5G Wireless Communications, Inc.
Company Report
12/10/2002

5G Wireless Communications, Inc.
(OTCBB: FGWC/ bid $0.0055 – ask $0.006)

WHY YOU SHOULD CONSIDER FGWC:

1. The company is fully reporting, yet has a current stock price below one penny at $0.006 per share and a market cap of only $840,000. This appears to be undervalued based upon the market for wireless broadband with the potential to add voice over data services.
2. Unlike other wireless technologies that require a direct line of sight for reliable operation, the 5G solution incorporates “smart” equipment that locates alternate routes around obstructions, remembers these routes, and then transmits via multipoint antennas that may be located at end user facilities.
3. The 5G solution, also known as “Wireless Wide Area Network” or WWAN, provides a cost effective method of distribution both in the 2.4 and 5.3/5.8 GHz range for local and regional ISP’s as well as residential and commercial use with data transfer speeds up to 5 Mbps.
4. Its equipment is Wi-Fi certified under IEEE 802.11b. This means that its products will be interoperable with any other products developed under this initiative by any manufacturer.
5. The company has completed its testing phase and has deployed its services to individuals, businesses, fire departments, hospitals, and municipalities in New York and California. It is now ready to actively market its services to targeted cities throughout the country

5G Wireless Communications, Inc. (OTCBB: FGWC)
Financial Projections ($’s in thousands)

                        2002        2003       2004         2005         2006           2007
Revenues(1)(2) 135,000 6,723,000 18,040,000 27,598,000 35,295,000 42,590,000
EPS (diluted)

52 Week Range: $.004 - $.095              Fiscal Year End: Dec 31
Shares Outstanding: 141,000,000          Approximate Float: 40,000,000
Market Cap: $845,000

(1) Does not take into effect what the company believes may be additional revenue associated with the potential sales through licensing and wholesale, maintenance and consulting fees and agreements.
(2) Revenues are based upon adding 30 new towers during the next 6 months.

5G Wireless Overview http://www.5gwireless.com

The company provides high-speed, broadband Internet service via a proprietary wireless technology. The solution has been tested, verified, and is currently in use in multiple cities in New York including Binghamton, Johnson City, Vestal, Bainbridge, and Sydney. The system has also been deployed in Marina Del Ray and Garden Grove, California and is being tested in Miami, Florida for use as part of a new voice over Internet cell phone network. 5G currently services 70 different subscribers comprised of individuals, businesses, fire departments, hospitals, and municipalities. Each subscriber is capable of servicing up to 100 workstations. Having completed its initial rollout only a few months ago, the company is now poised to grab additional market share through an aggressive sales campaign.
99% of wired Internet solutions are subject to the “last mile” problem—the central data bottleneck that occurs between the Internet backbone (usually fiber optic cable) and typical end-users (usually copper or twisted pair cable). 5G eliminates the “last mile” allowing true broadband communication along its entire network, right down to the end user. This allows for higher transfer rates (up to 5.5 MB/s upstream and downstream). DSL & other broadband solutions are subject not only to the last mile bottleneck, but also to distance constraints and multiple interconnection points that have the potential for failure. These problems are reflected in the fact that their transfer rates may be as low as 128 kb/s upstream and 512 kb/s downstream and the service is subject to interruption at any time.
Traditional alternatives for providing broadband Internet access for users include cable modem, DSL, and wireless communications. Growth and change make wired solutions expensive, cumbersome and too slow to implement. As the demand for information, entertainment, and communications explodes, a broadband fixed wireless network presents the single best method for delivering reliable, cost-effective and profitable service. Wireless broadband is the solution of the future to eliminate the deficiencies of the “last mile.”

5G Advantages (see table at the bottom for comparison to other wireless options)

Only a small percentage of the largest cities are even capable of receiving DSL and cable broadband. This is due primarily to the costly infrastructure involved in setting up these types of alternatives. 5G has developed a superior technology that allows it to deliver faster service to more clients than any other solution on the market today. It simultaneously can deliver broadband services to up to 1000+ subscribers from a single location while providing superior performance than DSL, Cable, and dial-up modem.

Lower Deployment Costs: The cost of fixed wireless networks is the lowest of all currently available data transport methods and provides connectivity to new areas in significantly less time. Consider that the cost of laying only 1 mile of fiber costs between $200,000 and $300,000 and that only 3% of all commercial buildings in the U.S. have fiber optic connections.

Lower Cost of Equipment: 5G access points cost 50% less than its nearest competitor while supporting more clients. Its client premise equipment also costs 60-70% less than those used by its competition.

Lower Maintenance Cost: 5G’s wireless technology is installed as required with no right-of-way limitations. Once the capital investment is paid there are no monthly expenses accrued since the solution bypasses the local loop.

Quicker Time to Market: Traditional cable and DSL networks are not only expensive, but time consuming to build. These forms of access require a direct, physical connection be established to each subscriber. 5G’s infrastructure can be deployed on an incremental, “only when needed” basis, for more managed and scaleable growth. The company can maximize cash flow and return on investment by targeting the most profitable areas first.

Return on Investment: 5G has a lower ratio of fixed to variable costs, lower start-up costs, and lower costs per subscriber when compared to its wired competition. This means that 5G can deliver a superior service for both residential and business at affordable prices that the competition will have a hard time matching. Since the cost per subscriber is so low, 5G recoups its investment and becomes profitable after the 10th month of service to a residential client and after the 4th month for a business client. In fact, 5G estimates its cost per subscriber to be $450 compared to other wireless providers whose cost per subscriber ranges from $789 to $1,865 and wired providers cost per subscriber is even more.

