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PELS Prospectus
 

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    PELS Prospectus PELS Prospectus Document Transcript

    • Patent # 6,222,484 PELS™ Personal Emergency Location System Improved man overboard tracking system offering faster and more precise location coordinates
    • Table of Contents I Product Opportunity Summary 1 II Competitive Landscape Competitive Advantages / Breakthrough Opportunity 5 Product Features and Benefits 7 Market Comparison 9 Comparable Established Products 10 Referenced Patented Products 13 III Industry & Market Analysis Industry Size and Trends 14 Target Market Analysis 16 Distribution Channels 18 IV Product Analysis Product Specifications 19 Estimated Manufacturing Cost 20 Expected Pricing 20 Patent Value Enhancement 20 V Financial Forecast Five-Year Pro Forma 21 VI Licensing Opportunities & Patent Information Patent Information 23 Exhibit Summary 24 Disclosure Statement 28 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • I Product Opportunity Summary This prospectus introduces the Personal Emergency Location System or PELS™, a newly patented technology available for licensing. PELS™ is a dynamic new emergency notification system specifically designed for immediate alert, location and identification of a man overboard. This system employs small, battery-powered units worn by individuals at risk of falling overboard. These personal units are equipped with a GPS receiver and processor for determining the person’s GPS coordinates and an RF transmitter for sending an RF emergency signal with the GPS coordinate data to a nearby vessel. This improved tracking system is ideal for recreational boaters, commercial fishermen, military personnel, cruise ships and more. Use of PELS™ means quicker reaction time which is critical in executing a successful man overboard (M.O.B.) rescue. Having a crew overboard incident represents a nightmare emergency for anyone at sea. Every person that works or plays on a marine vessel is at danger of falling overboard. M.O.B is the worst of marine catastrophes as it accounts for 80% of all deaths at sea. Prevention of man overboard incidents is a major priority for seamen. Getting a crewmember out of the water quickly after a fall overboard is a huge priority and time is not on the side of the operation. Exhaustion, fatigue, cold water, and injury literally make recovery a race against death. PELS™ aids in the quick recovery of a M.O.B as it immediately alerts all nearby GMDSS equipped vessels and aircraft that someone has fallen overboard and effectively transmits a victim’s position to them, allowing for timely location and ultimately, successful rescue. PELS™ uses a GPS receiver to process the person’s location and then broadcasts the distress signal and GPS position using standard VHF GMDSS radio and an identification string. 1 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • Transmission of location coordinates is extremely important because it takes a substantial amount of time to slow a ship, especially a large ship such as a cruise ship, and conduct a maneuver to put the ship back on the reciprocal course. The ship could be thousands of yards away before beginning the approach back to where the M.O.B. incident took place. By this time, the person overboard is out of sight and difficult to find. PELS™, unlike other M.O.B tracking systems in use today, facilitates an immediate signal to the vessel they have fallen from that someone is overboard and ID’s that person. In addition, this emergency signal can be received by any SOLAS equipped vessel and SAR equipped aircraft. This immediate signal not only provides instant alert of a M.O.B. event but allows the captain and crew to focus on rescue efforts instead of beginning what can be an exhaustive search procedure. Knowing the exact location of a M.O.B. is crucial for successful recovery because individuals lost overboard are extremely hard to see, even when close. 2 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • Any vessel equipped with GMDSS can accept a distress call from a PELS™ device and receive the RF emergency signal and the person’s GPS coordinate data. The base vessel is equipped with a GPS system that can be updated with the most current GPS data which allows for accurate calculation of an approach vector to the person’s position. All communications are handled in the GMDSS/DSC signal format which is standard and considered preferred by the International Maritime Organization (IMO). Everyone at sea should wear PELS™ so that in the event that person is lost overboard at sea they can be easily located. The personal unit being worn by the M.O.B is equipped with a GPS receiver and