SWAN SAT * and the Worldwide Wireless Telecom Market

SWANSAT*and theWorldwide Wireless Telecom Market An Introductionto theBusiness Model *Superwideareanetworkdelivered by satellite ™

Table of Contents • Traditional Communication • SWANsat Communication • How SWANsat Works • Powering Up SWANsat • Satellite Receiver Evolution • A Brief History of Wireless • Wireless Subscriber Growth • Wireless Telecoms Growing • Wireless Prices in the USA • SWANsat Services • A SWANsat Comparison • The Cost of ICT Now • The Cost of ICT Via SWANsat • The SWANsat Concept Units • Ad Agency Responses • Land-based Telcos Hurting • Top Wireless Carriers in the USA • Top Wireless Carriers Worldwide • The Problem of Bandwidth • Military Bandwidth Nearly Full • The Military and the W-Band • The SWANsat Wholesale Model • The Telecom Wholesale Model • SWANsat Territories • Revenue Assumptions • The SWANsat Opportunity • Projected Revenue Years 1-5 • Projected Revenue Years 6-10

Traditional Communication • P.O.T.S • Plain Old Telephone Service • Phone • Fax • Wireless Telephone • Cellular “Service” • Satellite “Service” • Internet Connections • DSL & Other

Traditional Communication • We Listen to Radio • AM Band • FM Band • Shortwave Band • Internet Radio • We Watch Television • Local and Network TV • HDTV • Cable TV & DBS • Internet TV

Traditional Communication • We Collect Media • Music Libraries • Movie Libraries • TV Series • Instructional Programs • Church Sermons • Audio Books • Self-Help Programs • Educational Programs • We Make Our Own TV & Audio Recordings

SWANsat Communication • SWANsat does it all!

How SWANsat™ Works Our extremely high powered SWANsat satellites broadcast in the W-Band at up to 750,000 watts. W-Band includes 71-76 gHz and 81-86 gHz 600,000,000 accounts and 17,000 HDTV channels per satellite

Greenwich North Pole How SWANsat™ Works • First Tri-Sat constellation establishes global network by 2014. 0° 120° E 120° W Geosynchronous orbital positions are not to scale.

Greenwich North Pole How SWANsat™ Works • Second Tri-Sat constellation assures robust network configuration. 0° 120° E 120° W Geosynchronous orbital positions are not to scale.

Greenwich North Pole How SWANsat™ Works • Optional third and fourth Tri-Sat constellations complete network expansion worldwide and allow for additional market development. 0° 120° E 120° W Geosynchronous orbital positions are not to scale.

About the W-Band

About the W-Band 71-76 and 81-86 gHz

Powering Up SWANsat • Each SWANsat satellite will be powered by a proprietary and patented ion engine developed by IOSTARCorporation and Sandia NationalLabs. • The power plant is about the sizeof a 55-gallon drum and will safely generate up to 750,000 watts of electrical power, 24 hours a day for 25+ years.

Satellite Receiver Evolution • Satellite antennas come in all sizes.

Satellite Receiver Evolution • Consumer systems have ranged from 12-feet...

Satellite Receiver Evolution • And then down to 10-feet...

Satellite Receiver Evolution • And then down to 18 inches...

Satellite Receiver Evolution • And then down to handheld. Our antenna is about the size of apostage stamp.

A Brief History of Wireless • The first commercial wireless phone call was made on October 13, 1983, from Chicago.1 • It took 18 years (2002) for worldwide market penetration to reach 1,000,000,000 subscribers. • Only 15 quarters later (2005), worldwide market penetration reached 2,000,000,000 subscribers. • Just 13 quarters later (end of 2008), the market penetration was 4,000,000,000 subscribers. 1Source: http://www.ctia.org

Wireless Subscriber Growth *ITU projection

The Worldwide Wireless Telecom Market Is Growing The ITU indicates worldwide mobile subscribers reached 4 billionat the start of 2009. Growth rate averaged 24%between 2000 and 2009. Mobile penetration was 61% in 2009. China passed the 650 million mark in mid-2008. India has nearly 300 million subscribers now, but its penetration is only 20%, indicating high growth potential. 3G networks are growing quicklyworldwide.