MARKETS

Americans’ use of information technologies grew at phenomenal rates in 2001. This past year saw the continued steady increase in computer and Internet use, not only in homes, but also at the workplace, schools, and other locations. By 2004 the demand for broadband wireless access in the U.S. is estimated to reach $16 Billion.
5G is poised to capitalize on the limited availability of broadband service in both the rural and urban markets with a focus on four distinct markets areas: residential, commercial, educational, and public access networks.

Residential

This demand for faster, broadband transmission speeds has largely remained unsatisfied because a growing portion of the market has found itself “priced out” of the “broadband revolution” and/or under serviced by traditional Telco and cable providers. The increased demand for data presents an opportunity and a challenge for Service Providers and businesses of all sizes. The Service Providers command higher prices for high speed Internet access. The challenge comes in making high-speed access available to everyone.

A U.S. Census Bureau’s September 2001 survey suggests that 50.5 percent of the households (53.9 million homes) in the United States subscribe to the Internet. Usage is growing at an annual rate of 18% and 19% for urban households and at a 24% rate for rural households. This equated to a 2 million new users per month for the year 2001. Of all Internet subscribers, 80% connected via a “dial up” telephone line, 12.9% used cable mode, and 6.6% used DSL. The use of broadband in households has increased from 11.2% in August 2000 to 20% in 2001.

The 5G solution is ideal for areas that up until now have had no broadband alternative. The significant difference in set-up costs associated with 5G Wireless makes it cost effective for entire markets that have been avoided by the phone companies and other providers of broadband because of cost versus payback considerations. 5G is poised to capitalize on the tremendous market demand for high-speed Internet access.

Commercial

The small to medium sized businesses are and will continue to be the most underserved area of the broadband market. 5G offers a high speed broadband solution that is affordable to small businesses and can be integrated into a new market at a more rapid rate and at lower costs than wired alternatives.

Educational / Campus Environments

5G’s rapid and scalable deployment makes it ideal for schools and campus environments that want to add the ability for portable class rooms and remote locations to tap into the network and have all of the advantages associated with broadband computing, without having to wire such classrooms. This can be simply accomplished by adding access points or an antenna wherever connectivity is needed and allowing students and faculty to use computers with wireless PMCIA cards. Of course 5G can also install networking equipment in case CAT 5 Ethernet is preferred.

Public Access Networks

5G offers a new and innovative solution that offers greater flexibility, while offering a high quality and cost effective data services for the hospitality industry. Its solution bypasses the traditional bottleneck of the hotel PBX systems to support the demand for Internet access anywhere within the facility. Until recently, hotels have had two possible solutions to this problem: invest in additional PBX equipment and trunk lines, or rewire the building to support data traffic.

Contact Information
5G WIRELESS COMMUNICATIONS, INC.
4134 Del Rey Ave.
Marina Del Rey, CA 90292
Telephone: 1-866-754-3780
Facsimile (310) 754-4004
irdept@5gwireless.com

Notes:
TAP is dedicated to profile companies which meet TAP's criteria as outlined in the goals section of our web site. We only profile companies that we want to own. The profiled company is a fully reporting Bulletin Board stock. We like this company’s technology, especially in relation to the stock’s price and its current market cap. It is currently trading at $0.0055 bid and $0.006 ask, and has a market cap of approximately $840,000. We believe with its current activities this company can support a share and market cap significantly above this level. Its technology is interesting and they have begun to establish a customer base that is now bringing in revenues. We feel at this price level it is a company worth considering.

Given this, we would like for our members to be made aware of a few issues that you are likely to find when performing your own due diligence:

The number of authorized shares is 800,000,000 although the company has only issued 140,000,000. The authorized shares were increased due to a drip financing arrangement with the May Davis Group. 5G’s management has indicated that they are not anticipating needing any additional funding from this arrangement and therefore have no plans to issue the bulk of the remaining 660,000,000 shares. Even if the number of shares outstanding goes as high as 200,000,000 this would give the company a market cap of approximately $1.2MM at its current stock price.

Another concern is that they have been late filing their 10Q over the last several quarters. This last reported 10Q was filled late and an “E” was added to the ticker symbol but has since been removed. We refused to profile the company until we were sure that the filling had been submitted and that the “E” would come off. A fully reporting Bulletin Board shell without any assets can be worth $250,000 plus. But if dropped to the pink sheets its an entirely different story. It will be very important for them to file their reports in a timely manner.

Also catching our attention is consulting arrangements and fees that are disclosed and outlined in the 10Q.

We have voiced our opinions to 5G's management about the issues stated above and have been told that these are concerns of the past. We will be keeping a close eye on this one but believe the risk versus reward to be attractive, especially at this price level.

By reading this profile you acknowledge that you have read the information below and the disclaimer located at http://www.turnaroundpicks.com/disclaimer.htm

This publication is an advertisement on behalf of the issuing Company mentioned in this advertisement and may not be construed as investment advice. This advertisement does not provide an analysis of the Company’s complete financial position and is not a solicitation to purchase or sell securities. This publication may contain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management’s current expectations and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the Company’s Marketing materials and filing documents. Readers should consult with their own independent tax, business and financial advisors with respect to any investment, including any contemplated investment in the advertised Company. All information contained in this advertisement should be independently verified with the advertised Company and an independent securities analyst. The Publisher, its affiliates, officers, directors, subsidiaries and agents (collectively, the “publisher” of this advertisement) have been compensated 600,000 shares of 5G Wireless common stock restricted under rule 144 for their services. In preparing this advertisement, the Publisher has relied upon information received from the Company, although believed to be reliable, cannot be guaranteed. This advertisement is not an endorsement of the Company by the Publisher. The Publisher is not responsible for any claims made by the Company. Investing in low priced securities, such as those of the Company mentioned in this report, is not suitable for everyone. You should independently investigate and fully understand all risks.