Mobile TV Breaks Free!

Introduction

Confidential and Proprietary

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Management TeamExperienced Mobile TV Experts

Founder & CEO

• 12 year veteran of the mobile industry spanning carrier, infrastructure, and mobile TV applications companies.• Former Vice President of Sales-North America IKIVO (Mobile TV company) • Sold and built first 2G GSM (T-Mobile), and first 3G UMTS/HSDPA (AT&T) wireless network during tenure at Nortel and Nokia-Siemens Networks.• Relationships with Handset OEM’s, Carriers, and Consumer Electronic Companies.

Founder, VP of Business Development

• Former VP of Sales at Bluestreak Technology (Mobile TV Provider)• Former Executive at TVGuide Mobile TV Division• 10 year veteran of wireless content and mobile TV technology• Past entrepreneurial start-up experience

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AirCast Mobile, Inc.Summary

Company Name: AirCast Mobile, Inc.

Offices: Chicago, IL & New York, NY Founded: 2008

Market Opportunity: $9 Billion U.S. Wireless Smart Phone Market

Intellectual Property: Patent-Pending Device for Mobile Phones to Receive Mobile TV signals.

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2 Years after launch the main mobile TV companies have yet to be fully embraced by

consumers. Why?

High Monthly Subscription Fees (For Acceptable ROI)

Limited Handset Choices (Due to Embedded Solutions)

Limited “Choice” in Content (TV only)

Service Quality (Current Wireless Networks Not Built to Sustain (Prolonged Video Streaming)

Problems with Current Mobile TV Model

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The Mobile DTV Market(ATSC-MH)

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Traditional TV Broadcasting HD Digital Broadcasts

High-Definition Digital Signal (720p)

Utilizes existing TV towers and infrastructure for deployment

TV signals covers 99% of the U.S. geography (and part of Canada/Mexico)

Broadcast TV has existing in the U.S. for the last 81 years (July 2nd, 1928)

On July 12, 2009 the U.S. transitioned from Analog to HD Digital Television

By Law, TV Stations must deploy a free TV signal

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Digital TV Goes MobileMobile DTV (ATSC-MH)

This New FREE Mobile TV Signal is called

Mobile DTVH.264 Video & AAC HE V2 Audio

Realizing the Potential Advertising Revenue Safety Uses Overall

Profitability

880 Regional and National TV Stations decided to allocate a portion of the existing HD broadcast spectrum

to mobile devices, and create a new Mobile TV market.

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Television Station GroupsWho Owns the 880 Local Stations

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Mobile DTV FootprintWhere the 880 Stations Located

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Where Mobile DTV is Today33% of U.S. Population Covered!

Currently, 65 station groups are deploying Mobile DTV covering approximately 33% of the U.S. population with more to come!

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“Almost 90% of mobile subscribers expressed interest in viewing live, local news programming on the go.”

88% Breaking News Coverage 76% Emergency Reports 75% Weather Information 65% Entertainment Content 44% Live Sporting Events

Interest In Mobile DTVMagid Media Labs Survey Dec.2009

http://www.fiercemobilecontent.com/story/survey-reveals-surprising-interest-local-mobile-tv/2009-12-09?utm_medium=nl&utm_source=internal

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About

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Business StructureTwo Groups with a Common Goal

Business to BusinessHandset OEM Focus

White Label Mobile TV Applications for Android

Content Partners

EPG Patent Fees

AirCast Patent Fees

“You Pay Us, We Pay Everyone Else”

Business to ConsumerDirect to Consumer Focus

iPhone/iPod/iPad/Blackberry

Mobile TV Application with

Integrated Content Partners

App Store, Retail and Online Distribution Channel

Innovative Roadmap for Applications

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AirCast MobileMission Statement

“AirCast Mobile designs, develops and sells innovative hardware and software solutions to enable wireless subscribers to receive and watch live, local broadcast television on their mobile devices for FREE.”

iPhone/iPod/iPad Windows Mobile AndroidBlackberry

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‘AirCase” Hardware Solution

“Patent-Pending” Hardware Receiver Supports ALL Smart Phone Connections

Houses Battery, and Chipsets Receives the Over-the-Air Signal

Innovative Software ApplicationAttractive, user-friendly mobile client used

to view TV broadcast & Program Guide DataDecodes and Displays Mobile TV Stream

SVG-based (XML) Application Framework Supports H.264 video and AAC Audio

Devices TargetediPhone, iPad, iPod Touch, Blackberry, and Windows

Mobile devices

(Actual Client)

A case & backup battery that provides content

Our Software Solutions

• Proprietary Applications Sold Direct to Consumer– Apple (iPod, iPhone, iPad), Blackberry– Sold via Application Stores– Mobile TV-Only, Mobile TV+Sports, Mobile TV+DVR– Integrated with Content Partners

• White-Label Applications Sold to OEM’s– Android, Windows Mobile– Licensed to major CE and Handset OEM’s– Mobile TV-Only, Mobile TV+VOD, Mobile TV+DVR– Bundled with Mobile DTV Accessory Patent (AirCast) – Bundled with EPG Patent Fee

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In 2009 Consumers spent $55 Billion on Mobile Accessories

$40 billion (73%) was spent on after-market accessories

Mobile Accessory Data From ABI Research Report

35% ($26.6B) is sold via Carriers Stores

33% ($26.6B) is sold via Big Box Store

30% $26.6B) is sold via 3rd Online Resellers

Top 3 Accessories Purchased

Case, Battery, Charger

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iPhoneAndroid

Windows MobileBlackberry

Smartphone Sales Grew by 50% from Feb to Oct

2009*

iPhone & Blackberry leading the market

Addressable Market90 Million Existing Smart Phone Users

*According to ComScore December 2009 Report

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More Than Just Free TVMore Content = More Value

Product Roadmap

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TV-Only Receiver “Dongles” and “Cases” for iPhone, iPod Touch, iPad, Windows Mobile, RIM, and Android Devices.

