by

Dr. Michel Fattouche President & CEO

November 1999

CELL-LOC INC.

OUTLINE

• WHO IS CELL-LOC?WHO IS CELL-LOC?

• WHAT IS THE OPPORTUNITY? WHAT IS THE OPPORTUNITY?

• WHY CELL-LOC?WHY CELL-LOC?

• Incorporated Wi-LAN in 1992.• Incorporated Cell-Loc in May 1995.• FCC Mandate in 1996 (Docket 94-102).• IPO in April 1997- raised $1M.• SPO May 1998 - raised $3M.• Received up to $1M from Mobility Canada.• First sale November 1998; Second sale February 1999.• Demonstrated 15m accuracy in July 1999.• Acquired IDI September 1999.• Raised a total of $54M.• Signed Letter of Agreement in Brazil (US$24).

WHO IS CELL-LOC?WHO IS CELL-LOC?

VisionVision

““To offer wireless location services To offer wireless location services

worldwide without modifications to the worldwide without modifications to the

cellular telephones, to the cellular network cellular telephones, to the cellular network

or to the cellular standards”.or to the cellular standards”.

Cell-Loc plans to achieve its vision through the Cell-Loc plans to achieve its vision through the

Cellocate Service BureauCellocate Service Bureau™™..

Cellocate Service BureauCellocate Service Bureau™™

End-UserEnd-User

FinanceFinance

TowersTowers

PartnersPartners

Cell-LocCell-Loc

ServiceServiceBureauBureau

Corporate ManagementCorporate Management

A llen P o u tan enV P S a les(W i-L A N )

M ich a e l H ryc iu kV P E n g in e ering

(P e ga su s)

J im G e o rgeB u s ine ss D e ve lo pm e nt

(D a ta T ra x)

D a v id Ho w a rdV P F in a n ce

(P o s it io n)

L e w T urn q u istV P M arke ting

(S a ra id e)

D r. M ich e l F a tto u cheP re s id e n t, C E O

Board of DirectorsBoard of Directors

Frank KingPresident

Metropolitan Investments

Charles HotzelBarrister & Solicitor

Dr. Hatim ZaghloulCEO

Wi-LAN Inc.

Don RomaniukPresident

Telus Advertising

Dr. Michel FattouchePresident

Philip LadouceurCEO

Futurelink

Thomas SaundersCEO

Columbia Healthcare Inc.

Michael LisogurskiExec. VP, BCI

Barb RichardsonVP, AT&T

WHAT IS THE OPPORTUNITY?WHAT IS THE OPPORTUNITY?

Driven by two forces:

• Legislation• Market Demand

U.S.The FCC has mandated that by October 2000 all Cellular Carriers must report their E911 plan.

E911 LegislationE911 Legislation

U.S. Market DemandU.S. Market Demand

• Asset Management• Location-Based Personal Services• Location Sensitive Billing• Fleet Management

1. The E911 Market1. The E911 Market

100M Sub. X $0.70/Month = US$ 0.7 B/Year100M Sub. X $0.70/Month = US$ 0.7 B/Year100M Sub. X $0.70/Month = US$ 0.7 B/Year100M Sub. X $0.70/Month = US$ 0.7 B/Year

(State passed legislation: $ 0.10 to $1.50/ mo. cost recovery)(State passed legislation: $ 0.10 to $1.50/ mo. cost recovery)

2A. Asset Management Services2A. Asset Management Services

100M Sub. X $ 11.50/Month = US$ 1.15 B/Year100M Sub. X $ 11.50/Month = US$ 1.15 B/Year100M Sub. X $ 11.50/Month = US$ 1.15 B/Year100M Sub. X $ 11.50/Month = US$ 1.15 B/Year

Tracking/Recovery ofTracking/Recovery of• Automobiles ($11.50/mo.)Automobiles ($11.50/mo.)• PetsPets• NotebooksNotebooks• Household valuablesHousehold valuables Basically, anything that could be stolen.Basically, anything that could be stolen.

(Automobile Recovery: Strategis, Wireless 1997)(Automobile Recovery: Strategis, Wireless 1997)

2B. Asset Management Hardware2B. Asset Management Hardware

Tracking a hidden low cost miniaturized transmitter.

100M Trans. X $10/Year = US$ 1 B/Year100M Trans. X $10/Year = US$ 1 B/Year100M Trans. X $10/Year = US$ 1 B/Year100M Trans. X $10/Year = US$ 1 B/Year

3. Location-Based Personal Services

• Self-Location Self-Location ($11.90/mo.)($11.90/mo.)•In-Vehicle NavigationIn-Vehicle Navigation

•Location-Based 411 Location-Based 411 ($13.20/mo.)($13.20/mo.)•Electronic Yellow PagesElectronic Yellow Pages

• Child Location Child Location ($15/mo.)($15/mo.)

• Roadside Assistance Roadside Assistance ($8.50/mo.)($8.50/mo.)

