• Away from large scale proprietary simulators and simulation to deployable, reconfigurable, non-proprietary simulators and simulations.
• Toward embedded training for Command, Control, Communications and Intelligence (C3I) systems (training is incorporated into operational systems).
• Away from stand-alone simulators and simulations toward networked systems of simulators and simulations.
• Away from single-service; toward joint-services simulations (simulations which support Army, Navy, and Air Force).
• Away from traditional weapon systems acquisition process to using simulation systems in development, prototyping, and testing.
• Away from large developmental training systems toward non-developmental, commercial-off-the-shelf training hardware and software.
• Away from domestic (DOD) to international (commercial or Foreign Military Sales) markets.
• Toward further outsourcing to industry for operation and maintenance of training devices and systems (i.e., "Privatization").
• Away from traditional broad competitive base to evolving industrial alliances and acquisitions.
• Toward an emphasis on Small Business opportunities.

OpenSkies technology was developed to be responsive to all of these trends.

The market segment size and growth rate for the desktop training market is dominated by Government needs translated into budget line items. The total program element funding for FY97-03 by service is approximately $460 million per year.

Growth of government spending for training and simulation is controlled by the congressional budget process. Government spending for military training and simulation is generally pegged at somewhere around 1% of overall departmental budgets (about $3 billion, annually).

The Company develops PC-based simulations system software and marries it to commercial-off-the-shelf PC-class hardware. Therefore, the government's movement away from large developmental training systems toward non-developmental, commercial-off-the-shelf training hardware and software makes the Company's products very attractive in this segment going forward.

Cybernet Systems Corporation is located at 727 Airport Blvd, Ann Arbor, MI 48108 and can be reached by phone at 734-668-2567. More information about the company is available at www.cybernet.com and information about OpenSkies is available at www.openskies.net.