World Surveillance Group Inc (fka WSGI)

[rocky301]

Timothy Huff, CEO of GlobeTel, stated, "We are pleased with our overall performance. With the acquisition of the switch and expansion of our Los Angeles telecommunications facility, and the expected expansion of our Stored Value Card and VOIP Phone products in the third and fourth quarters, we are on track to be breakeven by the third quarter and profitable in the fourth quarter 2005."

"aquisition of the switch"..

This paragraph from 1st qtr filing indicates monies and equipment from Pref. B stock from Caterham which was earmarked for the 2 switches. While the location of the switch was not mentioned in PR, the paragraph below would point to Miami

"During the three months ended March 31, 2005, $250,000 and equipment totaling $4,835,000 was received in payment of Series B Preferred Stock subscriptions receivable for a total of $5,085,000."

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.

Refresher on Expansion of Stored Value Card

Expansion of our Stored-Value Program:
We have invested heavily in developing the infrastructure, business and partnering agreements, products, services and support over this past year to effectuate these initiatives. We have described these products and services and their progress in various press releases.

We will expand our Stored Value programs in Mexico, the Philippines and India, the three largest money remittance markets in the world.

We will begin expansion by adding calling card functionality to millions of debit cards in Mexico in the first half of 2005 and will repeat the process in India and the Philippines.
We will also expand our prepaid calling services into new markets in the second half of 2005.
A full telephony product line will be introduced in the first quarter of 2005 and launched in key markets by June 2005.
Our goal is to have 6 million Stored-Value cards and over 1 million MasterCard money remittance customers worldwide by 2006.
http://www.globetel.net/about/letter011005.html