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Global Atmospherics, Inc.

COMPANY INFORMATION

Global Atmospherics, Inc. (GAI) is the largest manufacturer and system integrator of lightning detection and location equipment and services in the world. GAI currently manufactures and distributes a comprehensive line of lightning detection systems and application tools. These range from simple, single-sensor devices used to monitor local and regional lightning phenomena, to fully deployed national networks that reliably and automatically measure a full range of lightning parameters, producing a vibrant set of data products to a wide variety of users.

As a corporate entity, Global Atmospherics is the result of combining the world's three leading corporations engaged in the research, design, manufacturing and marketing of lightning detection systems. These corporations were known individually as Lightning Location and Protection (LLP), GeoMet Data Services (GDS) and Atmospheric Research Systems, Inc. (ARSI).

Corporate History:
In the mid-1970's, three prominent scientists at the University of Arizona in Tucson, Dr. E. Philip Krider, Dr. Burt Pifer and Dr. Martin Uman, were doing research in atmospheric physics designed to increase our understanding of the properties and behavior of lightning. Their research centered on the use of Magnetic Direction Finding (MDF) technology to locate the electromagnetic signals produced by lightning.

As a result of this research, they were asked by the U.S. Government's Bureau of Land management (BLM) to devise a sensor which could detect and locate lightning strikes at some distance from the sensor's location. This requirement arose out of BLM's need for early detection of lightning-caused forest fires in Alaska. Lightning Location and Protection (LLP) was formed in 1976, licensed a University of Arizona patent and introduced the first Lightning Location System capable of automatically locating cloud-to-ground lightning over large areas with 4-6 kilometer or better accuracy.

As time passed, other uses for lightning data were discovered in an increasing number of industries and they have benefited from real time or historical lightning detection data. From the late 1970's throughout the 1980's, LLP developed sensors, central processors and analytical software for applications in such industries as electric power utilities, meteorology, aviation, mining, golf / recreation and insurance (forensic analysis). These industries and others use the lightning data to become safer and more efficient, and as a result save millions of dollars through better use of capital asset expenditures to be more competitive and responsive.

In May of 1991, LLP established a sister company named GeoMet Data Services, Inc. (GDS) which, under an exclusive cooperation agreement with the Electric Power Research Institute (EPRI) in Palo Alto, California, assumed operational responsibility for the US National Lightning Detection Network™ (NLDN). This effort was dedicated to meeting the ongoing research goals of EPRI while enhancing the NLDN's ability to provide optimal lightning data services, both real time and archived, to members of the electric power community and other end-users.

Since the formation of GDS, the coverage area and operating performance of the NLDN have been significantly enhanced and expanded. Considered a National Resource, the NLDN is capable of providing a high degree of detection efficiency while locating lightning strikes quite accurately, usually within 500 meters. Data provided to end-users can be seen through a computer display in near real time, normally within 15-20 seconds of the event.

Concurrent with the development of LLP and GDS in Tucson, a complementary technology was being developed in a parallel effort in Palm Bay, Florida through Atmospheric Research Systems, Inc. (ARSI). ARSI's research focused on the use of another well-known technology, called Time-of-Arrival (TOA), to detect and locate lightning strikes. This technique was patented and used in lightning detection systems selected by the US Government's National Weather Service (NWS) and other government entities. ARSI also provided lightning detection systems to various customers in the electric power and weather forecasting industries around the world.

One of the unique features of ARSI's technology was its ability to detect the presence of lightning which exists only in the atmosphere without reaching the ground, commonly called "cloud" discharges, which is of particular interest to the meteorological and aviation communities.

In recognition of the potential synergy that could be achieved by combining the two dominant lightning detection technologies, MDF and TOA, the two companies agreed to work together and gain the benefit of each other's strengths. In 1993, ARSI was purchased and added to the LLP and GDS family.

In 1994, GDS extended the value of providing data from its archives to the insurance industry in the form of lightning verification services. The insurance industry now relies on this data to verify the existence or absence of time-coincident lightning in the vicinity of a policyholder's claim for lightning-caused property damage. Through the use of this data, insurers are able to reduce the cost of investigating claims while speeding up their ability to respond to the needs of their policyholders.

LLP, GDS and ARSI, representing the most widely used technologies in the lightning detection industry, were acquired by the Sankosha Corporation of Japan in 1995 and reorganized as one corporation under its present name, Global Atmospherics Inc. (GAI).

Through LLP, the association with the Sankosha Corporation had already been in place for over ten years prior to the acquisition. As LLP's exclusive representative in Japan, Sankosha had successfully built the Japanese market into the most highly developed lightning detection market in the world. Sankosha manufactures a full range of telecommunications and electronic protection equipment, including surge protection devices and gas tube arresters. As a result of the acquisition, the combination of GAI's products and Sankosha's complementary product lines provides a much wider range of product solutions available for their customers. Along with Japan, large GAI networks are currently operating in Norway, Sweden, Finland, France, Italy, Austria, Germany, Taiwan, Australia, South Korea, Russia, the People's Republic of China, Brazil, Colombia, Thailand, Malaysia, Indonesia and several other countries throughout the world.

Global Atmospherics, Inc. Today:
Today, GAI systems are locating lightning in real time over 90% of the total land area of North America, more than twice the coverage of existing weather radar networks. In 1997, the creation of the North American Lightning Detection Network (NALDN) will take place as the US National Lightning Detection Network™ (NLDN) is combined with the new Canadian Lightning Detection Network (CLDN) to form the largest cohesive lightning detection network ever deployed.

Global Atmospherics is an independent, growing and profitable business. The Company's expansion has allowed continued substantial investment in new technologies to accommodate special projects and leverage our company's core remote sensing and processing technologies. GAI continues to maintain close ties with our customers who serve as partners in the development of new applications and products. This diverse group of users includes such organizations as the NASA Kennedy Space Center, government and university research institutions including NOAA's National Severe Storms Laboratory, the Electric Power Research Institute (EPRI), the University of Arizona, the University of Florida, the State University of New York at Albany and a wide range of other Meteorology, Aviation, Electric Power Insurance and Forestry authorities throughout the world.

GAI believes its basic commitment to be the leader in the field of lightning detection and close relationship with the user community is critical to its continued success in discovering new applications to meet the markets' unique requirements now and in the future. This is a fundamental dedication, not only to technical excellence, but to an increased understanding of lightning phenomenology and its resultant improvement in our users' operations.