processor which determine the person’s location and an RF transmitter that broadcasts an RF signal with the GPS data. This unit sends an emergency signal until an acknowledgment signal is received from any nearby GMDSS radio, after which the personal unit goes into a “receive-only” mode to reserve battery power. The unit is equipped with an indicator which tells the M.O.B. that their distress signal has been received. This indicator can be a light and/or sound. This feature is important as it fulfills the critical function of letting the person in distress know that help is on the way. When not in active use the personal units can be updated with up-to-date almanac-ephemeris data, to quicken the GPS processing. The RF format that is sent with the GPS coordinates is formatted as a digitized data packet transmitted at 156.525 MHz, meeting all IMO specifications for digital emergency radio communications (DSC/GMDSS). The target market for PELS™ is extremely large and encompasses virtually every recreational boater as well as every person and every company who work on marine vessels. This market includes, but is not limited to: • Commercial Marine Industry • Recreational boating • Oil and gas • Ports, Wharfs and loading facilities 3 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • • Coast Guard • Military • Airmen With an expected low manufacturing cost, the margins are good for both the manufacturer and retailer. Financial projections are contained in Section V. Millennium Marketing Group, Ltd. has been retained by the patent owner to secure a licensing or sales agreement in order to bring the unique features, quality, effectiveness, and value of this technology to the marketplace. The first firm to bring this exciting design to the market will capitalize with a favorable return on investment and enjoy the commercial benefits well into the future. Currently, we are seeking a partner that can fully and profitably exploit this rare and lucrative licensing opportunity. PELS™ at a Glance Patent Number: United States Patent No. 6,222,484 Industry: Marine/Safety Target Market Size: 17,047,040 vessels Primary Use: Personal Emergency Location Device for man overboard situations Key Benefits: GPS and RF technologies  Personal unit small enough to wear on person  Facilitates immediate locating of man overboard  4 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • II Competitive Landscape Competitive Advantages / Breakthrough Opportunity M.O.B. instances are extremely dangerous and the more time the victim spends in the water the more likely they are to sustain severe injuries or to never be found. Many products are on the market and in use that are operable by the M.O.B, such as mirrors, lights, flares and the like. An individual who is injured or unconscious is not able to operate these devices, rendering them useless in many life-threatening circumstances. Immediately finding a M.O.B is of the utmost importance and PELS™ is the first technological advance in M.O.B. tracking devices which provides the base ship and other vessels on an RF frequency an immediate signal someone is overboard and provides their actual location. PELS™ substantially improves the chance for a successful rescue. Many products being used provide a signal of location within a general area that might span the course of miles, or simply provide the location of the vessel at the time of impact into the water, not accounting for the M.O.Bs potentially swift stray off course. The use of Global Positioning Systems (GPSs) has more recently been used to locate lost persons. These systems typically require the person who has fallen overboard to have a GPS receiver and a radio to send their latitude and longitude coordinates over the radio. Having both devices on person when lost is certainly not the norm for recreational boaters and for few commercial mariners as well. Yet another not uncommon approach is to carry an RF emergency signal device that transmits to the base vessel when tossed overboard. In turn the ships crew can broadcast an alert, giving the location of the vessel when the overboard incidence 5 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • happened. When adrift the victim is at the mercy of the current which can swiftly pull them away from the vessel, making knowledge of the original position virtually useless. EPIRB and VPIRB technology provide mariners with the only products comparable to PELS™. PELS™ effectively overcomes the disadvantages associated with these systems while offering exciting new features with lifesaving benefits. Use of Emergency Position Indicator Radio Beacons (EPIRBs) is typical and widespread throughout the maritime industry but have a myriad of disadvantages that PELS™ effectively improves upon. The EPIRB system has saved many thousands of lives over the years, however its principal shortcoming is that it relies on a remote shore infrastructure to process and then re-broadcast the alert message to ships in the vicinity of the person in distress. Depending on the location of the EPIRB, this could involve delays in the order of hours. Even though their use is common maritime safety practice, small and fully effective units that can be easily and comfortably worn by individuals have yet to be marketed. Additionally, while newer versions of EPIRBs embed GPS location data into their 406MGz signal it has to go through the EPIRB ground-based reporting system. These units can only be used by the Coast Guard as this marine safety fleet continually monitors for EPIRB emergency broadcasts and have the ability to locate the signal with satellite receivers. An EPIRB-determined location is only accurate within several square miles and can be off as much as thirty miles. A VPIRB is a combination of the terms VHF (radio) and EPIRB. A VPIRB is essentially an EPIRB operating in the marine VHF radio band rather than the COSPAS-SARSAT 406 MHz channel, utilizing DSC technology to broadcast a distress signal to all VHF DSC radio-equipped vessels in the vicinity, including the parent vessel. A VPIRB comprises a small DSC beacon, which is attached to the user's clothes or lifejacket. If the user falls overboard, the beacon activates and sends a distress message via VHF DSC. Reception of the distress message from the beacon will sound an alarm on all VHF DSC radios within range. If fitted with a GPS receiver, a VPIRB can also automatically transmit its position as part of the distress alert message, which will also be received on all VHF DSC radios in range. The VHF DSC and VHF voice messages 6 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • are repeated at 5 minute intervals for the first 30 minutes, updating the GPS position of the person in the water with each transmission, then the repetition period will change to ten minutes. This will continue until the device is switched off, or the batteries expire. The patented technology of PELS™ offers all of the important features of a VPIRB and includes added features such as the use of GDMSS which rapidly alerts SAR authorities ashore, as well as shipping in the immediate vicinity of the ship or persons in distress. This provides immediate reaction time. PELS™ also offers the first ever “turn-off battery saving feature”, which will extend the battery life of the personal units adding life saving time for rescue as well as the all important “green light” rescue is on the way feature. In addition the PELS™ system offers a balloon feature that works to extend the RF coverage area that current products do not. PELS™ technology will add better features, extend operation, provide more up to date positional data and faster recovery opportunity. PELS™ offers an improved technology with a tracking device that uses GPS technology in combination with a common RF emergency signal to provide the location coordinates for a lost individual to the base vessel and/or any vessel or air craft in the vicinity equipped to receive a DSC/GMDSS signal, which is mandatory for all SOLAS ships. Faster and more precise M.O.B. tracking means an increased chance for survival. The PELS™ offers the benefit of providing a device that is good for either professional mariners or recreational boaters. The licensee first to market with PELS™ will have the unique opportunity of bringing this much needed safety product capability to the marketplace and will reap the financial and branding benefits for years to come as they introduce newly patented technology with the following unique features and benefits: Product Features and Benefits Extremely portable personal unit worn by those in potential danger of a man 1. overboard emergency Equipped with a GPS and RF (GMDSS) transmitter for sending an RF signal with 2. location data 7 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • Personal unit is battery powered 3. Personal unit has a “distress signal received” indicator for lost individuals peace 4. of mind Personal unit automatically switches to “receive data” status when it receives 5. confirmation that a distress signal has been received in order to reserve battery power System can be re-awakened by any station for an updated position. 