The Segway Personal Transporter (PT) continues
to prove its value as a business solution by making workers more efficient
and companies more productive. More and more organizations are utilizing
our short distance transportation device to increase productivity, and employees
are accomplishing more in a fraction of the usual time. It's an exciting
time with endless opportunities.

Our strategy for the long-term success of the Segway PT includes demonstrating
its commercial productivity as well as its pedestrian-friendly operation
on sidewalks. Since introducing the Segway PT as a productivity tool,
its value has been proven again and again. In the last few months, we
have demonstrated to state legislatures the benefits of the Segway PT
as a pedestrian-friendly device. To date, 31 states have recognized the
advantages of Segway transportation and passed legislation welcoming Segway
PTs onto sidewalks and in public areas. We continue to work with other
states in getting similar legislation passed.

Always
seeking ways to improve productivity and increase efficiency, New York
State Electric & Gas Corporation (NYSEG) will be testing Segway PTs
through January 2003 (Press
release). Meter readers in the Elmira area and Mechanicville will
use Segway PTs on some routes, and technicians in Auburn and Lockport
will inspect natural gas lines for leaks while riding the versatile transportation
device. Storeroom staff in the Elmira area and Lancaster will also be
using Segway PTs to gather supplies from inside storerooms and outside
storage yards. NYSEG is interested in determining if Segway PTs can help
them continue to provide outstanding customer service.

Disney Cruise Line is the first to offer its guests the magical experience
of a Segway PT (Press release). Guests age 16 and older can try out a Segway PT at Disney's
Wild World of Sports Deck atop the Disney Magic and Disney Wonder cruise
ships, as well as at Castaway Cay, Disney's private Bahamian island. In
addition to guests enjoying the benefits of Segway HTs, each ship's captain
and officers are also riding the Personal Transporters to quickly maneuver
through the 11 passenger decks on the 964-foot ships. Once the ships dock
at the 1,000-acre Castaway Cay, cruise staff also use Segway PTs to efficiently
travel among the island's private beaches to monitor the needs of cruise
guests.

Since
Segway's early development phases, the U.S. Postal Service has worked
with us to test and refine Segway PT's capabilities. Machines have been
put to the test on delivery routes in a wide range of conditions in areas
like Tampa, FL; Memphis, TN; Concord, NH; and Norman, OK. A recent test
in San Francisco was Segway's most challenging, but the city's steep hills
were no match for the machines. When letter carriers slowed to a stop
or descended hills, the PT's regenerative braking technology transferred
energy to the battery, partially recharging it. Segway's smart technology
rose to the task hill after hill.

Segway
recently made two announcements regarding our European presence. The Farnborough
International Airshow in Britain was the site of a groundbreaking partnership
with BAE Systems, one of the world's most respected manufacturers of advanced
aerospace technology. BAE Systems will become our sales, marketing, and
distribution partner to the UK defense and aerospace markets (Press
release). We will keep you updated as availability begins for these
segments.
Nick Foggin, Segway's new Director for Europe, is increasingly optimistic
about the Segway PT and its applications. "For every day that I work
here, I realize that the applications of the Segway PT are endless. Every
individual that I meet, whether they are self-employed or part of a multi-national
company, instantly thinks of new ways that the Segway PT can be applied.
Everything from security at ports to checking sections of oil pipelinesbasically
every job that involves walking long distances can be made substantially
more efficient by using a Segway PT."
Please stay tuned for updates on our European launch in future issues.

Thousands of hours of rigorous company testing and real world use have
demonstrated the durability and safety of the Segway PT. Road testing
designed to simulate 10 years of hard use under the worst possible conditions
has proven the mechanical integrity of the machines. The chassis of a
Segway PT is even able to withstand the weight equivalent of three sport-utility
vehicles (SUVs). Our electrical systems braved extreme environmental testing
to ensure they are robust. The redundancy we build into the product's
critical systems establishes its reliability and rider safety no matter
what the conditions. The best proof of all, however, is performed by the
letter carriers, police, emergency medical service crews, and park rangers
who are putting Segway PTs to the test in various locations and conditions
across the country. These riders are learning firsthand about the safety
and reliability built into each Segway PT.

The Segway PT continues to demonstrate its value in bringing a heightened
level of productivity to many business enterprises. To date, we have proven
the value of the machine in a number of demanding environmentscustomers
have logged thousands of hours using their machines to enhance productivity
for applications including security, law enforcement, emergency situations,
airport navigation, corporate campuses, postal delivery, the film industry,
warehouses and manufacturing.
We will keep you posted as we make progress towards nationwide availability
in the US and an international presence.
|