getdoc.jsp?containerId=prUS23771812

Miller, H. (2012, December 2). Fund investing big into RIM's future. RetrievedDecember 2, 2012, from journalgazzette.net:


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http://www.journalgazette.net/article/20121202/BIZ07/312029962/1031/BIZ

Morningstar. (2012). Research in Motion Ltd RIMM. Retrieved November 15, 2012, fromMorningstar: http://investors.morningstar.com/ownership/shareholders-overview.html?t=RIMM

Reisinger, D. (2012, November 28). Nokia wins key victory in RIM patent dispute.Retrieved November 30, 2012, from CNET: http://news.cnet.com/8301-1035_3-57555842-94/nokia-wins-key-victory-in-rim-patent-dispute/

Reisinger, D. (2012, April 12). Patent suit thumps Apple, RIM over drag, tap, and scroll.Retrieved November 15, 2012, from CNET: http://news.cnet.com/8301- 13579_3-57413045-37/patent-suit-thumps-apple-rim-over-drag-tap-and-scroll/

Research In Motion. (2012). Investor FAQ. Retrieved November 15, 2012, fromResearch In Motion Limited: http://ca.finance.yahoo.com/q/pr?s=RIM.TO

Research In Motion Limited. (2012). Company. Retrieved November 15, 2012, fromRIM: http://www.rim.com/company/

Research In Motion Limited. (2012). Rim History. Retrieved November 15, 2012, fromBlackberry.com:http://www.blackberry.com/select/get_the_facts/pdfs/rim/rim_history.pdf

Research in Motion Limited. (2012). RIM's Executive Team. Retrieved November 15,2012, from RIM: http://www.rim.com/newsroom/mediaexecutive/index.shtml

Research In Motion Limited. (2012, April 9). United States Securities and Exchange

Commission - Form 40-F. Retrieved November 15, 2012, from Rim.com - AnnualFinancial Statement:http://www.rim.com/investors/documents/pdf/annual/2012rim_ar_40F.pdf

Statista. (2012). Global Apple iPhone sales from 3rd quarter 2007 to 4th quarter 2012(in million units). Retrieved November 15, 2012, from Statista:http://www.statista.com/statistics/12743/worldwide-apple-iphone-sales-since-3rd-quarter-2007/

Stern, J. (2012, September 28). RIM CMO: BlackBerry 10 Will Make Others LookOutdated, Will Focus on Keyboard. Retrieved December 02, 2012, from abc News>

Tech This Out: abcnews.go.com/Technology/rim-blackberry-10-make- outdated-focus-keyboard/story?id=17349099#.ULu5n6zExvA

Whittaker, Z. (2012, June 29). Who could -- and probably should -- buy RIM? RetrievedNovember 5, 2012, from ZDNet: http://www.zdnet.com/blog/btl/who- could-and-probably-should-buy-rim/78998

WSJ Research. (2012, January 24). The History of Research In Motion. Retrieved


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November 15, 2012, from The Wall Street Journal:http://online.wsj.com/article/SB1000142405297020380650457717861331596184 8.html

Yahoo! Finance. (2012, November 15). Research In Motion Limited. Retrieved

November 15, 2012, from Yahoo! Finance - Canada:http://ca.finance.yahoo.com/q/pr?s=RIM.TO


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Introduction

Research In Motion (RIM) had a modest beginning with an ambitious vision. Today, more than20 years later, that ambition and vision has translated into success. RIM is one of the worldsleading designers, manufacturers and marketers of solutions for the mobile communicationsmarket. Through development and integration of hardware, software and services, RIMsportfolio of award-winning products now includes the BlackBerry wireless platform, theBlackBerry Wireless Handheld product line, software development tools, radio-modems andsoftware and hardware licensing agreements.

Take a few minutes to tour our history and gain an understanding of where we came from, howwe got to where we are today.

