: Bus ines s Cas e Cellular Phone Collec tion Programs

AHCIET MOVIL, San Jose Costa RicaOctober 19th – 21st, 2006

Agenda : Latin America The Region At a Glance

Technology Migration Market Penetration Potential Legislation

Bus ines s Cas es for Us ed Hands ets Charitable Collection Programs Technology Transition Programs Consumer Trade-In Programs

About ReCellular

Summary &Conclus ions

Agenda : Latin America The Region At a Glance

Technology Migration Market Penetration Potential Legislation

Bus ines s Cas es for Us ed Hands ets Charitable Collection Programs Technology Transition Programs Consumer Trade-In Programs

About ReCellular

Summary &Conclus ions

Technology Transition

2004 2005 2006 2007

70,104

57,350

42,569

27,054

Projected TDMA subscriber base (‘000)*

*Source: Pyramid Research Dec. 2005

CDMA technology grew by 38% in 2005

GSM technology grew by more that 100% in 2005

Market Penetration

Top 5 Markets in Latin America*

3. Colombia 90%4. Venezuela 89%5. Chile 87%6. Bolivia 82%7. Argentina 63%

The Latin American region: 70%

*Source: Business News Americas based on study by Latin Panel.

Recycling Legislation

:Colombia August 2006: Government and mobile phone companies

signed an agreement to collect used phones.

:Mexico Treatment plan for electronic waste scheduled to be

developed by the government in 2007.

:Brazil CONAMA, the national council on environment, requires

manufacturers to collect and provide appropriate disposal of batteries.

:Chile Government has been quoted that electronics recycling

regulation is on their agenda.

Agenda : Latin America The Region At a Glance

Technology Migration Market Penetration Potential Legislation

Bus ines s Cas es for Us ed Hands ets Charitable Collection Programs Technology Transition Programs Consumer Trade-In Programs

About ReCellular

Summary &Conclus ions

Drivers for Handset Collections

Environmental

Charitable

Financial

Highest rate of participation

Charitable Programs

Provides a socially responsible program for the local community while helping

the environment.

Easy to implement Funds generated help local communities,

creating goodwill Low cost Helps avoid regulation Protects the environment and provides safe

recycling practices for the phones & batteries

Case Study: RECICL@ CEL

AVEC &ReCellular : Offic ial Spons ors Cantv

Movilnet &MRW

Collecting in over 1,200 locations throughout Venezuela

All proceeds help Red Hogar, a housing network for those in need

All units are either resold in a working condition or properly recycled www.avec.org.ve/reciclacel

www.movilnet.com.ve

www.WirelessRecycling.com

Technology Transition

Targets the sale of specific new phone models while migrating customers.

Gives financial incentive for consumer to switch networks via a discount

Supports a corporate objective Exporting the used phones guarantees the

phone does not go back on the network or to a local competitor

Protects the environment and provides safe recycling practices for the phones & batteries

Case Study: Motorola

Motorola and ReCellular partnered to migrate customers from TDMA to GSM in

Latin America.

Initial program in Central America recovered more than 34,000 units within the first 5 months of the program

Consumers received a discount on a new Motorola GSM phone by exchanging their TDMA unit

All units would be exported, debranded and not resold within their market

Additional markets slated for launch in early 2007

Trade-In Program

Provides financial incentive to the consumer, while lowering acquisition costs.

Targets those phones with higher value Gives consumers a discount on a new device Attracts consumers from other networks Protects the environment and provides safe

recycling practices for the phones & batteries

Case Study: Best Buy (USA)

Utilize dedicated website Gift card value varies based on value of used

handset Thousands of consumers visit the site daily to

exchange their old handset Can also access site in-store

www.ReCellularTradeIn.com

Agenda : Latin America The Region At a Glance

Technology Migration Market Penetration Potential Legislation

Bus ines s Cas es for Us ed Hands ets Charitable Collection Programs Technology Transition Programs Consumer Trade-In Programs

About ReCellular

Summary &Conclus ions

Who Is ReCellular?

• Largest trading company of used handsets

• Annual revenues in excess of $50 Million

• Processes over 3,000,000 wireless units annually

• Buys/sells over 200,000 wireless handsets monthly

around the world

• National Recycling Coalition Development Award 2004

• Basel Action Network (BAN) recommended recycler

• International offices in Hong Kong and Sao Paulo, Brazil

ReCellular HeadquartersDexter, MI

ReCellular Affiliations

Strategic Partners

Agenda : Latin America The Region At a Glance

Technology Migration Market Penetration Potential Legislation

Bus ines s Cas es for Us ed Hands ets Charitable Collection Programs Technology Transition Programs Consumer Trade-In Programs

About ReCellular

Summary &Conclus ions

Summary & Conclusions

Millions of handsets will be replaced in the region this year alone

Regulations for electronics recycling have begun in the region

Used handset recycling does not have to be a burden nor a cost

Early implementation of handset collection programs can create strategic advantages

Gracias!

Mike NewmanVice President

, . ReCellular Inc2555 Bishop Circle West

Dexter, MI 48130 (734) 205-2134 Phone (734) 205-2312 Fax

mnewman@ recellular.com www.recellular.com

www.wirelessrecycling.com