100M Sub. X $ 48.60/Month = US$ 4.86 B/Year100M Sub. X $ 48.60/Month = US$ 4.86 B/Year100M Sub. X $ 48.60/Month = US$ 4.86 B/Year100M Sub. X $ 48.60/Month = US$ 4.86 B/Year

(Strategis, Wireless 1997)(Strategis, Wireless 1997)

4. Location Sensitive Billing4. Location Sensitive Billing

28.4M subscribers using LSB = U.S.$2.3B/Year by 200428.4M subscribers using LSB = U.S.$2.3B/Year by 200428.4M subscribers using LSB = U.S.$2.3B/Year by 200428.4M subscribers using LSB = U.S.$2.3B/Year by 2004

(Strategis, Wireless 1999)(Strategis, Wireless 1999)

5. The Fleet Management Market5. The Fleet Management Market

$17 Billion by 2005$17 Billion by 2005$17 Billion by 2005$17 Billion by 2005

(Apogee Research Group, 1997)(Apogee Research Group, 1997)

US$ 53.11 B/YearUS$ 53.11 B/YearUS$ 53.11 B/YearUS$ 53.11 B/Year

• E911 Market* = $ 0.7 B• Asset Management = $ 2.15 B• Location-Based Personal Services = $ 4.86 B• Location Sensitive Billing = $ 28.4 B• Fleet Management* = $ 17.0 B

Total Wireless Location RevenuesTotal Wireless Location Revenues

U.S. MarketsU.S. Markets

WHY CELL-LOC?WHY CELL-LOC?

• ResearchResearch• PatentsPatents• DevelopmentDevelopment• InfrastructureInfrastructure• ServicesServices

ResearchResearch

University of Calgary : Electrical & Computer Engg. •1989 Paul Goud, M.Sc. (Quicktrack)• 1990 Gerald Morrison Ph.D. (Super-resolution for Propagation)• 1991 Lisa Dumont, M.Sc. (Super-resolution on GPS)• 1992 Richard Klukas, M.Sc. (Super-resolution on AMPS)• 1993 Andrew Borsodi, M.Sc. (Super-resolution on IS-54)• 1994 Richard Klukas, Ph.D. (Cellocate)• 1996 Geoffrey Messier, M.Sc. (Super-resolution on CDMA)• 1996 Hany Shenouda, M.Sc. (RF Hardware)• 1996 William Wong, M.Sc. (Software)• 1996 Jaafar Sheffeidine, M.Sc. (DSP)• 1998 Cyril Botteron, M.Sc. (CDMA)

PatentsPatents

• 2 U.S. Patents issued.• 9 U.S. Patents pending.• 8 International Applications pending.• Several Patents in Preparation.

DevelopmentDevelopment

Network-BasedNetwork-BasedTime Difference Of ArrivalTime Difference Of Arrival

Wireless Location TechnologyWireless Location Technology

Network-BasedNetwork-BasedTime Difference Of ArrivalTime Difference Of Arrival

Wireless Location TechnologyWireless Location Technology

Available Today!Available Today!Available Today!Available Today!

The Fleet Management SystemThe Fleet Management System

CLB

CLBCLB

CLB

Processor

Web S

erver

Database

Router

Password Protected Access

CellocateTM Host

Internet

Fleet Dispatch Terminal

LocalInternetBrowser

JavaApplet

LocalInternetBrowser

JavaApplet

Cellocate AttributesCellocate Attributes

• No Changes to Telephones.• No Changes to Infrastructure.• No Changes to Standards.• 3 Years on Telus Network.• Robust Against Multipath.• Voice Tracking.• Easy to Deploy.• Stand Alone.• Passive.• Scalable.

Competition: Handset-based (GPS)Competition: Handset-based (GPS)

• Good Accuracy in Rural environments.• Poor Performance in Urban Centres. • Requires Changes to the telephone ($20B).

InfrastructureInfrastructure

• Initial Deployment in Alberta:• July 2000 : Paying Customers.

• Full Deployment in North America:• January 2001 : 10 Major Centres.• October 2001 : Most Major Centres.

Initial ServicesInitial Services

• E911• Fleet Tracking• Asset Tracking•Traffic Monitoring

Barriers to MarketBarriers to Market

TMTM

• Huge untapped Market Opportunity.Huge untapped Market Opportunity.

• High Barrier to Market.High Barrier to Market.

• Favorable Regulatory Environment.Favorable Regulatory Environment.

• Favorable Competitive Environment.Favorable Competitive Environment.

• Strong Management Team.Strong Management Team.

• 3 Years of Proven Experience.3 Years of Proven Experience.

• First to Market with Superior Technology.First to Market with Superior Technology.

WHY CELL-LOC?WHY CELL-LOC?

CELL-LOC INC.AND THE

CELLOCATETM SYSTEM

“THERE WHERE YOU NEED US”