World Surveillance Group Inc (fka WSGI)

[mide]

Driving ahead with no rear view mirror...

I think, perhaps, I have a bead on where this company is headed short term given all the bits and pieces that have been dropping into place here. Some might see it as a jaded opinion as I am a long, but lets just see how my scenario plays out against what evolves.

Here is what we know we have:

1. The SEC has filed a Wells Notice with the company which they appear to be complying with, in part, by filing restated financials that appear to agree with an action the SEC took independent of the company against former employees...see Joe. The fact that these two reporting events occurred in two different time frames but are so closely linked should not be discounted by their similarities. There appears to be clear cooperation on the part of GTEM's management with the SEC to move on to some end resolution...unknown.

2. The company has announced that it has reached a closed deal with Tao/ Univ Stuttgart to allow GTEM to market Tao's proven free flight low-altitude Strats (or whatever you want to call them) in a number of countries of note,immediately for sales under license from Tao.

3. That CLOSED deal involved a transaction involving CASH and shares from GTEM to Tao...see previous PR.

4. Within, roughly 60-90 days, or so, GTEM and Tao will consummate a 50-50 partnership contract of equals, once they have completed "due diligence". That contract will also be for CASH and shares.

5. My understanding is that the funding for the cash side of this is all coming from one group...for both of these transactions...the sales license and the 50-50 solid contract. Two tranches of funding, but both tied together.

6. We will not know about the first until the second is completed, because if the first is announced the SEC would view it as a "solicitation" and the funders and the company do not want that perception at this time. This is a very private group of valued investors doing this apparently.

My opinion...

This is it sports fans.

To me the signal is very clear. Within the next 60 days or so, this company, based on its supposed relationships with military, Elisra, Raytheon and any other cozy ex-USA governments, either gets some iron-clad contracts for this SAS-51 or whatever TAO has, locked and solid or the Tao-Sanswire deal is toast.

And so is GTEM.

m