John - Thanks for your note. With the benefit ofhindsight, here is my view of what happened:
1. We had a good plan and were executing on it. Stockprice rose, hitting a high of 40.5 cents in 2005.2. We invested heavily in Kite. While we added manysubscribers, we failed to get as many wi-fi subscribers inTempe, Longmont and Farmers Branch as we needed to get toprofitability for Kite. Stock price stalled and started tofall.3. We tried to sell assets to pay off debt; CLEC dealdidn't close, Kite deal closed but buyer failed to pay usmonies it owed post-closing. Stock price fell more.4. Investors lost confidence, stock market in generalstarted collapsing. Stock price got hammered.5. YAG sold large number of shares. Stock price droppedto below 1 cent. Thus, the key failure, in my view, was the failure to getKite to sustained profitability. We invested heavily inKite and when it didn't catch fire it set in motion aseries of events which seriously hurt our stock price. Ofcourse, now the federal government is pumping billions intowi-fi. Unless they get more subscribers than we did, thatmoney will all be lost. With respect to your question about recovery, we areawaiting potential proceeds from dial around compensationbut even at the high end of expectations, we would notrecover to near our high (or even 1/3 our high) given theover 1 billion shares now outstanding. It is my hope thatwe recover enough to pay off the creditors and have somemoney to restart things for our shareholders. There is noguarantee of that happening, however. My contract is up on June 30. I personally am looking atwhat I will be doing post-Mobilepro as the dial aroundlitigation may go on for another 2-3 years absent asettlement and we have auctioned off the CLEC. I havejoined the board of VDSC.PK a defense contractor looking todo what MOBL did in 2004-05. I will certainly be advisingthem to avoid a Kite like situation.
Best regards, Jay Wright
Chairman and CEO
Mobilepro Corp.
AI
