World Surveillance Group Inc (fka WSGI)

[SEBASS]

Bday43 operations on store value cards are suppose to begin in Q3, 2005 per 10K2004. I can't find the source for installation thought. I thought i read it on this board. My educated guess if not already installed then in Q2. In either case no margins increases until then therefore the statment of Huff of profitability by end of year, if everything is on schedule of course. On CGI's subsidiary carrier traffic we will not become profitable IMO since only 3-5% margins where on stored value cards margins are 35-40%. Sorry i couldn't provide a link to source. Maybe others will help.

Processing Switch Agreement

In August 2004, through Englewood Corporation, we entered into an agreement to join with Grupo Ingedigit C.A. ("GI"), a certified MasterCard third party transaction processor and the leading electronic financial transactions services backbone provider for the banking industry in Venezuela, establishing a new venture in Miami, Florida providing domestic and worldwide financial transaction processing services. This domestic venture combined with GI's current international processing capabilities will support on its own network all the Magic Money and other private label GTEL stored value card programs around the world, as well as other third party cards. Both parties will contribute equally to the operation of the Miami switch. The switch is expected to be certified to process MasterCard, Visa, Cirrus, and other independent ATM network transactions. Operations are expected to begin by the third quarter of 2005. The switch will be installed and integrated by Englewood Corporation.

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