Wireless Prices in the USA • The average USA wireless bill in June of 2005 was $49.30 per month.1 • By November of 2007, the average wireless bill had increased to about $77.00 per month.2 • One year later, surveys place the average wireless bill among heavy users (text, Internet, music and video) at in excess of $100 per month, with most users paying significantly more.3 1Source: http://www.ctia.org 2Source: http://blog.wirefly.com/category/wirelessindustrynews 3Source: http://www.berryreview.com/2008/09/09/poll-results-average-blackberrycell-phone-bill

SWANsat Services • Free worldwide 2-way voice communications. • Free long-distance with no international calling fees or tariffs. • Free worldwide fax services, also on a non-tariff basis. • Free teleconferencing services (audio). • Free teleconferencing services (video at 30 fps). • Free broadband Internet, starting at 2 megabits per second. • Free SSL encrypted email with user-defined spam filtering. • Free SWANsite page.

SWANsat Services • Thousands of free digital satellite video channels. • Free and fee-based educational channels. • DVD-quality video downloads for rental or purchase. • Free CD-quality digital satellite radio. • Free encrypted “GPS” location capabilities. • Free encrypted emergency (e-911) services with inter-connects for emergency rescue location. • Bluetooth capability. • Built-in FM radio transmitter.

A SWANsat Comparison What SWANsat Is What SWANsat Is Not • A hybrid ICT service. • Combines HDTV video, CD quality audio, VOIP, phone, and custom data services in one handheld or wall-mounted unit. • Connects to FM radio, too. • Reception is everywhere. • Nothing like Iridium or Loral’s TerreStar. • Not limited to cell phone bandwidths. • Not expensive to the consumer. • Not restricted to cell phone towers. “ICT” = Information and Communications Technology

A SWANsat Comparison SWANsat Iridium • Up to 150 megabits/second. • Inexpensive: plans start at $20 wholesale per month. • 750,000+ watts of available satellite power. • The SWANsat business model is exempt from landing rights regulation. • Data stream: 9600 baud. • Expensive: as much as $7 per minute. • Connection from low powered satellites is spotty at best. • Business model required cash for landing rights.

A SWANsat Comparison Cell Video on Phone Same Video on 50” Screen

A SWANsat Comparison SWANsat Video on Phone Same Video on 50” Screen The difference is bandwidth on demand. You get what you need, when you need it.

The Cost of ICT Now • Residential Telephone $30 per month • Fax $15 per month • Cellular Telephone $75 per month • DSL Internet $50 per month • Cable or Satellite TV $70 per month • XM/Sirius Audio $10 per month Total $250 per month “ICT” = Information and Communications Technology

The Cost of ICT Via SWANsat • Residential Telephone $30 per month • Fax $15 per month • Cellular Telephone $75 per month • DSL Internet $50 per month • Cable or Satellite TV $70 per month • XM/Sirius Audio $10 per month Total $250 per month The Above via SWANsat™ $100 per month or less! “ICT” = Information and Communications Technology

The SWANsat Concept Units • The handheld SWANsat unit is the size of an Apple i-Phone. • Its internal antenna uses nano-technology. • When used indoors or in a car, RV, truck, or boat, the handsetconnects to an optional companion unit. The model shown is an S-Band prototype built by Elektrobit of Finland and is placed here for illustrative purposes only. The production model is subject to substantial revision.

The SWANsat Concept Units • The companion unit fits on a wall or window facing toward the equator, connecting the user’s handset, computer or HDTV system to the SWANsat satellite system. • The companion unit can also be placed on the back of a car,truck, boat, or RV. The model shown is an S-Band prototype built by Elektrobit of Finland and is placed here for illustrative purposes only. The production model is subject to substantial revision.

The SWANsat Concept Units • The companion unit allows the user’s family toaccess the SWANsat systemwithout using a handset. • It can function as a remoteserver for the user’s account,allowing the user’s family access to all the SWANsatservices anywhere in thehome or office. The model shown is an S-Band prototype built by Elektrobit of Finland and is placed here for illustrative purposes only. The production model is subject to substantial revision.

Advertising Agency Responses • In an article dated October 29, 2008, Advertising Agenoted the propensity of the public to move toward wireless services. • Services now include video and higher speed Internet access. 1Source: http://adage.com/article?article_id=132030

Land-based Telcos Hurting Local telcos are seeing a decrease in landline installations. Only brick-and-mortar businesses are installing landlines now. We received this email from a director of a small local Illinois telco in November of 2008. We have just a small local phone company. We lose a few customers each month who decide they need no landline, and many who move into the area never contact us because they rely on their cell phone. Our only area of growth is the wireless Internet service that reaches most of Mercer County. We are behind the curve as compared to the cable companies and satellite. People will pay more for better entertainment, and the cable & satellite companies have it. We have some friends who get all of their entertainment via the internet (hulu.com and many others) for just the cost of broadband. You have an exciting and inspiring presentation and I can’t wait to see it go into action. ─ Roger DeReu, Director, Viola Home Telephone

