SkyWay Communications Holdings Corp. Announces New Business Strategy as the Result of Agreement with Major US Defense Contractor

CLEARWATER, Fla.--(BUSINESS WIRE) -- May 13, 2004 11:53 am

SkyWay Communications Holding Corp. Poised to Become Operator of US National Network for Providing Military and Civilian In-Flight Monitoring and Data Communications

CLEARWATER, Fla.--(BUSINESS WIRE)--May 13, 2004-- As previously announced, SkyWay Communications Holding Corp. (OTCBB:SWYC - News), and its wholly owned subsidiary, Sky Way Aircraft Inc., have entered into a sales and marketing partnership agreement with The Titan Corporation, a multi-billion dollar US defense industries contractor who presently manages more than 2,500 contracts with a backlog of more than $4 billion dollars in the areas of Homeland Security and Anti-Terrorism, Command, Control and Communications Systems, Aircraft Defense Systems, Network Communications, as well as other information and communications systems and solutions associated with national defense.

SkyWay's in-flight bandwidth system, currently undergoing testing and evaluation, will enable military applications to receive encrypted data transmissions at speeds and in volumes never before attained for in-flight operations. Additionally, SkyWay is using this same platform to produce a whole new industry for in-flight consumer bandwidth services such as movies-on-demand, email, high-speed Internet and personal cell phone operation when approved by the FAA.

"We are extremely pleased that an industry leader, working at the forefront of addressing the needs of our nation's commercial and defense aircraft systems and networks, has recognized and embraced the multiple opportunities and applications offered by the SkyWay System for both in-air security services and in-flight consumer bandwidth provisioning services," said Brent Kovar, president, Sky Way Aircraft. "We are realizing applications that may revolutionize combat air support and air safety systems."

The scope of the agreement includes the sales and marketing of SkyWay's high-speed airborne network services to all US federal government and military agencies, including the US Department of Defense and Department of Homeland Security. The resulting platform provides a solution for averting air disasters stemming from terrorism and in-flight aircraft malfunctions achieved through the use of device monitoring via SkyWay's technology. It is anticipated that, through the operation of high-speed ground-to-aircraft data communication, SkyWay's platform may also provide applications to be used in advanced air combat and flight control services. SkyWay's technology meets the needs of both military and civilian aircraft markets. Through this agreement, SkyWay's management estimates that SkyWay could enter into contracts with government contractors, major and regional airline companies, national and regional airport authorities and other civilian aircraft owners and operators worth more than $200,000,000-$500,000,000 over the next 18-24 months.

SkyWay's technology enables airline and military security personnel on the ground to monitor entire aircraft cabin interiors, luggage compartments and cargo holds through real-time video feeds. SkyWay has commenced engineering inspections, installation and limited operations of its nationwide broadcast tower network, including FCC approvals for 114 sites in the United States plus the Caribbean. SkyWay built its national infrastructure by leasing and enhancing select ATT/Claircom towers, which were built to sufficiently high standards to facilitate the Company's business model as an active operator. SkyWay's national network will allow the Company to retain an operator position status concerning the ongoing control and monitoring of its on-aircraft systems.

About SkyWay Communications Holding Corp. (Sky Way Aircraft, Inc).

Sky Way Aircraft is a division of SkyWay Communications Holding Corp., a Clearwater, Florida based company developing a unique ground to air in-flight aircraft communication network that will facilitate homeland security and in-flight entertainment. Sky Way Aircraft is focused on bringing to market a network supporting aircraft-related service including anti-terrorism support, real time in-flight video surveillance and monitoring, WIFI access to the Internet, telephone service and enhanced entertainment service for commercial and private aircraft throughout the United States. Based on the final upgrading of a previous airborne telephone and communications network, Sky Way Aircraft intends to provide broadband connectivity between the ground and in-flight aircraft throughout the U.S. using technology that provides a broadband high-speed data transmission. Sky Way Aircraft intends to be the communications solution for commercial and private aircraft owners wanting real time access to on-board security systems, aircraft health and welfare monitoring, avionics operations and for passengers wanting real time high-speed access to the internet. Their network will enable applications that can personalize the in-flight entertainment experience, provide real time access to flight management avionics with long-term data storage and also support for ground monitoring of in-flight surveillance systems that are being designed with the goal of enhancing current airline security standards.

Forward-Looking Statements: This press release contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. SUCH STATEMENTS REFER TO FUTURE EVENTS AND CONDITIONS OR TO THE COMPANY'S PREDICTIONS, ESTIMATES AND EXPECTATIONS. THESE FORWARD LOOKING STATEMENTS are subject to risks, uncertainties, and other factors that could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, include without limitation, PRODUCT DEVELOPMENT AND TESTING RISKS, RISKS INHERENT IN RAMPING UP OPERATIONS, THE ABILITY TO ATTRACT AND KEEP COMPETENT PERSONNEL, DEPENDENCE ON BUYERS' SATISFACTION WITH THE COMPANY'S PRODUCTS AND continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, the Company's dependence on third-party suppliers, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based. Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995.
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Contact:

OnPR for SkyWay
Kyle Warnick, 206-618-2731
kylew@onpr.com

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Source: SkyWay Communications Holding Corp