Proprietary and Confidential. Copyright © 2012 SWANsat Holdings, LLC. An Introduction to the Business Model

Proprietary and Confidential. Copyright © 2012 SWANsat Holdings, LLC.

and the

Worldwide Wireless Telecom Market

An Introductionto the

Business Model*SUPER WIDE AREA NETWORK

DELIVERED BY

SATELLITE


Table of Contents ICT and Economic Prosperity Traditional Communication SWANsat Communication How SWANsat Works Powering Up SWANsat Satellite Receiver Evolution A Brief History of Wireless Wireless Subscriber Growth Bandwidth Is at Capacity 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


ICT and Economic Prosperity

1. Deployment of Information Communications Technology (ICT) and broadband is the key to socio-economic development, global economic recovery, and the support of growth in both nascent and mature markets.*

*Taken from ITU Telecom: In Focus. February 2012 Newsletter. See http://www.itu.int/ITUTELECOM/world2011/email/focus/focus_2.html?WT.mc_id=focus2

http://www.itu.int/ITUTELECOM/world2011/email/focus/focus_2.html?WT.mc_id=focus2




2. ICT is the infra-structure of all infrastructure.

3. It directly boosts productivity and economic growth.

4. It adds value across all vertical sectors around the globe.*






5. The global value of the ICT sector is forecast to grow from US$1.67 trillion today to US$2.4 trillion by 2020.*

6. SWANsat backers are poised to profit from the growth.






7. Increasing broadband connectivity in both developed and emerging markets is of paramount importance in stimulating economic recovery and growth.*






8. It is crucial that policy planners and decision makers know about and work to increase connectivity, factoring this in to investment plans and national policy.*






9. A range of broadband solutions in terms of infrastructure, last mile connectivity, financing, content provision, and regulations needs to be considered.*

10. SWANsat meets these needs.






11. Collaboration and sharing best practices, case studies, and innovative business models are crucial at all levels.* *Taken from ITU Telecom: In Focus. February

2012 Newsletter. See http://www.itu.int/ITUTELECOM/world2011/email/focus/focus_2.html?WT.mc_id=focus2





12. Cooperation between the public and private sector, between local telecom operators, infrastructure and content and service suppliers, and governments is paramount.*






13. Inexpensive ICT is the seed corn of economic growth for Developing Countries.

14. How do you want the world to see your country? In poverty, ever seeking aid to feed your people?



15. Or do you want the world to see your country in prosperity, selling your agricultural and other products all around the world?



16. Or do you want the world to see your country in prosperity, selling your agricultural and other products all around the world?

17. SWANsat can make it happen.


Traditional Communication1. P.O.T.S

Plain Old Telephone Service Phone Fax

2. Wireless Telephone Cellular “Service” Satellite “Service”

3. Internet Connections DSL & Other


Traditional Communication4. We Listen to Radio

AM Band FM Band Shortwave Band Internet Radio Satellite Radio

5. We Watch Television Local and Network TV HDTV Cable TV & DBS Internet TV


Traditional Communication6. We Collect Media

Music Libraries Movie Libraries TV Series Instructional Programs

Church Sermons Audio Books Self-Help Programs Educational Programs

7. We Make Our Own TV & Audio Recordings


SWANsat Communication1. 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

720+ million accounts and 200,000 HDTV channels


0°

120° W120° E

Geosynchronous orbital positions are not to scale.

Greenwich

North Pole


1. First Tri-Sat constellation establishes global network beginning in 2016.



0°

120° W120° E

Greenwich

North Pole


2. Second Tri-Sat constellation assures robust network configuration.


0°

120° W120° E

Greenwich

North Pole



3. Optional third and fourth Tri-Sat constellations complete network expansion worldwide and allow for additional market development.


About the W-Band


About the W-Band71-76 and 81-86 gHz


Powering Up SWANsat Each SWANsat satellite will be powered by

a proprietary and patented ion engine developed for SWANsat bySWANsat Aerospace and Sandia National Labs.