1984

RIM is founded by University of Waterloo engineering student Mike Lazaridis (Presidentand Co-CEO) and University of Windsor engineering student Douglas Fregin (VicePresident, Operations)

1988

RIM becomes the first wireless data technology developer in North America and the firstcompany outside Scandinavia to develop connectivity products for Mobitex wirelesspacket-switched data communications networks

1990

RIM introduces the DigiSync Film KeyKode Reader

1991

RIM introduces the first Mobitex protocol converter (MPC)

1992

RIM introduces the first Mobitex point-of-sale solution, a protocol converter box thatinterfaces with existing point-of-sale terminal equipment to enable wirelesscommunication

1993

RIM introduces RIMGate, the first general purpose Mobitex X.25 gateway

RIM launches Ericsson Mobidem AT and Intel Wireless Modem containing RIM modemfirmware

1994

RIM introduces the first Mobitex mobile point-of-sale terminal (MPT)

RIM receives the Emmy Award for Technical Innovation and theKPMG High Technology Award

1995

RIM introduces Freedom, the first Type II PCMCIA radio modem forMobitex

1996

RIM introduces the Inter@ctive Pager, the first two-way messaging

pager, and the RIM 900 OEM Radio Modem

APPENDIXA RIMS PORTFOLIO OF PRODUCTS & SERVICES


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Awards

RIM receives the:o Best Pager Award from 'etown.com'o Deloitte & Touche Canadian Technology Fast 50o Market Engineering Product Innovation Award from Frost & Sullivano Canadian-American Business Achievement Awardo Smithsonian Award, the Mobility Award from Mobile Insightso Technical Achievement Academy Award from the Academy of Motion Picture

Arts and Sciences2000Product Announcements

RIM introduces the RIM 957 Wireless Handheld and announces adevelopment environment for Java

Partnerships & Alliances

RIM forms alliances with Compaq, Nortel, Bid.com, Open Text,QUALCOMM, Aether Systems, OracleMobile, Certicom, Brience,Information Builders and GoAmerica

RIM signs BlackBerry supply agreements with Rogers AT&T Wireless, Motient, AOL, BTCellnet, SkyTel, OneMain.com, Bell Mobility, Microcell, Group Telecom and EarthLink

Awards

RIM receives theo Profit Magazine's 100 Awardo Deloitte & Touche Canadian Technology Fast 50

BlackBerry receiveso Product of the Year Award from InfoWorld Magazineo PC World World Class Awardo Best Telecom Product of the Year Award

2001Product Announcements

RIM introduces BlackBerry support for Lotus Notes and Domino, the BlackBerrywireless calendar and debuts the first wireless handheld based entirely on the Java 2Micro Edition (J2ME) platform


RIM works with IBM Global Services, Kasten Chase, WyndTell, Vaultus, LucentTechnologies, AvantGo, Neomar, Siebel, Computer Associates International, Informaticaand VoiceStream

The BlackBerry wireless email solution becomes available in the UK through BT Cellnet

RIM signs BlackBerry agreements with Telfort Mobiel B.V. in The Netherlands, EsatDigifone in Ireland and DADA in Italy

Awards

RIM and BlackBerry receive the Editor's Choice Award from Lotus Advisor Magazine,Cingular's Best Solutions Award, eWeek's eXcellence Award, the PC World World ClassAward and the Mobile Innovators Award for Best Communications Device

2002Product Announcements

RIM introduces the data and voice BlackBerry 5810 and a new family of OEM radiomodems running on GSM/GPRS wireless networks worldwide


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RIM introduces its BlackBerry Development Environment for the Java 2 Platform, MicroEdition (J2ME)

RIM announces plans to offer a BlackBerry reference design program based onembedded BlackBerry and Java technologies

RIM introduces the Mobile Data Service feature of BlackBerryEnterprise Server which extends beyond email to access corporatedata and applications

RIM introduces the BlackBerry 6710 and BlackBerry 6720featuring an integrated speaker/microphone and internationalroaming capabilities operating on GSM/GPRS wireless networksworldwide

RIM introduces BlackBerry Web Client, an Internet-based emailinterface, allows users to access multiple existing corporate and/orpersonal email accounts from a single BlackBerry handheld

RIM introduces the BlackBerry 6510 with a walkie-talkie featureon the Nextel network

RIM introduces the BlackBerry 6750 for the CDMA2000 1Xwireless network

Partnerships & Alliances RIM partners with Analog Devices to provide participating

manufacturers with an integrated processor that supports bothwireless communications and Java applications on a single chip

RIM, Nextel Communications, and Motorola agree to develop anew Nextel/BlackBerry handheld that will operate on Nextel'snational network using Motorola's iDEN integrated digital wirelessnetwork technology

RIM licenses its keyboard technology to Palm and Handspring

RIM announces agreements with multiple carriers across the globe, including:o VoiceStream in the United Stateso AT&T Wireless in the United Stateso Rogers AT&T Wireless in Canadao T-Mobile across all of Europeo Hutchison Telecom in Asiao Vodafone and mmO2 in the UK and the Netherlandso Telstra in Australia

o Telecom Italia Mobil (TIM) in Italyo SFR in France

Awards

RIM receives the:o MIT Sloan eBusiness Award

BlackBerry receives the:o SIIA Codie Awards for the Best Handheld Application of the Year and Best