6. Personal unit updates to the latest GPS information to ensure proper coordinates 7. are transmitted Vessel equipped with a base unit that receives and sends distress signals and 8. location coordinates Provides immediate location signal and personal ID when a person falls 9. overboard Offers faster location coordinates if kept updated with the most current almanac 10. and ephemeris data downloaded from base station Offers more reliable location coordinates 11. Perfect for use in the recreational boating industry 12. Perfect for use in the commercial maritime industry 13. Large established target market 14. This device has the ability to deploy a small balloon to increase the RF range and 15. help to locate the MOB. PELS™ is also ideal for scuba divers and other recreational boaters who are at risk of getting separated from their boats 8 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • PELS™ Market Comparison Raymarine VPIRB PELS™ EPIRB AquaFix™ ResQFix™ Feature Lifetag (Mobilalarm) 1 YES Yes Yes Yes Yes Yes 2 YES Yes No Yes Yes Yes 3 YES Yes Yes Yes Yes Yes 4 YES No No No No No 5 YES No No No No No 6 YES No No No No No 7 YES No No No No No 8 YES No No Yes No No 9 YES No No No No No 10 YES No No No No No 11 YES No No Yes Yes Yes 12 YES NO Yes NO Yes Yes 13 YES Yes Yes Yes Yes Yes 14 YES Yes Yes Yes Yes Yes Comparable Established Products 9 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • Rescue Strobe Light Typical EPIRB Raymarine Lifetag The products shown above are typical M.O.B. safety products. The disadvantages of these units have been outlined previously. The image on the right is a wrist worn system that causes an audible alarm to sound when the RF link between the unit and the base unit is broken, typically when either out of range or when submerged. This product does not provide any sort of beacon signal nor does it provide any location coordinates helpful in finding the M.O.B. Pictured here is the Magellan EPIRB RB3S Emergency Location Beacons with Strobe and the RB3 without Strobe. This pocket- size beacon transmits on both the 121.5 MHZ and 243 MHZ international distress frequencies simultaneously, giving a satellite alert and position to search for rescue authorities. The strobe version n is fitted with a high intensity strobe light, which incorporates the multiple flash sequence, can be seen at night for more than 4kms. In February 2009 Garmin phased out the old analog EPIRB and phased in a new generation digital EPIRB. This new generation is reportedly more accurate, easier to detect and ID’s the user. 10 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • At present there is only one VPIRB model available, the Mobilarm V100 VPIRB. It is designed to use existing industry standard VHF marine radio networks. It uses GPS technology to lock onto a M.O.B.’s location but, it does not update the personal units on GPS satellite almanac and ephemeris data. It does not have the PELS™ automatic battery saving function. It also does not provide the M.O.B. with an indication that his/her location has been pinpointed and that help is on the way. PELS™ units plug into its base system between uses and are updated with the latest GPS almanac and ephemeris data; this greatly reduces the time it takes for the handheld unit to process GPS satellite signals when activated. No other product can claim that. The AquaFix™ 406 transmits a personally registered, digitally coded distress signal on 406 MHZ via the COPAS-SARSAT satellite system. It acquires the M.O.B.’s GPS position within 100 meters and broadcasts this position along with the distress signal. The ResQFix™ ResQFix™ 406 GPS PLB is a smaller more streamlined AquaFix™ unit that when activated transmits an emergency signal to rescue authorities with a unique digitally encoded distress message on 406MHz via COSPAS-SARSAT satellites and/or 121.5MHz. It transmits for a minimum of 24 hours before the battery runs out. This unit also advertises location within 100 meters and sends the location along with the distress signal. Once again, these two advanced units do not provide individual units with GPS satellite almanac and ephemeris data. It has no automatic battery saving function nor does it provide the M.O.B. with an indication that his/her location has been pinpointed and that help is on the way. In addition to lacking important features that are included in the design and function of PELS™ the AquaFix™ and ResQFix™ are cost prohibitive at $500 to $600 per unit. 11 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • Referenced Patented Products The United States Patent and Trademark Office referenced the following patents when issuing the patent for PELS™: U.S. Patent No. 5,815,126, issued to Fat et al., September 1998 U.S. Patent No. 5,862,511, issued to Croyle, January 1999 12 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • None of the above referenced patented products offer all the features and benefits of PELS™. Man overboard emergencies are responsible for at least 80 percent of maritime fatalities. III