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.



Consumer systems have ranged from 12-feet...



And then down to 10-feet...









And then down to 18 inches...



And then down to handheld.Our antenna is about the size of apostage stamp.


A Brief History of Wireless

1. The first commercial wireless phone call was made on October 13, 1983, from Chicago.1

2. It took 18 years (2002) for worldwide market penetration to reach 1,000,000,000 accounts.

3. Only 15 quarters later (2005), worldwide market penetration reached 2,000,000,000 accounts.

4. Just 6 years later (end of 2010), the market penetration was 5,000,000,000 accounts.

1Source: http://www.ctia.org


Wireless Subscriber Growth

2002

-Q1

2002

-Q3

2003

-Q1

2003

-Q3

2004

-Q1

2004

-Q3

2005

-Q1

2005

-Q3

2006

-Q1

2006

-Q3

2007

-Q1

2007

-Q3

2008

-Q1

*200

8-Q3

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,0007 Years of Growth: 2002 - 2008 Subscribers (millions)

*ITU projection


Bandwidth Is at Capacity1. Wireless spectrum

— the invisible infrastructure over which all wireless transmissions travel — is a finite resource. And it’s rapidly running out.* 34

*Taken from Sorry, America: Your Wireless Airwaves Are Full by David Goldman. See http://money.cnn.com/2012/02/21/technology/spectrum_crunch/index.htm?hpt=hp_t3.

http://money.cnn.com/2012/02/21/technology/spectrum_crunch/index.htm?hpt=hp_t3




Bandwidth Is at Capacity2. When, exactly,

we'll hit the wall is the subject of intense debate, but almost everyone in the industry agrees that a crunch is coming and, indeed, is now here.

35


Bandwidth Is at Capacity3. The problem

known as spectrum crunch threatens to increase the number of dropped calls, slow down data speeds and raise customer prices. 36


Bandwidth Is at Capacity4. It will also whittle

down the world’s number of wireless carriers and create a deeper financial divide between those companies that have capacity and those that don’t.

37


Bandwidth Is at Capacity5. “Network traffic is

increasing,” says the FCC’s wireless bureau. “[Carriers] can manage it for the next few years, but demand will inevitably exceed the available spectrum.”

38


Bandwidth Is at Capacity6. The iPhone uses

24 times as much spectrum as an old-fashioned cell phone.

7. The iPad uses 122 times as much.

39


Bandwidth Is at Capacity8. AT&T says

wireless data traffic on its network has grown 20,000% since the iPhone debuted in 2007.

40


Bandwidth Is at Capacity9. “Technology and

demand exploded at a rate that nobody had anticipated,” says Rory Altman, Director of Technology Consultancy at Altman & Vilandrie.

41


Bandwidth Is at Capacity10. When spectrum

runs short, service degrades sharply: calls get dropped and data speeds slow down.

11. That’s a nightmare scenario for the wireless carriers.

42


Bandwidth Is at Capacity12. They have tried to

limit customers’ data usage by putting caps in place,...

43


Bandwidth Is at Capacity12. They have tried to

limit customers’ data usage by putting caps in place, throttling speeds and raising prices.

44



The Worldwide Wireless Telecom Market Is Growing1. The ITU indicates

worldwide mobile subscribers reached 5 billion at the end of 2010.

2. Growth rate averaged 24% between 2000 and 2009.

3. Mobile penetration was 61% in 2009.

4. China passed the 650 million mark in mid-2008.

5. India has nearly 500 million subscribers now, but its penetration is only 25%, indicating high growth potential.

6. 4G networks are growing quickly worldwide.


