SkyBitz Webinar Transcript: Is The Trailer Tracking Solution You're Considering Willing To Guarantee Your ROI?

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[Stan Erickson] Thank you for participating in our Webinar today. We are happy to have Andy Wood, CEO of SkyBitz here to answer your questions and tell you about the latest news from SkyBitz - their ROI Guarantee. Andy will be answering your questions until 2:00 EDT today so please get them in a quickly as possible.

[Stan Erickson] Bringing more than 25 years of domestic and international experience in the transportation, logistics and technology-enabled service industries, Andy has a proven track record of helping customers maximize return on their technology investment.

[Stan Erickson] He most recently served as CEO of Shutterfly, one of the nation's leading independent online photo finisher, where he streamlined operations and guided the company into profitability. Throughout his career, he has gained expertise in growing business operations in complex emerging markets. As CEO of EXEL Logistics, he launched the North American business and successfully steered the company's revenue growth to $500 million in four years.

<Andy Wood>Thank you Stan for your kind words.

<Andy Wood>In a time of economic challenge coupled with grave security concerns, there's never been a better time for fleets to take advantage of trailer tracking technology. The reason I'm here today is to tell you about our information management and fleet tracking tools that will not only help you dramatically improve fleet utilization but also allow you to see a fast - and substantial - improvement in your operating efficiencies. Efficiencies that will expedite your Return On Investment -- An ROI that we're willing to guarantee.

<Andy Wood>Please click here to open additional window to view slides.

<Andy Wood>Our unique GLS technology allows us to provide tremendous savings coupled with a better quality, lower cost trailer tracking solution. -- A technology solution that can make your ROI possible in less than 12 months.

[Stan Erickson] (from message board) What do you mean by a Guaranteed ROI?

<Andy Wood>With the SkyBitz GLS (Global Locating System) technology our customers will see an improvement in their bottom line and see a quick return on their SkyBitz investment (many times in less than 11 months.) Together with the customer, we will determine the appropriate term of ROI and then we will guarantee it.

[Stan Erickson] (from message boards) What is your leasing program like?

<Andy Wood>The leasing program is a way for our customers to immediately see all the operational efficiencies of SkyBitz GLS without the up front cash outlay. We have partnered with GE Capital who offers very flexible leasing alternatives at competitive rates. We can offer a lease for our SkyBitz Mobile Terminal unit by itself or in conjunction with the purchase of trailers as well.

[Stan Erickson] Please explain how the GLS technology works.

<Andy Wood>GLS is based on proprietary and patented methods for accurately determining the position of a mobile asset without the use of a GPS chip set in the mobile terminal. SkyBitz has developed a variety of tracking techniques, wireless protocols, and algorithms in order to optimize the system for accurate, power efficient and low cost tracking.

[Stan Erickson] (from message boards) What are the advantages of GLS over GPS?

<Andy Wood>Please refer back to slide window and see slide two

<Andy Wood>The advantages over GPS wireless tracking systems are enormous.

[Guest] GPS is still used to get the lat/long, right?

<Andy Wood>Yes that is correct.

[Stan Erickson] (from message board) What technology is utilized in the SkyBitz Mobile Terminal (MT)?

<Andy Wood>Please refer to slide three

<Andy Wood>The Mobile Terminal utilizes a satellite technology and a patented location-determining algorithm, which derives the MT's, location without a separate GPS receiver. This provides the user with reliable location information at a lower cost.

[Stan Erickson] (from message board) How and where do I install the SkyBitz units?

<Andy Wood>The installation of the Mobile Terminal is relatively simple and straightforward. It doesn't take any special tools or knowledge and an installation manual is provided to make sure that it is installed correctly. Our MT can also be installed inside trailers with fiberglass roofs or on the roofs of any other type of trailer.

[Stan Erickson] (from message board) Can SkyBitz help me with the new driver laws?

<Andy Wood>SkyBitz can make sure you aren't dispatching a driver to an inaccurate location and wasting valuable work time searching for a trailer that has been moved or incorrectly logged into a system. Or we can keep you from sending a valuable driver to a trailer that is actually farther away than another available trailer.

[Tom Trucker] My trailers have fiber glass roofs. Can I install your mobile terminals inside?

