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AFEXpress - Satellite Internet

Your Companies' Co-Branded Satellite Internet Service

America’s Family Entertainment, Inc. ("AFE"), offers two broadband Internet access solutions. Both products are readily available today for your company to co-brand, with AFE. Through co-branding, your Company can represent AFEXpress as your own "High Speed Satellite Internet service." Your Company will retain ownership rights to your customer base and AFE can arrange to have your Company's logo placed on the customer's dish antenna.

There are no commitments required from you for a minimum customer subscription service, nor are there any fixed access fees for the Retail Dealer's network connection to the Internet. By partnering with AFE, you receive monthly revenue of $9.00 per subscriber and hold ownership rights to your customer. In that respect, you have sufficient incentive to develop your business without any quotas.

AFEXpress is a product designed for the home or business that wants to have broadband "High Speed" Internet. Access speeds of up to 400k are available. AFEXpress requires an .88 meter satellite antenna and modem card connected to your customer's PC. Your customer's equipment cost is $229.99, plus a $99.00 installation fee, for an internal PC card and modem and $329.99, plus a $99.00 installation fee, for an external modem. (Note: For a limited time only, a $50.00 equipment subsidy is available on a Retail Dealer's second or subsequent full pallet order(s) of 20 systems when the Retail Dealer has activated the first 20 systems with a one (1) year service agreement with those customers.) (As Further Note: For AFE Retail Dealer cost, consult "Dealer Economics.) Monthly cost for your customer's Internet access service, which includes local ISP, is $39.99.

The AFEXpress solution has a low one-time Retail Dealer set-up fee of $2,495.00.

One (1) Demo/Show Unit (Internal Modem)

Five (5) end-user satellite modems (4 Internal, 1 External).

Initial on-site training of your installation staff.

Domain name registration and e-mail account set-up.

Online end-user modem provisioning.

Your companies' dish logo set-up fee.

AFE's CableXpress is designed for the private cable operator. It delivers 1-way or 2-way broadband service to apartments, condos, town homes, universities, and businesses. AFE's CableXpress has a one-time set-up fee, to the cable operator, of $7,000.00.

AFE Retail Dealers can earn activation commission(s) and Residual payments from local cable operator accounts which they sign on for AFE's CableXpress Internet connectivity services.

Included in a cable operator's fee, is:

All required headend hardware and receiver satellite dish.

Initial on-site training of your installation staff.

Domain name registration and e-mail account set-up.

Online end-user modem provisioning.

Your Companies' dish logo.

Other communication products which AFE offers to its Retail Dealers with multiple locations, or which Retail Dealers can offer to their commercial customers, include:

1) AFEXpress Meeting Plus - High speed Video which includes, training content

distribution via satellite, streaming of an audio or video event to remote receiver

site PC’s. (Great for colleges or business that want to provide training to students

or employees on a regular daily or weekly basis.) This can be performed live or

through traditional DSL and other providers.

2) AFEXpress File Delivery - High speed file delivery: Delivery of files to remote site

PC hard disks for retrieval and use by an end - user at remote sites. (Great for

businesses that require daily updates of large files.)

3) Current Hit Movies - delivered to residential or business customers via AFEXpress

Internet connectivity service.

A Retail Dealer's Annual economics when selling one (1) AFEXpress system per business day (20 per month) would be as follows:

I. Unit Sales: (1 p/day)

Installed units (p/month) 20.0

Annualized x 12.0

Annual System Activation's 240.0

II. Revenue or Revenue Equivalent:

Equipment Sales (@$229.99(14) & $329.99 (6)) $ 62,397.60

Monthly Residual (@9.00 p/sub. on a five (5) year average) 63,520.00

Parts Revenue 6,600.00

Service Labor/Installation 23,760.00

Total Revenue…………………………......................................... $ 156,277.60

III. Cost of Goods Sold:

COGS Equipment (@ 184.00 (14) & $282.00 (6)) $ 51,216.00

COGS Other 2,640.00

Parts, Fittings, & Cable (@ 10.00) 2,400.00

Total COGS………..………........………..........................................$ 56,256.00

IV. Gross Margin...................................................................................$100,021.60

V. Operating Express:

(1) Personal Cost (360 hrs @ $15.00) $ 5,400.00

Vehicle Expense (39.5 cents p/mi 4800 mi) 1,896.00

Insurance/Telephone/Postage 3,833.33

Shipping/Freight (@ $7.00 ea.) 1,680.00

Total Operating Expense…..……..............................................$ 12,809.33

VI. Operating Cash Flow (EBITDA): (2) $ 87,212.27

(1) If dealer uses existing employees, expenses

may become incremental income (s).

(2) Business value would increase to $436,061.35

(5 x EBITDA of $87,212.27)

Industry Analysis

AFE, through AFEXpress and AFE CableXpress, offers the NGL marketer an opportunity to co-brand his or her own high-speed Internet service. Using AFE's Broadband technology, the propane marketer can provide customers with 400K "push" IP multicast Internet access speed. The marketer can also purchase time through AFE to communicate directly with their customers, outlying bulk plant(s) or office(s). Residuals paid to the marketer are the highest in the industry. Other data services will be available soon and will bring new incremental revenue streams to satellite providers, and AFE's Retail Dealers.

Over the next five(5) years, 1.2 Billion new subscribers will come on-line with Internet connectivity service. The propane industry has access to 20 households with a 60.0 million-population base: a customer base, which can utilize commercial satellite technology through SkyTracker®, DBS and AFEXpress Internet Connectivity.

Please feel free to contact our company

to discuss the opportunities.

AFEIncorp@aol.com

America’s Family Entertainment, Inc.

North American Satellite Corporation

846 Conference Drive; Suites 4 & 5

Goodlettsville, Tennessee 37070-1778

1-615-859-9980 (Office Telephone)

1-615-859-9490 (Facsimile)