TV-Only Product (Version 1.0)Mobile DTV-Only Product ($99 MSRP)

Actual iPhone Application

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Interactive Product (Version 1.5)Mobile DTV + Services ($99 MSRP)

Real Time Voting (Non-SMS for American Idol)

Breaking News, Weather, Stock Tickers

Data Collection Advertising Revenue

Free TV + Premium Content Streamed Over 3G/wifi

Video-on-Demand integration with Content Partners

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Watch your Favorite Teams Live with additional info streamed to your phone

Interactive Sports ExampleLive Sports with value-added stats

Sports related information can be displayed and streamed via 3G while the user watches the live sporting event in

real-time via Mobile DTV.

Get player stats, team standings, breaking news, or follow another game

play by play all while watching a live game!

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DVR Product (Version 2.0) Industry’s First for Smart Phones! ($99 MSRP)

New Hardware: Innovative hardware configuration that utilizes a memory card to directly record your favorite programs to the accessory.

New Software: Simple user interface to designate shows as “Favorites”, and to set up view future recordings.

1 GB card = 2 hours of Recordings

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Pico Projector Integrated

Can be used with Mobile TV, VOD, SD Card

Movies, iPhone Video

ProjectorPico Projector ProductBusiness Users ($299 MSRP)

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Distribution Channels

Handset OEM (B2B)

“Entertainment” Packaged Bundles

for OEM’s

Big Box Retailer (B2C)

Best Buy

CostCo

Walmart

Application Stores (B2C)

iTunes

Windows Marketplace

Android Market

Direct to Consumer (B2C)

AirCast

Amazon

Others

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Financial Projections Pro-Forma (B2B + B2C)

51.9%

53.8%

57.7%

61.5%

$(1,000,000)

$9,000,000

$19,000,000

$29,000,000

$39,000,000

$49,000,000

$59,000,000

$69,000,000

$79,000,000

$89,000,000

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Rev

enu

e &

Op

erat

ing

In

com

e

46.0%

48.0%

50.0%

52.0%

54.0%

56.0%

58.0%

60.0%

62.0%

64.0%

Gro

ss

Ma

rgin

Total Hardware Sales Operating Income/Net Profit Gross Margin

3% Smart Phone Market Penetration by Year 6

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Our Current Partners

AirCast Mobile enjoys the support of industry leading companies who share our commitment to the Mobile DTV market.

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Milestone Achievements

2009 – Fundraising/Prototype Creation

2010 – “TV-Only” iPhone Product Launch, Online Sales, $99 MSRP

2011 – “Interactive” Product, OEM/Carrier Agreement, $45 Wholesale

2012 – “DVR” Product, Big Box Retailer Launch $60 Wholesale

2012 – “Projector” Product, Direct to Consumer $299 MRSP

2013 – Achieve 1 Million Devices Shipped (In Aggregate)

2014 – Achieve 2 Million Devices Shipped (In Aggregate)

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Early Interest In AirCastOn-Going Customer Discussions

T-Mobile has expressed interest in our Solution• Ability to offer Mobile TV without ANY network infrastructure investment• Mobile TV is of “high” interest amongst younger demographics.• Can utilize newly launched 3G network to increase 3G ARPU

Sprint has expressed interest in our Solution• Sees benefit from a non-embedded solutions (ie accessories)• Can utilize 3G/4G network for interactivity features• Increased Retail ARPU (average revenue per user)

LG has expressed interest in our Solution• Committed to showcase our products in national TV commercials

Samsung is interest in partnering with AirCast• Interested in licensing our software for Accessories

Motorola has expressed interest in our Solution• Entertainment “bundles” to launch new Android Handsets (Cliq, etc)

Early Consumer Demand 1500 Pre-Orders taken without knowing price or availability for iPhone product via YouTube.

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AirCast Mobile is a finalist for the “Most Innovative and Upcoming Mobile Startup in 2009” Award by the CTIA & MobiTechFest

Industry Recognition

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Investment Request

In order to lead the marketplace by offering the first mobile accessory that provides TV content;

AirCast Mobile is seeking $2 million in startup funding.

These funds will use to launch our products, secure an exclusive distribution deal with a major handset

OEM or Carrier, and provide the financial backing to be successful in the mobile marketplace.

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To view a demo of our applications please visit:

http://www.youtube.com/watch?v=60Qj1dtPLdw

http://www.youtube.com/watch?v=ojwFX1V7NTc

http://www.youtube.com/watch?v=I9l7XkyahRk

Mobile TV Breaks FREE!

7308 Circle AveForest Park, IL 60130

(708-366-8609)