MARKET OPPORTUNITIES

Mobile electronic device users are burdened with battery limitations. Today’s advanced devices are becoming substantially more powerful, providing increasing capability to stay connected, informed and entertained. But, as these devices become more useful they have also become more power hungry. Battery technology has not been able to keep up with the technology development and the market is now in a position where the device user is not able to fully benefit from the capabilities available on his device. Along with this power frustration, modern batteries begin to loose capacity as they are used and age. So, the device utility declines as the product ages.

Based on all the key market trends and the expected improvements in battery technology we anticipate this problem will only get worse in the future.

This trend is a frustration for the cellular providers, too. To increase revenue and profitability, mobile service providers want subscribers to use the advanced features and services enabled in their new device, which often come with a premium service change and are sold at a higher margin than standard talk-time. Battery limitations are limiting the profitability of the cellular provider who wishes to increase device use-time and ARPU (Average Revenue Per User).

Medis’ first product, the 24-7 Power Pack is an enabling product that is designed to help address the developing power frustration. It is an auxiliary power source designed to power and charge a broad range of handheld electronic devices. There are currently over 2 billion users of portable electronic devices world wide, of which approximately 170 million are in the USA with reported annual sales of 650 million devices per year. Today, “multimedia” handsets are used by over half of the cellular subscribers, and that ratio is expected to increase in the future. (Click here for chart.)

We anticipate that the 24-7 Power Pack will have a broad range of potential user segments, including:

Enterprise: We estimate that a large portion of our potential customer base will come from the ‘‘enterprise’’ market, principally the high-usage field service market. This demographic uses increasingly advanced portable electronic devices to access corporate applications and databases. The ability to keep field service workers’ devices charged while out on calls can have a significant impact on productivity.
Power Users - Consumers of Content on Portable Devices. Mobile operators, and content providers are increasing the ability of consumers to access content such as music, video, social networks, Google services and other content. Much of that content is to be underwritten by advertising, which adds to the power requirements. We expect consumers who want to fully access that content will be interested in having the Power Pack to provide the continuous power required.

Consumers of Content on Portable Devices. Mobile operators, and content providers are increasing the ability of consumers to access content such as music, video, social networks, Google services and other content. Much of that content is to be underwritten by advertising, which adds to the power requirements. We expect consumers who want to fully access that content will be interested in having the Power Pack to provide the continuous power required.

Frequent Travelers: We expect frequent travelers who utilize cell phones and other portable electronic devices to be interested in using the 24/7 Power Pack to keep their devices operational while traveling.
Parents. We expect this demographic group to be interested in purchasing and frequently using a 24/7 Power Pack-type product. Uses cited for the 24/7 Power Pack include backup power for children with cell phones.

Emergency Users: This market includes users requiring backup power during emergency situations such as natural disasters and blackouts.
Teens & Young Adults This market includes 13-to-24 year-olds who represent prime users for many advanced portable devices. We, and our distributors, believe that the 24/7 Power Pack offers a valuable opportunity for the distributors and their customers to access this very important market early in their lives as a way of relating to this consumer group as they grow older.

Industrial Users: This market segment includes users who need IT
and communication services, but are located in the field or remote operations, including forestry, mining, oil, warehousing and others.

Homeland Security and Military: While the Medis 24-7 Power Pack was designed and developed with civilian applications in mind, the product would also be interesting to military or security operations, where uninterrupted IT and communications from the field are critical.

Parents. We expect this demographic group to be interested in purchasing and frequently using a 24/7 Power Pack-type product. Uses cited for the 24/7 Power Pack included backup power for children with cell phones.

Teens & Young Adults This market includes 13-to-24 year-olds who represent prime users for many advanced portable devices. We, and our distributors, believe that the 24/7 Power Pack offers a valuable opportunity for the distributors and their customers to access this very important market early in their lives as a way of relating to this consumer group as they grow older.

Want to learn more about mobile convergence and how it's changing the way we live? Go to www.MyPowerToday.com to get the latest news in the wireless industry.