<Andy Wood>Yes, our technology has the ability to read through fiberglass.

[CGorrell] If SkyBitz units are installed on the tops of trailers, doesn't it cause the trailers to exceed height restrictions? Also, how do you ensure the units don't fly off the trailers in transit?

<CCC> Or damage the trailer roofs for resale, lease?

<Andy Wood>Based on our years of research and development we determined that our product should be no more than one inch high to meet any type of clearance restrictions. The bracket that holds the Mobile Terminal is adhered to the top of the trailer with a special adhesive tape developed by NASA. The Mobile Terminal itself is secured to the bracket with four screws. Vigorous testing has been completed to ensure the safety of our units. They do not damage the roof.

[Stan Erickson] (from message board) Does your technology use cellular service or satellite? I've found that cellular isn't as reliable as satellite.

SkyBitz GLS utilizes satellite technology. This allows SkyBitz to provide seamless coverage for maximum visibility when and where you need it.

[CGorrell] I need cargo and door sensors...can sensors be added to your product?

<Andy Wood>Yes we have the ability to add many different types of sensors. We are currently rolling out our door and cargo sensors this summer that can help you reduce cargo theft and monitor the security of your trailers in real time.

[Tom Trucker] What type of power source does Skybitz require? Do you use tractor power source?

<Andy Wood>We have three options for power. We have an Internal Battery Pack, External Battery Pack and an External Power Module: The Internal Battery Pack has sufficient power to generate one to two position reports per day for up to seven years.
For more frequent reporting requirements, an additional External Battery Pack can be added. And if vehicle power is available, you can add our External Power Module which allows customers to run off of vehicle power when it is available and revert to the Battery Pack when it is not.

[Tom Trucker] Can I change the battery in the Skybitz mobile terminal myself?

<Robert Motter> Is the battery pack user changeable?

<Andy Wood>Yes, it takes about 15 minutes and the MT can remain installed on the trailer. We provide a simple tool kit with complete instructions to make it very simple. The good news is that with one report a day our batteries can last up to seven years.

[D Dindall] Can the customer change the battery installed in the Mobil Terminal?

<Andy Wood>Yes, in the event that the battery is drained it can be changed without removing the Mobil Terminal from the trailer. The good news is that the batteries can last up to seven years depending on the reporting requirements.

[PAUL LINDSTROM] How do the unites hold up in extreme cold. For example, in Alaska?

<Andy Wood>Extreme cold is not an issue with our technology. We just had a customer demo our product in Alaska with terrific results.

[D Dindall] Are the batteries rechargeable?

<Andy Wood>No, the system is designed to work with standard AA battery packs which allows for the low cost solution. Also the integrity of rechargeable batteries is questionable over time.

[Stan Erickson] (from message board) How do I access my SkyBitz data?

<Andy Wood>Once the Mobile Terminal has been installed and configured to meet your tracking needs you will be able to view your data several ways. With a standard Internet browser, you can access your data at the SkyBitz Data Center with your user name and password. Or your data can be exported to your operating system via XML feed.

[joe killeen] does the battery send out low charge signal as it wears down?

<Andy Wood>Yes our unit will give you a warning as the battery life declines. The good news is that our normal battery life if up to seven years.

[Robert Motter] Is the battery pack user changeable?

<Andy Wood>Yes it's a very simple process to change the battery pack. It takes about 15 minutes and the unit does not need to be removed from the trailer.

[Brian] Are there going to be transcripts of this Webinar available, I got kicked out from the original session and lost the previous information?

<Andy Wood>Yes the transcripts of the entire webinar will be available on both web sites for a year.

<Andy Wood>If we don't get to your questions we will answer them after the webinar and post them on ttnews.com and skybitz.com

[CGorrell] How do I take advantage of your leasing program?

<Andy Wood>Talk to your SkyBitz sales representative and they will ask you several questions about the type of lease desired (capital vs. operating), lease term sought and whether the lease will include trailers or the SkyBitz Mobile Terminals by themselves. The next step is to provide bank and trade credit references, the prior year and current year's financial statements for the Lease Company to approve the lease. Once all information is received, a reply can be received within several days.

[guest13] is this 7 years if the unit is pinging once an hour

<Andy Wood>No it's seven years for paging once a day. We have different types of power solutions for your type of need.