Wireless Solution of the Yearo Cingulars Best Solution Awardo Network Industry Award for the Best Mobile Communications Producto HK Magazines Best New Gadgeto InfoWorlds Gadget of the Year and Best Wireless Product of the Yearo PC Expert's Interop Award

2003Corporate Milestones


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RIM added to the Nasdaq-100 Index

Product Announcements RIM introduces the compact, lightweight BlackBerry 6210, the BlackBerry 6220 and

the BlackBerry 6230 to individuals and the prosumer market on the GSM/GPRSwireless network

RIM introduces the BlackBerry Connect licensing program, enabling mobile devicemanufacturers to equip their handsets with the integrated ability to connect to BlackBerryEnterprise Server

RIM introduces the color BlackBerry 7230, the BlackBerry 7210 and the BlackBerry7280 with international roaming capabilities

RIM introduces a new release of itsBlackBerry development environment forJ2ME (Java 2 Platform, Micro Edition)incorporating support for Over-The-Airapplication deployment and new BlackBerryAPI specifications

RIM provides S/MIME (Secure MultipurposeInternet Mail Extensions) support for Java-

based BlackBerry handhelds to governmentand corporate customers

BlackBerry Platform Received FIPS 140-2Security Certification for GovernmentCustomers

RIM introduces the BlackBerry 7730featuring a large, bright, color screen andsupport for worldwide international roaming onGSM/GPRS networks


RIM and Symbian Ltd. announce plans to provide BlackBerry connectivity solution tocarriers and Symbian OS licensees to enable wireless email and corporate data serviceson Symbian OS phones

RIM and High Tech Computer Corp. announce the offering of BlackBerry connectivity forthe Microsoft Windows Powered Pocket PC and Smartphone products

RIM and PalmSource announce the extension of BlackBerry wireless email and data

connectivity solution to Palm powered devices RIM and IBM announce developing and integration efforts focused on IBM's

WebSphere Everyplace Access (WEA) mobile middleware and BlackBerry EnterpriseServer, allowing BlackBerry users to access and work with enterprise data and wirelesslysynch their handheld with server applications

RIM announces agreements with:o Telefnica Mviles in Spaino TELUS Mobility in Canadao Swisscom Mobile in Switzerlando StarHub in Singaporeo America Movil in Latin Americao Vodafone D2 in Germanyo SMART Communications in the Philippines

Awards

RIM receives the:o Technology Fast 500 and Fast 50 Awards

BlackBerry receives the:


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o TECH Edge Editors' Choice Awardo Laptop Magazine Editors' Choice Award

o CNET Editors' Choice Awardo .NET Magazines 2003 Reader's Choice Awardo Andy Seybold Outlook 4Mobility Innovation Awardo KPMG/Ipsos-Reid Top Technology Awardo Best New Technology Award at the FOSE Government Show

2004Corporate Milestones

RIMs 20th

Anniversary

BlackBerry reaches over 2 million subscribers worldwide

RIM Added to S&P/TSX 60 and S&P Global 1200 Indexes

Product Announcements

RIM introduces the color BlackBerry 7520 with speakerphoneand walkie-talkie for the Nextel network

RIM introduces the BlackBerry 7750 for CDMA2000 1X networks

RIM introduced the new BlackBerry 7100 Series, which featuresthe power of BlackBerry in a new sleek design with manyenhanced phone features, quad-band and Bluetooth support,speakerphone, large color screen and SureType keyboardtechnology

RIM introduced SureType, a breakthrough keyboard technologyfor smaller handsets

RIM introduced the new BlackBerry 7290, which features quad-band and Bluetoothsupport, a brighter screen and enhanced memory

RIM announced the availability of BlackBerry Enterprise Server v4.0 for MicrosoftExchange

RIM announced the availability of BlackBerry Enterprise Server v4.0 for IBM LotusDomino

RIM introduced the new Java Development Environment for BlackBerry

RIM previewed a new BlackBerry handheld for WLAN networks

RIM introduced the Plazmic Content Developer's Kit v.3.7 for the BlackBerry wirelessplatform


