World Surveillance Group Inc (fka WSGI)

[kevi99]

Colombia update from 10K

JOINT VENTURE AGREEMENT - APOGEO ENTERPRISES CORPORATION

On July 14, 2005, the Company's wholly-owned subsidiary, Sanswire Networks, LLC
had entered into a joint venture agreement to deploy Stratellites(TM) throughout
the country of Colombia. The agreement with Florida-based Apogeo Enterprises
Corporation calls for a total of five Stratellites to be launched over the Latin
American country to build a wireless broadband network that would be the first
of its kind in the world.

The Joint Venture Agreement, signed on July 14, 2005, had a due date 90 days
after signature. Within this timeframe, Apogeo was to provide Sanswire Networks,
LLC with proof of funds. The company presented proof of funds after the 90 day
period. Based on their efforts, Sanswire Networks, LLC decided to maintain a
business relationship with Apogeo by signing a new Joint Venture Agreement on
January 20, 2006. On February 17, 2006, the parties executed an addendum to this
Agreement which states that Apogeo and Sanswire Networks, LLC will agree on the
price per Stratellite to be paid by Apogeo upon execution of a letter of credit
in the amount of no less than $15,000,000.

During 2005 and as of the date of this report, no transactions have occurred
that would require recording or disclosure in the Company's financial statements
related to this agreement.