Wireless Prices in the USA

1. The average USA wireless bill in June of 2005 was $49.30 per month.1

2. By November of 2007, the average wireless bill had increased to about $77.00 per month.2

3. Surveys now 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/wirelessindustrynews3Source: http://www.berryreview.com/2008/09/09/poll-results-average-blackberrycell-phone-bill


SWANsat Services

1. Free worldwide 2-way voice communications.

2. Free long-distance with no international calling fees or tariffs.

3. Free worldwide fax services, also on a non-tariff basis.

4. Free teleconferencing services (audio).

5. Free teleconferencing services (video at 30 fps).

6. Free broadband Internet, starting at 2 megabits per second.

7. Free SSL encrypted email with user-defined spam filtering.

8. Free SWANsite page.


SWANsat Services

9. Thousands of free digital satellite video channels.

10. Free and fee-based educational channels.

11. DVD-quality video downloads for rental or purchase.

12. Free CD-quality digital satellite radio.

13. Free encrypted “GPS” location capabilities.

14. Free encrypted emergency (e-911) services with inter-connects for emergency rescue location.

15. Bluetooth capability.16. Built-in FM radio

transmitter.


A SWANsat Comparison

What SWANsat Is What SWANsat Is Not

1. A hybrid ICT service.2. Combines HDTV video,

CD quality audio, VOIP, phone, and custom data services in one handheld or wall-mounted unit.

3. Connects to FM radio, too.

4. Reception is everywhere.

1. Nothing like Iridium or TerreStar.

2. Not limited to cell phone bandwidths.

3. Not expensive to the consumer.

4. Not restricted to cell phone towers.

“ICT” = Information and Communications Technology



SWANsat Iridium

1. Up to 150 megabits/second.

2. Inexpensive: plans start at $20 wholesale per month.

3. 750,000+ watts of available satellite power.

4. The SWANsat business model is exempt from landing rights regulation.

1. Data stream: 9600 baud.

2. Expensive: as much as $7 per minute.

3. Connection from low powered satellites is spotty at best.

4. Business model required cash for landing rights.


Cell Video on PhoneSame Video on 50”

Screen



SWANsat Video on Phone


The difference is bandwidth on demand. You get what you need, when you need it.

Same Video on 50” Screen


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 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.



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

1. In an article as far back as October 29, 2008, Advertising Age noted the propensity of the public to move toward wireless services.

2. Services now include video and higher speed Internet access.

1Source: http://adage.com/article?article_id=132030


Land-based Telcos Hurting 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

1. Local telcos are seeing a decrease in landline installations.

2. Only brick-and-mortar businesses are installing landlines now.

3. We recently received this email from a director of a small local Illinois telephone company.


The Top Wireless Carriers in the USA1. Total wireless subscribers

in the USA is over 275 million.

2. Verizon now leads the USA market with its August 2008 acquisition of Alltel’s 12.5 million users.

3. Verizon paid $28 billion for only 5% of the market.

4. The USA wireless market has reached the saturation point.

5. Improved services is now the key to growth.

6. Tapping other markets is now a viable option for a telecom.

7. Verizon’s purchase price for AllTel could have acquired the entire worldwide SWANsat system, not just 5% of the USA market.

# Company Subscribers As of

1 Verizon Wireless 104,022,000 Sep-112 AT&T Mobility 97,519,000 Sep-113 Sprint Nextel 50,761,000 Sep-114 T-Mobile 33,635,000 Sep-115 MetroPCS 8,881,000 Sep-116 Clearwire 6,148,000 Sep-117 U.S. Cellular 6,033,000 Sep-118 Leap Wireless 5,849,000 Sep-119 Cellular South 900,000 Sep-11

10 ATN 674,000 Sep-1111 Cincinnati Bell Wireless 504,000 Sep-1112 nTelos 426,000 Sep-1113 SouthernLINC 275,000 Sep-1114 Movida Wireless 267,000 Sep-1115 Alaska Communications Systems 149,000 Sep-11

316,043,000


The Top Wireless Carriers Worldwide1. The USA market is a drop

in the telecom bucket compared to the world market.

2. The world market is ten to twenty times larger.

3. With an annual growth rate of only 2%, G7 nations could generate 11 million new accounts per year.

4. G7 growth would exceed $3 billion per year.

5. No treaties or ITU regulations prevent a USA telecom from servicing accounts in another territory that are delivered or serviced by satellite.

