Arris 8-K Statements in this presentation or made in this meeting, including those related to the outlook of

ARRIS Group Inc.

2012 Investor & Analyst

Conference

August 8, 2012

NASDAQ MarketSite

New York City

Exhibit 99.1

Welcome

Bob Puccini, VP Investor Relations

Safe Harbor

Statements in this presentation or made in this meeting, including those related to the outlook of

2012 and beyond, expected revenues and net income, gross margins, operating expenses,

income taxes, acceptance of certain ARRIS products, the general market outlook, and industry

trends, are forward-looking statements. These statements involve risks and uncertainties that may

cause actual results to differ materially from those set forth in these statements.  Among other

things, projected results are based on preliminary estimates, assumptions and projections that

management believes to be reasonable at this time, but are beyond management’s control; ARRIS

is

dependent

upon

customer

decisions

to

purchase

the

Company’s

products

--

these

decisions

can be deferred and customers also may select competitor’s products; and because the market in

which

ARRIS

operates

is

volatile,

actions

taken

and

contemplated

may

not

achieve

the

desired

impact.  Other factors that could cause results to differ from current expectations include: the

uncertain current economic climate and financial markets, and their impact on our customers’

plans and access to capital: the impact of rapidly changing technologies; the impact of competition

on product development and pricing; the ability of ARRIS to react to changes in general industry

and market conditions; rights to intellectual property and the current trend toward increasing patent

litigation, market trends and the adoption of industry standards; possible acquisitions and

dispositions; and consolidations within the telecommunications industry of both the customer and

supplier base.  These factors are not intended to be an all-encompassing list of risks and

uncertainties that may affect the Company’s business. Additional information regarding these and

other factors can be found in ARRIS’

reports filed with the Securities and Exchange Commission,

including its Form 10-Q for the quarter ended June 30, 2012.  In providing forward-looking

statements, the Company expressly disclaims any obligation to update publicly or otherwise these

statements, whether as a result of new information, future events or otherwise.

3

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

Agenda

8:00 –

8:30

Reception

8:30 –

8:35

Welcome

Bob Puccini

8:35 –

8:50

ARRIS Vision, Strategy and Execution

Bob Stanzione

8:50 –

9:00

Financial Goals and Balance Sheet Strategy

Dave Potts

9:00 –

9:25

Technology Drivers and Trends

Tom Cloonan

9:25 –

9:45

Break / NASDAQ Opening Bell

9:45 –

9:55

ARRIS Markets and Customers

Ron Coppock

9:55 –

10:50

Product Portfolio Growth

Bruce McClelland

10:50 –

10:55

Summary

Bob Stanzione

10:55 –

11:00

Wrap Up

Bob Puccini

ARRIS Group Inc. Investor & Analyst Conference

4

August 8, 2012

ARRIS Leadership Team...

5

ARRIS Group Inc. Investor & Analyst Conference

Bob Stanzione

Chairman of the Board of

Directors, President and

CEO

August 8, 2012

ARRIS Vision,

Strategy and Execution

Bob Stanzione, CEO

ARRIS Company Overview

High tech, pure play provider of voice, high-speed data, and

video solutions to the global broadband industry

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

7

Note:

1.

Based on closing share price of $13.29 on  8/6/2012

Headquartered in Suwanee, Georgia

~2,100 Employees

Direct Presence In 21 Countries

Channel Presence In 30

Countries

Customers Worldwide

Market Cap ~1.5 Billion

$1,207M Revenue Last 12 Months

21

30

~

1.5B

$

1

ARRIS Company Highlights

IP Convergence is the dominant theme behind our sales growth

and investment strategy

-

Next generation access and routing platforms

-

Triple play customer premise equipment

-

Cloud-based services and support systems

-

Wi-Fi

®

Mobility –

residential and metro

-

Professional Services

Profitable business with solid cash generation

Significant organic investment augmented with focused M&A

Market leadership in key product categories

-

#1 Worldwide Market Share

1

of Voice over IP high speed modems

-

#2 Worldwide Market Share

1

of Cable Edge Routers (CMTS)

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

8

(1) Source: Infonetics 1Q’12

Our Path To Growth

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

9

Our Vision Continues to Expand

Our Path to Growth

-

“Everything IP, Everywhere”

-

In the Home and on the Go! 

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

10

The Next Growth Phase for ARRIS Underway!

ARRIS Group Inc. Investor & Analyst Conference

11

August 8, 2012

~10% CAGR

Recession and Slow Recovery

Migration to Open IP Networks Driving Sales and Earnings Growth

ARRIS Corporate Strategy

Maintain a strong capital structure, mindful of our 2013 debt

maturity, share repurchase

opportunities and other capital needs

including M&A.

Grow our current businesses into a more complete portfolio

including

a

strong

video

product

suite.

Continue

to

invest

in

the

evolution toward enabling true network convergence onto an all

IP platform.

Continue to expand our product/service portfolio through internal

developments, acquisitions and partnerships.

Expand our international

business and begin to consider

opportunities in markets other than cable.

Continue to invest in and evolve the ARRIS talent pool to

implement the above…

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

12

Focused on Creating Shareholder Value

Analyst Day 2011 –

Conclusions

Insatiable demand for bandwidth driving growth

Introduction of new software and hardware capabilities on

the C4

®

CMTS will improve our financial profile through

2011

Exciting new Video Gateway product line expands ARRIS

addressable market and will provide significant top-line

growth

Strong pipeline of new products across all ARRIS segments

that are well positioned in the areas operators will invest

CAPEX

Balance sheet strategy to enhance shareholder value

ARRIS is well-positioned to grow in this period of change

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

13

Strong Video Product Suite

-

Encoders/Transcoders

-

Whole Home Gateway

-

Video on Demand

-

Advanced Advertising

-

Video Processing (BigBand)

Network Convergence onto IP

-

C4 CMTS and E6000

™

Converged Edge Router

-

Media Services Platform (MSP)

(BigBand)

-

Access and Transport

Wireless Access

-

Touchstone

®

Wi-Fi Gateways

-

Fixed Mobile Convergence

-

Ruckus Wi-Fi Access Point

International Expansion

-

CALA

-

Canada

-

EMEA

-

APAC

Significant top line growth

Excellent operational performance

Increased R&D by ~59% since late 2008

Acquired Digeo, BigBand Networks and others

Expanded International Presence

Execution -

How Are We Doing?

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

14

2012 Product Highlights

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

15

Product Pipeline Paying Off

ARRIS Innovation Enables Revenue Growth…

Entirely refreshed C4 CMTS

product line

Completely revamped and

expanded CPE product line

Multiple Video Gateway Solutions

E6000 Converged Edge Router

Media Services Platform (MSP)

…While Growing a Valuable Patent Portfolio

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

16

US

Foreign

Total

Patents Granted

451

167

618

Applications Pending

263

99

362

TOTAL

714

266

980

2010

2011

2012 YTD

Patents Granted

28

36

27

Applications Filed

81

92

37

Strong Performance 1H 2012

1H 2011

1H 2012

B/(W)

Revenue -

$M

$533.2

$652.2

22%

Gross Profit -

$M

$203.8

$227.4

12%

EPS Non-GAAP

(1)

