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Business Description

BE LABS has developed a patented technology that can transmit High Definition Television (HDTV) video and Hi-Fi audio without the use of wires or cables. We combine this unique wireless technology into a single unit that also delivers wireless internet and telephone via an existing technology such as Wi-Fi, thereby offering a single system that eliminates all wires in the home and office. We call this product the Wireless Multimedia System, or “WMS.”

To our knowledge, no other technology has been proven with a working model to meet the goal of carrying multiple streams of completely clean and interference free HDTV signals and delivering them to all corners of the house. As such, BE LABS expects to be the leader in this developing market, and has an undeniable leg up on any future competition.

Gap in the Current Market

To understand the novelty of our technology, one must first understand what it is not. BE LABS is not using Wi-Fi (802.11), Ultra Wideband (UWB), or any existing communication standard based technology for the WMS’s video and audio transmission. These technologies fall short because they were designed to transfer data, and not for streaming video.

• WMS, however, employs a unidirectional broadcasting system that effectively streams high-quality video and audio, as apposed to two-way communication systems like Wi-Fi, which are unreliable at handling large transmissions, as required by HDTV signals. Wi-Fi was built for data transfer, and is best used for those purposes, such as wireless internet and computer networks.
• Additionally, WMS retains its full capacity to reliably handle HDTV signals up to 300 feet away, while Wi-Fi’s signal gets weaker as one moves farther from its base.
• WMS solves other problems experienced by Wi-Fi such as interference from physical structures and other wireless devices using the same band, including cordless telephones and microwave ovens. It further enables users to transmit multiple signals and simultaneously operate up to ten televisions in one home.
• WMS solves all common problems experienced by Wi-Fi, and even the proposed 802.11n (next generation Wi-Fi) which does little to address the first 2 points mentioned above.

Company Progress

BE LABS has made significant progress and has already reached an important milestone in the development of the WMS: the completion of a demonstrable, working alpha prototype, and the first successful transmission of a DVD-quality video signal.

• The transmission took place in a setting with concrete walls and simultaneously operating instruments, including cordless phones, microwaves, and garage door openers. There was absolutely no weakening of the signal detected during the transmission.
• Our innovative technology is also compatible with feeds from cable, satellite, and the up-and-coming IPTV (Internet Protocol Television) technology that is being rolled out by telecom providers.

Market Opportunity

Although there are dozens of potential applications for our technology, the largest market opportunity lies in the home entertainment sector. There are two high-potential options for BE LABS’ offering in this market: Consumer Electronics and the Cable (MSOs) and Satellite Service industries.

Cost Benefits

The Consumer Electronics industry has thus far been unable to deliver reliable or affordable wireless video and audio components, such as televisions and home theater surround sound speakers. The WMS works as a single, reliable unit that can be easily installed without any prior technical knowledge. The result is the elimination of expensive service fees incurred by consumers to have intrusive wires routed through the walls.

Additional Benefits

1) Consumers

• Aesthetic Improvements: The WMS offers an aesthetic improvement by eliminating excessive TV wiring in the home or office. Even today, TV monitors continue to be tethered to the general area of cable or antenna connections with a mass of wires and cables, and do not have the flexibility to be easily moved. WMS will create the freedom to move a television from place to place and add the extra benefit of easy mobility and accessibility.
• Convenient New Features: The WMS system can enable other devices such as a digital video recorder (DVR) to be accessed from multiple televisions simultaneously, effectively creating an in-house broadcasting station.

2) Cable and Satellite Service Industries

• BE LABS’ system eliminates costs incurred by service providers and satellite service providers for installing and rerouting cables in homes and businesses. It also eliminates the extra expense of rewiring homes with expensive fiber optic cables, as deemed necessary to reliably carry higher frequencies required by many of these services
• WMS could potentially cut half of the cost of wiring new construction homes for telephone and cable wires, for a savings of $1,500 per home.
• In large city apartment complexes, the potential savings are staggering, as one WMS system could service 4 apartments at once.

By allowing television, audio, internet, and telephone services to be distributed via one system, the WMS provides a perfect solution for cable and satellite service providers as well as to Internet (IP) and VoIP (Voice over IP, or Internet telephone) services providers. With many companies peddling “triple play” packages (television, internet, and phone), the WMS presents an attractive method to offer these services through one easy-to-use, wireless device.

The WMS provides further advantages for Service Providers by:

• Retaining the subscriber base by using an ID mechanism such as a Smart Card, which will enable roaming and allow a user to move to a new home without requiring new installation service.
• Decreasing theft of service through software controlled downloadable encryption keys and algorithms.
• Raising revenue through the ability to offer real-time tailored advertisements.

BE LABS also aims to market the WMS to technology companies, particularly set-top box manufacturers such as Scientific Atlanta and Motorola. While these companies are also our potential competitors, we believe that our technology represents a significant upgrade over their current, non-wireless offerings. These companies also represent a likely acquirer of BE LABS, presenting one possible exit strategy for our investors.

Market Strategy

BE LABS’ market strategy is based on the following:

• Providing secure wireless home delivery systems to MSOs and Satellite Providers
• Selectively licensing our technology to provide sub-systems to consumer electronics companies such as Thomson, Samsung, Sony, Sanyo and others.
• Possible products may include, but are not limited to, Hi-Fi wireless speakers or a wireless HDTV kit. These companies have numerous applications and demands for this technology and would allow BE LABS to generate revenue from systems delivery and licensing royalties.