# Company Subscribers As of

1 China Mobile (China) 600,840,000 Sep-112 Vodafone (United Kingdom) 341,100,000 Sep-113 Telefónica / Movistar / O2 (Spain) 290,500,000 Sep-114 América Móvil (Mexico) 225,300,000 Sep-115 Orange / France Télécom (France) 210,000,000 Sep-116 Bharti Airtel (India) 207,800,000 Sep-117 Telenor (Norway) 203,000,000 Sep-118 VimpelCom (Russia) 181,000,000 Sep-119 SingTel (Singapore) 175,014,000 Sep-11

10 China Unicom (China) 169,700,000 Sep-1111 TeliaSonera 160,000,000 Sep-1112 Axiata Group Berhad 159,700,000 Sep-1113 T-Mobile (Germany) 150,900,000 Sep-1114 Saudia Telecom 139,000,000 Sep-1115 MTN Group (South Africa) 137,370,000 Sep-1116 Etisalat (United Arab Emirates) 135,000,000 Sep-1117 Reliance (India) 128,870,000 Sep-1118 Verizon Wireless (USA) 104,022,000 Sep-1119 MTS (Russia) 103,350,000 Sep-1120 AT&T Mobility 97,519,000 Sep-11

4,719,185,000


The Problem of Bandwidth

1. The cell phone Ka band is increasingly being called on to do more than its physics will allow.

2. Even with the best of cell phone compression technology, there’s only so much data you can fit in a Ka signal.

3. SWANsat’s 10 gHz W-Band provides the capacity for today’s demanding bandwidth requirements.

4. The SWANsat power platform solves the dilemma that higher frequency creates.


Military Bandwith Nearly Full

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

1. We are receiving an ever-increasing number of reports about military bandwidth stretched to capacity.

2. We received this email from a Los Angeles Times investigative reporter back in November of 2008.


The Military and the W-Band

1. The military is increasingly dependent on satellites, but much of its traffic travels on commercial networks.

2. TSAT was supposed to bring secure, high-speed connectivity to mobile military users using small terminals.



3. You can get bandwidth with a big antenna (like Global Hawk).

4. You can get mobility and very slow data rates out of a low-flying system (like Iridium).

5. Or you can get mobility and a small antenna with a lot of high-tech on the satellite (like SWANsat).



6. 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 cross-links to connect the satellites together, and link the front line to CONUS.



7. TSAT was the assured,non-line-of-sightnetwork that was supposed to tie the Future Combat System together.

8. But the TSAT program has been cancelled.

9. Aviation Week, not knownfor its sense of humor, saw only one solution…



10. 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!



14. SWANsat’s 10 gHz W-Band meets the very demanding bandwidth requirements of the world commercial markets and the U. S. military’s needs.

15. SWANsat can meet the needs of the G8 and all of the developing nations.

11. SWANsat has the power and the technology to serve the U.S. military’s needs.

12. Initial construction and launch funds come from the commercial sector.

13. SWANsat’s export model meets Ex-Im Bank’s loan guarantee requirements.


The SWANsat Wholesale Model

1. SWANsat will not sell to retail customers.

2. SWANsat’s primary target is the wholesale service provider market with an established customer base.

3. SWANsat is required to export up to 51% of its goods and services.

4. With nearly 5 billion potential accounts, just 2% of the existing worldwide market can generate as much as much as $2 billion per month or more.

5. Improved services is the only growth option left in many markets.


The SWANsat Wholesale Model

6. SWANsat’s markets include the US, EU, Asia, and telecoms of the African Union.

7. Marketing efforts will include all regional wireless US telecoms.

8. SWANsat will invite bids for wholesale accounts worldwide.


The Telecom Wholesale Model

Wireless Carriers Landline Telcos

1. We will offer the top five American wireless service providers an opportunity to bid on blocks of 10,000,000 accounts at $20 per month per account.

