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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;Note 1. Organization and Basis of Presentation&lt;/b&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;ARRIS Group, Inc. (together with its consolidated subsidiaries, except as the context otherwise
   indicates, &amp;#8220;ARRIS&amp;#8221; or the &amp;#8220;Company&amp;#8221;), is a global communications technology company, headquartered
   in Suwanee, Georgia. ARRIS operates in three business segments, Broadband Communications Systems,
   Access, Transport &amp;#038; Supplies, and Media &amp;#038; Communications Systems, specializing in integrated
   broadband network solutions that include products, systems and software for content and operations
   management (including video on demand, or VOD), and professional services. ARRIS is a leading
   developer, manufacturer and supplier of telephony, data, video, construction, rebuild and
   maintenance equipment for the broadband communications industry. In addition, ARRIS is a leading
   supplier of infrastructure products used by cable system operators to build-out and maintain hybrid
   fiber-coaxial (&amp;#8220;HFC&amp;#8221;) networks. The Company provides its customers with products and services that
   enable reliable, high speed, two-way broadband transmission of video, telephony, and data.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;The consolidated financial statements reflect all adjustments (consisting of normal recurring
   accruals) that are, in the opinion of management, necessary for a fair presentation of the
   consolidated financial statements for the periods shown. Interim results of operations are not
   necessarily indicative of results to be expected from a twelve-month period. These financial
   statements should be read in conjunction with the Company&amp;#8217;s most recently audited consolidated
   financial statements and notes thereto included in the Company&amp;#8217;s Annual Report on Form 10-K for the
   year ended December&amp;#160;31, 2009, as filed with the United States Securities and Exchange Commission
   (&amp;#8220;SEC&amp;#8221;).
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