RIM announces agreements to enable BlackBerry connectivity on third party handsetsand operating systems, including:

o Samsungo PalmSource and Palm OSo Sony Ericssono Siemenso Motorolao Nokia and Symbian OS-based deviceso RIM and SAP announce new Mobile CRM applicationso The MDA II from T-Mobileo The XDA II from O2

RIM announces agreements and launches on carriers around the globe, includingo BASE in Belgiumo BT in Europeo Bharti in India

o Cable & Wireless in the Cayman Islandso Cable & Wireless in Barbados


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o Cable & Wireless in Jamaicao Dobson Communications in the U.S.

o E-Plus in Germanyo Indosat in Indonesiao KPN in the Netherlands, Germany and Belgiumo MTN in South Africao Maxis Communications in Malaysia.o Mobistar in Belgiumo Orange in the UKo Orange in Franceo Polska Telefonica Cyfrowa in Poland.o Proximus in Belgium.o SingTel in Singapore and in the Philippines (via Globe Telecom) and Australia

(via Optus)o Sprint in the US.o StarHub in Indonesiao T-Mobile in Hungaryo Vodacom in South Africao Vodafone in Austriao Vodafone in Australiao Vodafone in Portugal.o Vodafone in Sweden.o Vodafone in Ireland.o Vodafone in New Zealand.o Vodafone in Hungary

Awards

Mike Lazaridis receives:o CRN's Top Innovators 2004o VAR Business Top Technology Innovation

RIM receives the:o Corporate Knights Best 50o Canadian Manufacturers & Exporters (CME) and Economic Development

Canada Innovative Business of the Year Awardo Deloitte & Touche Technology Fast 500 Awardo Deloitte & Touche Technology Fast 50 Awardo Deloitte & Touche Sustained Excellence Awardo KPMG/Ipsos-Reid Top Technology Award

RIM and BlackBerry receive the:o Baig's Best Awardo Best Magazine Awardo Best New Technology Awardo Best of Executive Travel Awardo BusinessWeek's Best Products 2004o CNET Editors' Choice Awardo CRN: Product of the Yearo International Stevie Award for Best New Product or Serviceo LAPTOP Editors' Choice Awardo Law Technology News Award 2004o MSD2D Peoples Security Choice Awardo Mobility Award for Wireless Data, Software and Deviceso PC Magazine's Best of the Yearo PC Magazine Best in Show Awardo PC Magazine Editors' Choice Awardo Shoppers' Choice Award 2004


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2005

Corporate Milestones

RIM surpassed the 4 million subscribers milestone


BlackBerry Enterprise Server v4.0 received FIPS 140-2 security certification

RIM and various partners announced plans to develop location-enhanced applications forthe BlackBerry platform

RIM previewed its next generation of BlackBerry MDS technology with support for webservices.

RIM announced the security-enhanced BlackBerry Smart Card Reader

RIM and Avaya announced plans to extend Avaya secure enterprise communicationsapplications to the BlackBerry platform over WLAN

RIM and EADS formed a strategic alliance focused on delivering localized wireless datasolutions to government organizations across Europe

RIM launches BlackBerry 8700 Wireless Handheld Series RIM and Nokia Announces Availability of BlackBerry Connect on High-end Business

Devices in Singapore

RIM Introduces the Sony Ericsson P910i Smartphone with BlackBerry Connect

RIM Introduces BlackBerry Built-In for the Siemens SK65 Handset

RIM Introduces the BlackBerry 7130 Wireless Handset Series


RIM and Microsoft Corp. announced a product collaboration and joint marketingagreement focused on extending enterprise instant messaging and presence toBlackBerry subscribers

RIM and IBM previewed Lotus Instant Messaging for BlackBerry

RIM and Novell announced plans to bring Novell GroupWise Messenger instantmessaging to BlackBerry users

RIM and AOL announced plans to support mobile AOL Instant Messenger (AIM) and ICQservices on the BlackBerry wireless platform

RIM and Yahoo! Inc. announced plans to provide Yahoo! Messenger to BlackBerry users RIM and Intel announced a technology collaboration

RIM announces BlackBerry Connect agreements for enabling BlackBerry connectivity onthird party handsets and operating systems, including:

o Nokia E60, Nokia E61 and Nokia E70 deviceso Palm Treo 650 smartphoneo HTC Windows Mobile-based deviceso MDA IIIo Sony Ericsson P910io Siemens SK65o Nokia 6820

RIM and PGP Corporation announced plans for the new PGP Support Package forBlackBerry

3Com and RIM announced plans to deliver WLAN mobility solutions for the enterprise