<Andy Wood>The Global Locating System (GLS) is designed to track assets via satellite using extremely low power consumption. The Global Positioning System (GPS) was designed to provide navigation information via satellite, which requires that the unit calculate its position locally. GLS overcomes GPS's limitations in tracking applications by calculating an asset's location centrally in the SkyBitz Operations Center thus improving the speed of a position report and dramatically lowering power consumption. (30x)

<joe killeen> can you establish different parameters for different units in your fleet? Say base group is twice a day and on a particualr day I want to watch particular units more can I set a different parameter for one unit or a group of units on a daily basis?

[Guest41] If you chose to change how you want to view your data, can you do this from you browser?

<Andy Wood>Yes you can view the data in many different ways. The best thing to do is call 1-877-2SkyBitz and have a sales rep give a demo of the data reports.

[Jon C] Who are the financial backers of SkyBitz?

<Andy Wood>

• AIG Highstar Capital, L.P., a sector-specific private equity fund sponsored by American International Group, Inc. (AIG), makes structured equity investments in infrastructure-related projects and operating companies. The fund focuses on businesses in transportation, power, and environmental services.

• Cordova Ventures is a venture capital firm with over $300 million under management, founded in 1989 and headquartered in Atlanta, Georgia.

[Jon C] There has been so much volatility in the business of trailer tracking, why should we believe that SkyBitz is going to be around for the long haul?

<Andy Wood>I intend to make SkyBitz cash flow positive within the next two years.
We have strong investors that are committed to our company and have a comfortable cash runway.

<Guest276> Signal latency refers to the total time required to send a message/signal through all segments of the systems. What is the typical signal latency for the Skybitz product? How long do you have to wait for data after an initial ping?

<Andy Wood>We report a units location in under one minute

[Bob Randle] Do you have complete coverage in North America?

<Andy Wood>GLS technology provides greater coverage for maximum visibility when and where you need it. No matter where a trailer in your fleet travels throughout North America, it's always going to be within your line of sight.

<kst> What satellite does your system use?

<Andy Wood>The SkyBitz system communicates over Geosynchronous L-band satellites.

<<Yanke Transfer->Andy Wood>> Will the locator signal identify the location of a trailer that is inside a building?

<Andy Wood>Our system is like GPS in this area, we don't read through most buildings.

[CGorrell] How do you achieve the battery life that you advertise?

<Andy Wood>Unlike other companies using GPS, SkyBitz is able to leverage the patented GLS technology to achieve nearly 30 times lower power consumption. GLS is specifically designed to achieve a very accurate position in seconds as compared to minutes for a GPS device. Through the use of an advanced satellite radio and optimized network protocol, the communications power is also very low.

<guest13> how is mounting of the units done? is it attached to the top of the trailer or is it attached inside of the trailer

<Andy Wood>Our Mobil Terminal can be attached to the roof of your trailer very easily without any damage to the roof. It is adhered with a NASA developed tape. If your roof is fiberglass you can install the unit inside of the trailer.

[Stan Erickson] (from message board) Does your system allow the flexibility to be reprogrammed over-the-air, or without touching the remote terminal?

<Andy Wood>Yes, the over-the-air protocol is two-way. Most of the processing is performed, allowing upgrades to occur at our data center without ever touching the mobile terminal. Also, the mobile terminal can be configured over-the-air to change pa rameters such as reporting rates, paging intervals, sensor controls, etc.

<eroom> Can any other trailer information be captured by the unit? (Temperature, tire pressure, etc.)

<Andy Wood>Yes with the addition of sensors.

<wam12> Please tell us more about the ROI guarantee--how it works?

<Andy Wood>Yes it's attached to the top of the trailer and is a simple process. If you have a fiberglass roof the unit can be installed inside the trailer. We have answered this in great detail earlier so check the transcript.

[Jon C] How accurate are your position reports?

<Andy Wood>GLS has a level of accuracy, which is equal to or better than unaided GPS. Our average accuracy is 12 meters.

[SallyJo] What about hardware upgrades? simple project?

<Andy Wood>Yes it is a simple project. Our units are easy to service.

[Jon C] What's the warranty?

<Andy Wood>We are currently offering a standard warranty of 1 year, with an option to upgrade to a 3-year warranty for a nominal charge.

