Precision Navigation Incorporated Precision Navigation, Inc. (PNI) is a leading manufacturer of electronic compasses and magnetic sensing devices. Its consumer products, including the Wayfinder and the Wayfinder Numeric electronic compasses, are strong sellers worldwide and are available through high quality retailers, including The Sharper Image, Hammacher-Schlemmer and Frontgate. PNI's OEM modules are integrated into navigation systems, global positioning systems (GPS), virtual reality head-mounted displays, marine weather stations and a host of other products. PNI has attained its leadership position through its solid commitment to delivering exceptional performance at significantly lower cost and lower power consumption than competing technologies. Founded in 1987 by a team of Stanford University electrical engineering graduates, PNI now employs 25 people at its Mountain View, California headquarters. PNI's core magnetic technology was perfected under a Small Business Incubator Research (SBIR) contract with the U.S. Army to develop a next-generation infantry compass. The company has continued to advance its proprietary navigation and sensor technologies in subsequent consumer, OEM, and military products. PNI's mission is to become the recognized leader in the innovative application of sensor technology. Markets and Applications PNI serves three market segments -- OEM customers, consumers, and the military. Its OEM products serve a diverse population from military contractors and government agencies to major corporations, research centers and universities. The company estimates that its OEM market is worth approximately $350 million annually. PNI reaches OEM customers through its direct sales force, distributors and a network of manufacturers representatives. Among the company's OEM customers, The National Data Buoy Center, a government agency, is using PNI sensors in buoys used for weather charting, and marine and oceanographic research; The University of California at Santa Cruz is using the company's sensors to track the movement and migratory patterns of elephant seals; VictorMaxx Technologies Inc. uses PNI sensor technology in its virtual reality headsets; PNI sensors are also used by several prime military contractors. PNI's consumer market includes electronic compasses for travel, hiking and other light navigational applications. This market has an estimated value of $15 million to $20 million a year. The company reaches this market through retail and catalog distributors, including The Sharper Image, Hammacher-Schlemmer and Eddie Bauer. Core Technologies PNI's products are based on two core proprietary technologies -- the company's advanced magnetometers and clinometer circuitry. PNI's patented magneto-inductive sensors measure the earth's magnetic field along three axes. They are well suited for portable electronic navigation and measurement systems because they provide highly accurate magnetic field information, consume little power and are less expensive than alternative technologies. The company's leading-edge clinometer measures tilt along two perpendicular axis to measure inclination. PNI also uses advanced software technologies and mathematical algorithms to integrate low-power sensor systems into highly effective, accurate and low cost navigation systems. The Products OEM and Military Products: AX100 Dynamic Heading System: The AX100 DHS is a true attitude reference system that is designed to replace high cost mechanical or fiber-optic gyroscope systems, while offering superior long-term accuracy and stability. The AX100 DHS is a gyro and accelerometer-based system that is designed to operate in the most demanding military and commercial applications. TCM2 Electronic Compass Sensor Module: The TCM2 is a high-performance, low-power electronic compass sensor that offers compass heading, pitch and roll through an electronic interface to a host system. This high end system provides a robust heading reference system that integrates PNI's proprietary 3-axis magnetometer with a 2-axis clinometer in a rugged, low-cost system. The TCM2 is well suited for global positioning systems, automobile and marine navigation systems, aircraft compasses, avionics systems and other applications. Vector-2X Electronic Compass Module: The Vector-2X Compass Module is a 2-axis strapped down compass that is designed for users who want to inexpensively integrate a highly accurate compass system into their products. The Vector-2X is designed for car navigation, robotics, marine navigation, global positioning systems, satellite positioning and other applications. Wayfinder-VR: Wayfinder-VR is a tracking sensor for virtual reality systems that senses the orientation of a user's head in a virtual reality simulation. Wayfinder-VR is a small, head-mounted unit that uses the earth's magnetic and gravitational fields to detect orientation, so it needs no bulky transmitter unit and allows the user virtually unrestricted movement. Consumer Products: Wayfinder Electronic Automobile Compass: First introduced in 1991, the $99.95 Wayfinder Electronic Automobile Compass is PNI's original electronic compass for consumers. Wayfinder solves the problem that traditional magnetic, mechanical compasses have in vehicles -- that they don't work well inside automobiles because of magnetic and electronic interference. Wayfinder continuously displays directional headings on a large liquid-crystal-display screen. It also has a hand-held mode for use outside the vehicle. Wayfinder Numeric Compass: The Wayfinder Numeric Compass is designed for automotive and marine use and is well suited as a backup compass system for private aircraft. Priced at $99.95, Wayfinder Numeric is less expensive than comparable electronic compasses. Wayfinder Numeric features numeric output on a liquid-crystal-display screen. Wayfinder LC: Wayfinder is a mass-market, low-cost version of car compass for people who need a general sense of direction. At $49.95, Wayfinder LC locates the eight cardinal points on a compass to illuminate general headings on an LCD screen. Precision Navigation plans to introduce a talking version of the Wayfinder LC, called the Wayfinder Talking LC, next year.