$0.40

$0.44

10%

Cash from Operating Activities –

$M

$27.8

$65.9

137%

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

17

(1) See reconciliation of GAAP to Non GAAP measures

What You Will Hear Today

We have executed well against the goals we outlined a year ago

Why we expect to grow sales approximately 10% in 2013

How we expect to continue to grow EPS

We have a strong balance sheet and will continue to put it to

work to enhance shareholder value

How MSO’s networks must evolve

Sources of international growth

Significant new products in our pipeline and the investments we

are making to align our products with growth opportunities

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

18

Agenda

8:00 –

8:30

Reception

8:30 –

8:35

Welcome

Bob Puccini

8:35 –

8:50

ARRIS Vision, Strategy and Execution

Bob Stanzione

8:50 –

9:00

Financial Goals and Balance Sheet Strategy

Dave Potts

9:00 –

9:25

Technology Drivers and Trends

Tom Cloonan

9:25 –

9:45

Break / NASDAQ Opening Bell

9:45 –

9:55

ARRIS Markets and Customers

Ron Coppock

9:55 –

10:50

Product Portfolio Growth

Bruce McClelland

10:50 –

10:55

Summary

Bob Stanzione

10:55 –

11:00

Wrap Up

Bob Puccini

ARRIS Group Inc. Investor & Analyst Conference

19

August 8, 2012

David Potts

Executive Vice President, CFO

Financial Goals and

Balance Sheet Strategy

21

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

Good Progress Over the Last 12 Months

On track to exceed our 10%+ annual sales growth goal set last year

Solidly profitable

Strong cash generation, ~$151M of cash from operating activities

over the past 12

months

Repurchased 8.6M shares for $93M over past 12 months

Bought BigBand Networks

On track to achieve Q3 2012 Sales and EPS guidance

Outstanding Opportunity

to Create Superior Returns

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

22

Profitable Growth

+ Leveraging Strong Balance Sheet

= Enhanced Shareholder Value

Well Positioned for Profitable Growth in 2013

Target ~10% Organic Sales Growth in 2013

-

Larger Addressable Markets

-

Continued IP Traffic Growth

-

Well Positioned Product Portfolio

-

International Focus

Focus on Incremental Gross Profit $’s from Higher Sales

-

Mix will determine ultimate amount and Operating/EBITDA margin

Target OPEX growth at ~ 3% in 2013

-

~ $85M per quarter of R&D/SG&A

(including ~ $7M of Equity Compensation)

-

Create operating leverage

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

23

Leverage Balance Sheet for Enhanced Returns

2010

2011

1H2012

Cash Resources -

$M

620

561

576

Convertible

Notes

(face

value)

-

$M

237

232

232

Net Cash -

$M

383

329

344

Cash

from

Operating

Activities

-

$M

119

113

66

Cash Used for ($M)

Acquisitions (net of cash and marketable securities acquired)

4

53

--

Share Repurchases

69

109

42

Debt Repurchases

23

5

--

DSO

45

47

46

Inventory Turns

6.7

6.2

7.8

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

24

Strong Working Capital Management

Retire $232M convertible notes in late 2013

Continue to opportunistically repurchase shares

Continue to pursue strategic M&A

Agenda

8:00 –

8:30

Reception

8:30 –

8:35

Welcome

Bob Puccini

8:35 –

8:50

ARRIS Vision, Strategy and Execution

Bob Stanzione

8:50 –

9:00

Financial Goals and Balance Sheet Strategy

Dave Potts

9:00 –

9:25

Technology Drivers and Trends

Tom Cloonan

9:25 –

9:45

Break / NASDAQ Opening Bell

9:45 –

9:55

ARRIS Markets and Customers

Ron Coppock

9:55 –

10:50

Product Portfolio Growth

Bruce McClelland

10:50 –

10:55

Summary

Bob Stanzione

10:55 –

11:00

Wrap Up

Bob Puccini

25

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

Tom Cloonan

Chief Technology Officer

Technology Drivers and

Trends

Key Points That We Will Cover

High-Speed Data Bandwidth Demand is Booming…

It is Driving

a clear Service Provider Need for ALL

ARRIS Products

-

Cable Modem Termination System (CMTS)

-

Customer Premises Equipment (CPE)

-

Edge QAM (EQAM)

-

Access Equipment

-

Video Processing

-

Advertising

-

Assurance

DOCSIS

®

and the HFC Network will carry Service Providers

Deep into the Future

-

Innovative evolution of DOCSIS and HFC under discussion with

customers may lead to future network investment cycle

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

27

Agenda

Recent Bandwidth Trends & Drivers

Future Bandwidth Trends & Drivers

DOCSIS Evolution

Cloud Computing & Its Impact on Bandwidth Demand

Conclusions

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

28

An Old Chart…

But It Still Appears to Be Right on Target!!!

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

29

The Nielson Curve for Cable (Max. DS Capacity/Subscriber)

There Has Been

A 50%

Annual Growth

Rate For The

Past 30 Years!!!

1982

1986

1990

1994

1998

1

10

100

1k

2002

2006

10k

100k

1M

10M

100M

1G

2010

Year

2014

10G

100G

2018

The Era of

Wideband

Cable Modems

& IP Video

12 Mbps

The past 25 years show a constant

bandwidth increase of ~1.5x every year...

~73 Gbps?

128 kbps

256 kbps

512 kbps

1 Mbps

5 Mbps

The Era of

Cable Modems

2.4 kbps

300 bps

56 kbps

1.2 kbps

9.6 kbps

14.4 kbps

33 kbps

28 kbps

The Era of

Dial-Up

Modems

50 Mbps

200 Mbps

2022

4.4 Gbps DS Limit (750 MHz)

2026

2030

2023

300 Mbps

Average Per-Subscriber Bandwidth Trends

Over The Last 7 Years

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

30

What Has Been Driving This Bandwidth Growth In

The Past Several Years?

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

31

IP Video (Streaming Media) Is

Driving The Growing Bandwidth Trends!

0

50

100

150

200

250

300

350

400

2009

2010

2011

2012

Year

Bandwidth Mixes vs. Year

(Calculated from MSO Data & Sandvine

Statistics)

Other

P2P

Web Browsing

IP Video

16%

19%

16%

49%

17%

18%

11%

54%

18%

19%

20%

43%

17%

15%

38%

30%

Agenda

Recent Bandwidth Trends & Drivers

Future Bandwidth Trends & Drivers

DOCSIS Evolution

Cloud Computing & Its Impact on Bandwidth Demand

Conclusions

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

32

Demand on Network Capacity

33

LRP+

LRP

LRP+

LRP

LRP++

Intro

Network

LRP

LRP+

Slide Courtesy Cox Cable

3 GHz

exhaust

1GHz

exhaust

All digital

exhaust

BW lever exhaust (SDV,

V2B)

10 GEPON, EOC

exhaust

Mid split

exhaust

42 MHz upstream exhaust

MSO’s will have to make network investment in order to enhance supply capacity

Downstream

Upstream

34

What is driving growth?

3X SD

5X SD

17X SD

Slide Courtesy Cox Cable

HD 4K

35 Mbps

H.264

HD 720P60

6 Mbps

H.264

SD

2 Mbps

MPEG2

HD

1080P60

10 Mbps

H.264

Intro

Network

LRP

LRP+

Some Other Examples of Emerging

Bandwidth-Thirsty Broadband Services

Ultra

High

Definition

8k

video

(7680x4320)

has

16x

the

pixels

of

today’s

HD

1080p video (1920x1080)

IP video Unicast, rapidly replacing broadcast:

-

Any device, including all TVs

-

Any time the time-shifted program of our choosing

-

Anywhere, including out of network

“No Glasses”

3D TV

Holographic TV

Cloud-based IP services:

-

Network DVR

-

PC back up and data archives

-

Photo and video editing

-

iCloud for iOS devices

-

Cloud computing

-

Distant learning

-

Home security

-

Health

-

Lifestyle

-

HTML5 web apps

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

35

Possible Bandwidth Requirements for HFC

Spectrum Service Types over the Next 9 years

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

36

Assumes 50%

Annual HSD

Growth Rate

DOCSIS =

3% Spectrum !!!

DOCSIS =

22% Spectrum !!!

DOCSIS =

81% Spectrum !!!

