1. Provider of Near Space Solutions

2. Tactical Ballooning & Return Vehicles A New Paradigm for Low Cost Near Space Access & Persistence Near Space Corporation Tim Lachenmeier, PE President Low Cost Access to Near Space Conference Boulder, CO April 26-28, 2007

3. Background GSSL/NSC History Return Vehicle Milestones PRV Precedents Current Ballooning Paradigm New Tactical Paradigm Why a Tactical Paradigm Draw Your Own Conclusions OVERVIEW

4. Origins 1995 - Founded as GSSL Inc 2006 - Became Near Space Corp Specializing In Near Space Platforms & Vehicles: Analysis Design Fabrication Flight Ops Training COMPANY HISTORY

5. Experience: Government NASA - Planetary Technology (Venus, Mars, & Titan) NOAA/NCAR - Atmospheric Research USAF – Tactical Balloon Systems & Return Vehicles Commercial Space Prototyping Flight Test Space Inflatables Laboratories Lawrence Livermore Pacific Northwest National MIT-LL JHU-APL COMPANY HISTORY

6. Return Vehicle Milestones: 2001 - NASA ARC/NRL - 1 st HA Deployment (Glider) 2002 - NASA ARC/NRL - 1 st HA Deployment (Powered) 2002 - NASA LaRC/AFS - 1 st HA Deployment (Folded) 2003 – NASA LaRC/AFS – Down Select for Mars Scout 07 2004 - NASA JPL/BOEING – Mars Guided Parachutes 2005 - USAF Tactical Balloon/Return Vehicle 2006 – NASA LaRC/AFS – Down Select for Mars Scout 11 35 High Altitude Deployment Tests >100,000 ft COMPANY HISTORY

7. Return Vehicle Video 35 High Altitude Deployment Tests >100,000 ft PRV PRECEDENTS First Video

8. CURRENT BALLOON PARADIGM Current Paradigm Built on 50+ Years of Success Commonly Referred to as “Scientific Ballooning”

9. DOD Discovers Tactical Ballooning PARADIGM CHANGE

10. DOD Discovers Tactical Ballooning PARADIGM CHANGE

11. Traditional Launch What Is The New Paradigm? Tactical Balloons Return Vehicles Tactical Launch

12. PAST PROBLEMS What’s Wrong With The Old Paradigm? Ground Winds > 5 Knots Logistics Inflation/Launch Infrastructure Payload Recovery Cost

13. PROBLEM #1: GROUND WINDS > 5 KNOTS Ground Wind Problem Linked to Inflation and Launching At Low Altitude: Relatively Small Gas Bubble Excess Material Material Becomes Large Sail High Potential for Film Damage At High Altitude: Gas Expands Material is Fully Deployed Balloon Moves with the Wind Low Potential for Film Damage

14. General Approach: View Wind as the Enemy Common Approach: Enclose Balloon in a Protective Bag Before Launch Prevents Balloon Damage from Ground Contact PROBLEM #1: GROUND WINDS > 5 KNOTS

15. NSC Developed a Tactical Launch Bag* Wind Inflates Bag Orients Like a Wind Sock Creates a Still-Air Environment for Balloon Inflation NSC SOLUTION TO PROBLEM #1 * Patent Pending

16. Instead of Launching a Deployed Main Balloon, NSC Developed a Tandem Balloon System* NSC SOLUTION TO PROBLEM #1 * Patent Pending

17. NSC SOLUTION TO PROBLEM #1 Traditional Launch Tactical Balloon System Small Tow Balloon & Packed Main Allows Launch from Ships, Parking Lots, Small Clearings Tactical Launch

18. TACTICAL PARADIGM Tactical Launch Second Video

19. One or Two People Can Now Set Up & Launch Large Balloons! Proven in 26+ Knot Winds! Tactical Launch Bag Tandem Balloon System NSC SOLUTION TO PROBLEM #1

20. PROBLEM #2: LOGISTICS Traditional Balloons Require Significant Support People Equipment Inventory

21. NSC SOLUTION TO PROBLEM #2 Tactical Launch Bag & Tactical Balloon System Allow One or Two People to Launch Balloons Minimizes Logistics Footprint

22. Mission Flexibility Requires Large Inventory of Standard Balloons Balloons Sized by Payload & Altitude PROBLEM #2: LOGISTICS

23. Inventory of Adjustable Tactical Balloons Allows Flexibility Eliminates Custom Manufacturing NSC SOLUTION TO PROBLEM #2

24. More Launch Opportunities - Fewer Resources! Tandem Balloon System Inventory of Adjustable Balloons Tactical Launch Bag NSC SOLUTION TO PROBLEM #2

25. PROBLEM #3: INFLATION INFRASTRUCTURE Traditional Inflation Requires: Numerous People Ground Anchor Continuous Monitoring Ground Wind < 5 Kts

26. Tactical Launch Bag & Tactical Balloon System Enables One Person Inflation in Wind > 30 Kts NSC SOLUTION TO PROBLEM #3

27. Autonomous Inflation* Simplifies Inflation Process Skilled Operator Not Required Continuous Monitoring Not Required “Gasoline Pump” Hook Up Turn One Valve & Walk Away Gas Supply Turns Off Automatically When Required Amount Delivered NSC SOLUTION TO PROBLEM #3 * Patent Pending

28. More Frequent Streamlined Launches! Tandem Balloon System Autonomous Inflation Tactical Launch Bag NSC SOLUTION TO PROBLEM #3

29. PROBLEM #4: PAYLOAD RECOVERY Current Payload Recovery Usually by Parachute Limited Trajectory Control Very Small Achievable Cross Track Distances Chase & Recovery To Uncontrolled Areas Required Other Option: Self-Destruction at Mission Termination Wastes Valuable Payloads

30. More Efficient Solution: Embed Payload in a Payload Return Vehicle* Returns Payload Significant Distances Crosswind, Upwind & Loitering Capable Standardized Interface Makes Payload Swap-Out Simple Multiple Missions, One Platform NSC SOLUTION TO PROBLEM #4 * Patent Pending

31. More Flights, Fewer Resources, Same Payload! Payload Return Vehicle NSC SOLUTION TO PROBLEM #4

32. PROBLEM #5: COST Wind Delays = $ People, Equipment & Inventory = $ Parachute Recovery/ Destruction = $

33. NSC SOLUTION TO PROBLEM #5 Lower Cost Alternative! Eliminates Wind Delays Less People, Equipment & Inventory Same Payload, Multiple Flights

34. Primary Application Payload < 200 lbs Altitude < 100,000 ft Duration < 48 hrs Near Space Corporation NOT FOR EVERYONE!

35. Tactical Ballooning & Return Vehicles A New Paradigm for Low Cost Near Space Access & Persistence Near Space Corporation Tim Lachenmeier, PE President Questions?

36. POC : Tim Lachenmeier Email: Tim.Lachenmeier@nsc.aero Phone: (503) 842-1990 Fax: (503) 842-1923 Web Site: www.nsc.aero Provider of Near Space Solutions