As filed with the Securities and Exchange Commission on May 14, 2004

POST-EFFECTIVE AMENDMENT NO. 1

MOBILEPRO CORP.

Copy to:
Ernest M. Stern, Esq.
Schiff Hardin LLP
1101 Connecticut Avenue, N.W., Suite 600
Washington DC 20036
(202) 778-6400
Telecopier No.: (202) 778-6460

     Approximate date of commencement of proposed sale to the public: From time to time after the effective date of this registration statement, which was May 15, 2003.

     If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box. þ

     If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. o

     If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. o

     If delivery of the prospectus is expected to be made pursuant to Rule 434, please check the following box. o

     The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until this Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.

Subject to completion, dated May 14, 2004

MOBILEPRO CORP.

     This prospectus relates to the sale of up to 200,000,000 shares of our common stock by certain persons who are, or will become, stockholders of Mobilepro. As of May 12, 2004, the selling stockholder has sold 150,404,023 of those shares. This prospectus relates to the sale of the remaining 49,595,977 shares of common stock that may be sold by the selling stockholder. All of the shares of common stock have been, and are being offered for sale by the selling stockholder at prices established on the Over-the-Counter Bulletin Board during the term of this offering. These prices will fluctuate based on the demand for the shares of common stock.

     The selling stockholder is:

     Cornell Capital is an “underwriter” within the meaning of the Securities Act of 1933 in connection with the sale of common stock under the Equity Line of Credit Agreement. Cornell Capital will pay Mobilepro 91% of the market price of our common stock. The 9% discount on the purchase of the common stock to be received by Cornell Capital will be an underwriting discount. In addition, Cornell Capital Partners, L.P. is entitled to retain 3% of the proceeds raised by us under the Equity Line of Credit Agreement.

     Our common stock is quoted on the Over-the-Counter Bulletin Board under the symbol “MOBL.”

These securities are speculative and involve a high degree of risk.

Please refer to “Risk Factors” beginning on page 5.

     With the exception of Cornell Capital, which is an “underwriter” within the meaning of the Securities Act of 1933 in connection with the sale of our common stock under the Equity Line of Credit Agreement, no underwriter or any other person has been engaged to facilitate the sale of shares of common stock in this offering. This offering, including the shares of common stock that were issued pursuant to conversion of convertible debentures, shall terminate on or before February 14, 2005. None of the proceeds from the sale of stock by the selling stockholder will be placed in escrow, trust or any similar account.

     The Securities and Exchange Commission and state securities regulators have not approved or disapproved of these securities, or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

The date of this prospectus is May 14, 2004.

TABLE OF CONTENTS

     We intend to distribute to our shareholders annual reports containing audited financial statements. Our audited financial statements for the fiscal year March 31, 2004, will be contained in our Annual Report on Form 10-KSB.

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PROSPECTUS SUMMARY

Our Company

     Mobilepro is a wireless technology and broadband internet services company. We are focused on developing innovative wireless technologies, acquiring and growing profitable broadband internet service providers and creating strategic alliances with companies in complementary product lines and industries. Our wireless technology development efforts are conducted by our wholly-owned subsidiary NeoReach, Inc., a Delaware corporation. We provide broadband internet services through our wholly-owned subsidiary, DFW Internet Services, Inc., a Texas corporation.

     NeoReach is currently developing a semiconductor chip for use in home networking and selected industrial monitoring applications based on the ZigBee standard. ZigBee is an IEEE standard (802.15.4) developed for certain low power, short range devices. Mobilepro and Neoreach are both members of the ZigBee Alliance, an industry group formed to facilitate the development of the ZigBee standard. We are seeking to design a low-cost, low power two-way wireless radio frequency semiconductor communications solution that could potentially be embedded in consumer electronics, home and building automation, industrial controls, PC peripherals, medical sensor applications, remote control toys and games. We recently filed a patent application covering certain aspects of our chip’s design. However, the ZigBee Standard itself is public domain and therefore not patentable.

