1. Revision March 2006 Alliance for Commercial Enterprises in Space COMMERCIAL SPACE FORUM May 16-18, 2006 Nasa ames research park Moffett field, California

2. Revision March 2006 Alliance for Commercial Enterprises in Space Overview The Alliance for Commercial Enterprises in Space (ACES) will advance development and use of the space environment, with emphasis on the low Earth orbit environment, for all users (scientific, technological, and commercial), in order to more efficiently advance scientific knowledge, technological capability, and commerce on Earth as a gateway to 21st Century exploration and development of space. NavAstro Company

3. Revision March 2006 Alliance for Commercial Enterprises in Space KEY elements Non-Profit Institutions Nonprofit organizations are human-change agents. They are drawn to what Peter F. Drucker called the ‘high ground effort of changing lives for the better’ in a world of selfish interests.” Commercial Enterprises Commercial or industrial enterprises are established in order to perform economic activities and produce profit. The owners and operators of a business have as one of their main objectives to generate a financial return for their time, effort and capital. Public Institutions Pro Bono Publico organizations including governments can be change agents with regional, national and international impact.

4. Revision March 2006 Alliance for Commercial Enterprises in Space DEMAND, CAPITAL, SUPPLY how I learned to stop worrying Demand  Exploration  Fundamental Research  Applied & Commercial Research  Recreation & Experiences  Terrestrial power,  Telecom,  Information,  Images ACES EXECUTIVE COMMITTEE Mike Griffen * George Bush COMMERCIAL SPACE And Love Commercial Space

5. Revision March 2006 Alliance for Commercial Enterprises in Space June 21-22, 2005 Santa Clara, Calif Space Science Enterprise October 5-7, 2005 Moffett Field, Calif Commercial Space Opportunities Forum Participant Directed Actions  Summarize past successes, current issues and opportunities  Establish a fair facilitator, team builder and enabler organization  Identify multiple commercial opportunities Engaging THE commercial space industry March 13-15, 2006 Moffett Field, Calif Simulated Space May 16-18, 2006 Moffett Field, Calif Commercial Space Forum

6. Revision March 2006 Alliance for Commercial Enterprises in Space Finding “Home Run” Investment Opportunities Is it worth it?  Large market size  Reasonable R&D investment  Large projected profit A Customer/Investor Perspective Alan Marty, June 21st, 2005 Is it real?  Proven science  Manufacturable product  Low government uncertainty Can we win?  Best management team  High competitive barriers to entry

7. Revision March 2006 Alliance for Commercial Enterprises in Space Value not Apparent Until Late Stage Average Company Valuation by Stage –Big Markets –Breakthrough Technology –Real Business –Seasoned Management Corporate Positioning Business Building Stage 2x Supernormal Companies Normal Companies Exit Stage Note: Analysis based on the investments of the 50 largest independent VC firms. Source: Venture Economics; Mergerstat; Compustat; SEC filings; McKinsey analysis “The Nordic Model” offered by NORROC Petter Kleppan, October 5, 2005

8. Revision March 2006 Alliance for Commercial Enterprises in Space We are gathered here Today  We are building on past philanthropic, commercial and government investments that have moved university and commercial partnership IP and technologies past the pre-1st stage funding into 1st, 2nd and 3rd stages of development pre-positioning them to capture the services and product sales of the emerging space market.  Genesis of this workshop occurred in August 2005 prior to NASA’s restructuring of the SPD program.  We are not revisiting past funding models but seeking new partnerships for innovation and product development.

9. Revision March 2006 Alliance for Commercial Enterprises in Space Moving forward During this Forum we will show Thank you to the following sponsors National Aeronautics and Space Administration California Space Grant Foundation  Explore business models and formulate implementation plans  Value  Market size  Proven science  Manufacturable products  Management team  High competitive barriers to entry HyNET CSP STC CSEPS CBSE CSR ITSC CAM ITD-PVT MITAC BioServe