1.       Is Spacenet getting out of the residential/consumer market?
Spacenet is moving the StarBand Nova product line up market, and is leveraging its core competencies to provide high performance ‘business class’ services that are ideally suited for the small office/home office and small business market. Our goal is to be the best satellite Internet service provider for this market by providing performance-oriented services with faster speeds and value-added features including new PC professional support services.

2.       Why are you introducing the new StarBand services – Nova 1000 and Nova 1500?
The new StarBand services, Nova 1000 and Nova 1500, replace the previous StarBand Nova generation, Nova Pro and Ultimate. Last year, Spacenet reinvented its StarBand product line with the launch of the Nova series representing a dynamic improvement in price/performance. For 2008, Spacenet is building on the momentum, and with the StarBand Nova 1000 and Nova 1500, is providing more of the business class performance and features that small office and home office customers are seeking. Nova 1000 and Nova 1500 are based on the same advanced technology (the Gilat SkyEdge Platform) that previous Nova services were based on, supporting faster speeds and more functionality.

3.       What advantages do the new StarBand Nova Services offer?
The new Nova 1000 and 1500 offer higher speeds that are 50% faster and new value-added features for small office/home office and small business customers. The higher-end StarBand Nova 1500 service offers faster speeds then the previous higher-end StarBand Nova Ultimate service and costs 30% less per month with the mail-in rebate program. In addition, the services come with new PC professional support services and help desk features that are either not offered with competitor services or are offered with an additional charge. Help desk features include 3 hours of live technical support per month for advanced services such as PC and router configuration for home networking, setting up e-mail clients and web browsers and support launching firewalls and anti virus software. Other value-added services include: 10 free hours of Dial Access per month; virus protection; Spam filtering; access to the StarBand Member Portal; 24X7 online support; up to 15 email accounts; and up to 500 of web storage space.

StarBand Nova features include:

·         Latest-generation VSAT technology, SkyEdge, that supports faster speeds and more functionality

·         Lower prices and faster speeds on the higher end StarBand Nova 1500 service compared to the previous higher end Nova Ultimate service

·         PC professional support services  with up to 3 hours of live technical support per month

·         Competitive pricing with packages starting at $299 for new equipment

·         Special rebate program offers lower pricing on Nova 1000 and Nova 1500 with 24-month contracts

·         Simple installation and troubleshooting with a web-based installation and configuration interface

·         Better dealer support with a highly competitive commission structure

·         Higher quality customer support with an in-house US-based call center and Grade of Service

4.       What are the IT professional services that are being offered with the new Nova 1000 and 1500?
To meet the needs of SOHO and small business customers, we are now offering new PC professional support services with Nova 1000 and 1500. These services offer a significant value to customers and are either not offered with competitor services or are offered with an additional charge. PC professional support services include:

·         3 free hours per year of technical support (based on 30 minute increments).

·         Support for setting up a basic wired or wireless home network including router and PC configuration (limited to support for major brands).

·         Support for setting up all major email clients and web browsers.

·         Support for configuring several common firewalls and anti virus software (including Windows updates).

·         10 hours of dial-up backup service.

·         Continued support for all other existing StarBand Help Desk services.

5.       What is the StarBand Rebate program?
StarBand is offering a customer promotion and rebate on its Nova 1000 and 1500 services.  With this special offer, customers pay a lower per month rate with a 24-month contract, and the equipment price is only $299.99* after a $200 rebate offer. (See pricing chart)

Rebate offer only applies to new Nova equipment purchased with a two-year service plan.  Rebates can NOT be claimed on equipment purchased prior to this offer or for one - year commitment products.  StarBand is offering this two-year special pricing for a limited time and reserves the right to cancel this promotion at any time. Rebate details include:

·         Customer must download the mail-in rebate from www.StarBand.com/rebate and follow the instructions on the form.

·         Contract term is 24 months.

·         Cancellation fee is $499 in year 1 and $249 in year 2.

·         Regular, non-rebate pricing on one-year contracts is still available on the Nova 1000 and 1500 services.

·         StarBand Dealers receive the same upfront commission and percentage of the MRC as all other Nova sales.