     Prior to December 2003, NeoReach was focused on developing wireless modem solutions to support third generation wireless communications systems based on the worldwide wideband — code division multiple access, “W-CDMA,” standard. Third generation technology features integrated voice and data, access to high-speed Internet and intranet applications, interactive e-mail, data exchange, global roaming and full motion video transmission—all delivered to a mobile device such as a cellular phone, personal data assistant, “PDA,” or laptop. Because of the substantial financial and other resources required to develop these modem solutions and bring them to market, NeoReach has, for the time being, deferred its development efforts in order to focus on development of the ZigBee chip. However, if our financial resources increase, we may choose to restart development efforts in this area.

     Through our wholly owned subsidiary DFW Internet Services, which we acquired in January 2004, we provide broadband and dial up internet access, web-hosting services, and related internet services to business and residential customers in over 30 states. DFW Internet Services has two subsidiaries, Internet Express, Inc. (d/b/a EXP Internet Services), which we acquired in March 2004 and August.net Services, Inc., which we acquired in April 2004. We have signed letters of intent to acquire three additional internet service providers. We intend to grow DFW Internet Services through the acquisition of these and other internet services providers.

     We have also formed strategic alliances with companies which have products and/or services which we believe are complementary to our products and services. For instance, we have formed an alliance with NetWolves Corporation, a Tampa, Florida based network services provider, with which we have started to jointly market our respective companies’ products and services, and with Global Defense Corporation, a Vienna, Virginia company with which we are exploring the development and sale of certain technology for the Department of Homeland Defense and for use in the global fight against terrorism.

     In addition, through NeoReach, we own a portfolio of five patents relating to smart antenna technology. Smart antenna technology has the potential to significantly improve the range, capacity and reliability of wireless antennas in both cellular applications and fixed wireless applications. We are currently looking to license these patents to one or more companies.

About Us

     Our principal office is located at 6701 Democracy Blvd., Suite 300, Bethesda, Maryland, 20817; telephone number (301) 315-9040.

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THE OFFERING

     This offering relates to the sale of common stock by certain persons who are our stockholders. The selling stockholder is:

     Pursuant to the Equity Line of Credit Agreement, we may, at our discretion, periodically issue and sell to Cornell Capital shares of common stock for a total purchase price of $10.0 million. As of May 12, 2004, we currently have $3,015,000 remaining available under the Equity Line of Credit Agreement. As of May 12, 2004, Cornell Capital has sold 150,404,023 shares of our common stock. Cornell Capital will purchase the remaining shares of our common stock available under the Equity Line of Credit for a 9% discount to the prevailing market price of our common stock. In addition, Cornell Capital is entitled to retain 3% of the proceeds raised by us under the Equity Line of Credit Agreement. Cornell Capital intends to sell any shares purchased under the Equity Line of Credit Agreement at the then prevailing market price. This prospectus relates to the shares of our common stock to be issued under the Equity Line of Credit Agreement, as well as shares of common stock acquired pursuant to conversion of convertible debentures previously purchased by Cornell Capital from Mobilepro.

     Brokers or dealers effecting transactions in the shares being registered in this offering should confirm that the shares are registered under applicable state law or that an exemption from registration is available.

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SUMMARY FINANCIAL INFORMATION

     The following information was taken from Mobilepro’s financial statements for the nine-month periods ended December 31, 2003 (unaudited) and December 31, 2002 (unaudited) and the years ended March 31, 2003 (audited) and March 31, 2002 (audited) appearing elsewhere in this filing. This information should be read in conjunction with such financial statements and the notes thereto. In management’s opinion all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included.

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RISK FACTORS

     We are subject to various risks that may materially harm our business, financial condition and results of operations.

YOU SHOULD CAREFULLY CONSIDER THE RISKS AND UNCERTAINTIES DESCRIBED BELOW AND THE OTHER INFORMATION IN THIS FILING BEFORE DECIDING TO PURCHASE OUR COMMON STOCK. IF ANY OF THESE RISKS OR UNCERTAINTIES ACTUALLY OCCUR, OUR BUSINESS, FINANCIAL CONDITION OR OPERATING RESULTS COULD BE MATERIALLY HARMED. IN THAT CASE, THE TRADING PRICE OF OUR COMMON STOCK COULD DECLINE AND YOU COULD LOSE ALL OR PART OF YOUR INVESTMENT.

