3500 Thomas Road Suite A Santa Clara, California
408-260-5000
Confidential
Except for historical information contained herein, the statements in this presentation are forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the companies' actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, force d majeure, market conditions, competitive factors, the ability to successfully complete additional financings, shipping and other risks associated with the operations in foreign countries where certain governmental economic or political situation/polices might adversely affect outcome of the envisioned business.
company profile
a U.S. company incorporated in Delaware headquarters in San Jose, California a wireless division in Santa Clara, California two wholly-owned subsidiaries in Shanghai, China 68 employees
Ticker symbol: MDGC (OTCBB) Shares: authorized common 45 million authorized prefer 5 million
issued restricted common 20.5 million float common 6.5 million
business overview
complementary core business segments providing access, applications and content via
mg3 wireless (access), a broadband wireless system
mg3 mobile (applications), a mobile delivering service mg3 web 2.0 (content), a social network for business and
consumers
MediaG3 is a technology company, not an equipment manufacture
patented technologies
patents protecting MediaG3 Local Multipoint Distribution System (LMDS) multichannel radio frequency transmission technologies
five U.S. patents one Chinese patent one European patent
mediag3 advantage
unprecedented market opportunities
China market - $26B in 2006 with 30% growth through 2010 and
open to foreign companies (deloitte) Southeast Asia market - $500 Million 400 million mobile subscribers in China as of July 2007 (China Daily)
proven technologies
certified by Chinese government after two year live field test approved by Philippines major network operators as a sole supplier of LMDS broadband wireless systems for nationwide implementation
excellent timing
urgency to balance urban and rural and reduce economic disparities (China 11th Five-Year Plan 2007-2011)
mediag3 advantage
strong partnerships
Formed a partnership with Academy of Broadcasting Science (ABS), a state policy maker under China State Administration of Radio Film and Television (SARFT), which is responsible for setting up national roll out programs and selecting vendors
proven management team
143
years combined experience in both public and private companies
achieved milestones
granted patents in the US, Europe and China approved by Chinese authority and received network certifications for commercial deployment formed a partnership with ABS to launch a rural coverage pilot project and nationwide roll out plan for China approved by China Minister of Commerce for the pilot project awarded $600,000 grant from US Trade and Development Agency to support our broadband wireless pilot project in China received $10M contract from Business Corp Services, Inc. as a sole provider of LMDS broadband wireless systems to Equatorial Guinea and other Southeast Asian regions
mediag3 customers and partners
(partial list)
Business Corp Services, Inc. (Philippines Broadband) Shanghai Media Group Broadband China Soccer Super League China Academy of Broadcasting Science (ABS) China Olympic Village
Research in Motion
(RIM/BlackBerry)
China National Technology Import/Export Corporation
(CNTIC)
China Cable Information Technologies (CCIT) Shanghai International Expo Shanghai Fashion Street
mg3 wireless
two way broadband wireless for interactive TV coverage and high speed internet connectivity
mg3 wireless
broadband wireless equipment and network system higher microwave frequency from 26GHz to 40GHz with minimal interference from weather and other radio waves point to multi-point 90 per sector coverage broadband wireless with 50Mbps down stream and 40Mbps upstream shared by total of eight channels secured data and voice transmissions
mg3 wireless advantage
