Prox Dynamics Business Plan

• Prox Dynamics AS was established in 2007 to develop, produce and sell the world’s smallest unmanned aircraft systems. The company has been fully operational from April 2008.

• Prox Dynamics builds on more than 15 years experience in the development and design of small unconventional electric powered helicopters. Trough the company Proxflyer AS we have a history of 4 worlds records for the smallest RC helicopter. We have also developed and patented the first ever inherently stable helicopter rotor system. This technology has been licensed to the Canadian company ITC to produce more than 2 million micro helicopters. The experience also includes extensive work with micro sized flapping wing aircrafts.

• Before DARPA’s Nano Air Vehicle program started in 2006 Proxflyer was contacted by 3 major US Aerospace and Science organizations with offers to join their teams. During the past two years we have designed and built several flying NAV prototypes and rotor test systems.

• The management team in Prox Dynamics has extensive experience in the fields related to development of micro helicopters. Combined, the team has more than 40 year of experience in electronics, mechanics and software development. The team also has a broad contact net, including both suppliers and customers, that will be utilized throughout the development to make sure that we bring valuable and useful products to the market.

• Evolution of our proven and award winning technology to a commercial NAV product (the PD-100 Black Hornet), will take two years and will be secured by short cycles of fully operational prototypes. The first year we will be 5-6 employees working on the technical development and on operational procedures / government approvals. By the third year we will have tripled the headcount. We will have high foucus on marketing and customer contact already from the first year.

• In 2010 we expect to establish a production department for manufacturing and support of the NAV systems. We will start volume production for key customers.

• We are well founded from the start by investors with a proven track record. During the development phase we will seek to establish further financial support through other Norwegian institutions, trough development contracts and by licensing of IP including sales of prototype helicopters based on Proxflyer’s passively stable rotor technology.