Industry & Market Analysis Industry Size and Trends Marine Transportation Industry The US marine transportation system encompasses a national and global network of navigable ocean, lake, river, and inland waterway routes. The system includes over 3,500 bulk oil transfer facilities, 10,000 marinas, a network of locks and dams, over 13 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • 97,000 aids to navigation, commercial vessels making over 70,000 port calls annually, 110,000 fishing vessels and nearly 20 million recreational vessels. As the world’s largest trading nation, the U.S. exports and imports about one-fourth of all global merchandise trade ($1.9 trillion in 2001). The largest parts of this merchandise trade – over one billion tons of cargo – are moved by water. Another billion tons of cargo is carried in domestic waterborne movements, which serve over 90 percent of the U.S. population. By the year 2020, US foreign trade in goods is expected to grow by more than half of its current tonnage, and inland waterways traffic is expected to increase as well. As ships and transportation systems become more complex, training requirements will increase, and crews are currently required to be trained and qualified to operate in accordance with international standards (STCW). Marine Transportation is an integral component of the US transportation system and is essential to our nations economy. The entire US transportation infrastructure, including ports and waterways and maritime training schools, are expected to be able to handle and provide this projected increase. As of 31 December 2004, there were over 250,000 mariners with Merchant Mariner Documents, Merchant Marine Officers License or both, issued by the United States Coast Guard. Recreational Boating The recreational boating industry represents a significant investment of consumer dollars. The recreational boating industry revenues were 15.7 billion in 2007 and are expected to grow 5.3 percent annually through 2011(www.NMMA.org). This figure includes boating accessories and safety products. Nearly one-third of U.S. adults went boating in 2006, up nearly 2 percent from the previous year. The number of boats in use increased slightly to nearly 18 million in 2006, an increase of nearly 60,000 from 2005 14 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • The number of boats in use has grown steadily over the past few years and boating participation increased for the second consecutive year, rising to 72.6 million in 2006 from 67.5 million in 2005. Aircraft, Marine & Railroad Transportation Equipment Wholesaling Industry This industry comprises establishments primarily engaged in wholesaling transportation equipment and supplies (except marine pleasure craft and motor vehicles). This industry wholesales aircrafts and aircraft parts, boats and marine equipment, railroad cars and railroad equipment, military tanks. There are over 400,000 establishments involved in the manufacture and/or sale of the products defined within this industry with annual revenues of $4.6 billion. Target Market Analysis According to the 2006 Recreational Boating Statistical Abstract, conducted by the National Marine Manufacturers Association (NMMA), there were just under 18 million boats in the United States in 2006. The study also indicates there were approximately 72.6 million people involved in boating in 2006. Overall, this number has remained 15 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • relatively stable since 1995 with the exception of a slight dip in the market from 1999 to 2001. Boat Owner Facts (NMMA, 2007): o Boat owners spent an average of 31 days on the water in 2006 o Three out of four current boat owners have an average household income under $100,000 o More than one in six U.S. households own a boat o Nearly 69 percent of boat owners are married o The median age of boat owners is 45 to 49 years According to a recent survey by the NMMA, boat owners are a happy group, living life to the fullest. They participate in an average of 4.6 leisure activities, nearly twice as many as non-boat owners (2.4). In addition to water-related activities, they are also more likely to participate in other outdoor activities such as camping, skiing, tennis and golf. More boat owners (48 percent) than non-owners (39 percent) regularly travel. When not on the water the same survey indicated that boaters enjoy spending their weekends engaged in cooking, gardening, playing sports and traveling, compared to non-owners, who are more likely to spend their weekends relaxing, doing household chores and attending movies, concerts, and sporting events. In addition to the recreational boating industry target market an enormous market exists in the commercial