2. MSRP* is $100 per month.

1. We will suggest a new co-operative partnership among the smaller telcos, with the co-op bidding on blocks of 1,000,000 accounts starting at $20 per month per account.

2. MSRP* is $100 per month.

*MSRP assumes Service Provider provides full customer service and technical support.


SWANSAT Territories Nine Subscriber Account Territories (SATs)

1. India2. Asia & Oceania3. North America4. South America5. Europe and UK6. Russian Federation7. Middle East8. China9. Africa

1

2

3 5

97 8

4

6


Revenue Assumptions

1. Our model assumes a modest growth rate of only 2% of the adult population in each of our nine worldwide Subscriber Account Territories.

2. First year G8 revenue to our SWANsat Partners would be nearly $25,000,000,000.

3. All other revenue, even with discounted DC* and LDC* rates, could exceed $50,000,000,000 per year.*DC = Developing Countries; LDC = Least Developed Countries


The SWANsat Opportunity Units are sold only

through this Private Placement Memorandum.

Each Unit buys 20,000 SWANsat Accounts in the G8 nations for a 2-year contract that renews automatically every two years for 25 years.


The SWANsat Opportunity Each Account is

expected to wholesale for $20 per month for 24 months, plus a $10 per year System Access fee, for a total of $500 per Account.

20,000 Accounts x $500 per Account = $10,000,000 per Unit purchased.


The SWANsat Opportunity There is a ten Unit

minimum institutional purchase ($100M) required.

100% of the revenue stream from the Accounts assigned to each Unit is returned to the Investor during the first two years of operation.


The SWANsat Opportunity In addition to the

income from 20,000 SWANsat Accounts that have been assigned to each Unit, the income stream from 10 of the SWANsat HDTV Channels is also assigned to each Unit.


The SWANsat Opportunity Each HDTV Channel

has a potential income of as much as $100,000 per month, and perhaps more.

At $1.2M per year per Channel, each $10M Unit has a potential HDTV income of $12M per year.


The SWANsat Opportunity Each $10M Unit is

expected to be repaid by the end of the 2nd year.

Thereafter, 50% of the net income from the Unit goes to the Investor, and 50% of the income from the Unit goes to the Manager of the LLC.


The SWANsat Opportunity ROI would therefore be

as much as $2.5M per year for 25 years, or about 25% annual return for 25 years.

SWANsat Partners, LLC, will be dissolved in 25 years because 25 years is the maximum predicted life of the satellites.


The SWANsat Opportunity Your institutional

portfolio is protected by a guarantee from the U.S. Export-Import Bank.

When SWANsat Partners buys its Accounts, the capital is paid to MetaNet Services, Ltd., a Mauritius corporation.


The SWANsat Opportunity MetaNet Services’

resulting investment in the SWANsat infrastructure is guaranteed by the U.S. government because it creates a purchase of U.S. goods and services for export.


The SWANsat Opportunity And best of all, your

institutional portfolio will be protected.

It will not lose value. Your asset remains in

your portfolio without dilution in the world marketplace.

It may even gain value.


The SWANsat Opportunity Investors may request

payment in whatever currency they require. U.S. dollars, euros,

francs Any other currency,

from Dubai’s dirham to India’s rupee, to China’s yuan, and more.

Payment in gold may also be an option.


Projected Revenue Years 1-5SUMMARY Year 1 Year 2 Year 3 Year 4 Year 5

New Subscribers: 0 0 0 110,097,121 110,097,121

Cumulative Total of Subscribers: 0 0 0 110,097,121 220,194,243

Cumulative Total of G7/G8 Subscribers: 0 0 0 11,060,000 11,060,000

Cumulative Total of Other Subscribers: 0 0 0 99,037,121 209,134,243

REVENUE Year 1 Year 2 Year 3 Year 4 Year 5

Revenue from All SATs: $0 $0 $0 $107,657,217,314 $554,451,526,318

ODA Contributions (set in Assumptions Page): $0 $0 $0 $9,903,712,140 $9,903,712,140