delivers true bandwidth-on-demand for user sector with higher available per-user bandwidth. The total bandwidth available per sector is dynamically allocated and prioritized for the users in that sector. offers frequency re-use factor of unity. mg3 wireless is more efficient and cost effective, since adjacent deployed cells do not need to use different frequency sets to avoid interference. This reduces deployment planning costs, and reduces hardware costs since only one set of frequencies needs to be supported and only one version of RF hardware needs to be manufactured
mg3 wireless advantage
enables a very low cost customer premises equipment (CPE) supports greater bandwidth (100Mbps downstream and 80Mbps up stream) for high speed internet to fixed sites and wireless services provides solid backhaul for WIMAX and other mobile data systems proven to be most reliable. After more than two years of field test, mg3 wireless is certified by Chinese government and is the only LMDS system chosen by Philippines government and broadband wireless integrators
mg3 wireless
Radio Frequency Unit Antenna Transceiver
Internet
Base Station
Tropos 5210 AP1
Network Interface CPE
Pronto Hotspot Controller (PHC)
Tropos 5210 AP2
Tropos 5210 AP3
Up to 7 miles
mg3 wireless system
mg3 CPE Transceivers Sector (RFU) Urdaneta Village Receiver
Security office at Urdaneta Village Security office
Pacific Star Building
mg3 Base Station
at Pacific Star Building
mg3 Base Station
Air Interface Unit (Indoor Equipment)
mg3 wireless live in Manila
mg3 CPE Urdaneta Village Receiver
Security office at Urdaneta Village Security office
Pacific Star Building
mg3 Base Station
at Pacific Star Building
mg3 wireless revenue model
Phase One China and Southeast Asia Market Maa
Phase Three European Market Phase Two US Market
Operators
Integrators
mg3 revenue opportunities
incremental revenue mg3 mobile applications mg3 web 2.0 content mg3 wireless access
mg3 revenue opportunities
China market strategy
- execute the China rural coverage pilot project to show case the effectiveness and efficiency of mg3 technology - implement a commercial roll-out plan with China telecomm and cable operators - participate in the commercialization for digital information delivery initiatives in China
US market strategy
license and lease equipment to small to mid size telecomm companies generate initial revenue and recurring loyalties
financial projection
Sales 2006 actual $ 298,995 2007 2008 unaudited estimated 2009 estimated 2010 estimated 2011 estimated
628,749 1,156,878 7,529,420 17,051,429 25,460,857
Cost of Goods Sold $ (267,982) (282,004) (266,560) (2,740,500) (7,011,000) (10,516,500) Gross Profit $ 31,013 346,745 890,318 4,788,920 10,040,429 14,944,357
Operating Expenses $ (894,797) (1,947,070) (1,341,799) (2,906,699) (4,253,848) (6,253,332) Net Income (loss) $ (863,784) (1,600,325) (451,481) 1,882,222 5,786,581 8,691,026
capitalization table
Total Preferred Shares Authorized Total Common Shares Authorized Total Preferred Issued and Outstanding Total Common Issued and Outstanding 5,000,000 45,000,000 0 26,940,910
(see table below)
Directors and Officers Other shareholders Investors (convertible from loan to equity)
Restricted 5,580,000 12,153,177 0 17,733,177
Registered 1,318,644 5,794,089 1,395,000 8,507,733
Total 6,898,644 18,647,266 1,395,000 26,940,910
Percentage 25.61% 69.22% 5.18% 100.00%
Warrants Excersice Price Term
1,270,000 $0.5-$1.5 48 months
management team
william yuan, chairman and CEO
15 year track record as founder and CEO of public and private corporations (ClickAction, inChorus, NetUSA)
dean peterson, PhD, CTO
Inventor, technologist and executive in wireless industry with over 30 years of experience in technology and product development (Wytec, Micro Device Technologies, Steinbrecher)
joseph anzalone, SVP Operations
over 20 years experience in operations and financing for both early stage and growth stage forward-thinking banking and technology companies (Ohana Wireless, Silicon Valley Bank)
board directors
steve keating, MBA, director and audit committee chair
30 years of experience as financial expert and CFO of public companies (Tegler McHenry, Euro American)
robert mcNamara, Ph.D., director and technology advisor
25 years of experience as CEO and CTO in public companies and an inventor in high tech industries (C5 communications, Comtel Secured Fiber, First Pacific Networks, GTE)
cathryn gawne, J.D., director and legal counsel
23 years of experience in security law (Hopins & Carley, Silicon Valley Law Group)
