Buenos Aires Gets WiMax

SAN FRANCISCO -- WebSky, Inc. (Other OTC:WBSK.PK - News) announced today that it will enter into a definitive agreement with Infotel Wireless, a Buenos Aires-based telecommunications company, to establish a joint venture to provide Next Generation wireless broadband service in the Buenos Aires Metropolitan Area (referred to as "AMBA"). The parties expect to execute the agreement within the next ten days. The parties further announced today that discussions between them and other parties for an expansion of the initial project to all of Argentina as well as two neighboring countries are progressing well.

Under the terms of the agreement, a Joint Venture to be known as WebSky Argentina, S.A. will be established to provide non-line-of-sight wireless broadband internet services over licensed frequencies covering a radius of 180 kilometers (112.5 miles) from the center of Buenos Aires. The venture plans to construct the project using Next Wireless' advanced non-line-of-sight equipment which allows for fixed, portable, and even mobile connectivity within the service areas. The system will be fully compatible with, and adaptable to, new chipsets and related hardware currently being developed for advanced wireless broadband services by companies such as Intel.

Over 16 million people live within the licensed-frequency area covered by the joint agreement, and the region contains the majority of the business, educational, and governmental installations of the country. Recent independent reviews of Argentina's economy and telecommunications section have shown a strong rebound from the crisis of 2001-2002. The same objective studies have projected an annual growth rate of 20% for broadband connectivity in the country. All indicators for Argentina show that the most rapid growth in the telecommunications market there will be in the wireless sectors. Currently, all broadband connections are through wireline providers -- either DSL or cable modem -- and it is projected that the greater flexibility of a wireless service will compete favorably with those older technologies. The NextNet Wireless system, which allows wireless connectivity using a portable, battery powered, light weight modem, provides connection speeds comparable to the fixed broadband providers.

WebSky Inc.