[joe killeen] can you establish different parameters for different units in your fleet? Say base group is twice a day and on a particualr day I want to watch particular units more can I set a different parameter for one unit or a group of units on a daily basis?

<Andy Wood>Yes you can configure the system to meet your needs. A sales rep can walk you through all the variations that our system has to offer.

<kst> Not sure if you answered this one, I got disconnected, but can you tell start of a drive and end of a drive?

<Andy Wood>Yes you can map the entire drive.

[wam12] Please tell us more about the ROI guarantee--how it works

<Andy Wood>When a customer purchases our hardware and service for their fleet, they can recognize significant savings in four key operational areas.

<Andy Wood>Trailer Utilization, Dispatch efficiency. Customer Detention Billing and Trailer Theft recovery

<Andy Wood>We've developed the SkyBitz ROI calculator to illustrate the term of the ROI based on each fleet's operating specifications.

<Andy Wood>If, at the end of the ROI term, the fleet has not demonstrated the agreed upon return on investment, SkyBitz will transfer the original cost of the initial hardware purchased into ongoing monthly service credits.

<Andy Wood>Please take a look at our ROI Calculator on our web site or call one of our sales reps at 1-877-2SkyBitz.

<Andy Wood>The calculator will help you do that. Call our sales reps and we will walk you through how it will work for you.

<Andy Wood>If we didn't get to your question today please check back later this week and we will have all the questions answered.

[Robert Motter] Hi Andy, Thank You for taking time to visit with us. Do you foresee any insurance reductions? And can you give any idea as to how much?

<Andy Wood>We'd like to think that we help fleets reduce their risk.

[Guest41] With each transmission do you get just the current location?

<Andy Wood>You can get a variety of information depending on what you want.

[Guest] Can I do geofencing with your product?

<Andy Wood>We have passive geofencing.

[Guest276] Signal latency refers to the total time required to send a message/signal through all segments of the systems. What is the typcial signal latency for the Skybitz product? How long do you have to wait for data after an initial ping?

<Andy Wood>The typical systems response is less than one minute.

[eroom] Can any other trailer information be captured by the unit? (Temperature, tire pressure, etc.)

<Andy Wood>Yes that is in development but not on the market now.

[kst] Not sure if you answered this one, I got disconnected, but can you tell start of a drive and end of a drive?

<Andy Wood>Currently we can not do it unless you trigger an event with the door open/close sensor.

<Robert Motter> Hi Andy, Thank You for taking time to visit with us. Do you foresee any insurance reductions? And can you give any idea as to how much?

<Sam Sidhom> Can you share with us how many fleets have adopted your systems? And maybe some names of well known players? Thanks.

<Andy Wood>Landstar

<<Yanke Transfer->Jay>> How often does the MT report its position? Is position reporting done automatically at regular intervals, or is it on demand?

<Andy Wood>It can be done any way that you choose. It's up to you to program.

<CCC> Do you provide a client in the tractor that knows what trailer it's pulling?
Not at this time.

<joe killeen> if my normal reporting is twice daily but I wish to check on the hourly status of a particular trailer am I able to request that information and if so how long after the events have taken place?

<Andy Wood>You can determine the type of paging that's right for you.

<Guest41> With each trasmission do you get just the current location?

<Andy Wood>Yes you get the current location but you can map the entire trip.

<Barry> Who are some of the bigger fleet customers using your technology today?
Landstar

<Guest> What parameters are you using to calculate ROI? How are you measuring whether or not the customer achieved the ROI? If not, what happens? You pay them?

<Andy Wood>When a customer purchases our hardware and service for their fleet, they can recognize significant savings in four key operational areas.

<Andy Wood>Trailer Utilization, Dispatch efficiency. Customer Detention Billing and Trailer Theft recovery

<Andy Wood>We've developed the SkyBitz ROI calculator to illustrate the term of the ROI based on each fleet's operating specifications.

<Andy Wood>If, at the end of the ROI term, the fleet has not demonstrated the agreed upon return on investment, SkyBitz will transfer the original cost of the initial hardware purchased into ongoing monthly service credits.

<Andy Wood>Please take a look at our ROI Calculator on our Web site or call one of our sales reps at 1-877-2SkyBitz.