Investor Update October

INVESTOR UP-DATE October 2008 Previous Investor reports have said little about the global expansion of the SKYShades’ business model. My recent visitation to our U.A.E. offices has served as a reminder of the progress which is occurring in what are the world’s most active project development markets. Fuelled by untold quantities of petro-dollars, the growth of the Dubai and Abu Dhabi metropolitan areas is nothing short of staggering. Having been engaged in these areas over the past six years, I was completely unprepared for the expansion which is in evidence since my last visit some two years ago. Anyone who has never stayed in these centres, or hasn’t done so for a period longer than two years, will find the development activity as overwhelming as I did last week. [Open up: www.dubaiwaterfront.com and click onto the ‘developments’ link; this is Dubai only…the Abu Dhabi growth is equally as substantial.] SKYShades as a company has been tendering for multi-million dollar projects in the United Arab Emirates for the past two years, and to secure such projects has found it necessary to have an active presence ‘on the ground’. One of the Company’s directors, Greg Norman, has been engaged in golf course design/construction for quite some time, and he has been able to introduce SKYShades’ executives to key decision-makers to enable us to gain a high level of acceptance. Through our Training Seminars in Orlando Fl., we have prepared a Franchise team to introduce Tension Membrane technologies to this sun-drenched region of the world. Because project development is unrestrained, because architects are challenged to design avant-garde buildings to capture their clients’ attention, and because these clients have the available funds to justify such aesthetically-pleasing projects, the U.A.E. market is without doubt more receptive to Tension Membrane structures than any other marketplace in the world. Typically, visitations by SKYShades’ executives to such regions present opportunities for local Franchisees to follow-up their earlier introductions of our Company with more technically-equipped and experienced presentations to consolidate the SKYShades’ brand. Photo above of SKYShades U.A.E. team. The seven groups – architects and landscape architects - whom I addressed (along with one of our SKYShades’ technical experts), had already sought design/installation quotations amounting to over $24million. Because we were also able to demonstrate the ‘clean’ ‘green’ electricity generation of our Integrated Building Solar Systems, the genuine feed-back from each group was exceedingly encouraging. As no other company in the world can offer such combined technologies as our Tension Membrane/OPV structures, SKYShades is well positioned to gain firm contracts for a significant percentage of these quotations. Sample of a OPV working panel. In addition to building upon our Franchisee’s presence in the U.A.E., a meeting had been scheduled in late September with the Modi Enterprises Group in India. We had long sought to build a Franchise relationship in the sub-continent, as it is well documented that India is the world’s emerging industrial giant. Leading our investigation into developing a presence in India is Mr Greg Chappell who has been the National Cricket coach for three years, and who has long been a keen admirer of the SKYShades’ business model. Over the past year, Greg has been contracted to develop a Cricket Youth Academy which has been privately funded to ensure that youngsters with natural talent would be nurtured by one of the game’s legends. The sponsor of this Academy is Mr Lalit Modi who, apart from his extensive business interests, is also the most dominant Cricket official in a country which is totally besotted by this game. Mr Modi, of Modi Enterprises (annual turnover US$4billion), has more recently funded, developed, and administered the IPL 20-20 cricket competition which has taken the game internationally by storm. Upon Greg demonstrating the SKYShades’ business plan to Mr Modi, he contacted me and sought my availability for a meeting to establish a relationship with our Company. It was agreed at our meeting in Mumbai that a Corporate Partnership will be formed immediately to launch our combined technologies of Tension Membrane/OPV into the Indian marketplace. Called Modi-SKYShades Pvt.Ltd, Mr Modi has indicated that his considerable contacts in the sub-continent will be introduced to this corporate partnership with the aim of design/installing aesthetically pleasing lightweight roofing structures into the construction industry, initially for airport-terminal and cricket stadium roofs. A key element of these introductions will be the access to ‘thin film’ OPV panels to generate ‘clean’ ‘green’ electricity which is much needed to help fuel the industrial growth which India is currently experiencing. Most parts of India endure daily power restrictions and the prospect for the future is grim as demand continues to grow at an accelerated pace. Mr Modi sees a healthy role for Modi-SKYShades and the bonding of ‘thin film’ panels onto roofing structures to help tackle this nation-wide demand. During the week commencing 29th September, SKYShades has organised a Training Seminar for new Franchise partners. We are fielding unsolicited enquiries at the rate of three per week from all parts of the world, but the task of identifying appropriate partners is a painstaking exercise. It is important to satisfy ourselves that they exhibit the commitment needed to maximize the potential which our Integrated Building Solar Systems have in each designated territory. The practice of securing a Franchise simply to ‘sit on’ until the value increases is of course to be avoided. At this current Seminar we have partners from Malaysia, Northern NSW and Provence (France) undergoing training to assist them in bringing our ‘world’s first’ technologies to their respective marketplaces. October training seminar in Brisbane. Already we are establishing future Training Seminar dates for our New Zealand, Thai and other Australian enquirers, whilst our Modi-SKYShades manager will be arriving in Brisbane the week commencing 13th October. Notwithstanding the media’s focus on Wall St. ‘gloom and doom’, our Orlando office last week has signed up two projects valued at $758,000 and $288,000, at the same time as the installation of $550,000 worth of shade structures was completed on the Pier 86 USS Intrepid project. This latter structure will present excellent exposure for SKYShades capabilities in this U.S. government-funded Tourist attraction in down-town Manhattan, New York. [Pictures of these structures will be posted on our website later this week] Our Orlando office is still actively distributing design/quotations – through September this amounted to $8.62million - and though the ‘take-up’ has slowed due to the forthcoming Presidential elections, we anticipate that the U.S. operations will contribute an annual contract figure more than double the 2007 performance. The strategy for SKYShades Holdings LLC continues to track towards a ‘public offering’ in the 2nd quarter of 2009. The goals for all our offices are focusing on a ‘contract book’ of $50million worth of projects by this time; current ‘purchase contract activity’ across all sectors of the Company’s network encourages us to believe that this figure will be well within our capabilities. Assuming a net profit figure of 25%, this would have the Company reflecting a $12.5m profit. All indications are that ‘solar energy’ stocks are clearly out-performing the market, which has taken to alternative energy companies with growing enthusiasm. Of course, how the market views a ‘multiple’ for SKYShades Holdings LLC by the 2nd quarter 2009, is a matter of conjecture…….but we will be extensively publicizing the uniqueness of our Business model to ensure that the market sets the highest possible ‘multiple’ as a due reward of the energies which have been poured into the Company over the past four years. Barry Maranta President ------------------------------------------------------------------------------------------------------- Investing in Solar Installers By Nick Hodge Wednesday, July 9th, 2008 Greenchipstocks.com When it comes to growth stocks in the solar space, I think investing in solar installers is the perfect place to look, given current market and legislative conditions. ------------------------------------------------------------------------------------------------------- To discuss further investment opportunities with SKYShades contact Laurie Bradbrook at ShareSafe Financial Services on 1300 137 227 or mobile 0433 164 658