Agenda

Recent Bandwidth Trends & Drivers

Future Bandwidth Trends & Drivers

DOCSIS Evolution

Cloud Computing & Its Impact on Bandwidth Demand

Conclusions

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

37

Some Tools Available For

HFC Spectrum Management

1=Easy, 5=Difficult

Technique

Impacting on

Subscriber

Challenge to

MSO

Challenge to

Design

Constrain subscriber bandwidth

5

1

1

Analog reclamation

2

2

1

Improved compression techniques (ex: H.264 & H.265)

1

3

2

Transfer

spectrum

between

services

(ex:

MPEG

VoD

to

DOCSIS)

3

2

1

Switched Digital Video

1

2

2

Node-splits

2

4

1

Multicarrier

DS

Mod/Higher

Mods

(ex:

4096QAM)

in

NG-

DOCSIS

1

3

3

Improved

DS

FEC

techniques

(ex:

LDPC)

in

NG-DOCSIS

1

3

3

Multicarrier

US

Mod/Higher

Mods

(ex:

1024QAM)

in

NG-

DOCSIS

2

4

4

Improved

US

FEC

techniques (ex:

LDPC)

in

NG-DOCSIS

2

4

4

HFC spectral expansions (ex: 1 GHz and beyond)

2

5

3

Upstream split changes (ex: 85 MHz or 200 MHz)

2

5

3

FTTH

4

5

4

August 8, 2012

ARRIS Group Inc. Investor & Analyst Conference

38

ARRIS Leadership In HFC/DOCSIS Evolution

Joint Paper by ARRIS/Cisco/Motorola/Intel at the 2012 NCTA Cable

Show

Add Modern PHY used in Telecom Industries Worldwide

-

Add Downstream & Upstream OFDM (Orthogonal Frequency-Division

Multiplexing)

-

Add Error Correction Technology LDPC (Low-Density Parity-Check)

Extend Spectrum Throughput with New Modulation Formats

-

Permit 4096-QAM (12 bits per symbol) for Downstream & Upstream

-

Current DOCSIS Downstream defines 256-QAM (8 bits per symbol)

-

Current DOCSIS Upstream defines 64-QAM (6 bits per symbol)

Define New Spectrum Usage for DOCSIS NG

-

Define downstream operation support above 1 GHz

-

Define upstream using mid-split (5-85 MHz) & high-split (5-200 or higher)

•

2x-5x Improvement over the current 5-42 MHz sub-Split

Ensure backwards compatibility & investment protection

-

Ex: channel bonding of legacy PHYs & new PHYs

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

39

Legacy DOCSIS (Single Carrier) vs.

OFDM (Multi-Carrier)

Legacy DOCSIS (Single Carrier): symbols sent sequentially

on a single wide channel

Orthogonal Frequency Division Multiplexing or OFDM

(Multi-Carrier): symbols sent in parallel on many small sub-

carriers within the wider channel

It takes 480 of these OFDM sub-carriers to fill a single

6 MHz channel!

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

40

frequency

frequency

DOCSIS (Single Carrier)

OFDM (Multi-Carrier)

6 MHz

12.5 kHz

How OFDM Can Be Bonded With

Legacy DOCSIS PHY Channels

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

41

Upstream

Capacity

All Bonded Channels

/Spectrum

100 Mbps to 2.5 Gbps +

How OFDM Can Be Bonded With

Legacy DOCSIS PHY Channels

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

41

Future

Spectrum

OFDM D/S

Upstream

OFDMA

PHY channel

Downstream

OFDM

PHY channel

PHY

MAC

Aggregate

DOCSIS

Capacity

Across

“

ALL”

Spectrum

Frequency

Upstream Band

Downstream Band

Slightly

Modified

New

Legacy

750MHz

1000MHz

Upstream

Capacity

All Bonded Channels

/Spectrum

100 Mbps to 2.5 Gbps +

Downstream Capacity

All Bonded Channels / Spectrum

Creates A Single Large IP Data Pipe

300 Mbps to 10 Gbps +

Future

Spectrum

OFDMA U/S

DOCSIS NG Downstream

MAC Bonded  Group

Upstream MAC Layer

Bonded Group

Possible HFC Migration Strategies

Using New DOCSIS Technologies

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

42

Time

A:

Initially

run

old

&

new

Cable

Modems

(CM)

in

legacy

DOCSIS

mode

C:

Increase

new

CM

count.

Enable

DS

OFDM

channels

&

bond

with

legacy

DOCSIS

channels

D:

Begin

increasing

HFC

spectrum

above

1

GHz,

adding

more

OFDM

channels

E: End State: One Advanced PHY (OFDM/LDPC) For The Entire Spectrum

B:

Enable

OFDMA

US

channels

and

perform

channel

bonding

with

legacy

DOCSIS

channels

Time

DOCSIS 1.0 -

3.0

DOCSIS 1.0 -

3.0

(HSD, VoIP, & IP Video)

New DOCSIS w/ OFDM/LDPC

(HSD @ PON Speed,

Video over IP, Ultra HD, &

un-discovered apps)

Legacy

Video EQAM

(Digital Video)

DOCSIS OFDMA/LDPC

CMTS

& EQAM

CCAP

Phase 2

Phase 3

A

B

C

D

E

Phase 1

Now

The Bandwidth Capacity Potential of

DOCSIS (with New Technologies)

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

43

Now

Phase 1

Phase 2

Phase 3

DS Range (MHz)

54 -

1002

108 -

1002

300

-

1152

500 -

1700

DS QAM Level

256

256

1024

1024

# DS Channels

8

24

“142”

“200”

DS Capacity (bps)

300M

1G

7G

10G

US Range (MHz)

5 -

42

5 -

85

5 -

230

5 -

400

US QAM Level

64

64

256

1024

# US Channels

4

12

“33”

“60”

US Capacity (bps)

100M

300M

1G

2.5G

Note: TBD

values are underlined

Channels in quotes = Equivalent # of Single Carrier QAMs

DS = DOWNSTREAM

US = UPSTREAM

Download Times Will Become “Snappier”

As

Bandwidth Capacities Are Increased

Download Time

BW = 100 Mbps

BW = 10 Gbps

1 second

13 Mbytes

(large PowerPoint)

1.25 Gbytes

(22-minute HD video file)

4 seconds

50 Mbytes

(2-minute SD video file)

5.0 Gbytes

(1.5-hour HD video file)

30 seconds

375 Mbytes

(15-minute SD video file)

37.5 Gbytes

(PC RAM context restore)

3 minutes

2.25 Gbytes

(1.5-hour SD video file)

225 Gbytes

(full PC hard drive restore)

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

44

Agenda

Recent Bandwidth Trends & Drivers

Future Bandwidth Trends & Drivers

DOCSIS Evolution

Cloud Computing & Its Impact on Bandwidth Demand

Conclusions

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

45

DOCSIS CPE Bandwidth Capabilities

Major Step Function In Performance And Features

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

46

2004       2006

2008       2010      2012       2014

2016  

16x4

(640 Mbps)

24x8

(960 Mbps)

32x8

(1.28 Gbps)

Sustained Modem Capacity Growth Permits Many New Applications

(ex: Video Transcoding & Directed Ad Insertion)

1x1

(40 Mbps)

4x4

(160 Mbps)

8x4

(320 Mbps)

Implementing the CLOUD!