marine industry which includes commercial fishing, oil and gas, ports, wharfs and loading facilities and cruise ships. Also included in our target market are U.S. Navy and Coast Guard fleets. Commercial Marine Numbers • Commercial Fishing: 3.5 million fishing vessels globally (10,000 large scale ships, 160,000 U.S. employed) • Oil and Gas: 3500 vessels • Ports, wharfs and loading facilities: 300 16 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • • Cruise ships: 130 (1,200 to 3,500 passengers each, 12 million passengers per year) • Coast Guard: 1400 vessels, 42,000 active duty, 7,000 civilian employees, 8,000 reservists and 34,000 volunteer auxiliarists • Navy: 282 ships, 3700 aircraft, 331,682 active duty, 124,000 reservists The inventor would like to stress the fact that it is a distinct possibility that the Coast Guard will make these personally worn units mandatory items for many classes of vessels carrying people. It is almost a certainty that the U.S. Navy will make them a requirement to be worn at all times. The savings in mustering (an all hands muster is required when anyone is suspected of falling overboard) alone will quickly pay for the units, which will probably cost less than $100 each. In addition these units can be used as an excellent method to contact individuals on ships, a function that can easily be added to the device. All of these features will significantly increase the target market. The PELS™ system is an important advancement for sailing and cruising vessels where many people are lost by falling overboard while the crew is below. This system alerts crew members that someone has fallen overboard and ID’s the loss crew or passenger. This feature is of particular importance on large vessels where one person missing out of thousands on board, might go unnoticed until it is too late for rescue. The commercial fishing industry is in need of improved safety devices as it is considered the world’s most dangerous job. With 142 deaths for every 100,000 workers annually, commercial fishing leads the nation by far in deaths on the job. They regularly brave the most turbulent ocean waters and weather to bring home a bigger catch. Pounding waves, merciless winds, loose rigging, and few safety features make commercial fishing the most unfriendly work environment imaginable. Commercial fishing employs more than 160,000 people in the U.S. alone. 17 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • Distribution Channels PELS™ will be primarily distributed in the United States through an extensive network of 5,262 boat dealers, 6,080 sporting and recreational goods and supplies wholesalers, and 952 marine machinery, equipment and supplies wholesalers. There were approximately 12,073 marinas in operation in the U.S. in 2006 that might also potentially distribute PELS™. The PELS™ system can also be distributed in bulk directly from the Original Equipment Manufacturer (OEM) to fishing fleets, military buyers, cruise ship companies, etc… IV Product Analysis Product Specifications A small battery powered personal device is worn by a M.O.B. and a GPS-equipped transceiver system on board the base vessel or any nearby vessel with a standard 18 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • marine GMDSS radio. Once overboard the personal unit is activated to initialize the GPS receiver. In an alternate embodiment, activation could also inflate and deploy a balloon which holds an antenna above the water. The antenna may be carried within a plastic sleeve line and on the inside of the balloon, which may be dyed a fluorescent color to serve as a visual marker to rescue personnel. This approach will further increase the range of the device by increasing the horizon. The personal unit receives the available GPS satellite transmission signals and its processor determines the person’s GPS location coordinates. Immediately after activation the unit starts emitting an initial “distress call”. The transmitter sends an RF emergency signal with the GPS location data. Depending on placement of the antenna (balloon mode or unit integrated antenna) this could range from 3-15 miles. For an aircraft this distance could be over a hundred miles. Any vessel within range can receive the standard GMDSS and forward a broadcast signal over a longer range frequency and at higher power to other rescue vessels or to a satellite receiver for relay. The concept of this device is to alert the vessel immediately that someone has fallen overboard GPS-equipped transceiver system Small battery powered personal unit This is considered a broad description of PELS™ and should not limit suitable modifications which fall within the scope of its patent. More specifics and further embodiments are described in great detail within the text of the patent for the Personal Emergency Location System. 