Nortel and RIM announced plans to integrate IP telephony with the BlackBerry platform

RIM announces agreements and launches on carriers around the globe, includingo 3 Hong Kong and Partner Communications Company Ltd. in Israel

o AIS in Thailando Airtel in India


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o CTM in Macauo Cable & Wireless in the Eastern Caribbean islands

o Cable & Wireless announced in Panamao Cellcom Israel Ltd. in Israelo Connex announced plans to offer BlackBerry in Romaniao Digicel Group in eight countries throughout the Caribbeano Entel PCS in Chileo Indosat in Indonesiao M1 in Singaporeo Mobile TeleSystems (MTS) in Russiao Og Vodafone in Icelando Orascom Telecom in the Middle East, Africa and South Asiao Orange in Romaniao P&T Luxembourg in Luxembourgo PERSONAL in Argentinao Siminn in Icelando TA Orange in Thailando TIM launched BlackBerry in Brazilo TIM Hellas in Greeceo Tango in Luxembourgo Telecommunications Services of Trinidad and Tobago (TSTT) in Trinidad and

Tobagoo Telecomunicaciones Movilnet CA in Venezuelao Telefnica Mviles in 13 Latin American countries beginning in early 2006o True in Thailando Turkcell in Turkeyo Vodafone in Greeceo Vodafone in Slovenia

Awards

Jim Balsillie receives the:o Canada's 50 Most Influential People in Graphic Communicationso TIME Magazine's TIME 100

Mike Lazaridis receives the:o Computer Reseller News (CRN), CRN Hall of Fameo Computing Canada's Top 30 Canada's IT Movers and Shakerso TIME Magazine's TIME 100

BlackBerry receives the:o Baig's Best Awardo Brandweek Customer Loyalty Awards powered by Brand Keyso Datamation's Product of the Yearo Digital World Innovations Awardo Editor's Choice and Best Buy Awardo Government Computer News "Best of 2005"o IT Week Magazine Best Buy Award 2005o LAPTOP Magazine Editors' Choiceo Mobile PC Magazine's Mobile Choiceo MobileTrax Mobility Awardo PC World 2005 World Class Awardo PC World's Editor's Picko Portable Computing Magazine Best Products of 2005 Awardo Service Provider Weeklyo TIME Magazine's Gadget of the Weeko Web Week Magazine Best Products of 2005 Award

2006


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Corporate Milestones

RIM surpassed the 5 million subscriber milestone

RIM acquired Ascendent Systems


CESG approved BlackBerry for use by government workers handling restricted data inthe U.K.

BlackBerry WLAN Solution Enhances Productivity for On-Campus Mobile Workersthrough Wireless Data Access and Wireless VoIP

RIM launched BlackBerry Enterprise Server v4.1 and BlackBerry Enterprise Server Small Business Edition v4.1 for Microsoft Exchange, IBM Lotus Domino and NovellGroupWise

RIM launched BlackBerry Enterprise Server Express for small and medium-sizedbusinesses, branch offices and companies new to BlackBerry available as a freedownload from RIM to any customer who purchases a new BlackBerry device

RIM announces BlackBerry Enterprise Server for MDS Applications to provideorganizations the ability to deploy wireless applications independent of email

RIM introduces the UMTS-enabled BlackBerry 8707 Wireless Handheld - UMTS supportenables users to simultaneously send and receive email, browse the Internet and use

other applications while speaking on the phone, even while the handset is being used asa tethered modem

RIM Announces Hosted BlackBerry Enterprise Server to enable service providers to offera hosted managed service of the BlackBerry Enterprise Solution to Small and MediumSized Businesses


Yahoo! and RIM announced an expanded global relationship

RIM andIBM announced plans for further collaboration to mobilize enterpriseapplications to the BlackBerry platform

RIM announced BlackBerry Connect for the Sony Ericsson P990 and M600 phones.

