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PRODUCTS

Aeros-ML Partially Bouyant Aircraft

Today, transportation is a major issue throughout the world, and Aeros believes that there is a definite market for more efficient modes of passenger and cargo transportation. Based upon this premise, Aeros has developed the Aeros ML Hybrid Aircraft. The aeroscraft "transport category aircraft," is capable of carrying up to 20 tons of cargo or 120 passengers. It is quiet, fuel-efficient, and can operate without standard runways.

There is an emerging requirement to develop such a transport system in the commercial sector and it is considered that such a system could, in many ways, be utilized to stimulate interest in tourism, domestic travel and cargo transportation by way of lighter-than-air aircraft.

INDUSTRY APPLICATIONS

With the unique and adventurous way of travel provided by airships, Aeros is well positioned to take advantage of the significant opportunities presented by the steady growth of the tourism industry and the rapid growth rate of tourism spending. Equal opportunities are also available in the areas of domestic travel and cargo transportation.

Global Tourism

By 2010, the World Tourism Organization (WTO) anticipates that more than 1 billion people will be traveling domestically and internationally. From 1995 to 2000, there was a growth of 24 percent (about 5 percent annually), with another 45 percent increase expected from 2000 to 2010. International tourism receipts are anticipated to increase to $1.6 trillion by 2010, an impressive 142 percent rise over 10 years. According to WTO´s long-term forecast Tourism: 2020 Vision, international tourist arrivals will top one billion by 2010 and reach 1.56 billion by 2020.

Passengers in helicopters and aircrafts may enjoy comparable views but they will never experience the gentle paces of the Aeroscraft, nor its spaciousness. Flight characteristics are smooth and unlikely to upset the most delicate of stomachs. Another surprise is the sound, or rather the lack of it. The Aeros ML offers cruising speeds of over 150knots (174mph) and engines can be cut for gentle and smooth ballooning over special scenic locations.

Domestic Travel

An improved economy along with greater consumer confidence has improved travel industry revenues in the United States. Unemployment has been falling, interest rates and inflation have remained low, and the gross domestic product has been strong.

Increase in disposable income have been fluctuating but are still relatively stable, which is a good sign for tourism, as travel is consistently rated as one of the most popular ways Americans choose to spend their free time.

Cargo Transport

"The maritime industry faces plenty of changes and lots of challenges in the coming decades". (1998 Journal of Commerce, Inc.)

First there's deregulation, which will allow confidential contracts instead of posted rates. Then, there are larger and larger container ships entering the trades, with shortage of funds that ports need to keep channels and berths dredged to handle the bigger ships. Then there's the continued expansion of global trade, with all of its complications and competition. Other wild cards are ports' abilities to move more containers, and dockside equipment and railroad and highway connections that are at or nearing capacity.

Like deregulation in other industries, maritime deregulation promises lower rates but also will deliver lots of turmoil and unpredictable consequences once it takes effect. Ocean shipping costs should tumble as the rate-setting cartels go by the wayside, but with falling costs, there will come a real danger of less reliable and dependable service.

These changes, plus the ever increasing average container ship capacity, will put new pressures on cranes, railroad and highway connections. However, the Aeros ML is an excellent alternative and cost efficient mode of cargo transportation, which can carry large and heavy cargo directly from point to point.

NEWLY DEVELOPING LTA INDUSTRY

In spite of the high demand, the LTA industry develops at a rather slow pace. This is due to relatively high start-up costs, substantial expertise required, as well as manufacturing and engineering difficulties. On the other hand, this new industry provides excellent entrepreneurial opportunities.

Existing Market

Conventional aircraft manufacturers including Boeing, Airbus, and Bombardier estimate the number of "short haul" aircraft unit sales to be 3500 to 4500 over the next 20 years, with a value exceeding 80 billion dollars. Aeros intends to gain a portion of this market with the introduction of the Aeros ML.

The attraction of the ML will not only be the 30% capital cost reduction that makes the industry take notice, but the overall 50% reduction in operating costs. The operating cost reduction will be headlined with a dramatic 50% saving in fuel consumption for the same capacity airplane. The benefit of providing hangar-less maintenance will prove to be an advantage for many operations without large maintenance facilities, as well as military operations in remote parts of the world.