19 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • Estimated Manufacturing Cost The estimated manufacturing cost goal would be less than $50/unit and this cost is largely the GPS chip, RF transceiver and batteries. This technology is not expected to cost any more than comparable M.O.B. tracking systems. Expected Pricing Pricing is expected to vary but remain in competition with current products on the market. The logical way to market this technology is to package it with a full GMDSS Class A radio for use on the operating vessel. It could also include enhanced features such as: • Locating individuals by querying their uniquely addressable PELS™ unit for emergency and non-emergency functions • Proprietary protocols for PELS™ GPS position • Almanac and ephemeris updates • Centralized control of battery charge and battery verification for assigned units • More… The financial outlook will be based on the potential number of PELS™ to be sold as well as the base units capturing a market share of the marine equipment industry which reports year revenues of $4,634,755,112. Patent Value Enhancement A working prototype of PELS™ can be made available to demonstrate the design and functionality of the product. V Financial Forecast Five-Year Pro Forma 85,306,682 Assumptions: $50.00 Estimated production cost 2.0 Estimated manufacturer's mark-up to wholesale $100.00 Average wholesale price per unit 85,306,682 Primary target market* 20 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • 0.100% First year market share (innovators) 1 Number of units purchased per year 85,307 First year sales 14% 2nd year annual growth (early adopters) 34% 3rd year annual growth (early majority) 34% 4th year annual growth (late majority) 16% 5th year annual growth (laggards or non-adopters) Financial Summary (Amounts in $ 000s) Revenues Year 1 Year 2 Year 3 Year 4 Year 5 8,53 9,72 13,03 17,46 20,25 Total revenue to manufacturer 1 5 1 2 6 4,26 4,86 6,51 8,73 10,12 Cost of sales 5 2 6 1 8 4,26 4,86 6,51 8,73 10,12 Gross profit to manufacturer 5 2 6 1 8 Gross profit percent 50% 50% 50% 50% 50% Units sold: 85307 97250 130314 174621 202561 The preceding financial projections are based on a target market of 85,306,682 estimated number of people on the water in the U.S. alone. This pro forma assumes that an extremely conservative one-tenth of one percent of this target market will purchase one PELS™ with first year sales of over 80,000 units and over $4 million in revenue. Five-Year Pro Forma 85,306,682 Estimated Market: 4,634,755,112 Projected Share: 0.0500% Annual Growth: 5% Year 1 Year 2 Year 3 Year 4 Year 5 $2,317,378 $2,433,246 $2,554,909 $2,682,654 $2,816,787 21 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • This pro forma is based on the PELS™ system capturing a conservative percentage of the marine equipment industry from sales of base units, offering the licensee of this incredible technology an additional first year revenue of $2.3 million. It will be important to make the units affordable and available to everyone at sea. In the future this type of system may be required for certain sized crafts, this means virtually millions of seamen would drive production costs down and revenues up. Currently certain types of EPIRBs are required on most vessels, depending on their size. The phenomenal technology of the PELS™ system is the next level in the evolution of these personal safety products. VI Licensing Opportunities & Patent Information Millennium Marketing Group, Ltd. is the exclusive agent to represent the licensing or transfer of the patent and trademark rights. Millennium is a well-respected international firm dedicated to the marketing of patented technologies. Our team has over a hundred years of combined experience in the fields of technology transfer, licensing, and marketing consultation. Millennium represents dozens of product lines and has 22 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • successfully represented numerous award-winning products. With a shared risk philosophy, Millennium strives to develop mutually beneficial financial arrangements with manufacturers and/or distributors. Currently, we are seeking a licensing arrangement involving the patent to make, use, manufacture, market, and distribute PELS™. Please contact Scott A. Norman, President, Millennium Marketing Group, Ltd. at (913) 317–9114 ext. 102 or e-mail him at snorman@patentmovers.com to discuss this rare and lucrative new product opportunity. Patent Information Ronald L. Seiple holds United States Patent No. 6,222,484 filed on June 16, 1999, and issued on April 24, 2001. This patent for PELS™ expires in 2019, commensurate with the filing date. This patent has 20 claims that protect the exclusive design and function of PELS™. 