RIM announced support for Google Talk and Google Local on the BlackBerry wirelessplatform

RIM announces agreements and launches on carriers around the globe, includingo RIM announced plans to launch BlackBerry service in China with China Mobileo SouthernLINC announced plans to introduce BlackBerry in the U.S.o NTELOS in the U.So Cbeyond in the U.So Etisalat in the United Arab Emirateso China Mobile in Chinao KT Powertel in Koreao Vodafone Fiji in Fijio PCCW in Hong Kongo Mobiltel in Bulgariao NTT DoCoMo in Japano Taiwan Mobile in Taiwano U.S. Cellular in the U.So Movilnet in Venezuelao COSMOTE in Greeceo Dialog Telekom in Sri Lanka

Awards

BlackBerry receives theo CNET.com Editors Choice Awardo Brandweek Customer Loyalty Awards powered by Brand Keys

o PC Magazine's Best PDA Awardo Best of FOSE Award


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APPENDIX B RIMS 2013 Q2 RESULTS

FOR IMMEDIATE RELEASE

September 27, 2012

RESEARCH IN MOTION REPORTS SECOND QUARTER

FISCAL 2013 RESULTS

Waterloo, ON Research In Motion Limited (RIM) (Nasdaq: RIMM; TSX: RIM), a world

leader in the mobile communications market, today reported second quarter results for the three

months ended September 1, 2012 (all figures in U.S. dollars and U.S. GAAP, except whereotherwise indicated).

Highlights:

BlackBerry subscriber base increased to approximately 80 million global subscribers Cash,

cash equivalents, short-term and long-term investments increased by approximately $100 million

to $2.3 billion at the end of the second quarter Cash flow from operations was approximately

$432 million in the second quarter Revenue of $2.9 billion in Q2, up 2% from $2.8 billion in

Q1 GAAP net loss in Q2 of $235 million, or $0.45 per share diluted, including $136 million in

pre-taxrestructuring costs; adjusted net loss of $142 million, or $0.27 per share diluted

Shipments of BlackBerry smartphones were 7.4 million and shipments of BlackBerry PlayBooktablets

were approximately 130,000

Q2 Results

Revenue for the second quarter of fiscal 2013 was $2.9 billion, up 2% from $2.8 billion in theprevious quarter and down 31% from $4.2 billion in the same quarter of fiscal 2012. The revenuebreakdown for the quarter was approximately 60% for hardware, 35% for service and 5% forsoftware and other revenue. During the quarter, RIM shipped approximately 7.4 million

BlackBerry smartphones and shipped approximately 130,000 BlackBerry PlayBook tablets.

GAAP net loss for the quarter was $235 million, or $0.45 per share diluted, compared with theGAAP net loss of $518 million, or $0.99 per share diluted, in the prior quarter and GAAP netincome of $329 million, or $0.63 per share diluted, in the same quarter last year.

Adjusted net loss for the second quarter was $142 million, or $0.27 per share diluted. Adjustednet loss and adjusted diluted loss per share exclude the impact of pre-tax charges of $136 million


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($93 million on an after-tax basis) related to the Cost Optimization and Resource Efficiency(CORE) program. This charge and its related impact on GAAP net loss and diluted loss pershare are summarized in the table below.

Despite the significant changes we are implementing across the organization, our second

quarter results demonstrate that RIM is progressing on its financial and operational commitmentsduring this major transition, said Thorsten Heins, President and CEO. Subscribers grew toapproximately 80 million global users, revenue grew sequentially from the first quarter, cash,cash equivalents, short-term and long- term investments increased by approximately $100million to $2.3 billion, and carriers and developers are responding well to previews of ourupcoming BlackBerry 10 platform. Make no mistake about it, we understand that we have muchmore work to do, but we are making the organizational changes to drive improvements across thecompany, our employees are committed and motivated, and BlackBerry 10 is on track to launchin the first calendar quarter of 2013.

The total of cash, cash equivalents, short-term and long-term investments was $2.3 billion as of

September 1, 2012, compared to $2.2 billion at the end of the previous quarter, an increase ofapproximately $100million from the prior quarter. Cash flow from operations in Q2 wasapproximately $432 million. Uses of cash included intangible asset additions of approximately$253 million and capital expenditures of approximately $87 million.

Outlook

The Company expects that there will be continued pressure on operating results for theremainder of the fiscal year based on the increasing competitive environment, lower handsetvolumes, increased marketing expense associated with the launch of BlackBerry 10, and someimpact from pressure by customers to reduce RIMs monthly infrastructure access fees. Also, theCompany plans to continue to invest in targeted marketing and sales programs to aggressivelydrive sales of BlackBerry 7 handheld devices before the anticipated launch of the BlackBerry 10smartphones. The Company expects to report an operating loss in the third quarter of fiscal 2013as RIM continues to work through the transition to BlackBerry 10 and completes its COREprogram. This outlook excludes any benefits or future impact of charges related to the COREprogram.


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iResearch Group, Inc. 2012

1 Downing Street, Ste. 445

New York, NY 10017

www.iresearch.com

Research in Motion Acquisition Proposal

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