The Top Wireless Carriers in the USA Total wireless subscribers in the USA is over 275 million. Verizon now leads the USA market with its August 2008 acquisition of Alltel’s 12.5 million users. Verizon paid $28 billionfor only 5% of the market. The USA wireless market has reached the saturation point. Improved services is now the key to growth. Tapping other marketsis now a viable option for a telecom. Verizon’s purchase price for AllTel could have acquired the entire worldwide SWANsat system, not just 5% of the USA market.

The Top Wireless Carriers Worldwide The USA market is a drop in the telecom bucketcompared to the world market. The world market is ten to twenty times larger. With an annual growth rate of only 2%, G7 nations could generate 11 million new accounts per year. G7 growth would exceed $3 billion per year. No treaties or ITU regulations prevent a USA telecom from servicing accounts in another territory that are delivered or serviced by satellite.

The Problem of Bandwidth • The cell phone Ka band is increasingly being called on to do more than its physics will allow. • Even with the best of cell phone compression technology, there’s only so much data you can fit in a Ka signal. • SWANsat’s 10 gHz W-Band provides the capacity for today’s demanding bandwidth requirements. • The IOSTAR power platform solves the dilemma that higher frequency creates.

Military Bandwith Nearly Full We are receiving an ever-increasing number of reports about military bandwidth stretched to capacity. We received this email from a Los Angeles Times investigative reporter in November of 2008. I just got off the phone with a friend from Special Forces Chapter 78. The young man was the communications man for a 12-man SF A team. In Afghanistan, SF teams in the field communicate via 2-way radios, internet, traditional field radios and satellite communications. Apparently, the internet and satellite communications were problematical on a regular basis. The young trooper has come back with stories about communications blackouts at the most inopportune moments that were blamed on ”the satellite was down.” Too often they couldn't communicate with Central Command in Florida. My friend believes the problem stems from inadequate bandwidth. ─ Gil Reza, Reporter, Los Angeles Times

The Military and the W-Band • The military is increasingly dependent on satellites, but much of its traffic travels on commercial networks. • TSAT was supposed to bring secure, high-speed connectivity to mobile military users using small terminals.

The Military and the W-Band • You can get bandwidth with a big antenna (like Global Hawk). • You can get mobility and very slow data rates out of a low-flying system (like Iridium). • Or you can get mobility and a small antenna with a lot of high-tech on the satellite (like SWANsat).

The Military and the W-Band • TSAT was supposed to bring high bandwidth down to at least a small vehicle-mounted system, with anti-jam and other secure features, while using laser crosslinks to connect the satellites together, and link the front line to CONUS.

The Military and the W-Band • TSAT was the assured,non-line-of-sightnetwork that was supposed to tie the Future Combat System together. • But the TSAT program has been cancelled. • Aviation Week, not knownfor its sense of humor, saw only one solution…

The Military and the W-Band • A carrier pigeon!

Carrier Pigeon vs. Broadband A carrier pigeon in South Africa was tasked to deliver four gigabytes of data to its home office while the local ISP began its own transfer. The pigeon made the data transfer over 50 miles in about two hours and seven minutes. The ISP only completed 4% of the transfer in the same time!

The Military and the W-Band SWANsat has the power and the technology to serve the U.S. military’s needs. Initial construction and launch funds come from the commercial sector. SWANsat’s export model meets Ex-Im Bank’s loan guarantee requirements. • SWANsat’s 10 gHz W-Band meets the very demanding bandwidth requirements of the world commercial markets and the U. S. military’s needs. • SWANsat can meet the needs of the G8 and all of the developing nations.

The SWANsat Wholesale Model • SWANsat will not sell to retail customers. • SWANsat’s primary target is the wholesale service providermarket with an established customer base. • SWANsat is required to export up to 51% of its goods and services. • With nearly 4,000,000,000 potential customers, just 2.5% of the existing worldwide market can generate $100,000,000,000 per year. • Improved services is the only growth option left in many markets.

The SWANsat Wholesale Model • SWANsat’s markets include the US, EU, Asia, and telecoms of the African Union. • Marketing efforts will include all regional wireless US telecoms. • SWANsat will invite bidsfor wholesale accounts worldwide.

SWAN SAT * and the Worldwide Wireless Telecom Market