23 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • Exhibit Summary Exhibit A - Trade Show Information Exhibit B - Trade Publication Information 24 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • Exhibit A -Trade Shows Licensing International National Manufacturing Week Date and Time: Dates and Location: June 15 - 18, 2009 September 15 – 17, 2009 Jacob J. Javits Convention Donald E. Stephens Center New York, NY Rosemont, IL The tradeshows and trade publications listed are possible marketing tools that we include in the prospectus because of our belief in the complete marketing program. Although Millennium represents products at numerous tradeshows and in certain publications, we do not guarantee representation at all of the listed shows or publications. 25 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • Exhibit B - Trade Publications Safety at Sea International Marine Business Journal Marine Business Magazine National Fisherman Pacific Fishing Boating Soundings Motorboating Boating Industry Seaworthy Sea 26 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • 27 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • Disclosure Statement Millennium Marketing Group, Ltd. (the “Company”) has prepared the attached business Prospectus (the “Plan”) based upon its current understanding of the industry, expansion plans, markets, technology and other pertinent indicators. The plan contains information to provide prospective investors with a foundation on which to base meaningful discussion with management of the Company. The projected financial information is management’s projection of possible future results and is dependent on many factors over which they are derived. Neither the Company nor any of its representatives makes any express or implied representation or warranty as to the attainability of these projections or the accuracy, completeness or reasonableness of the assumptions. Neither the company nor any of its representatives makes any express or implied representation related to any past, current or future patent infringement claims the Plan represents. THE COMPANY MAKES NO EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED IN THIS PLAN INCLUDING BUT NOT LIMITED TO PATENT INFRINGEMENT CLAIMS OR OTHER PERTINENT INFORMATION. STATEMENTS IN THIS PLAN ARE MADE AS OF THE DATE HEREOF AND ARE SUBJECT TO REVISION AT THE SOLE DISCRETION OF THE COMPANY’S MANAGEMENT. SOME OF THE REVISIONS MAY BE MATERIAL. IN ALL CASES AND NOTWITHSTANDING THE USE OF WORDS SUCH AS “WILL” OR “SHALL” OR ANY DISCUSSION OR CHARACTERIZATION OF FUTURE ACTIONS OR EVENTS, THIS PROSPECTUS IS INTENDED TO BE AN INDICATION ONLY OF THE COMPANY’S CURRENT INTENTIONS. THE DELIVERY OF THIS PLAN SHALL NOT CREATE, UNDER ANY CIRCUMSTANCE, ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY AND OTHER INFORMATION CONTAINED HEREIN SINCE THE DATE HEREOF. THE COMPANY MAKES NO EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY AS TO THE ATTAINABILITY OF THE FINANCIAL PROJECTIONS OR THE ACCURACY OR COMPLETENESS OF THE INFORMATION HEREIN OR ANY OTHER WRITTEN OR ORAL COMMUNICATION TRANSMITTED OR MADE AVAILABLE. THE PROJECTIONS OF FUTURE PERFORMANCE ARE NECESSARILY SUBJECT TO A HIGH DEGREE OF UNCERTAINTY AND MAY VARY MATERIALLY FROM ACTUAL RESULTS. ONLY THOSE REPRESENTATIONS AND WARRANTIES THAT ARE MADE IN A DEFINITIVE AGREEMENT WHEN AND IF EXECUTED, AND SUBJECT TO ANY LIMITATIONS AND RESTRICTIONS AS MAY BE SPECIFIED IN SUCH DEFINITIVE AGREEMENT SHALL HAVE ANY LEGAL EFFECT. THE INFORMATION PROVIDED HEREIN DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES, ASSETS, OR PROPERTIES, INCLUDING WITHOUT LIMITATION, ANY PRODUCTS, PROCESSES, RESEARCH, OR INTELLECTUAL PROPERTY. 28 COPYRIGHT ©2008 MILLENNIUM MARKETING GROUP, LTD. ALL RIGHTS RESERVED.
    • Opportunity at a Glance New Technology: PELS™ Patent: U.S. Patent Number 6,222,484 We are seeking a long-term arrangement with a company to manufacture, market, and/ or distribute this new technology based on the acquisition of the intellectual property rights. For additional information and potential terms to acquire this innovative technology contact Scott A. Norman, President, Millennium Marketing Group, Ltd. Scott A. Norman President Millennium Marketing Group, Ltd. 10550 Marty Street Overland Park, KS 66212 Phone: 913-317-9114 Fax: 913-338-1251 Email: snorman@patentmovers.com
    • PROFESSIONALLY PREPARED AND REPRESENTED BY ______________________________________________________ ___________________________________________________________________________ 10550 Marty Overland Park, KS 66212-9946 USA Phone: 913-317-9114 Fax: 913-338-1251