Increasing scale in the Data Center, Last Mile Access Network, and the Home

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

47

Massive compute

capacity

Standardized

platforms

Rapid feature

introduction

Exponential

capacity expansion

Increasing speeds

Low latency

Multi-core parallel

processing

Multiple networking

options

Interoperability

Plug-and-play

Low power

Data Center

Access Network

Home Network

E6000 Converged Edge Router and

Video Gateway Enabling Convergence

Traditional MPEG terminated at Gateway and converted to IP

-

Gateway becomes an extension of the CDN network –

local caching and

storage

E6000 CER converges cable operator headend –

lower cost,

power, space and OPEX

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

48

IP

MPEG and IP Video

IP  Video

Service

Provider

Internet

OTT

MPEG

IP

Data Center

Access Network

Home Network

An Insatiable Demand for Processing Power May Also

Lead to Expansion of CPU Power with a Co-Processor

Co-processor added to augment the single processor

With increasing HFC network speeds –

the HFC network

becomes the “bus”

between the cloud and the

gateway device

-

The network cloud becomes the co-processor to the gateway device

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

49

Processor Subsystem

Co-Processor Subsystem

CPE Processing Complemented

by Cloud Co-Processor

Low Latency (< 30ms Round Trip Time) Allows New Applications such as Cloud-Based Service

Selection

-

Channel Change from the “Cloud”

-

Natural

Language

Parsing

from

home

devices

to

the

cloud

and

back

again

in

real

time

-

Video Conferencing and Security Monitoring systems in real time

-

Cloud Business Services –

Email Hosting, Web Conferencing, IP PBX, Backups, Disaster Recovery etc

Can Augment the Gateway CPE Compute and Memory Resources with Cloud Allocated Resource

-

Allocate

the

resource

to

the

Gateway

when

needed….Leverage

the

Network

as

“Co

Processor”

Bus

-

Allows the CPE device to scale beyond its MIPS and DRAM allocation at the expense of the network Bandwidth

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

50

IP

Home Network

HTML5

Gateway CPE

Cloud Compute

Resource

Data Center

Access Network

DOCSIS

IP Video Services from the Cloud

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

51

Network

Management

& Diagnostics

Subscriber

Provisioning

& A/C Mgmt

MSO’s Web

Portal

EPG Data

Acquisition

Other 3   

Party Content

Acquisition

Firmware version

& Download

Management

SNMP

v2c/3

Abstraction of

interfaces and

services

Pre-processing

and optimization

of data formats

Optimization

and scheduling

of  traffic flows

Data

Warehouse

Secure  Web Svcs APIs

Various 3    Party

API

ARRIS “Portal”

Secure Web Services Platform

Head-End Based SNMP

Proxy Service

Head-End Based Caching Service

Video Gateways and Players

Web Services and HTML5 Applications Providing

New Cloud and User Experiences to the Cable Home

rd

rd

Agenda

Recent Bandwidth Trends & Drivers

Future Bandwidth Trends & Drivers

DOCSIS Evolution

Cloud Computing & Its Impact on Bandwidth Demand

Conclusions

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

52

Conclusions

Bandwidth capacity growth continues at a rapid pace with IP

Video and cloud computing as the main drivers

Legacy MPEG-TS video will continue to migrate into the IP Video

Domain

MSOs will continue to deploy more DOCSIS channels to

increase internet speeds and decrease download times as they

accommodate the growth and migration

ARRIS is leading the definition of DOCSIS evolution to support

the required broadband capacity growth

DOCSIS and HFC networks will thrive for many years to come

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

53

Agenda

8:00 –

8:30

Reception

8:30 –

8:35

Welcome

Bob Puccini

8:35 –

8:50

ARRIS Vision, Strategy and Execution

Bob Stanzione

8:50 –

9:00

Financial Goals and Balance Sheet Strategy

Dave Potts

9:00 –

9:25

Technology Drivers and Trends

Tom Cloonan

9:25 –

9:45

Break / NASDAQ Opening Bell

9:45 –

9:55

ARRIS Markets and Customers

Ron Coppock

9:55 –

10:50

Product Portfolio Growth

Bruce McClelland

10:50 –

10:55

Summary

Bob Stanzione

10:55 –

11:00

Wrap Up

Bob Puccini

ARRIS Group Inc. Investor & Analyst Conference

54

August 8, 2012

Break

Video

Agenda

8:00 –

8:30

Reception

8:30 –

8:35

Welcome

Bob Puccini

8:35 –

8:50

ARRIS Vision, Strategy and Execution

Bob Stanzione

8:50 –

9:00

Financial Goals and Balance Sheet Strategy

Dave Potts

9:00 –

9:25

Technology Drivers and Trends

Tom Cloonan

9:25 –

9:45

Break / NASDAQ Opening Bell

9:45 –

9:55

ARRIS Markets and Customers

Ron Coppock

9:55 –

10:50

Product Portfolio Growth

Bruce McClelland

10:50 –

10:55

Summary

Bob Stanzione

10:55 –

11:00

Wrap Up

Bob Puccini

ARRIS Group Inc. Investor & Analyst Conference

57

August 8, 2012

Ron Coppock, President

Worldwide Sales and Marketing

ARRIS Markets and

Customers

What You Will Hear Today

Comcast and Time Warner are substantial ARRIS

customers and our relationships are stronger than ever

We are also very focused on expanding our customer base

-

Other domestic

-

International

International Success Story –

CALA

-

A growth market where we have proactively invested with good

results

-

We expect continued solid growth over the next several years

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

59

Strategic Supplier to the Global Cable Industry

Comcast

-

Key supplier of CMTS routers, CPE,

and HFC equipment

•

50%+ CMTS installed base

•

75%+ E-MTA installed base

-

Collaborative development programs

for next-gen converged CMTS and

CPE

Time Warner

-

Extensive deployment of all ARRIS

products

•

Major provider of CMTS, SDV/VOD,

CPE

•

Active engagement on deployment of

Metro Wi-Fi

•

90%+ share of Workforce Management

and Linear Advertising

International

-

Latin America Growth

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

60

International Sales by Region

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

61

Latin

America

–

Solid

Growth

ARRIS Global Presence

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

62

88

10

22

Sales & Service Offices

Countries Covered by

ARRIS and Channels

R&D Locations

High tech, pure play provider of voice, high-speed data, and

video solutions to the global broadband industry

10 Domestic

12 International

7 Domestic

3 International

Global Cable Operator Customer Base

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

63

Expanding our International Presence

Invested in Canada, EMEA, CALA, China…

Extended sales coverage to 88 countries

-

Direct and VAR

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

64

2005

People

2008

People

1Q 2011

People

2Q 2012

People

Canada and CALA

-

10

27

28

EMEA

56

96

98

209

APAC

14

58

114

198

Total International

70

164

239

435

International Growth –

Gaining Share in CALA

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

65

1H 2012

Mexico City

Colombia

Santiago

Buenos Aires

Sao Paulo

32% Growth YoY

(1H 2011 –

1H 2012)

Latin America Top 10 MSO’s

Number

Main Operators

Country

Group

ARRIS

Customer

TOTAL RGU

1

Net Servicos

Brazil

America Movil Group

17,317,171

2

Cablevision Argentina

Argentina

Clarin Group

5,517,800

3

Telmex Colombia

Colombia

America Movil Group

4,458,926

4

Megacable

Mexico

Publicly listed

4,257,860

5

VTR GlobalCom

Chile

Liberty Global

3,082,400

6

CableVision

Mexico

Televisa

2,186,940

7

Cablemas

Mexico

Televisa

2,037,470

8

Inter

Venezuela

HM Capital

1,337,000

9

Cablecom Mexico

Mexico

Privately owned

1,252,100

10

UNE

Colombia

Empresas Publicas de

Medellin

1,225,397

11+

Other Cable Operators

Latin America

19,589,562

TOTAL Latin America

62,262,626

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

66

Operations Environment -

CALA

Evolving regulatory environment 

Large operators are gaining scale through consolidation

Demand for increased bandwidth is growing

Operators are planning for future converged services platforms

Operators in the midst of DOCSIS 2.0 to DOCSIS 3.0 transition

-

Cable operators are responding to increased competition

-

Cable operators are addressing OPEX challenges

Keys to ARRIS Success

-

Increased presence in region

-

Long term view to the business

-

Leveraging current technology

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

67

Mexico

Caribbean

Colombia

Panama

Guatemala

Costa Rica

El Salvador

Honduras

Nicaragua

BRAZIL

Peru

Bolivia

Paraguay

Uruguay

Argentina

Ecuador

Venezuela

Chile

Venezuela

Agenda

8:00 –

8:30

Reception

8:30 –

8:35

Welcome

Bob Puccini

8:35 –

8:50

ARRIS Vision, Strategy and Execution

Bob Stanzione

8:50 –

9:00

Financial Goals and Balance Sheet Strategy

Dave Potts

9:00 –

9:25

Technology Drivers and Trends

Tom Cloonan

9:25 –

9:45

Break / NASDAQ Opening Bell

9:45 –

9:55

ARRIS Markets and Customers

Ron Coppock

9:55 –

10:50

Product Portfolio Growth

Bruce McClelland

10:50 –

10:55

Summary

Bob Stanzione

10:55 –

11:00

Wrap Up

Bob Puccini

ARRIS Group Inc. Investor & Analyst Conference

68

August 8, 2012

Bruce McClelland, Group President

Products and Services

Product Portfolio Growth

Good Progress Over the Last 12 Months

1H12 sales up 22% YoY

-

CPE Volume up significantly with increased ASP (DOCSIS 3.0, Wi-Fi)