Risks Related To Our Business

We Have Historically Lost Money And Losses May Continue In The Future, Which Means That We May Not Be Able To Continue Operations Unless We Obtain Additional Funding

     We have historically lost money. In the nine months ended December 31, 2003, we sustained net losses of $1,431,341. In the year ended March 31, 2003 and year ended March 31, 2002, we sustained net losses of $9,771,389 and $2,898,401, respectively. Future losses are likely to occur. Accordingly, we may experience liquidity and cash flow problems if we are not able to raise additional capital as needed and on acceptable terms. No assurances can be given that we will be successful in reaching or maintaining profitable operations.

     We have had several major shifts in our business strategy. In June 2001 we focused our business on the integration and marketing of complete mobile information solutions that satisfy the needs of mobile professionals. In April 2002, we acquired NeoReach, and shifted our focus toward solutions supporting the third generation wireless market, in particular, wireless modem. We experienced another shift in our business strategy in December 2003 when we expanded our development focus to include development of a semiconductor chip and by entering the broadband internet service provider sector. We have a limited operating history upon which to evaluate our business plan and prospects. If we are unable to draw down on the Equity Line of Credit Agreement provided by Cornell Capital or find alternative financing on commercially reasonable terms, or generate revenue from the sales of our products and services, we could be forced to curtail or cease our operations.

We Will Need To Raise Additional Capital To Continue Our Operations And Continue Making Acquisitions Or We May Be Unable To Fund Our Operations, Promote Our Products Or Develop Our Technology

     We have relied almost entirely on external financing to fund our operations and acquisitions to date. Such financing has historically come from a combination of borrowings from and sale of common stock to third parties and funds provided by certain officers and directors. Over the next two years we anticipate that, in addition to the $3,015,000 remaining available to us under the Equity Line of Credit Agreement, we may need to raise additional capital to fund additional acquisitions. We anticipate that these additional funds will be in the range of $10 million to $50 million, depending on the pace and size of our acquisitions. We cannot assure you that financing whether from external sources or related parties will be available if needed or on favorable terms. The sale of our common stock to raise capital may cause dilution to our existing shareholders. If additional financing is not available when required or is not available on acceptable terms, we may be unable to fund our operations and expansion, successfully promote our brand name, products or services, develop or enhance our technology, take advantage of business opportunities or respond to competitive market pressures, any of which could make it more difficult for us to continue operations. Any reduction in our operations may result in a lower stock price.

     A portion of our future revenue is dependent upon the success of long-term projects which require significant up-front expense to us. We are currently dependent on external financing to fund our operations and cover our projects up-front costs. There can be no assurance that revenues will be realized until the projects are completed or certain significant milestones are met. Our failure, or any failure by a third-party with which we may contract, to perform services or deliver products on a timely basis could result in a substantial loss to us.

     In addition, difficulty in completing a project could have a material adverse effect on our reputation, business and results of operations. In certain instances, we may be dependent on the efforts of third parties to adequately complete our portion of a project and, even if our products and processes perform as required, a project may still fail due to other components of the project supplied by third parties. Any such project failure could cause us to reduce or cease operations.

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There Is Substantial Doubt About Our Ability To Continue As A Going Concern Due To Recurring Losses And Working Capital Shortages, Which Means That We May Not Be Able To Continue Operations Unless We Obtain Additional Funding

     The report of our independent accountants on our December 31, 2003 financial statements, as noted in Note 10, and our March 31, 2003 financial statements, as noted in Note 10, included an explanatory paragraph indicating that there is substantial doubt about our ability to continue as a going concern due to our lack of any revenue-generating activities and substantial operating losses. As a result of our acquisition of NeoReach in April 2002, we have continued to incur substantial debt obligations. We anticipate that we will incur net losses for the immediate future.

Our Common Stock Is Deemed To Be “Penny Stock,” Which May Make It More Difficult For Investors To Resell Their Shares Due To Suitability Requirements

     Our common stock is deemed to be “penny stock” as that term is defined in Rule 3a51-1 promulgated under the Securities Exchange Act of 1934. Penny stocks are stock:

     Broker/dealers dealing in penny stocks are required to provide potential investors with a document disclosing the risks of penny stocks. Moreover, broker/dealers are required to determine whether an investment in a penny stock is a suitable investment for a prospective investor. These requirements may reduce the potential market for our common stock by reducing the number of potential investors. This may make it more difficult for investors in our common stock to sell shares to third parties or to otherwise dispose of them. This could cause our stock price to decline.