Activation Fees: $0 $0 $0 $0 $0

Pre-Launch Invested Revenue: $6,000,000,000 $6,000,000,000 $6,000,000,000 $6,000,000,000 $6,000,000,000

Total Worldwide Revenue: $6,000,000,000 $6,000,000,000 $6,000,000,000 $123,560,929,454 $570,355,238,458

Cumulative Total Worldwide Revenue: $6,000,000,000 $12,000,000,000 $18,000,000,000 $141,560,929,454 $711,916,167,912

EXPENSES Year 1 Year 2 Year 3 Year 4 Year 5

SWANsat Construction: $4,200,000,000 $4,200,000,000 $4,200,000,000 $4,200,000,000 $4,200,000,000

SWANsat Back Haul Tower Construction: $300,000,000 $300,000,000 $300,000,000 $300,000,000 $300,000,000

Interest on Build Capital: $270,000,000 $337,500,000 $405,000,000 $1,620,000,000 $1,620,000,000

Cost of Handsets (G8 nations): $0 $0 $0 $0 $0

Cost of Handsets (ODA allocated): $0 $0 $0 $9,903,712,140 $9,903,712,140


Tranche Fee: $0 $0 $0 $0 $0

Host License: $12,000,000 $12,000,000 $12,000,000 $12,000,000 $12,000,000

IP License: $420,000,000 $420,000,000 $420,000,000 $7,956,005,212 $39,231,606,842

Fidelis Programming: $420,000,000 $420,000,000 $420,000,000 $7,956,005,212 $39,231,606,842

Network Replacement Sinking Fund: $0 $0 $0 $10,765,721,731 $55,445,152,632

Merchant Processing Fee: $0 $0 $0 $0 $0

Other Expenses (TC&C, Worldwide Offices, etc.): $300,000,000 $300,000,000 $300,000,000 $6,178,046,473 $28,517,761,923

Subtotal of Construction and Fixed Expenses: $5,922,000,000 $5,989,500,000 $6,057,000,000 $48,891,490,768 $178,461,840,379

Subtotal of Retained Earnings: $78,000,000 $10,500,000 ($57,000,000) $74,669,438,686 $391,893,398,078

Cumulative of Cash on Hand: $78,000,000 $88,500,000 $31,500,000 $74,700,938,686 $466,594,336,765

PROFIT/LOSS Year 1 Year 2 Year 3 Year 4 Year 5

Revenue: $6,000,000,000 $6,000,000,000 $6,000,000,000 $123,560,929,454 $570,355,238,458

Expenses: ($5,922,000,000) ($5,989,500,000) ($6,057,000,000) ($48,891,490,768) ($178,461,840,379)

Net Profit/(Loss) $78,000,000 $10,500,000 ($57,000,000) $74,669,438,686 $391,893,398,078

DISTRIBUTIONS Year 1 Year 2 Year 3 Year 4 Year 5

Cash Paid to Investors from Net Income: $0 $0 $0 $12,000,000,000 $12,000,000,000

CUMULATIVE VALUE OF SINKING FUND Year 1 Year 2 Year 3 Year 4 Year 5

Network Replacement Sinking Fund: $0 $0 $0 $10,765,721,731 $55,445,152,632


SUMMARY Year 6 Year 7 Year 8 Year 9 Year 10

New Subscribers: 110,097,121 110,097,121 110,097,121 110,097,121 110,097,121

Cumulative Total of Subscribers: 330,291,364 440,388,486 550,485,607 660,582,728 770,679,850

Cumulative Total of G7/G8 Subscribers: 11,060,000 11,060,000 11,060,000 11,060,000 11,060,000

Cumulative Total of Other Subscribers: 319,231,364 429,328,486 539,425,607 649,522,728 759,619,850

REVENUE Year 6 Year 7 Year 8 Year 9 Year 10

Revenue from All SATs: $2,217,060,826,049 $8,742,930,088,692 $34,721,839,202,983 $138,512,907,723,866 $553,552,613,871,117

