Use of WiMAX To Enable Intelligent Grid Networks

1. Kevin F. R. Suitor • VP, Corporate Marketing • Redline Communications Inc. • Telephone: (905) 948-2299 • ksuitor@redlinecommunications.com • Use of WiMAX To Enable Intelligent Grid Networks

2. Legal Disclaimer This documentation is a presentation of general background information about Redline Communications Group Inc.’s (“Redline”) business and activities current as of the date of this presentation, unless otherwise indicated. It is information in a summary form and does not purport to be complete. Certain statements in this presentation may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language which may constitute forward-looking statements or information under applicable securities legislation. These statements are based on Redline’s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Redline operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different. Further, actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following (i) risks and uncertainties relating to Redline’s business including: significant competition, competitive pricing practice, cautious capital spending by customers, industry consolidation, rapidly changing technologies, evolving industry standards, frequent new product introductions and short product life cycles, and other trends and industry characteristics affecting the telecommunications industry; any material adverse affects on Redline’s performance if its expectations regarding market demand for particular products prove to be wrong; any negative developments associated with Redline’s suppliers and contract manufacturing agreements including our reliance on certain suppliers for key components; potential penalties, damages or cancelled customer contracts from failure to meet delivery and installation deadlines and any defects or errors in Redline’s current or planned products; fluctuations in foreign currency exchange rates; potential higher operational and financial risks associated with Redline’s efforts to expand internationally; a failure to protect Redline’s intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the wireless industry or other aspects of the industry; any failure to successfully operate or integrate strategic acquisitions, or failure to consummate or succeed with strategic alliances; Redline’s potential inability to attract or retain the personnel necessary to achieve its business objectives or to maintain an effective risk management strategy; (ii) risks and uncertainties relating to Redline’s liquidity, financing arrangements and capital including: any inability of Redline to manage cash flow fluctuations to fund working capital requirements or achieve its business objectives in a timely manner or obtain additional sources of funding; or any negative impact on Redline’s ability to make future acquisitions, raise capital, issue debt and retain employees arising from stock price volatility and any declines in the market price of Redline’s publicly traded securities. Unless otherwise required by applicable securities laws, Redline disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

5. Redline’s Vision, Mission and Strategy Drive Smart Grid Revolution through Broadband Wireless Access Technologies – WiMAX & Proprietary Become the BWA vendor of choice for Smart Grid Buildpartnershipsto provide end-to-end solution Developapplication specific technologysolutions leveraging COTS for ‘best-in-class’ BWA solutions for Smart Grid Deliver ‘best-in-class’ end-to-end solutions with our integration partners Vision Mission Strategy

9. “The nicest thing about standards is that there are so many of them to choose from.” Ken Olsen, founder of Digital Equipment Corporation, 1977 US computer engineer & industrialist

10. The Power Grid (The Simplistic View) Transmission Sub-Station Generation Distribution(Step Down) Sub-Station High Voltage Lines Medium & Low Voltage Lines Residential

11. A Reference Architecture for Smart Grids

12. Last Mile Options for Smart Grid Carrier Central Office Commercial Wireless Commercial Services Broadband Connection Wi-Fi Mesh Meter Collection Point WiMAX PTP Backhaul Utility Control Center Meter Collection Point Smart Meters and Aggregation Backhaul & Transport Control & Management

13. Network Options for Smart Grid Last Mile Source: Pike Research analyst Clint Wheelock

20. Using WiMAX to Connect the Smart Grid

22. What Has Redline Changed In COTS To Meet The Utility Market Needs? • A Smart Grid network is fundamentally different than a Service Provider access network in that the bulk of traffic flows primarily from the edge of the network to the core of the network.  • Service provider networks are built with a “downlink bias” where the majority of traffic flows from the core to the edge. • In a Smart Grid, the traffic is ‘uplink biased’ with a large number of distributed Smart Meters, IEDs, Video Cameras etc delivering information from the sensors and machines at the edge of the network up to data centers in the core of the network.  • Redline’s design engineers have modified the core signal processing in both the base station and CPE to allow the uplink / downlink ratio bias desired by each utility’s network design architect. • Power Engineers have a requirement for sub-cycle latency in the two-way communications network.  • Typical multipoint wireless broadband systems whether RF/WiFi mesh or cellular based have one way latency in the 35 – 150 millisecond range.  • Redline’s engineers have modified the core signal processing within the base station and CPE terminals to reduce the one-way latency to under 20 milliseconds as required by the utility. • Long range connections are required for both smart meter collection and Teleprotection. • RedMAX 4C can be used effectively for backhauling rural smart meter and sub-station connections, enabling a more cost-effective deployment.  • Redline’s products have the ability to support a longer range of up to 25 km versus the 9 – 10 km supported by the WiMAX Forum profile enabled by modifications to the 802.16e-2005 MAC in the BTS & CPE. • Smart Grid networks use IEC based protocols that are not necessarily IP based, layer 2 Ethernet transport is required. • Capability of forwarding the traffic at layer 2 rather than sending information to a centralized ASN-GW may also contribute to the reduction in end-to-end latency. • RedMAX 4C Remote Radio Head (RRH) implements Digital Pre-Distortion (DPD). • Advanced RF capability allows higher output power with reduced power consumption with the added benefit of reducing both adjacent and alternate channel interference enabling better spectrum utilization and tighter frequency reuse.

23. What Are The Unique Attributes Of A Redline Solution? • Redline provides highly differentiated product families for the utility market: • RedMAX and RedCONNEX/RedACCESS AN-80i with RMS Element Management.  • Each product set is optimized for a particular band class and the application set and use cases that characterize this band class. • RedMAX EX-200 is Redline’s 802.16e-2005 based product selected by Hydro One for use in its Smart Zone living lab.  • Redline’s product set has been optimized for use by utility customers based upon the market requirements for both transmission and distribution applications. • 1.8 GHz • 2.5 GHz • 3.3 – 3.8 GHz • 3.65 GHz • 4.9 GHz • 5.4 GHz • 5.8 GHz • OFDM / OFDMA • MIMO • Both IP & Ethernet Architecture • Wide Channel Bandwidth • Spectrum Options

24. Sample Utility Market Customers using Redline’s Broadband Wireless Platforms Yunnan Provincial Power Group Corporation 

25. The Ideal Broadband Wireless Platform For Utilities • Redline has core technology DNA and proven platform implementations of this DNA – AN-80i, RedMAX, RedMAX 4C • Engineering team capable of development versus integration • Proven expertise in Broadband Wireless with utility reference customers in both emerging and developed markets

26. Q&A • Use of WiMAX To Enable Intelligent Grid Networks