(Mel) Today we will focus upon an emerging growth proposition in the telecommunications sector, set to revolutionize the industry. Mobile Assets Corporation, trading on the pink sheets under the ticker symbol MBAP, is led by Mr. Peter Zmudzki, President and CEO of the company, who is joining us here today to share with us current developments and strategies of Mobile Assets Corporation. 1) Peter, let me begin by asking you to comment about the company, its history and general status. The company entity began in 2002 as World Assets Group which as a holding company, invested in several diverse industries. We soon realized that 'all roads lead to Rome' and Rome was the mobile communications industry. We then redirected resources to focus on mobile communications and in October of 2004 changed the company name to Mobile Assets Corporation.  ·  Mobile Assets is a developer and aggregator of strategically valuable mobile and wireless content, applications, technology and services to be delivered to the global market in unique ways with the purpose of creating/acquiring and retaining partners and clients.  ·  Mobile Assets provides services and applications that meet demonstrated consumer demand within the wireless telecom sector. A lot of good work has been done developing innovative new products for cell phone users. This goes well beyond the popular ring tone downloads and games area, although mobile assets will have a full suite of these basic applications. As a company we are seeking out best-of-breed solutions and developing licensing agreements and partnerships to bring these technologies to market.  ·  Currently, our business priorities are to complete building our strategic relationships, followed by our support infrastructure. We are tracking to our business plan. 2) A recent exciting development was Mobile Assets signing a Partnership Agreement with Hybrid Strategies Corporation to jointly develop "Predictive Intelligence Technologies". Can you give us an insight of this technology and how it will impact the market? This is a very important opportunity for Mobile Assets. Our relationship with Hybrid Strategies, for me at least is an exciting one that provides both a glimpse of the future and a step towards spreading Mobile Assets products and services around the world Hybrid Strategies Corporation has developed Hybrid Intelligent Systems that are the future of the computational reasoning. Such Systems are already running our nuclear facilities, military equipment, aerospace ventures and much more - in fact, they have been all around us in various complexities since the late 90's. Mobile Assets, in partnership with Hybrid will take all this knowledge and channel it to everyday use in the mobile world.  ·  We will be applying it to games in the form of Predictive Intelligence, tailoring games to alter to the player's preferences in real time  ·  Through personal profile management we will apply it as a Mobile Personal Assistant (MIA) to become what I call "Your Clone in a Phone"  ·  And we will apply it to anything that makes life easier and removes the complexity from everyday problems. I'm sure; you can imagine the marketing potential of MIA which is a Mobile Hybrid Intelligent System. Market demands and our client's imagination will dictate where we take this revolutionary technology. Predictive Intelligent Technologies are complex - In order to predict anything, you need experience, based on which you can draw comparisons between what you see and what you know. You brain creates patterns out of the knowledge you have. If you see any resemblance in the new situation to the patterns you know - regardless of the subjects the patterns pertain to - you can predict the outcome. Furthermore, when faced with a problem for which you have no previous experience, you construct the solutions based on the all the pieces of knowledge that you think fit into the pattern of the problem. It is like trying different tools in your workshop to build something - if this tool does not fit or do the job, you try another one. Of course, as humans, we do all this instinctively. Hybrid Intelligent Systems work the same way, which makes them very flexible and adaptable to different problem solving. Except, they do not solve the problems instinctively, and neither do they learn instinctively - "intelligent" is a relative concept. For Hybrid Intelligent Systems we need to build the initial knowledge bases (experience) through supervised learning and use many different tools, algorithms and methodologies to coax the system to learn by itself and compile its own experience database, and then to recognize the new problems and draw the necessary conclusions. A person and their mobile phone are a perfect learning environment. Incidentally, MIA is server based - the mobile handset is only the client-server interface, therefore its application via Internet is unlimited - something we intend to exploit as well. 3) Tell us about your company's focus and market potential, and would you elaborate more on Mobile Personal Assistants and mobile commerce transactions. Mobile Personal Assistants are the many faces of MIA which I described earlier. We will have an assistant (we named it Mia) that remembers your personal preferences, recognizes your speech and does most things a human assistant would do - of course within the limitation of the telephone - it obviously can not go and fetch the coffee or run errands - but it definitely can direct people to do such activities.  ·  One specific application of MIA is remembering personal information and preferences of a medical patient in Remote Patient Monitoring - a project that Hybrid Strategies is working on. As the mobile device gathers the information from individual body sensors and sends it to the analytical server, Mia communicates with the server and directs the patient or the caregiver to perform the necessary tasks as instructed. This is actually much more involved than I describe it here, but it gives you an idea of the application.  ·  We will also have an assistant (we named it Manuel) that configures your mobile device so you do not have to figure it out, and will sense what you want to do if you fumble or ask for it, and do it for you. Manuel will also help you manually configure any device or piece of equipment no matter what it is. In the future, it will interface with the equipment or device and it will configure it for you while training you in the use or remind you what to do if you forgot it.  ·  From there, we will branch into the educational markets. The European Union has an existing initiative to make educational services available on mobile devices. The mobile commerce transaction capability will see cell phones become a virtual wallet and capable of transacting business at the retail level simply by waving your cell phone near a point-of-sale receiver equipped for such transactions. As you can imagine, the market potential for m-commerce is huge. Giving a cell phone user the opportunity to take plastic cards out of their wallet, instead of asking them to add yet another card to their ever-growing wallet is a major opportunity.  ·  Gregory M. Lamb, of The Christian Science Monitor reports: "The advantage of mobile-phone 'wallets' over cash or conventional credit cards centers on speed and convenience. Customers don't have to pull out their wallets and hand over cash, take out and swipe a credit card, or sign a sales slip. By waving a cell phone within a few inches of a receiver - a so-called 'contactless payment' - customers make their purchases faster. Early tests indicate that they also tend to spend more using that method.  ·  In Japan, mobile customers already can wave their phones to pay for mass-transit rides or buy inexpensive items in stores, vending machines, and restaurants. The phones must be "loaded up" by prepaying cash, as people do when they buy calling minutes on a phone card. The system being envisioned in the United States is bolder, tying phone-based payments directly into the customer's Visa, MasterCard, American Express, or other credit-card accounts. Last summer, NTT DoCoMo launched a service that lets Japanese use their cell phones to purchase items, including airline tickets on Japan's second-largest carrier, Our market potential is virtually unlimited… because the mobility market has so many segments and growth opportunities that transcend even that of the computer industry. The market is easily in the billions, but as of yet its forecasts don't cover some key areas we target as strategic opportunities. Our businesses plan revenue target of $25-30M in three years is appearing more conservative everyday. 4) I'd like more information on your recent press release about your "At a Glance" application, and how it falls into the category of a major contributor to growing revenue. We formed 'M-Traffic' as a specialized organization within Mobile Assets to focus on providing personalized traffic information to subscribers via their mobile phone. Current traffic information providers (typically radio and TV broadcasters) deal with multiple traffic information sources and human interpretation to develop a traffic report. AT A GLANCE Is an appliance designed to efficiently and effectively distill sources of information for broadcast traffic reporters into a digital database.  ·  The broadcasters will use the more accurate and meaningful digital output for the primary purpose of preparing on air material. M-Traffic will be responsible for resale of the use of this data to third parties that will provide commercial users such as delivery companies and taxi services cost avoiding traffic information.  ·  We also plan a consumer subscription service that will personalize and deliver AT A GLANCE digital output in real time for mobile clients' identified driving routes. Local content tops the list of wireless services desired by most wireless users. Users also want to watch TV show clips, and sports programming. Wireless users say they want services such as driving directions, restaurant reservations, and weather and traffic text alerts. Research indicates customers interested in these features are among the highest-value wireless customers. Currently, only few wireless customers have any kind of local service. M-Traffic will be offering AT A GLANCE technology to major broadcasters in traffic heavy marketers in North America and around the world. This sales initiative combined with licensing and services revenue of AT A GLANCE digital output to commercial and client markets is forecast to be a significant sales and annuity revenue stream. 5) The wireless industry is constantly growing and changing, where would you say Mobile Assets Corporation separates itself from the competition and what do you believe is the edge you have over the competition? We are market driven and we have a unique business model  ·  The first thing that differentiates the company is the fact that we are not investing a ton of money into program development. Rather than trying to reinvent or build the wheel from scratch we are working with partners who've already invested millions of dollars, and in some cases tens of millions of dollars, in application development and carving out marketing agreements that generally see us transferring the technology from one geographic region to another.  ·  The second aspect that gives us a competitive advantage is our blending of marketing expertise with technology expertise. We're not getting caught up in our own underwear. We have been able to identify technologies that ultimately have strong consumer appeal and we are working towards those goals as in M-Traffic and M-Defend.  ·  Third, we are aggregating proven, market tested applications from Europe and Asia that we will introduce to the developing North American Market. Our management team has extensive contacts world wide and we feel that understanding the global marketplace will provide us with a competitive advantage. For example, we will be in Europe soon to sign some strategic relationships that we believe will place us at the head of the mobile content market. 6) One of the trends emerging is the having cell phone networks in subways, do you see this trend or any major trend out there occurring in the near future about which MBAP can take advantage?  ·  Consumers are now using cell phones for more than making phone calls. In Japan cell phones users are now playing games, shopping and reading books while traveling on subways and trains. The fact that subways, throughout the world, will be providing cell phone coverage is just one of many technology changes that simply continue to expand the coverage and uses of mobile phones and therefore opportunity for additional services. We view that as opportunity.  ·  We are a global company and we can see validity of our strategy in Europe and Asia, such as implementing cell phone capability in subways, as consumers embrace mobile applications and m-commerce. That is a key trend we watch because we believe that the consumer dictates the market globally.  ·  Handset growth is a second major trend. The explosive global growth of mobile devices, and the quest for products and services that can be used by the owners of these devices, productively mean Mobile Assets has a promising future. CTIA-The Wireless Association estimates wireless subscribers in the USA alone grew by over 20% in 2004, exceeding 180 million, a penetration rate of more than 60%.  ·  In North America we and all mobile service providers remain slave to the TELCOs and their parochial networks but that will not last and is already beginning to crumble. An example of the TELCO's control is location based services (GPS) which they elect not to standardize and offer for competitive reasons… the potential portfolio of these services is large and as personal safety issues press on consumers they will in turn demand 'OnStar like' services on their cell phones… the same goes for m-commerce. Trends therefore are in our favor as we develop and aggregate market proven technologies in anticipation for major mobile markets opening in North America 7) Are there any major milestones or key events you are focusing upon this year? For the remainder of this year we are focusing on three major milestones:  ·  The first, and perhaps most challenging, is to complete and stabilize the build-out of our operational staffing and structure to take advantage of our rapidly developing opportunities. Press Releases are only words; we need to convert those words into effective and profitable business actions.  ·  The second milestone will be to launch marketing and sales of our first operational subsidiary, M-Defend. M-Defend will provide a complete mobile security solution that: o Enables IT managers to extend security policies beyond network laptops and desktops to wireless PDA's and smartphones o Provides fully integrated authentication, encryption, firewall, integrity management, central logging and policy management for Windows Mobile and Palm OS o Secures data communications using M-Defend Mobile Security VPN  ·  Our third milestone is to maximize our strategic partnership with Hybrid Strategies Corporation to ensure strategic success of MIA technology. MIA is our most significant strategic program. 8) How would you categorize the next 2-3 years as a period of growth for MBAP? In a word exciting!  ·  Mobile technology continues to evolve in an almost viral manner. Including our own development of MIA.  ·  Manufacturers are building more capability into their phones  ·  Mobile Consumers are coming online at a record rate  ·  Service providers are bent on creating added value and defining new revenue streams from their existing customers We see the next 2-3 years as watershed years that we will use to complete the technology required launch us forward to industry leadership. 9) Any additional thoughts to investors, as to what you believe are the most exciting reasons to get involved with MBAP as a long term opportunity? The answer has many parts:  ·  We have an excellent pulse on the industry.  ·  We are well networked with technology providers and solution developers around the world.  ·  We get the big picture, and importantly, can deliver value in a meaningful way.  ·  We are in the dominant growth industry of the next few decades  ·  We have a winning strategy of implementing ground breaking (and shaking) technology We are moving in an area of business dramatic opportunities… we invite all of you to join us now and in the future, in our quest for market excellence.