New Global Knowledge Via Satellite 

SkyFrames, Inc. is a leading provider of cost-effective, high-speed satellite information access to under-served rural and overseas markets with limited bandwidth for local access to Internet service. The Company believes its leading-edge satellite technology will capture a significant share of the burgeoning worldwide market for Internet and connectivity services.

Computer World concluded through a 1998 Pioneer Consulting report, "Satellites will emerge as a global option for broadband Internet services. Demand is expected to push this fledgling market to 39.6 million subscriber homes by 2007." According to The New York Times, "Thousands of businesses, schools and Internet Service Providers in remote areas have opted for satellite access to the Internet, because landlines are either unavailable, or too expensive.

SkyFrames develops and markets products and services to deliver high-speed information access to customers in the business-to-business, education, and other professional segments. The Company targets market segments and geographies where competing access methods are unavailable or economically infeasible. Merrill Lynch reports these under-served markets represent a growing percentage of overall connectivity requirements on a global basis, with overall telecommunications revenues expected to top one trillion dollars by the year 2001.

The Company currently enjoys competitive advantage in the implementation of high-speed data traffic delivery via satellite. SkyFrames network utilizes an innovative method to improve performance of IP (Internet Protocol) traffic transmitted via satellite by an order of magnitude over current satellite service providers. The Company offers a tethered advanced (bi-directional satellite path) product solutions to economically offer high-speed connectivity, supporting applications that would otherwise be unfeasible. The ability to offer one-to-many  IP multicast and Data link Multicast services is the Company's key service to a marketplace demonstrating exponential growth.

The Company intends to leverage its satellite Internet transmission capabilities on a global basis through the construction of a network of strategically positioned uplink facilities, which will service global footprints. This global satellite backbone will provide connectivity solutions to the Internet Worldwide, as well as providing the infrastructure to build out private and virtual private networks, and to originate IP multicast and Data link Multicast services.

Broadband Via Satellite

Key Highlights of SkyFrames, Inc Corporate Positioning

Potential to Become Leading Provider of Low-Cost, High-Speed Satellite Access to Global Marketplace: The Company's advanced technology enables users not currently wired for cable or fiber-optic to access high-quality, high-speed data service for a fraction of the infrastructure expense that established ISPs would have to charge. In global non-wired markets, competition is limited and the Company enjoys a high degree of competitive advantage as a result of its low-cost technology solutions.

Significant Advantage in Price and Service vs. Fiber Optic and Cable Technologies: The Company's satellite access technology does not require lengthy installation lead times associated with traditional terrestrial lines, therefore the Company has no costly infrastructure expenses to amortize. The Company now offers to provide service for network users for a low, flat monthly rate of under $500.

Dependable, Recurring Revenues: Service contracts once in place result in corporate customers that are far less likely to "shop around" for other service providers, making it a more lucrative and stable market niche for the Company. Customers are signed to a binding service contract of 1-3 years. In addition, the Company can upgrade and cross-sell additional services, thus increasing revenues from existing customers. The Company's recurring revenue sharing model is also extremely popular with industry resellers and system integrators.

Favorable Global Marketplace and Demographics for Data/Information Distribution and Market Penetration: The Company's technology is particularly relevant outside North America and Europe where demand for information services via computer will soon exceed the infrastructure available to allow high-speed access and downloads from the Internet. The industry is still highly fragmented in its delivery systems, and no single competitor or technology has yet emerged as a clearly leading global market leader. Out of a total worldwide population of 5.7 billion, fewer than 200 million users currently have access to the Internet due to the large cost and lead-time involved in building out the communications infrastructure. Industry projections indicate a global market of approximately 205 million users in 1999, and 350 million in 2005.

Leading-Edge Technology Solutions: The Company's tethered satellite products offer significant advantages in speed, cost and quality over existing landline technologies. The hybrid system of the Company's SkyFrames Gateway product is capable of transmitting digital data nearly twenty times faster than a standard dial-up modem and four times faster than an ISDN cable line (in its standard configuration). Minimal installation time is required and equipment is limited and affordable.

Seasoned Management and Technical Team: The Company has made a significant investment in the past 12 months in experienced management and technical professionals, and has created an attractive incentive stock option plan to attract and retain talented individuals.

The SkyFrames, Inc. Technology

The Company's core technology relies on its innovative solutions to handling IP (Internet Protocol) traffic via satellite transmission. The optimizations made by SkyFrames to improve the delivery speed of IP data via satellite has resulted in an order of magnitude improvement over traditional methods of delivery. The Company intends to leverage this core competency by building on those innovations and using them as the basis for a high-speed global satellite network.

Global Satellite Backbone (GSB): The Global Satellite Backbone (GSB) will provide high-speed satellite data services at a number of different levels, to customers across the globe. The infrastructure of the backbone network will consist of uplink/hub facilities and various Geosynchronous Orbit (GEO) satellites to reach a World wide geographic footprints. The hubs are connected to the Internet via high-speed fiber and contain a collection of equipment designed to uplink and receive satellite signals, process and manage the assignment of data channels, and route Internet traffic.

Transmissions from the hubs to customer receiving dishes, known as outbound traffic, will use the standardized DVB/MPEG-II (Digital Video Broadcast) (Motion Picture Expert's Group, an industry wide video compression standard) transport stream with TCP/IP (Transmission Control Protocol/Internet Protocol) packets. TCP/IP packets are wrapped inside a DVB/MPEG-II transport stream for delivery by satellite, similar to an Asynchronous Transfer Mode (ATM ) network. All traffic routed across the GSB has the capability of encrypted data using DES-56. Additional levels of encryption may be accomplished on a per session basis, and will be required for VPN implementation across the Internet.

Management of the GSB is coordinated on an on-going basis with communications between the hubs and CPE. The hubs are staffed and operational on a 24 hour, 7 day a week basis. In addition, central monitoring and diagnostics are conducted from the Global Network Operations Center (GNOC). The GNOC is responsible for all the operations of the network and will have the ability to remotely monitor all hubs. The distributed intelligence and central control capabilities of the GSB allow the provision and management of diverse services such as Internet access with public and private IP addresses; routing; web and email hosting; private and virtual private networks; shared, dedicated, flexible and wholesale bandwidth; and IP-multicasting.

Network Topologies: The satellite access services and products provided by the Company may be used to form a star topology, as a pure private network, or as a hybrid star topology when combining satellite, dedicated or dial-up terrestrial lines, the Internet, or other Mediums. All connections to the Internet at the hubs are through multi-homed fiber optics cable.

Satellite Access Schemes: In addition to the standard DVB/MPEG-II transport stream for the traffic outbound from the hub to the Company's Customer Premise Equipment (CPE), the Company relies on several satellite access schemes for traffic inbound from its CPE products.

SCPC (Single Channel Per Carrier) circuits
FDMA (Frequency Division Multiple Access) is a type of Demand Assigned Multiple Access (DAMA)
MF-TDMA (Multiple Frequency-Time Division Multiple Access)

Bandwidth Allocation: Several methods to provide appropriate bandwidth allocation in the GSB are implemented to ensure optimal utilization.

SkyFrames, Inc, Products and Services

The Company addresses the market by offering core products and services, with variants to customize offerings to the specific needs of customers. Using these core products as building blocks, applications may be realized and or specific topologies can be achieved.