Exhibit 99.2

TUT SYSTEMS, INC.

SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

	Balance at Beginning of Period		Additions (reductions) to Costs and Expenses			Write-offs			Reclasses from Other Accounts		Balance at End of Period
Allowance for doubtful accounts:
Year ended December 31, 2003	$	10	$	37		$	—		$	—	$	47
Year ended December 31, 2004		47		106			(14	)		—		139
Year ended December 31, 2005		139		(29	)		(54	)		—		56
Valuation allowance for deferred tax assets:
Year ended December 31, 2003	$	105,055	$	2,604		$	—		$	—	$	107,659
Year ended December 31, 2004		107,659		13,293			—			—		120,952
Year ended December 31, 2005		120,952		2,906			—			—		123,858
Allowance for excess and obsolete inventory and abandoned product:
Year ended December 31, 2003	$	37,718	$	(1,266	)(1)	$	(36,227	)	$	—	$	225
Year ended December 31, 2004		225		1,003	(2)		—			—		1,228
Year ended December 31, 2005		1,228		946	(3)		(256	)		—		1,918

(1) During 2003, the Company sold $1,491 of inventory that had previously been reserved for and increased the allowance for excess and obsolete inventory and abandoned product by $225.

(2) During 2004, the Company sold $539 of inventory that had previously been reserved for and increased the allowance for excess and obsolete inventory and abandoned product by $1,542.

(3) During 2005, the Company sold $76 of inventory that had previously been reserved for and increased the allowance for excess and obsolete inventory and abandoned product by $1,022