Kenneth Brown, Managing DirectorLionchase Holdings, Inc. www.lionchase.comJune 12, 2009Wireless Devices, Africa, and Public Policy

Goals, Plans, and DirectionCreate mutually beneficial strategies to bring device manufacturing to AfricaStimulate job creation in the U.S., abroad, and in AfricaLeverage existing initiatives to generate momentumLeverage public policy to guide business effortsUse examples to create similar programs in other parts of the world

Part I. Background What is the opportunity?What is happening now?What are the big ideas?

Facts – Real Opportunity in Africa2 billion new cell phones in emerging market countries500 million new cell phones in AfricaThe African cell-phone sector is the fastest growing in the world, with subscription growth between 2007 and 2008 at 41% annually. Cell phones currently account for 90% of telephone subscribers in Africa. At the beginning of 2008, there were 300 million mobile subscribers on the continent.Mobile subscribers in Africa are also now more evenly distributed. In 2000, South Africa accounted for more than half of all Africa’s mobile subscribers. By 2007, however, almost 85 per cent were in other countries.

Zambia and Malaysia Team to OEMIn Zambia, A $10 million mobile phone manufacturing plant, known as M-mobile Telecommunications Zambia limited (M-Tech), has officially opened in Lusaka on March 12, 2009. It is the first cellular phone manufacturing company to open in the country and proof that the cell phone boom in Africa is real. Employment Goal – 200-300 Zambians Manufacturing Goal 1,000 phones per day Cost: About 200,000 Kwacha (about 36 USD) each

Motorola and U.S. Moving Backwards

China and Africa

African Exports To China Significant

Africa and China Becoming Partners-China Accounted for 16% of Africa’s Total Exports-19% of Exports from Sub Saharan Africa-China is catching U.S. and EU-China doubles trade with Africa to $100 billion by 2010Technology is next logical step for Africa-China Trade

Next Steps – Business Community Wireless Device Joint Venture Development in Africa via Creating means for U.S. small business, IT community, and parties interested to create joint ventures projects to capture new IT opportunities in Africa.Worker Training, Manufacturing, Trade, Finance, etc.

Next Steps – Public Policy U.S. Trade, Investment, and Commerce Committee ActionTax Credits U.S. and OECD for Trade and ManufacturingWireless Towers Via Wind, Solar, and HydrogenEnable Green Initiatives to WorkDisposable DevicesEnviro-Friendly Manufacturing

Experiment – Open Zone WirelessPartners with African Nation to Become the 1st Open Zone Communications Device Region in the WorldVideo CommunicationsBroadcastsWireless VoiceCompeting CarriersAppsRemote ProgrammingProgrammable Devices

Part II. Open Zone Wireless New Idea!!!Proliferation of New Technology, Growth, and Investment that is Network NeutralWill be funded in part by Lionchase-

Goals of Open Zone Wireless ExperimentBring African Nation to Forefront of Device InnovationSecurity & CommunicationsBankingApp StoresVOIPNew ContentMusic, Radio, NewsData Collection and ReportingNew Manufacturing StandardsSmart Chip Architecture

Rules of Open Zone WirelessNetwork Neutral Zone for Devices1) Ties Manufacturing to Real Investment and Deployment2) Mandates Public Policy that Will Not Allow Carriers to 3) Lock Devices to Any Network

Lionchase Holdings – And Open Zone Wireless in Africa$15 Million Project (3 year / 5 million annually)10,000 Users - $200-400 annuallyGrowth Goals - $1-4 million annually for ecommerce- $1-4 million annually for banking- $1-4 million annually for app sales- $1-4 million for standard apps- voice, text, video, etc.Multiplier Expectation - $100 millionNew networks, new technology, test market value, new product introduction

Partners in Open Zone WirelessCountries – New Markets with 10,000+ Customer Sign-up Companies – Google, Motorola, and QualcommGovernment- IMF, UN, OPIC, World BankContent Companies –International Content CosSoftware Companies – Adobe, Microsoft, SymantecAggregators – Any and all!

Partners in Open Zone Wireless Participation for $15,000,000 Pilot$5 million – Lionchase Holdings $5 million – NGO Participation$ 5 million – Private Markets – Country Funding

Benefits Africa Gains Fast LaunchData Collection – 1st in the WorldFinanced with Self-Funding StrategyBring Fast-Paced Technology to Africa and Host African Nation

Needs – More Partners!Advocacy GroupsSmall investors, App companies, People here!Help Creating 1st Fully Democratized Device Network Any and all ideasOther Self-Funding Projects