Storm Internet

1. StormInternet NOTICE This document has been provided to the recipient for business reasons and shall not be disclosed to others without the express written permission of Storm Internet Services

2. Wireless Cluster Event • About Storm • Competitive Situation • Our Product • Product Comparison • Fixed Wireless Business Model • SWOT • New Business Model • Next generation of Fixed wireless services • Community Project (example of the new generation of service) • Summary

3. Executive Summary • Storm: • is a successful broadband internet service provider • is headquartered in Ottawa, Ontario, Canada • is a locally owned and operated An industry leader in fixed-wireless connectivity, Storm currently maintains one of the largest broadband wireless networks in North America, covering approximately 35,000 square kilometers, spanning more than 50 communities and municipalities.

4. About Us • Since 1996, Storm Internet has built a reputation of providing consistent and reliable Internet connectivity in urban and rural communities. An industry leader in fixed-wireless connectivity, Storm currently maintains one of the largest broadband wireless networks in North America, covering approximately 35,000 square kilometers, spanning more than 50 communities and municipalities • Through a network of partners, resellers, and affiliates, Storm continues to demonstrate a leadership position in connecting urban and rural communities with broadband infrastructure.----For more information about Storm Internet, feel free to contact us anytime or visit www.storm.ca about our company and our people.

5. A Sample of Our Clients • Storm has worked with many communities together with local business to address all communications needs. • Here is asmall sample:

6. Storm Network Carp Fitzroy Tower C Canotek Rockland Clarence Hawksbury Kinburn Constance Storm NOC Crosswinds French Hill Castleman Vankleek Varley Arnprior Renfrew Watergate Pakenham CRC Bayshore Castle Hill Carlysle Donald St. Isadore Moosecreek Plantagenet Almonte Moodie Meadowlands Auriga Telesat Concourse Ashton Green Southgate Thurston Vars Beckwith Carleton Dwyer Hill North Gower Metcalfe Russel Embrun Morewood Kemptville Perth Port Elmsley Smith Falls Sarsfield Winchester Osnabruk Chrysler Chesterville Brockville Merrickville Morrisburg Iroquois Cardinal Cornwall 100 Mb Wireless 45 Mb Wireless 100 Mb Fiber 20 Mb Wireless 10 Mb Wireless 8 Mb xDSL 6 Mb Wireless

7. we own our own backbone

8. The Business • Historically there has been a very high failure rate with WISP’s • Many factors contributed to the poor performance in the industry • Undercapitalization – tech bubble • Poor availability of qualified technical resources with both RF & IP based skills • Over specialization in client service models • Leading to smaller market potential • High Capital Costs • Higher maintenance and repair costs versus traditional wired networks

9. Strengths • Fixed Wireless services • Communications technology capabilities are beginning to grow very rapidly • The ease of mobility of wireless infrastructure allows fast migration between technology bases and flexible network expansion • Rapid deployment capability • Scaleability of network capabilities

10. Weaknesses • Shortage of knowledgeable qualified technical staff • In house skills are required for • Installations & Service • IP & RF Support • Network RF & IP Engineering if you want to take advantage of some of the strengths • Availability of physical infrastructure a constraint • Access to spectrum suitable for services delivery • Cost for CPE equipment & Installation high compared to cable & copper leveraged services • Customer expectations on IP services high leading to high cost of entry

11. Opportunity • Large potential client base • Broadband services penetration reaches 50% or more in available areas • Potential market is huge (estimated at $1 billion for Ottawa Carleton region alone) • New services launching • VOIP • SAN • Managed Services • ASP • Remote security services • Office automation & Information Distribution

12. Opportunity (2) • With an established upgradeable infrastructure in place, add-on services & technology upgrades are easy to implement • Ability to compete directly with Cable & DSL- based services • Next generation services • Mobile services • Bigger better faster forever • Video over IP • Vmail & entertainment • Outsourced IT services • Web-based software pay per use • Significant lowering of wholesale services costs

