Amp'd Mobile Affidavit

(page 9 of 9)

The Debtor offers rebate programs from time to time to customers who purchase wireless equipment and service plans. As of the Petition Date, the Debtor estimates that they are holding approximately $778,000 in rebates that have not yet been remitted to its customers.

Product Protection and Replacement Plan. The Debtor provides a product protection and replacement plan to its customers that protects against loss, theft, damage, or any malfunction that occurs after the manufacturer's warranty expires on equipment sold by the Debtor. Customers pay a monthly fee to participate in this program. As of the Petition Date, approximately $2,000,000 in prepetition amounts were outstanding for this program. The Debtor spends on average $500,000 per month on the program.

Contests. The Debtor is currently offering existing and potential customers a chance to win a DUB Edition Kawasaki KFX450R four-wheel vehicle. The approximate retail value of the Kawasaki is $7,599.00. From time to time, the Debtor will offer additional contests with prizes of comparable value to subscribers and potential customers.

58. The Debtor's customers are the backbone of its business. The Debtor's ability to honor and perform its obligations to continue the Customer Programs is critical to the Debtor's goodwill toward its customers. Such Customer Programs have allowed the Debtor to develop and sustain a positive reputation in the marketplace for its service plans, coverage, website and merchandise. The Debtor's operations and, ultimately, the success of these chapter 11 cases depend largely on maintaining the loyalty of its customer base and attracting new customers.

59. Unless the Debtor can take the measures requested by the motion to alleviate customer concerns, the Debtor believes that the bankruptcy filing itself may have some negative impact on customers' attitudes towards the Debtor's products and services. In particular, if customers perceive that the Debtor is unable or unwilling to fulfill its prepetition obligations under and/or continue the Customer Programs, the Debtor's goodwill and ongoing business relationships may erode. To prevent any such occurrence, the Debtor desires to honor and perform its prepetition obligations and to continue during the postpetition period those Customer Programs that were beneficial to its business and cost-effective during the prepetition period. Such relief is necessary to preserve the Debtor's critical customer relationships and goodwill for the benefit of the estate.

Conclusion

The Debtor hopes to confirm a plan of reorganization and emerge from chapter 11 in as short a time as is necessary. The Debtor believes that the protections afforded by chapter 11 will enable it to develop, implement and consummate a financial restructuring that will provide for the equitable treatment of all claims and interests, and preserve the value of its assets for the benefit of creditors and equity security holders alike.

AMP'D MOBILE, INC.

By:

Sworn to before me on this Name: Bill Stone

____ day of June, 2007 Title: President

Notary Public

Footnotes:
1. The Debtor disputes the validity of the termination letter and will seek an adjudication from this Court that the Wholesale Agreement remains in full force and effect.
2. An employee is eligible to participate in the 401(k) upon hire.
3. In certain states, applicable law requires different policies.