-

Solid base of CMTS sales –

good combination of new hardware and license sales

-

New Products contributing

•

Video Gateway

•

Edge Media Processing (BigBand)

•

CPE Portfolio Expansion

-

Increased ATS sales driven by node splits and Metro Wi-Fi

-

Consistent MCS sales –

Linear Advertising share gains and Assurance/VOD wins

1H12 Gross Profit $’s up 12% YoY

-

Strong CPE contribution –

both sales volume and improved product COGS

-

Consistent CMTS margins –

new hardware cost reductions and license sales

-

Contribution from Edge Media Processing (EMP) and Video Gateway

70

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

IP Convergence Investment Strategy Is Yielding

Top and Bottom Line Growth

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

71

Network

Infrastructure

CPE

C4 CMTS

Media Services

Platform (MSP)

E6000 Converged

Edge Router

Wi-Fi Routers

Triple Play

The Nature of the Cable Network Creates a Cyclical,

Predictable Investment Cycle

Macro Investment Cycle

Voice and Data

Implementing the CLOUD!

Increasing Scale in the Data Center, Last Mile Access Network, and the Home

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

72

Massive compute

capacity

Standardized

platforms

Rapid feature

introduction

Exponential capacity

expansion

Increasing speeds

Low latency

Multi-core parallel

processing

Multiple networking

options

Interoperability

Plug-and-Play

Low power

Data Center

Access Network

Home Network

Implementing the CLOUD!

Expanding Home CPE Portfolio

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

73

Triple Play

Video Gateway

MG5000/6000

Video Gateway

MG2400

VoIP/HSD

Multiline

VoIP

VoIP/HSD 802.11n

Single Band Router

802.11n Single

Band Router

802.11n Dual Band

Router & MoCA®

VoIP/600Mbps HSD

802.11n Dual Band

MoCA DECT Router

High Speed Data

Voice and Data

Data Center

Access Network

Home Network

Implementing the CLOUD!

Significant Technology Upgrade Cycle in the Cable Access Network

Ahead...

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

74

CMTS Edge Router

Universal Edge QAM

CORWave

™

Optics

and Opti Max

™

Nodes

Home Network

Access Network

Data Center

Implementing the CLOUD!

Growing Portfolio of Video Management and Processing Solutions

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

75

Home Network

Data Center

Access Network

Video Storage and Streaming

Video on Demand

Advertising

Video

Encoding

Video

Transcoding

Video

Optimization

Switched

Digital

Video

Network

Management

Fierce Competition for

Consumer Entertainment Dollars

The long-term goal is clear: consumers will watch what they want where

and when they want

IP is the unifying technology to speed innovation and unify services

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

76

Personal

Computing

VOD/HDTV

Gaming

Phone

Music

Wireless

Digital

Photography

Uniform

User

Interface

Any

content

Any device

Personal

Media

Sharing

Video

Data

Voice

Any Media, Anywhere, Any Time

IP Networks –

An Enhanced Television Experience

The bi-directional nature of IP allows television to be a truly

interactive experience and can also enable new revenue

generating services

-

Mosaic of multiple HD channels simultaneously on one screen, with the

ability to switch among any channels.

-

Enhanced interactivity, such as instant sports statistics, news alerts,

weather, social media, etc.

-

Home networking features like uploading photos, videos, and other

multimedia wirelessly from the home computer

-

Easy integration of over-the-top services and applications such as

YouTube

-

Ease of delivery of TV to any device, regardless of location

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

77

Expanded ARRIS Cable Market Opportunity

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

78

Technology Shift to IP and Open-standards Provide Opportunity

for Portfolio Expansion and Major Growth

31%

CAGR

Data Center

On-demand, Video Encoder /

Transcoder and Assurance

Access Network

CMTS, E6000, UEQ, Access HFC

and Supplies

Home Network

CM, E-MTA, Wireless Gateway,

Video Gateway and STB

ARRIS Exploiting Technology Disruption In ~$7B

Cable Set Top Box Market

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

79

2011 ARRIS Home Network TAM

$1,820M

2014 ARRIS Home Network TAM

$8,773M

Sources: Infonetics 1Q12, ABI and ARRIS Est.

ARRIS Gateway Time To Market Advantage

CAGR EXISTING &

EXPANDED TAM

69%

(CMTS, Edge QAM, CCAP)

Cable Access Network

August 8, 2012

ARRIS Group Inc. Investor & Analyst Conference

Implementing the CLOUD!

Significant

Technology

Upgrade

Cycle

in

the

Cable

Access

Network

Ahead...

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

81

Home Network

Data Center

CMTS Edge Router

Universal Edge QAM

CORWave Optics

and OptiMax Nodes

Access Network

C4 CMTS

D3.0 Gen1

(16D & 12U

CAMs)

C4 CMTS

D3.0 Gen 2

(32D & 24U

CAMs)

E6000

Converged

Edge Router

%

Improvement

C4 Gen1 to

E6000

Total DS Channels

(typical equipage)

112 DSs

256 DSs

1500+ DSs

~1200%

Power per DS

Channel

~21 Watts/DS

~10 Watts/DS

< 3 Watts/DS

~88%

DS Channels per

Vertical Rack Unit

~8 DSs/RU

~18 DSs/RU

100+ DSs/RU

~1100%

Notes: 1 RU = 1.75”; Full-fill DOCSIS-only comparisons

Shipping Now

Trials in 2012

Global Leader in Cable Edge Router Technology

Dramatic Improvements in Capacity, Power Consumption, Space

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

82

CMTS and Edge QAM Market Opportunity

Market Growth

-

Combined CMTS/QAM TAM growing to >$2B by 2013, with incremental upside as legacy video

transitions to IP

Industry Trends

-

Over The Top (OTT) Video driving non-linear 50%+ annual capacity growth rate

-

Growing number of HD channels, increased programming, and applications like Network DVR

driving need for increased narrowcast capacity (QAM channels)

Market Share

-

Solid #2 position worldwide; major supplier to Comcast, Time Warner, Cablevision, UPC, KDG,

KBW, VTR, Telmex, Cablevision Mexico, Cablevision Argentina, J-Com, and many others

ARRIS Group Inc. Investor & Analyst  Conference

August 8, 2012

83

Addressable Market: 9% CAGR

ARRIS Products

ARRIS CMTS Installed Base

Continue

to

expand

base

–

leverage

point

for

future

growth

ARRIS Analyst / Investor Conference -

August 2012

84

Significant Technology Upgrade Cycle Expected

in the Cable Headend

ARRIS Group Inc. Investor & Analyst  Conference

August 8, 2012

85

DOCSIS =

3% Spectrum

DOCSIS =

22% Spectrum !!!

