SOURCE: World Surveillance Group Inc.

World Surveillance Group Inc.

April 26, 2011 08:00 ET

World Surveillance Group Issues Interim Letter to Shareholders

KENNEDY SPACE CENTER, FL--(Marketwire - Apr 26, 2011) - World Surveillance Group Inc. (OTCBB: WSGI), a developer of lighter-than-air unmanned aerial vehicles ("UAVs") and related technologies, today issued an interim letter to shareholders:

Dear Fellow Shareholders,

I would like to start by thanking you for your continuing support of World Surveillance Group Inc. (formerly known as Sanswire Corp.) We believe we are at an exciting crossroads in the Company's history and I wanted to take this opportunity to share my enthusiasm with you.

The new management team has spent the past nine months not only moving the Company's products toward commercialization, but it has addressed many of the legacy issues facing the Company that were inherited from prior management teams. While we continue to have much work ahead of us, we believe we are well positioned to take advantage of the Company's strengthened situation. I wanted to share with you the notable accomplishments of the prior nine months that have us poised to capitalize on the tremendous demand in the marketplace for lighter-than-air unmanned aerial vehicles.

During the past nine months, we have taken a number of significant steps to move the Company forward and prepare it to take full advantage of long-term growth opportunities, including:

  • Successfully completed initial flight testing of the Argus One airship in Easton, MD.
  • Changed our corporate name to World Surveillance Group Inc. to reflect our revised focus in light of the potential GTC acquisition and unveiled a new corporate website.
  • Invited by the U.S. Department of Defense to test and demonstrate the Argus One airship at the Army's proving ground facility in Yuma, Arizona.
  • Secured a $1.5 million financing commitment letter from Space Florida.
  • Entered into a letter of intent to acquire Global Telesat Corp., a U.S. based satellite tracking firm.
  • Entered into a Settlement Agreement by and among the Company and TAO Technologies GmbH, Dr. Bernd-H Kroeplin and Global Telesat Corp. providing for, among other things, the termination of all existing agreements between the parties (the "Old Agreements"); the retention by TAO and Kroeplin of all cash and shares of our common stock previously paid to them; the shipping back to TAO by us of the old STS 111 (SD34) airship; the discharge of $2,474,753 in debt owed by us under the Old Agreements; and the winding down and dissolution of the joint venture, Sanswire-TAO Corp.
  • Unveiled our new lighter-than-air unmanned aerial vehicle known as "Argus One" equipped with our newly developed, proprietary stabilization system that autonomously controls the level of rigidity of the airship as it flies and its newly designed and integrated payload bay, which is designed to fly over areas of interest for extended durations carrying various payloads to allow for intelligence, surveillance and reconnaissance, communications and other applications.
  • Filed a provisional patent in the U.S. for a new unmanned, autonomous airship with automated control for individual modules for improved flight stability and aerodynamic control based on technology developed for us by our technical partner, Eastcor Engineering.
  • Hired a new Chief Financial Officer with experience in public company reporting, and financial, accounting and treasury functions, as well as implementation of corporate control environments.
  • Secured additional funding from our management team and partners.
  • Adopted a Code of Ethics and Business Conduct Policy, an Insider Trading Policy, a Related Party Transaction Policy and an Audit Committee Pre-Approval Policy, all of which are available on our website, as well as formed an Audit Committee with an independent director.
  • Hired a new Vice President, General Counsel and Secretary of the Company, who was a former partner in several large law firms in Boston, Massachusetts and who has extensive expertise in public company reporting, operations, corporate governance, control procedures and ethics, to work with the Company's Board of Directors and senior management team.
  • Settled all outstanding matters with the SEC thereby resolving the SEC's outstanding lawsuit against GlobeTel.
  • Moved our corporate headquarters to the Kennedy Space Center.
  • Completed construction and outfitting of a newly built, Company owned, 172,000 cubic foot hangar facility in Easton, Maryland to house our UAVs during continued develop, testing, demonstrations and integration of systems and payloads.

Notwithstanding the challenging economic market and the legacy issues facing the Company, your management team and Board of Directors continue to work diligently to transform the Company into a successful provider of lighter-than-air UAVS and related technologies. The acquisition of GTC is an exciting prospect in that it not only would provide the Company with revenue and cash flow streams, but would allow the combined entity to pursue new opportunities for product diversification and expansion and transform the Company into a provider of unique turn-key solutions encompassing ground, air and space based communications for customers requiring cost effective, innovative technology solutions.

While we are clearly disappointed in the recent performance of the Company's stock, we do not believe the current stock price accurately reflects the potential growth and momentum we see in the Company's future. We believe the next year holds many opportunities for the Company and we are committed to enhance shareholder value through the commercialization of our products and through the pursuit of potential strategic transactions like the GTC deal. I, members of management and our partners continue to invest in the Company both on a financial basis and by dedicating our time and efforts to create value for you -- the shareholders of the Company.

I am confident that we have the right strategy and management team in place to be successful and deliver strong returns for our shareholders over the long-term. I believe we are well positioned and making the necessary changes to emerge as a stronger company. Thank you for your continued support of WSGI and I look forward to updating you on our progress in the future.

Sincerely,

Michael K. Clark
Chairman of the Board of
World Surveillance Group Inc.

About World Surveillance Group Inc.

World Surveillance Group Inc. (OTCBB: WSGI) designs, develops, markets and sells autonomous, lighter-than-air UAVs capable of carrying payloads that provide persistent security and/or wireless communications solutions at low, mid, and high altitudes. WSGI's airships, when integrated with electronics systems and other high technology payloads, are designed for use by government-related and commercial entities that require real-time intelligence, surveillance and reconnaissance or communications support for military, homeland defense, border control, drug interdiction, natural disaster relief and maritime missions. For more information regarding WSGI, please visit www.wsgi.com, or view our reports and filings with the Securities and Exchange Commission on http://www.sec.gov.

Forward-Looking Statements

Certain statements in this letter constitute forward-looking statements. These statements include the Company's ability to consummate the acquisition with GTC on a timely basis or at all, the synergies or benefits that may result from such an acquisition, the ability to integrate the products or operations of GTC, the Company's ability to raise any level of funding from either Space Florida or other third parties, the capabilities and advantages of the Company's technology and products or any combined GTC/Company products or technologies, the ability of the Company to capitalize on market demand and grow the Company's business, the outcome of any testing of the Company's products, the Company's ability to successfully commercialize its airships, execute its strategy and business plans or capitalize on growth opportunities, the Company's financial condition or results of operations, the effects of any changes in the Company's operations, the Company's stock price or shareholder returns, the Company's ability to enhance shareholder value and the Company's efforts to resolve historic issues or settle any pending or threatened litigation or claims. The words "goal," "hope," "forecast," "project," "intend," "expect," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, any of which could cause the Company to not be able to consummate the acquisition or financing transactions or achieve some or all of its goals, or cause the Company's previously reported actual results or performance (financial or operating) to change or differ from future results, performance (financial or operating) or achievements, including those expressed or implied by such forward-looking statements. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.

Contact Information

  • Contact:
    World Surveillance Group Inc.
    321-452-3545
    Barbara M. Johnson
    investors@wsgi.com