New Markets

New and unconventional markets hold a bright future for the Aeros ML. With the capability of very slow flight speeds, the Aeros ML becomes a perfect luxury-viewing platform for many of the world's great ecologically sensitive areas. Our research shows that this market is starving for something more than speedy and noisy helicopter rides. Given the success of the luxury sea cruises, tourist submarines, and nostalgic luxury train revivals, we are sure there is room in this marketplace for a luxury cruise in the sky.

Military Applications will play a future role in the Aeros ML success. As the industry watches the US Marine Corp's painful trial with the Bell-Boeing tilt rotor technology, Aeros believes that the ML can fill this role with a higher capacity safer aircraft, at a fraction of the cost.

Air Cargo Transport has and will continue to play an important role in our global economy. The Aeros ML will have the ability to move freight for less cost per unit than any other air transport in existence today.

In the Oil and Gas Industry, the Aeros ML would be used in shipment of assembled complex equipment from one site to another.

In the Machine Industry, the Aeros ML would be used in shipment of complex mechanisms, cars, construction teams and mobile settlements along oil and gas lines being constructed.

In the Timber Industry, , the Aeros ML would be perfect for forest fire fighting, forest planting, fertilization, marking of felling zones.

In the Geology and Mining Industry, the Aeros ML would be ideal in the shipment of geological survey parties and equipment and the delivery of ores of precious minerals, diamonds and metals from mines to the industrial areas, or unloading them at the storage facilities.

In Agriculture, the Aeros ML would be effective in the delivery of fertilizers and other chemicals from manufacturing plants to the field.

In the Fishing Industry, the Aeros ML would be serve well in ocean fish survey and fleet direction. Changing of crews on expeditionary fishing vessels.

As Environmental Protection, the Aeros ML would be an ideal platform for air pollution control of the terrain and water surfaces, identification of sources of pollution, analysis and forecast of ecological situations.

In Emergency Relief/Military Operations, the Aeros ML would be used for delivery of rescue teams and equipment to the area of natural disasters. Evacuation of large numbers of personnel. Repair of damaged highways. Disaster relief operations.

Exploration of Remote and Inaccessible Areas could easily be reached by the Aeros ML, aiding in the development of reliable and effective transportation network for all-year operation. Development of new methods of exploration. Ice patrol and leading ocean vessels and fishing boats.

THE AIRSHIP ALTERNATIVE

Today, LTA technologies utilize nonflammable helium. The rigid shell is composed of numerous panels of high tech carbon plastics. With today's technology, the ML is the safest transportation vehicle available.

Even a cursory comparison of an aeroscraft with any other existing means of transportation shows clean advantages of the Aeros ML:

Economic feasibility
No Airport requirement
High operational safety characteristics
Hovering capability
Simplicity and efficiency of ground maintenance
Capability to fly at low speeds and low altitudes
Low noise
Novel way to travel

The largest single attraction of the Aeros ML could be the whisper quiet operation, allowing the aircraft to operate from many inner-city airports without the noise concerns that have become prevalent in recent years. The Aeros ML will exceed all present and future noise level requirements.

LONG-TERM OPPORTUNITIES

Travel, by way of an Aeroscraft will become available in major metropolitan areas around the world, as well as to tourism's favorite geographical regions, such as the Caribbean, Bahamas, Hawaiian and Cayman Islands. Additionally, in a shrinking world, domestic travel and the need for efficient cargo transportation will continue to increase, taxing our existing systems. The Aeros ML Hybrid Aircraft is the obvious solution.

The Aeros ML also lends itself well in use for humanitarian missions, serving as a complete flying hospital to 3rd world countries, earthquake damaged areas or regions of conflict and war. There are many more effective uses for the ML that will emerge once it has proven its value.

DEVELOPMENT

Aeros has, over the past six years, worked through the preliminary steps required before commencing the development of the Aeros ML. Through the design and production of a series of "lighter-than-air" vehicles, Aeros has positioned itself to be able to seamlessly proceed with the development and production of the Aeros ML.

Many of the refinements that Aeros has built into the Aeros 40B airship will play a role in the Aeros ML. As an example; the low maintenance, industry proven flight control system technology of the 40B will be transferred to the Aeros ML. Additionally; through a cooperative spirit of teamwork with the Federal Aviation Administration (FAA), Aeros has established production and testing process that has won approval by the FAA.

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