Cable Operators Will Transition A Large Portion Of Their HFC Network Capacity To

Interactive Services     Increased Demand For CMTS, QAM, Video Processing

CMTS Portfolio Expansion

ARRIS

Group

Inc.

Investor

&

Analyst

Conference

August 8, 2012

86

DOCSIS 2.0

x2 channel

DOCSIS 3.0

1

st

Generation

x4 channel

DOCSIS 3.0

2

nd

Generation

x8 channel

16+ channels

Bandwidth/Service Group

80Mbps

160Mbps

320Mbps  640Mbps

500 HHP

Supports both DOCSIS IP

and Legacy QAM

2005

2007

2009

2011

2013

2015

C4 CMTS

E6000

Converged

Edge Router

Fiber Node

CMTS Edge Router Evolution

Ongoing Capacity Expansion Leveraging Installed Base

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

87

ARRIS C4 CMTS Investment Protection

New 32D and 24U CAMs Increase Density

C4 CMTS very well

positioned for today’s HSD

networks

-

Easily expands to

accommodate 600Mbps+ per

user capacity

-

Strong demand for additional

software features –

new

2013 releases planned

Downstream capacity

expansion via s/w licensing

has been very effective

-

Approx. half way thru XD

CAM upgrade cycle on C4

-

Additional capacity

expansion options still

possible

New 2x density 24U card

now in full deployments

-

Very effective in increasing

density of current platform

and lowering cost

-

Expect 24 month+ life cycle

ARRIS

Group

Inc.

Investor

&

Analyst

Conference

August 8, 2012

88

24U

32D

`

E6000 Converged Edge Router (CER)

E6000 CER will provide the

capacity and capabilities needed for

the next 10 years

-

Highly optimized for dense, high bit rate

Broadband Access

-

Programmable architecture provides

flexible foundation for next gen DOCSIS

initiatives

-

Multiservice platform to support HSD,

VoIP, VoD, SDV, IP Video

-

Operational simplification

-

Redundant, fault tolerant, future proof

ARRIS

Group

Inc.

Investor

&

Analyst

Conference

August 8, 2012

89

Significant Opportunity

to Gain Share!

Media

Services

Platform

ARRIS Group Inc. Investor & Analyst  Conference

August 8, 2012

90

High availability blade-server

platform enables rapid

introduction of multiple

applications

-

Dense Universal Edge QAM

-

Video Processing

•

Rate Shaping

•

Rate Clamping

•

Encryption

•

Caching

•

Splicing

Chassis options allow operators

to choose the form factor that

best fits the application

-

Common line cards

-

MSP

Cable Access Network -

Conclusion

Expanded CMTS portfolio will lead to market share expansion

-

C4 CMTS will continue to be well-positioned for less dense metro areas

-

E6000 CER will be the work-horse for high-density, high-bandwidth

applications and lead to increase ARRIS market share

-

Primary focus for next several years will be IP capacity expansion –

legacy QAM channels added over time

MSP platform in full deployment and well-suited for dense QAM

applications

-

Additional video processing capabilities (Mux, Splicing, etc.) enhance

platform and provide differentiation

Bandwidth expansion will increase deployments of CMTS

capacity and HFC optics equipment

91

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

Extremely Well-Positioned Portfolio of Cable Access Products

Renewed Investment Cycle Ahead

(Video Gateways, Video Players, Data

Gateways, E-MTA, Cable Modems)

Cable Broadband Home

August 8, 2012

ARRIS Group Inc. Investor & Analyst

Conference

Implementing the CLOUD!

Expanding Home CPE Portfolio

ARRIS Group Inc. Investor & Analyst

Conference

August 8, 2012

93

VoIP/HSD

Multiline

VoIP

VoIP/HSD 802.11n

Single Band Router

802.11n Single

Band Router

802.11n Dual Band

Router & MoCA

VoIP/600Mbps HSD

802.11n Dual Band

MoCA DECT Router

High Speed Data

Voice and Data

Triple Play

Video Gateway

MG5000/6000

Video Gateway

MG2400

Data Center

Access Network

Home Network

DOCSIS CPE Unit

Shipments

DOCSIS Data Only

Shipments

ARRIS Customer Premise Business

Stellar 1H12 with continued revenue growth as DOCSIS 3.0

replacement cycle accelerates

-

Increasing market share as ARRIS growth is outpacing market

-

Sustainable due to expanding portfolio and customer base

Improving ASP’s and margins as mix shifts to higher functionality

devices, ultimately including Video processing and networking

Growth in data segment market share provides additional

leverage with our supply chain in a growing TAM

ARRIS Group Inc. Investor & Analyst  Conference

August 8, 2012

94

1H11

2H11

1H12

D2.0 Total CPE

D3.0 Total CPE

1H11

2H11

1H12

D2.0 Data CPE

D3.0 Data CPE

Record

Record

Worldwide leader in DOCSIS voice & data customer premise equipment (CPE) products

-

Over 41 Million units shipped to MSO’s worldwide

-

Q1 2012 -

#1 WW Market Share all DOCSIS CPE

-

Q1 2012 -

#1 WW Market Share all EMTA

-

Q1 2012 -

#1 WW Market Share all DOCSIS 3.0 CPE

Focused on leading the transition to DOCSIS 3.0 Voice & Data Gateway with following

differentiators:

-

Gateway Software

-

Wi-Fi Radio Performance

-

Highest Product Quality

-

Differentiated Applications

Operators extending network reach

deep

in

to

the

home

–

driving

need

for

advanced routing protocols, CE device

interoperability, and additional LAN-side

interfaces

ARRIS Customer Premise Business

ARRIS Group Inc. Investor & Analyst  Conference

August 8, 2012

95

Source: Infonetics  Q1/12 Broadband CPE and Subscribers market share

DOCSIS 3.0 HSD/VoIP

Technology Upgrade Cycle Underway

96

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

Cable VoIP Sub

CAGR ~ 8%

D3.0 E-MTA

CAGR ~ 16%

•

Estimate ~15% of Current Installed Base Worldwide Upgraded to DOCSIS 3.0 E-MTA

at Year End 2011

•

E-MTA Shipment Growth Driven by New Adds, Churn, Technology Replacement

Operators Continue to Use Bandwidth as Strategic

Weapon

ARRIS Group Inc. Investor & Analyst  Conference

August 8, 2012

97

Comcast Doubles Speeds of Two Xfinity Internet Speed Tiers at No

Additional Cost to Customers

PHILADELPHIA, PA  -  July 24, 2012

Comcast Corporation, one of the nation's leading providers of information and communications

products and services, today announced plans to bring connected consumers the best and fastest

online experience in their homes with new options for high-speed Internet service.  Starting this

week, and just in time for customers to fully enjoy every minute of the London Olympics on all their

devices in the home, Comcast is doubling the speeds of two of its existing Internet speed tiers

in certain Comcast markets at no additional cost. Specifically, Xfinity Blast! customers will now

get download speeds of up to 50 Mbps (formerly 25 Mbps), and Extreme 50 customers will now

receive speeds of up to 105 Mbps (formerly 50 Mbps).  This is the seventh time since 2002 that

Comcast has increased speeds for its customers.

Moving Up the Value Chain…

and Into Larger

TAM’s & ASP’s

ARRIS Group Inc. Investor & Analyst

Conference

August 8, 2012

98

Cable Modem

•

CM820

Data Gateway

•

DG860, DG1660, 1670

E-MTA

•

TM822

Voice Gateway

•

TG862, TG1662, TG1682

Media Gateway

•

MG5000, MG6000, MG2400

IP STB

•

MP2000, MP2050, MP2150

Total Addressable Market

Cable Operators Strategy to Become

The Consumer ‘Portal of Choice’

99

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

MSO

Are

in

a

Unique

Position

to

Leverage

Their

Existing

Customer

Relationship

and

Network Infrastructure to: Improve the Consumers Experience, Increase Their

Revenue, Accelerate New Service Deployment

ARRIS Whole Home Solution Experience

ARRIS Group Inc. Investor & Analyst  Conference

August 8, 2012

100

ARRIS Media Gateway MG5000 commercial deployments

have been underway for over a year . . .