13. Threats • With the high rate of technical evolution in the communications space. A relatively fast ROI is needed to effectively maintain the pace with customer needs as new technology becomes available or risk being supplanted by competitive technology • Commoditization of IP services eroding premium services • Consolidation of Video, Voice, & Data services requires specialized skill sets and infrastructure not inherent in traditional wireless providers

14. Storm’s Fixed Wireless Business • Our existing service model successfully delivers to a maximum of 25% of the clients in our network coverage area and there is insufficient wireless infrastructure to service any residential based clients within the city of Ottawa • Current primary service in high density client areas are delivered primarily by either DSL or Cable • Traditional fixed wireless delivery requires extensive effort and processing time to identify and implement service where its possible • The timelines and uncertainty add additional costs into the equation and undue impediments to potential clients

15. The next generation of service In designing our next generation delivery system Storm was looking to increase the performance and function of our high speed wireless services to carry us forward for the next 5 years. Increasing client demand for simplified network and management solutions, and broad functionality requirements has driven our new approach. In the past we found that we would be installing up to 5 different devices into each client to ensure network security, local mobility, network management features, and QOS. With our new appliance we have managed to consolidate these features into a single unit while reducing the overall cost per client by almost half.

16. New Business Model • We are currently in the finishing phase of a pilot project with one of the outlying communities to build out a service which will provide 95% coverage to the townships population and is capable of delivering service to all • Our Pilot project is proving the design to deliver services with relatively low cost infrastructure and should be completed by May 20th 2005 • We have had early success and are working on plans to replicate it throughout our service area • Using very low power very small cell sites (500 m radius – 40’-60’ cell distribution) we are able to provide very high reliability NLOS cell zones

17. Fiber or RF Fiber Connectivity “Storm” Coverage Area Overview of Rollout Approach Outlying Cells Aggregate cell Hub With right economic and other market characteristics

18. New Business Model (2) • Storm will be building between 250 and 420 new micro cell distribution sites to role out new services within our coverage area • Each cell will support between 30 and 300 clients and will have an aggregate capacity of 0.5 Gb per cell • Our current BOM target for our CPE including Antenna’s and mounts $300 • Storm expects over 3 years to install between of 15,000 units and 50,000 units • Total cost per subscriber is expected to average $320 challenging wired services infrastructure

19. 2005-06 Target Price List

20. WebWalker II Specifications (draft) Frequency Band 2400-2483.5 MHZ, 5200-5893 MHZ Throughput 45 Mbps. Selectable in 1k increments Modulation Technique Direct Sequence Spread Spectrum Encryption Web Encryption – RC-4 128Kb Users Supports unlimited with built in NAT Ethernet Interface 100 Base-T, RJ-45 socket Output Power 21 dBm Bit Error Rate Better than 10-3 Voltage 100v-240v (-+10%)(47-63Hz) Range Operating - Temp 0o -40o Humidity 95% Max – 0% Condensation Storage - Temp 0o -40o Humidity 95% Max – 0% Condensation Dimensions (HxWxL) 1”x6”x4” Weight 16 oz.

21. Community Project • Our pilot project with Beckwith Township outside of Carleton place is expected to be complete on May 20th this year • Our objective is to fine tune the implementation model for the upcoming role out and thoroughly field test the latest generation of distribution Radio’s in the real world environment • Currently we have 100 client applications for service in a community of only 2200 homes so roughly 5% penetration BEFORE launch of services

22. Detailed Pop View Gillies Corners Site

23. Network Design w/ 8 Remote Sites

24. Summary • Exciting time for wireless services if we maintain our investment levels to match the technology curve • Still a large segment of underserved clients • Delivery capabilities are beginning to exceed Cable & DSL services • Great opportunities in the Value added services space • Cost per subscriber beginning to drop on finished services which is changing the delivery and infrastructure model significantly • Infrastructure costs can be competitive against wired services even in high concentration areas