Mr. Andrew Nester Chairman - LMA Systems, Inc. Broadband Wireless World Forum San Francisco, CA

1. Mr. Andrew Nester Chairman - LMA Systems, Inc. Broadband Wireless World Forum San Francisco, CA February 19-21, 2001

2. The Market • Wireless Broadband • The Strategis Group predicts that wireless broadband revenues will reach $3.4 billion in 2003. • Dain Rauscher Wessels estimates wireless broadband revenues will reach $7.4 billion in 2003. • eMarketer reports by 2003 small and medium sized business will represent 80% of the total fixed wireless market. • Competitive Assessment • 100% of towns/cities with more than 1,000,000 inhabitants have access to both DSL and cable. • In towns/cities with 50,000 to 100,000 inhabitants, 26.2% have cable and 32.1% have DSL. (Source: US Dept. of Commerce)

3. Broadband Opportunity • Commercial Opportunity • 65% of small and mid-sized companies have Internet Access • 11% of these companies use broadband (Source: Insight Research, March 2000) • Residential Opportunity (Source: NTIA and ESA, US Dept. of Commerce)

4. Wireless Broadband Opportunity • Exploding demand for high speed broadband services • Need for high speed connections over the last mile • Availability of proven wireless solution using MMDS spectrum • Availability of licensed MMDS spectrum in second tier markets • Availability of proven, reliable head-end and CP equipment • FCC first accepted applications for two way data services in August 2000 • Sprint and WorldCom providing leadership and credibility • Spent $1B each to acquire spectrum in 1999 • Announced plans to launch 60 first tier markets over next two years

5. Competition

6. Who is LMA Systems? • Provider of fixed, two-way wireless broadband solutions to businesses, residences, and institutions.

7. LMA Target Markets • Focus is on secondary and rural U.S. markets • Minimum market size 50,000HH • “Positive” demographics • Good business mix • High PC penetration • High HH income • High education level • Good growth projections • Few Competitors

8. Target Subscribers • Small & Medium Businesses • Corporate Telecommuters • SOHO • Advanced Residential • Heat Seekers • Multiple PCs • Home Networks

9. Have a Strategic Plan • Acquire spectrum in second tier and rural markets • Provide technical/customer support from single network operating center • Offer broadband services to small to medium sized businesses and advanced residential customers • Target through “geo-marketing” to capitalize on coverage areas • Increase recurring revenue stream in two ways: • Develop broadband value added services • Leverage network with larger numbers of residential customers

10. Frequency Evaluation Criteria • Availability (fragmented ownership provides opportunities) • Fit (clustered, usable spectrum) • Valuation ($X per channel per household, adjusted for market size) • Acquisition options • Purchase • Lease (with option to buy and/or right of first refusal) • Joint Venture (with option to buy and/or right of first refusal)

11. Comparison of Technologies * LPTV is currently licensed for downstream only.

12. Site Buildout Plan • Cookie Cutter approach • Approximately $500K to $1M per site (hard and soft costs) • FCC application and buildout occur simultaneously • 90 days to launch of services • Dedicated Team (s) • RF Engineer • Data Engineer • Project Management • Launch Marketing Programs • Launch Sales Team • Launch Installers • Assigned QoS Support (Technical/Customer)

13. Subscriber Acquisition • Comprehensive Site Marketing Plans • Business Partners • Direct Sales • In-House Sales • Universities • MTU’s (Multi-Tenant Units) • Third Party Sales • Corporate Sales

14. Broadband Services Base Level Offering • Internet Access/Services • Data Carrier Services • Virtual Private Networks (VPN)

15. Broadband Services Advanced Offering • B2B Application Services/ Web Hosting • Voice over IP • Custom Video • Application Services - Delivering top end applications to small and medium sized businesses. Examples: • Profession Specific (Legal, Health Care, HR, etc.) • Customer Relationship Management (CRM)/Contact Management • Project Management • Data Warehousing

16. Have the Right Balance • Businesses bring in five times the revenue of residential accounts. • Businesses are better users of value added services. • Residential accounts may transition to business accounts as e-commerce, home-based businesses and telecommuting grow.

17. Different Markets have Different Needs • Choose your markets and segments carefully. • Select the right portfolio of products to meet the needs of your customers. • Don’t be everything to everyone.

18. The Key is… • Carefully manage subscriber acquisition & retention costs. • In today's competitive broadband marketplace, it's not enough to know who your customers are, what you want to sell them and how you hope to manage that relationship. To survive and succeed, providers must manage subscribers based on the value those customers bring to the enterprise. Those that do not will lose the coming battle for market share and increasing revenue.

19. Cost per Residential Subscriber (Source: First Union Securities, Sept. 2000)

20. Where You Want to Be Sweet Spot Unlimited MMDS DSL Cable LMDS Limited High Low Delivery Cost

21. Key Factors for Success • Procure adequate spectrum • Conduct thorough market and competitive assessments • Know your target market and their needs • Establish differentiation • Manage subscriber acquisitions

22. Questions & Answers Thank you.