-

Shaw Communications

-

Bend Broadband

-

WOW!

-

Buckeye

-

Others

Multi-Function Gateways

Expanding Set of Capabilities

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

101

Storage

WiFi

Cordless Phone

GigE, MOCA

Encryption

Flexible Hardware

& MIddleware

Combinations

1

Gbps!

320

Mbps

160

Mbps

40

Mbps

Network

Access

Capacity

Core Software

Capabilities

Home Network

Interfaces

VoIP

DOCSIS

IPv4/IPv6

Routing

Firewall

SNMP/TR69

DSG/OCAP

Encryption

MPEG2/4

HTML

Tru2Way

JVM

DOCSIS1.0,

1.1, 2.0, 3.0

VoIP

Open Platform Architecture With Significant Differentiation

Expanded Video Gateway Portfolio

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

102

Silicon Vendor-

Shared Source

Licensed –

Non-Shared Source

ARRIS –

Non-Shared Source

ARRIS –

Non-Shared Source

NDS –

Non-Shared Source

RDK –

Licensed Open Source

MSO-Specific/3rdParty

Application

and Control

Moxi UI,

Portal and

Applications

NDS UI and

BackOffice

MSO-Specific

UI and

BackOffice

RDK Gateway

Middleware

NDS Gateway

Middleware

Media

Gateway

Middleware

Middleware

Base Platform

DOCSIS

VoIP

Home

Networking

Diagnostics

STB SW

(e.g. bootloader)

Universal Drivers

HW Specific

Drivers

Hardware

Expanded Video Gateway Portfolio

-

Moxi Solution

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

103

Application

and Control

Moxi UI,

Portal and

Applications

NDS UI and

BackOffice

MSO-Specific

UI and

BackOffice

NDS Gateway

Middleware

Media

Gateway

Middleware

Middleware

Base Platform

DOCSIS

VoIP

Home

Networking

Diagnostics

STB SW

(e.g. bootloader)

Universal Drivers

HW Specific

Drivers

Hardware

Comcast RDK

Middleware

Expanded Video Gateway Portfolio

-

3

rd

Party Middleware (ie. NDS)

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

104

Application

and Control

Moxi UI,

Portal and

Applications

NDS UI and

BackOffice

MSO-Specific

UI and

BackOffice

NDS Gateway

Middleware

Media

Gateway

Middleware

Middleware

Base Platform

DOCSIS

VoIP

Home

Networking

Diagnostics

STB SW

(e.g. bootloader)

Universal Drivers

HW Specific

Drivers

Hardware

Comcast RDK

Middleware

Expanded Video Gateway Portfolio

-

Comcast Reference Development Kit

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

105

Application

and Control

Moxi UI,

Portal and

Applications

NDS UI and

BackOffice

MSO-Specific

UI and

BackOffice

NDS Gateway

Middleware

Media

Gateway

Middleware

Middleware

Base Platform

DOCSIS

VoIP

Home

Networking

Diagnostics

STB SW

(e.g. bootloader)

Universal Drivers

HW Specific

Drivers

Hardware

Comcast RDK

Middleware

Cable

Broadband

Home

-

Conclusion

Investment in expanded DOCSIS CPE portfolio paying off

in a big way this year

-

Even broader portfolio planned for 2013

-

Expanded feature set leading to higher ASP’s

-

Improved

profitability

is

sustainable

due

to

differentiation

and

time-to-

market advantage

Video Gateway investment addressing expanded

opportunity

-

Industry Leadership has opened doors to much broader opportunity

for

enhanced

product

line

–

expect

to

see

substantial

revenue

growth

in 2013

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

106

Proven Track Record of Success

Driving Renewed Network Investment Cycle

(Mux, Encoders, Transcoders, Ad

Insertion, VoD, SDV)

Video Headend

August 8, 2012

ARRIS Group Inc. Investor & Analyst Conference

Implementing the CLOUD!

Growing Portfolio of Video Management and Processing Solutions

108

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

Increased DOCSIS 3.0 CPE Deployment Velocity Is a Leading

Indicator of the Next Wave of Network Infrastructure Spending

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

109

ARRIS Is Very Well Positioned to Benefit

From Both Home and Network Spending Trends

Network

Infrastructure

CPE

E6000 Converged

Edge Router

Media Services

Platform (MSP)

Wi-Fi Routers

Triple Play

Voice and Data

C4 CMTS

Agenda

8:00 –

8:30

Reception

8:30 –

8:35

Welcome

Bob Puccini

8:35 –

8:50

ARRIS Vision, Strategy and Execution

Bob Stanzione

8:50 –

9:00

Financial Goals and Balance Sheet Strategy

Dave Potts

9:00 –

9:25

Technology Drivers and Trends

Tom Cloonan

9:25 –

9:45

Break / NASDAQ Opening Bell

9:45 –

9:55

ARRIS Markets and Customers

Ron Coppock

9:55 –

10:50

Product Portfolio Growth

Bruce McClelland

10:50 –

10:55

Summary

Bob Stanzione

10:55 –

11:00

Wrap Up

Bob Puccini

ARRIS Group Inc. Investor & Analyst Conference

110

August 8, 2012

Bob Stanzione, CEO

Summary

Strong Pipeline of New Products

Entirely

refreshed

C4

CMTS

product

line

–

world

class

density

-

Double the density

•

32D Downstream Card (Software upgradeable)

•

24U Upstream Card

-

Ongoing Feature Development Planned

E6000

Converged

Edge

Router

–

the

IPTV

solution

-

Radical new concept in high density edge routers

-

Platform for the next decade

Completely revamped CPE product line

-

Voice enabled

-

Wi-Fi enabled

-

Embedded routing

Video Gateways –

supports a new generation of devices

-

Moxi/NDS/RDK

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

112

ARRIS Is Well Positioned for Profitable Growth

We have executed well against the goals we outlined a year ago

Why we expect to grow sales approximately 10% in 2013

How we expect to continue to grow EPS

We have a strong balance sheet and will continue to put it to

work to enhance shareholder value

How MSO’s networks must evolve

Sources of international growth

Significant new products in our pipeline and the investments we

are making to align our products with growth opportunities

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

113

Questions and Answers?

Thank You

GAAP EPS / Adjusted EPS Reconciliation

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

116

(in thousands, except per share data)

Per Diluted

Per Diluted

Amount

Share

Amount

Share

Amount

Sales

302,901

$  

349,327

$  

652,228

$    

Highlighted items:

Purchase accounting impacts of deferred revenue

1,258

0.01

663

0.01

1,921

Sales adjusting for highlighted items

304,159

$  

349,990

$  

654,149

$    

Per Diluted

Per Diluted

Per Diluted

Amount

Share

Amount

Share

Amount

Share

Net income

5,799

$     

0.05

$           

15,001

$    

0.13

$           

20,800

$      

0.18

$           

Highlighted items:

Impacting gross margin:

Purchase accounting impacts of deferred revenue

1,258

0.01

663

0.01

1,921

0.02

Stock compensation expense

750

0.01

809

0.01

1,559

0.01

Impacting operating expenses:

Acquisition costs

607

0.01

102

-

709

0.01

Restructuring

5,203

0.04

1,039

0.01

6,242

0.05

Amortization of intangible assets

7,379

0.06

7,444

0.06

14,823

0.13

Loss of sale of product line

337

-

-

-

337

-

Stock compensation expense

5,899

0.05

7,058

0.06

12,957

0.11

Impacting other (income) / expense:

Non-cash interest expense

2,999

0.03

3,058

0.03

6,057

0.05

Impairment of investment

-

-

466

-

466

-

Impacting income tax expense:

Adjustments of income tax valuation allowances and other

-

-

-

-

Tax related to highlighted items above

(8,121)

(0.07)

(6,749)

(0.06)

(14,870)

(0.13)

Total highlighted items

16,311

0.14

13,890

0.12

30,201

0.26

Net income adjusting for highlighted items

22,110

$    

0.19

$           

28,891

$    

0.25

$           

51,001

$      

0.44

$           

Weighted average common shares - basic

Weighted average common shares - diluted

117,597

115,111

116,352

(in thousands, except per share data)

Per Diluted

Per Diluted

Per Diluted

Amount

Share

Amount

Share

Amount

Share

Amount

Amount

Sales

267,436

$  

265,799

$  

274,374

$  

281,076

$      

1,088,685

$ 

Highlighted items:

Purchase accounting impacts of deferred revenue

-

-

-

-

-

#DIV/0!