ODA Contributions (set in Assumptions Page): $9,903,712,140 $9,903,712,140 $9,903,712,140 $9,903,712,140 $9,903,712,140


Pre-Launch Invested Revenue: $6,000,000,000 $0 $0 $0 $0

Total Worldwide Revenue: $2,232,964,538,189 $8,752,833,800,832 $34,731,742,915,123 $138,522,811,436,006 $553,562,517,583,257

Cumulative Total Worldwide Revenue: $2,944,880,706,101 $11,697,714,506,933 $46,429,457,422,056 $184,952,268,858,062 $738,514,786,441,320

EXPENSES Year 6 Year 7 Year 8 Year 9 Year 10

SWANsat Construction: $4,200,000,000 $0 $0 $0 $0

SWANsat Back Haul Tower Construction: $300,000,000 $300,000,000 $300,000,000 $300,000,000 $300,000,000

Interest on Build Capital: $1,620,000,000 $1,620,000,000 $1,620,000,000 $1,620,000,000 $1,620,000,000

Cost of Handsets (G8 nations): $0 $0 $0 $0 $0

Cost of Handsets (ODA allocated): $9,903,712,140 $9,903,712,140 $9,903,712,140 $9,903,712,140 $9,903,712,140


Tranche Fee: $0 $0 $0 $0 $0

Host License: $12,000,000 $12,000,000 $12,000,000 $12,000,000 $12,000,000

IP License: $155,614,257,823 $612,005,106,208 $2,430,528,744,209 $9,695,903,540,671 $38,748,682,970,978

Fidelis Programming: $155,614,257,823 $612,005,106,208 $2,430,528,744,209 $9,695,903,540,671 $38,748,682,970,978

Network Replacement Sinking Fund: $221,706,082,605 $874,293,008,869 $3,472,183,920,298 $13,851,290,772,387 $55,355,261,387,112

Merchant Processing Fee: $0 $0 $0 $0 $0

Other Expenses (TC&C, Worldwide Offices, etc.): $111,648,226,909 $437,641,690,042 $1,736,587,145,756 $6,926,140,571,800 $27,678,125,879,163

Subtotal of Construction and Fixed Expenses: $660,618,537,301 $2,547,780,623,468 $10,081,664,266,612 $40,181,074,137,668 $160,542,588,920,371

Subtotal of Retained Earnings: $1,572,346,000,888 $6,205,053,177,364 $24,650,078,648,511 $98,341,737,298,338 $393,019,928,662,886

Cumulative of Cash on Hand: $2,038,940,337,652 $8,243,993,515,017 $32,894,072,163,528 $131,235,809,461,866 $524,255,738,124,752

PROFIT/LOSS Year 6 Year 7 Year 8 Year 9 Year 10

Revenue: $2,232,964,538,189 $8,752,833,800,832 $34,731,742,915,123 $138,522,811,436,006 $553,562,517,583,257

Expenses: ($660,618,537,301) ($2,547,780,623,468) ($10,081,664,266,612) ($40,181,074,137,668) ($160,542,588,920,371)

Net Profit/(Loss) $1,572,346,000,888 $6,205,053,177,364 $24,650,078,648,511 $98,341,737,298,338 $393,019,928,662,886

DISTRIBUTIONS Year 6 Year 7 Year 8 Year 9 Year 10

Cash Paid to Investors from Net Income: $12,000,000,000 $12,000,000,000 $21,000,000,000 $21,000,000,000 $21,000,000,000

CUMULATIVE VALUE OF SINKING FUND Year 6 Year 7 Year 8 Year 9 Year 10

Network Replacement Sinking Fund: $221,706,082,605 $886,293,008,869 $3,484,183,920,298 $13,872,290,772,387 $55,376,261,387,112

Projected Revenue Years 6-10


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Documents

Proprietary and Confidential. Copyright © 2012 SWANsat Holdings, LLC. An Introduction to the Business Model