Edge of Extinction -- Press Materials

Cybernet Systems Corp. is a profitable, rapidly growing research and development company focused on commercializing technology that combines software intelligence, Internet connectivity and man-machine interaction. The company has an experienced staff of information technology-focused engineers and computer scientists constantly working to advance the "state of the art" of user interface design and Internet applications, with the ultimate objective of blurring the lines of human interaction with devices (and through them, the Internet) to the point where such interaction ultimately becomes transparent. Its projects originated under research and development contracts with various branches of the U.S. Government, and through work with leading corporations such as Ford Motor Company and the A.I. du Pont Institute.

Cybernet's goal is to successfully develop and commercialize technology that combines its engineering and computer science prowess with Internet and/or electronic device capabilities. Unlike pure research companies or universities, Cybernet is driven to leverage intellectual property into increased shareholder value through its focus on commercially attractive innovations - in other words, to successfully bring its research to market.

The company is well on the way to developing an attractive track record for its technology and vision. Cybernet has already spun off its Force Feedback technology through an agreement with Immersion Corporation, which recently completed an initial public offering. The company is now in the process of commercializing its Linux Internet thin server appliance software through its NetMAX division, and it continues to innovate in the areas of large-scale distributed network training and gaming, gesture control interface technology and intelligent networked medical systems. Technologies for these markets will soon enter the commercial pipeline.

Moving Innovative Technology to Market

Cybernet seeks to multiply the value of its developments by owning all of a given market or technology, protecting it through patents, trademarks and copyrights. In this regard, the company is invention and intellectual property driven. Certain well-known companies such as CMGI focus on funding information exchange and e-commerce, while others, such as IdeaLab, focus on developing new economic and business models. In contrast, Cybernet focuses on cultivating a depth of knowledge in specific fields of research, incubating the resulting creations to the point of commercial value, then developing funding, partnerships or financial relationships to move that technology to market. Cybernet limits these efforts to broadly applicable and defensible intellectual property positions, creating a high barrier to competitive entry.

In order to remain focused on its core strengths in technology development and innovation, Cybernet seeks the fastest, most highly leveraged means to move a commercially viable technology to market. Where beneficial, as with its Force Feedback technology, Cybernet leverages partnerships for effective long-term market commercialization. Doing so enables the company to remain focused and to quickly reallocate key engineering resources to continue innovation.

The Business of Innovation: Cybernet Business Units

Force Feedback -
Enhancing Interaction Between User and Device Cybernet's Force Feedback technology revolutionized user interaction with computer-input devices and game controllers. Cybernet invented and patented the technology behind Force Feedback controllers, using intelligent robotics to dramatically enhance the interaction between user and device. In fact, this Force Feedback technology represents the first commercially successful attempt to have a computer or gaming console give tactile feedback to the user. The company joined forces with Immersion Corporation to implement a successful centralized design and licensing strategy (licensees now include Microsoft and Logitech). Immersion recently went public with Cybernet as a major shareholder.

NetMAX - Simplifying Linux
Cybernet's NetMAX product line represents both the first business-ready Linux server and the first step in evolving an inexpensive/flexible software platform for easy-to-use Internet appliances. NetMAX leverages the power, reliability and flexibility of Linux to deliver a simple, inexpensive software system for controlling Internet appliance hardware. The first products in the NetMAX thin server series - FileServer, WebServer and FireWall - are focused on simplifying Linux set-up and management for business thin servers. Future developments will focus on driving the technology into ever more compact and/or embedded Internet appliance applications, along with e-commerce functionality. NetMAX products are delivered to market through constantly expanding retail and OEM relationships, including CompUSA, Fry's, Ingram Micro, Tech Data, LinuxMall, LinuxCare, NetMachines, etc.

The true power of NetMAX lies in its ability to shield the user from the complexities of the underlying Linux operating system and related applications, while still offering all the robustness, flexibility and power that has made Linux the biggest phenomenon in the software industry. NetMAX pushes the Linux envelope through custom intelligent configuration code, tight integration and a graphical HTML interface. While setting up a Linux Web server, for example, takes significant technical depth and potentially several days of configuration and "tweaking," a NetMAX Web server can be set up through simple mouse clicks in as little as 15 minutes by a relatively unsophisticated user. If you can use a Web browser, you can set up NetMAX. NetMAX also integrates the most popular brand of Linux (based on Red Hat OS) and proven applications such as the Apache Web server, Sendmail, Samba and others, all of which are addressable directly at the click of a mouse.

Medical - Linking the Internet with Outpatient Care
Cybernet Medical is using the Internet to augment the way doctors monitor and diagnose patients, as well as the way in which doctors and patients interact with technology. As part of this objective, Cybernet Medical is implementing a nationwide Internet-based telemedicine service that enables physicians to remotely gather and review outpatient physiological data via the Internet. Such data includes heart rate, blood pressure, electrocardiograms, electroencephalograms, etc., as well as medical imagery and video.

This outpatient monitoring is used to gather physiological data over an extended period of time without hospitalization. Doctors then utilize the collected information to better grasp patient symptoms, make a diagnosis and monitor conditions. While there is already a thriving market for collecting, compiling and transferring this data, the Cybernet Medical service will enable physicians to access the data more quickly and from any Internet connection - whether at the office, hospital, home or traveling - and to share this data with colleagues or specialists in a speedy, secure fashion.

This convergence of the Internet with existing medical business practices promises to revolutionize the gathering of outpatient data, and Cybernet Medical's intellectual property is broad enough to encompass all Internet-based medical instrumentation, monitoring and records management.

Gesture Recognition Technology - Changing the Way People Control Devices
Cybernet's gesture recognition technology will radically alter the way people interact with devices from computers and information/Internet kiosks to consumer electronics. The underlying technology observes human hand and body motions and interprets gestural signals in order to control devices. This gesture recognition will ultimately remove the need to command devices either through physical contact, such as keyboards and mice, or remote controls.

The system tracks a user's movements, identifies specific gestures (typically easy-to-make hand motions) and initiates commands associated with those gestures. Users can issue commands from anywhere within the line of sight of the device to be controlled. This gesture recognition technology can reduce maintenance costs typically associated with remotes, touch-screen controlled kiosks and other common consumer electronic devices. The technology is an excellent complement to speech recognition technology (also under development at Cybernet), because it allows device control in environments with noise interference or constraints.

Open Skies - Using the Internet as an Open Environment for Simulation and Gaming
The Cybernet Open Skies project will deliver the first state-of-the-art, open three-dimensional simulation environment for both training and recreational/gaming activity. Originally developed to meet military training requirements, Open Skies will deliver a fully three-dimensional, immersive indoor/outdoor environment that supports a virtually limitless range of ground-based vehicles, flight simulation and first-person action.

Internet/network gaming will leverage realtime multicasting technology and voice over IP communications, as well as the inclusion of outside data types, such as video and web connectivity. Moreover, Open Skies will be the first gaming and simulation system to allow user manipulation of the simulation environment, including changes to scenery, weather, aircraft, vehicles, etc., which can then be shared with other users over the Internet.

Cybernet Systems Corporation is located at 727 Airport Boulevard, Ann Arbor MI 48108. Phone: 734-668-2567. More information about the company is available at www.cybernet.com.