4,332

4,332

Sales adjusting for highlighted items

267,436

$  

265,799

$  

274,374

$  

285,408

$      

1,093,017

$ 

Per Diluted

Per Diluted

Per Diluted

Per Diluted

Per Diluted

Amount

Share

Amount

Share

Amount

Share

Amount

Share

Amount

Share

Net income (loss)

11,564

$    

0.09

$           

16,690

$    

0.13

$           

13,713

$    

0.11

$           

(59,629)

$      

(0.51)

$          

(17,662)

$     

(0.15)

$          

Highlighted items:

Impacting gross margin:

Purchase accounting impacts of deferred revenue

-

-

-

-

-

-

3,126

0.03

3,126

0.03

Stock compensation expense

437

-

557

-

525

-

521

-

2,040

0.02

Impacting operating expenses:

Acquisition costs

-

-

-

-

475

-

2,730

0.02

3,205

0.03

Restructuring

-

-

-

969

0.01

3,391

0.03

4,360

0.04

Amortization of intangible assets

8,944

0.07

8,944

0.07

8,944

0.07

6,817

0.06

33,649

0.27

Goodwill and intangibles impairment

-

-

-

-

-

-

88,633

0.74

88,633

0.72

Stock compensation expense

4,847

0.04

5,368

0.04

5,213

0.04

4,586

0.04

20,014

0.16

Impacting other (income) / expense:

Non-cash interest expense

2,832

0.02

2,889

0.02

2,883

0.02

2,941

0.02

11,545

0.09

Impairment of investment

-

-

-

-

-

3,000

0.03

3,000

0.02

Loss on retirement of debt

-

-

-

19

-

-

-

19

-

Impacting income tax expense:

Adjustments of income tax valuation allowances and other

(3,583)

(0.03)

-

-

(2,334)

(0.02)

3,032

0.03

(2,885)

(0.02)

Tax impact related to goodwill and intangibles impairment

-

-

-

-

-

-

(25,584)

(0.21)

(25,584)

(0.21)

Tax related to highlighted items above

(5,024)

(0.04)

(4,915)

(0.04)

(5,265)

(0.04)

(8,553)

(0.07)

(23,757)

(0.19)

Total highlighted items

8,453

0.07

12,843

0.10

11,429

0.09

84,640

0.71

117,365

0.96

Net income adjusting for highlighted items

20,017

$    

0.16

$           

29,533

$    

0.24

$           

25,142

$    

0.21

$           

25,011

$       

0.21

$           

99,703

$      

0.81

$           

Weighted average common shares - basic

117,316

120,157

Weighted average common shares - diluted

125,732

123,711

121,237

119,609

122,555

Q1 2011

Q2 2011

Q3 2011

Q4 2011

YTD 2011

Q1 2012

Q2 2012

YTD 2012

Q1 2011

Q2 2011

Q3 2011

Q4 2011

YTD 2011

Q1 2012

Q2 2012

YTD 2012

Notes to GAAP / Adjusted Non-GAAP Financial Measures

ARRIS Group Inc. Investor & Analyst Conference

August 8, 2012

117

The Company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP” or referred to herein as “reported”). However, management believes

that certain non-GAAP financial measures provide management and other users with additional meaningful financial information that should be considered when assessing our ongoing performance. Our

management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are

among the factors management uses in planning for and forecasting future periods.  Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, the Company’s reported

results prepared in accordance with GAAP.  Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects: 

Purchase Accounting Impacts Related to Deferred Revenue:  In connection with our acquisition of BigBand, business combination rules require us to account for the fair values of arrangements for which

acceptance has not been obtained, and post contract support in our purchase accounting.  The non-GAAP adjustment to our sales and cost of sales is intended to include the full amounts of such

revenues.  We believe the adjustment to these revenues is useful as a measure of the ongoing performance of our business.  We have historically experienced high renewal rates related to our support

agreements and our objective is to increase the renewal rates on acquired post contract support agreements; however, we cannot be certain that our customers will renew our contracts. 

Stock-Based Compensation Expense: We have excluded the effect of stock-based compensation expenses in calculating our non-GAAP operating expenses and net income (loss) measures. Although

stock-based compensation is a key incentive offered to our employees, we continue to evaluate our business performance excluding stock-based compensation expenses. We record non-cash

compensation expense related to grants of options and restricted stock. Depending upon the size, timing and the terms of the grants, the non-cash compensation expense may vary significantly but will

recur in future periods. 

Acquisition Costs:  We have excluded the effect of acquisition related and other expenses and the effect of restructuring expenses in calculating our non-GAAP operating expenses and net income (loss)

measures. We incurred significant expenses in connection with our recent acquisition of BigBand, which we generally would not have otherwise incurred in the periods presented as part of our continuing

operations. Acquisition related expenses consist of transaction costs, costs for transitional employees, other acquired employee related costs, and integration related outside services. We believe it is

useful to understand the effects of these items on our total operating expenses.  

Restructuring Costs:  We have excluded the effect of restructuring charges in calculating our non-GAAP operating expenses and net income (loss) measures. Restructuring expenses consist of employee

severance, abandoned facilities, and other exit costs. We believe it is useful to understand the effects of these items on our total operating expenses.  

Loss on Sale of Product Line:  We have excluded the effect of a loss on the sale of a product line in calculating our non-GAAP operating expenses and net income measures.  We believe it is useful to

understand the effects of these items on our total operating expenses.  

Amortization of Intangible Assets: We have excluded the effect of amortization of intangible assets in calculating our non-GAAP operating expenses and net income (loss) measures. Amortization of

intangible assets is non-cash, and is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets

contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods. 

Impairment of Goodwill and Intangibles: We have excluded the effect of the estimated impairment of goodwill and intangible assets in calculating our non-GAAP operating expenses and net income (loss)

measures. Although an impairment does not directly impact the Company’s current cash position, such expense represents the declining value of the technology and other intangibles assets that were

acquired. We exclude these impairments when significant and they are  not reflective of ongoing business and operating results. 

Non-Cash Interest on Convertible Debt: We have excluded the effect of non-cash interest in calculating our non-GAAP operating expenses and net income (loss) measures. We record the accretion of

the debt discount related to the equity component non-cash interest expense. We believe it is useful to understand the component of interest expense that will not be paid out in cash. 

Impairment of Investment: We have excluded the effect of an other-than-temporary impairment of a cost method investment in calculating our non-GAAP financial measures. We believe it is useful to

understand the effect of this non-cash item in our other expense (income).   

Loss (Gain) on Retirement of Debt:  We have excluded the effect of the loss (gain) on retirement of debt in calculating our non-GAAP financial measures.  We believe it is useful for investors to

understand the effect of this non-cash item in our other expense (income).  

Income Tax Expense (Benefit): We have excluded the tax effect of the non-GAAP items mentioned above.  Additionally, we have excluded the effects of certain tax adjustments related to state valuation

allowances, research and development tax credits and provision to return differences.