Bringing 5G to the World via a Millimeter-Wave Amplifier www.teraphysics.com

The opportunity Wireless traffic is growing exponentially Over 300% growth in 2 years (Source: Strategy Analytics, 2016) U.S. consumers used on average 2.5 GB/month of cellular data in Q1 2015 (Source: FierceWireless, 2015) 4G LTE limitations driving demand for 5G Dropped calls, video buffering problems and Internet lag Explosion of connected devices/ Internet of Things mmLink™ products will meet 5G network demand well beyond 2030 explosion of connected devices Lowest cost of content delivery Data transmission capacity unmatched by all other wireless technologies Teraphysics Proprietary

The market size Global telecom is a $6 trillion growth industry mmLink™ wireless products will drive market growth Expected global mm-wave CAPEX market growth 2013 $.1 Billion 2018 $1.1 Billion 2020 $1.7 Billion Capital Expenditures Compound Annual Growth Rate 1 2 CAGR 50% Teraphysics Proprietary

The market mmLink™ provides fiber-like connectivity at 1/5 the cost 19 million miles of fiber laid in the U.S. in 2014 Fiber cost per mile $100,000 – $200,000 mmLink™ will satisfy demand where fiber is not feasible Non-disruptive installation = ’Virtual Fiber’ mmLink™ Stratospheric connectivity Drones, balloons and satellites Teraphysics Proprietary

The product mmLink™ 5G platform can deliver enterprise class fiber data rates up to 5 miles Data transmission rate up to 150 times faster than current technology Lowest cost of data delivery Low cost, easy installation U.S. patents granted to the Company for for its helical structured vacuum electron sources and amplifiers, and the associated nanomaterials manufacturing process Teraphysics Proprietary

Sales & Marketing Initial Markets: Stratospheric Platforms: Targeted businesses – e.g. smart cities, secure personal networks, data centers Targeted locations – e.g. rural connectivity Targeted applications – e.g. high speed trading Stratospheric Platforms: Google, Facebook, SpaceX, OneWeb, Samsung Carrier Initiatives: Backhaul and micro cells Teraphysics Proprietary

TEAM Our inventions led to development contracts with NASA (JPL), DARPA & the Air Force Research Laboratories Louis Fisi, CEO & Co-Founder: Leads day-day management; former founding member & CFO of Advanced Lighting Technologies with successful IPO; MBA University of Indiana Dr. Gerald Mearini, PhD – President & Co-Founder: Pioneered chemical vapor deposited diamond-based vacuum electronic devices; worked at NASA; PhD Case Western Reserve University Dr. James Dayton, Jr. PhD – CTO & Co-Founder: Leads product development; worked at NASA; PhD University of Illinois Teraphysics Proprietary

COMPETITION COMPANIES TECHNOLOGY COMMERCIALLY VIABLE mmLink™ Vacuum Electron Devices Fujitsu Solid State Amplifiers NO Bridgewave Millitech GigOptix HXI Teraphysics Proprietary

USE OF FUNDS OBJECTIVE AMOUNT mmLink™ Field Demonstration Network $3,000,000 Fabrication Facility $9,500,000 Acquisition of Manufacturing Capacity $7,500,000 Wireless Market Development $12,000,000 Stratospheric Platform Development $11,000,000 Global Patent Strategy/Working Capital $1,000,000 TOTAL $44,000,000 Teraphysics Proprietary

Exit strategies Joint Ventures with wireless system providers Licensing Agreements with strategic partners Product Sales through partners, distributors & resellers Rights Sales to equipment suppliers of major wireless carriers Teraphysics Proprietary

CONTACT US Investment Questions Contact: Donald Battista, Chief Business & Marketing Strategy Director Office: 440.573.0008 Email: battista@teraphysics.com www.teraphysics.com Teraphysics Proprietary