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March 7, 2013

March 7, 2013. HySky Overview - Business Model .

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March 7, 2013

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  1. March 7, 2013 HySky Proprietary Information

  2. HySky Overview - Business Model The world is vast and only one innovative wireless data communications technology can deliver over 90% global coverage, that is also scalable and reliable, while maintaining an economical business proposition that delivers and captures value for all parties. M2M and SCADA focus: By combining proven ex-military wireless networking and frequency management, with an established worldwide HF radio system, the resulting highly dependable economical coverage permits a client to locate and communicate with remote and mobile, tethered and untethered, assets worldwide i.e., farm irrigation systems, smart grid meters, electric cars, intermodal containers, railcars and trailers, as well as remote energy assets such as oil/gas wells, bulk oil tanks and propane storage tanks. HySky Proprietary Information

  3. Overview In North America HySky owns and operates a ubiquitous, highly reliable, secure, ex-military, 2-way wireless data network that is ideally positioned to address asset tracking and monitoring, as well as supervisory control and data acquisition (SCADA) and M2M applications. • Licensed for 954 FCC HF frequencies - July 23, 2022 • Nine strategically located antenna sites in U.S • Proprietary software for Intelligence Frequency Management and Optimization • Existing and pending patents HySky Proprietary Information

  4. HySky’s Technology Evolution • Harris developed technology for HF shortwave radio, leveraging ionosphere propagation; developed proprietary software to optimize wireless communications over broad-areas of coverage (thousands of miles) • Technology declassified and approved for civilian use; awarded FCC licenses across multiple HF radio bands • Nationwide network inaugurated to track mobile assets for the transportation industry - victim of 2001 financial crisis • Private investors acquire assets; form HySky Technologies Inc. and re-focused on SCADA/M2M applications HySky Proprietary Information

  5. The HySky Network Existing Sites Future Sites Network Operations MN WA NY CA CO IL AZ DAL TX FL P.R. HySky Proprietary Information

  6. How HySky Works 2.HF Transmit 3. Receive Sites Report Event MN WA NY CA CO IL 1. Event Occurs AZ TX SAV 4. Event Reported to Client FL P.R. HySky Proprietary Information

  7. Highly Reliable Inbound Coverage (1 Watt ITU ERP) HySky sites w/all directions activated International sites w/all directions activated Complete worldwide coverage beyond circles may require up to 20 watts ITU ERP

  8. Markets HySky Proprietary Information

  9. HySky SCADA/Telemetry Applications Pressure / Temperature Meters On/Off Switches “ Flow/Data Loggers Solar charging station monitoring Pumps / Compressors Oil/Gas wells Chemical Injection Secure Network Remote SMS Water Gauges Commercial HVAC Backup Generators HySky Proprietary Information

  10. Remote Sensors – SCADA (I) 600,000 US bridges HySky can help develop monitoring & reporting strategies that cover … • Routine condition monitoring • Exception alerts • Trespass or intrusion alerts HySky Proprietary Information

  11. Remote Sensors – SCADA (II) – Canada & MexicoBorder Sensor Application HySky Proprietary Information

  12. Asset Tracking – untethered containers • Built-in wireless meshing • Single transmitter for multiple assets • Interior assets mesh to best transmitter • Optimized antennas on large vessels Assets located and monitored Tracking even in remote locations Individual addresses allow continuous tracking from transport to transport (i.e., boat to truck to train) HySky Proprietary Information

  13. Comparison of Competition (Individual volume deals may vary. For illustrative purposes only) HySky Proprietary Information

  14. The Problem with Cellular • Requires Frequent Towers • Requires Dedicated Circuits • Requires Costly Service • Occasional Blockage

  15. The Problem with Satellite • Requires Dedicated Channel • Limited and/or Costly Service • Blocked by Buildings & Canyons • Interruptions by Foliage & Rain • Often Needs Steerable Antenna

  16. The Advantage of HF Ionosphere • Omnidirectional Distributed Signal • No Building or Canyon Blockage • Unaffected by Foliage & Rain • No Local Infrastructure Required • Travels Thousands of Kilometers • Less Than One-Watt of RF Power Ionosphere To Remote Site To Remote Site

  17. To Contact Us Primary Contacts • Charlie Maynard — CCMaynard@HySky.Com • Kevin Cleary — KCleary@HySky.com Operations and Customer Service • Phil Galpin — PGalpin@HySky.Com Technology and Product Development jdyer@hysky.com • Jim Dyer — Engineering design and R&D • Jim Rootsey — JRootsey@HySky.Com Financial • Scot Brands — SBrands@HySky.Com HySky Proprietary Information

  18. Back-up Slides HySky Proprietary Information

  19. The HySky System Has a Unique Commercial HF License • On July 10, 1997, the FCC Wireless Telecommunications Bureau ("the Bureau") and the Office of Engineering and Technology granted a request for waiver of the Commission's Rules and concurrently the Bureau conditionally granted a five-year authorization to HySky’s predecessor and granted the right to construct and operate, on a secondary basis, a nationwide, commercial, two-way short-data messaging system in the high frequency ("HF") range of the electromagnetic spectrum, subject to certain technical and operational limitations. • On July 20, 2002, the license was updated and reissued with all military restrictions lifted. HySky Proprietary Information

  20. Patented Techniques Make HySky a Success • HySky uses 954 uncongested HF channels • A Network Operations Center scans the entire HF band every 5 seconds to determine which channels are unoccupied and optimal to transmit data over • The System knows what frequencies are propagating • A Propagation Evaluation Network of sounders & sophisticated algorithms evaluates the network and optimizes data traffic for 99.99% throughput. • HySky’s sophisticated waveform & modem technology overcomes multi-path effects • HySky adapts a military HF waveform and proprietary modem technology to ensure the highest level of service • HySky uses time & frequency diversity to ensure message delivery • If a message is not received on the 1st try, the message is repeated at a different frequency to guarantee delivery; the system then generates a message acknowledgment. HySky Proprietary Information

  21. Messages Are Received by HF Receive Base Stations • Exceptionally Quiet Rural Areas • Air-Conditioned Equipment Buildings • Backup Generators • Directional Antenna Arrays • Receiver/Demodulation Equipment • T1 or Satellite Interfaces HySky Proprietary Information

  22. ITU Development Path Generation 2 Current Unit Interfaces: Serial Ethernet Wireless (ZigBee) Generation 3 (2nd Half 2013) Interface: Custom (TBD) Embedded in custom and OEM Devices Legacy Unit Interface: Serial (RS-232) HySky Proprietary Information

  23. US Top Alarm service companies – 2G Cellular problemsforthcoming “2G Sunset,” • This year (2013) the transition to 3G will no longer be a matter of choice. That’s because carriers are already migrating their product lines to 3G. • A major cellular carrier in the U.S. recently stopped certifying 2G-only products of any kind and remaining carriers are sure to follow suit. • Before 2015 over 5 million 2G cell mods (resulting in 5 million truck-rolls) used in the security industry will be changed due to obsolesce of the technology ADT will change over 1 million Vivint will change over 700,000 HySky Proprietary Information

  24. US Top Alarm service companies – 2G Cellular problemsforthcoming “2G Sunset,” In the U.S., the lower frequency band (2G) is at 850 MHz and the higher band is at 1900 MHz. (3G). Most cellular devices installed inside homes and businesses rely on the deep penetrating 850 MHz band to connect to neighboring cell towers. After December 31, 2016, when the 2G Sunset is complete, it will be just like the Analog Sunset. Anything using 2G will stop working overnight. Only 3G/4G will work from that day forward HySky Proprietary Information

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