We Have A New Executive Team And May Not Be Successful In Integrating The Management Teams Of DFW Internet Services and EXP Internet Services, Which Could Adversely Affect The Leadership Of Our Company, Divert Management Time And Adversely Affect The Business And Results Of Operations

     Mr. Jay O. Wright became our President and Chief Executive Officer in December 2003. In February 2004, Mr. Kurt Gordon became our Chief Financial Officer. Prior to Mr. Gordon joining the Company, Messrs. Wright and Gordon had no experience working together. In January 2004, with the acquisition of DFW Internet Services, Jack Beech became the day to day head of operations for the Company’s internet service provider business. Failure to successfully integrate the management teams of the two companies could divert management time and resources, which would adversely affect our operations. Our future success also depends on our ability to identify, attract, hire, retain and motivate other well-qualified managerial, technical, sales and marketing personnel. There can be no assurance that these professionals will be available in the market or that we will be able to meet their compensation requirements.

We Have Been A Development Stage Company And Have A Limited Operating History Upon Which You Can Base Your Investment Decision

     Prior to January 2004, the Company had been a development stage company. Although we were incorporated in January 1999, we have undergone a number of changes in our business strategy and organization. Our latest change in our business focus is marked by our acquisition of DFW Internet Services in January 2004. Accordingly, the Company has only a limited operating history upon which an evaluation of its prospects can be made. Such prospects must be considered in light of the substantial risks, expenses and difficulties encountered in the extremely competitive Internet services industry.

     We intend to pursue additional acquisitions to further the development of our internet services business. Our strategy is unproven and the revenue and income potential from our strategy is unproven. We will encounter risks and difficulties frequently encountered by early-stage companies in new and rapidly changing markets, including the risks

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described elsewhere in this section. Our business strategy may not be successful and we may not be able to successfully address these risks. In addition, because of our limited operating history, we have limited insights into trends that may emerge and affect our business.

Our Business Revenue Generation Model Is Unproven And Could Fail

     Our revenue model is new and evolving, and we cannot be certain that it will be successful. Our ability to generate revenue depends, among other things, on our ability to provide quality internet connectivity and services to our customers and to develop and ultimately sell semiconductor chips. We have limited experience with our internet services business and our success is largely dependent upon our ability to successfully integrate and manage our acquisitions. Accordingly, we cannot assure you that our business model will be successful or that we can sustain revenue growth or achieve or sustain profitability.

If We Are Not Able To Compete Effectively In The Highly Competitive Internet Service Provider and Wireless Communications Industries We May Be Forced To Reduce Or Cease Operations

     Our ability to compete effectively with our competitors depends on the following factors, among others:

Consolidations In The Industries In Which We Compete Could Adversely Affect Our Businesses To Include A Reduction or Elimination of Our Proportionate Share Of Those Markets

     The wireless communications industry has experienced consolidation of participants, and this trend may continue. If wireless carriers consolidate with companies that utilize technologies that are similar to or compete with our wireless technology, our proportionate share of the emerging market for wireless technologies may be reduced or eliminated. This reduction or elimination of our market share could reduce our ability to obtain profitable operations and could even cause us to reduce or cease operations.

     The Company believes that its ability to compete successfully in the Internet services market depends on a number of factors, including market presence; the adequacy of its member and technical support services; the capacity, reliability and security of its network infrastructure; the ease of access to and navigation of the Internet provided by the Company’s services; the pricing policies of the Company, its competitors and its suppliers; the timing of introductions of new services by the Company and its competitors; the Company’s ability to support existing and emerging industry standards; and industry and general economic trends. There can be no assurance that the Company will have the financial resources, technical expertise or marketing and support capabilities to compete successfully.

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Management And Directors Of The Company Have A Significant Percentage Of The Fully Diluted Number Of Common Shares And Such Concentration Of Ownership May Have The Effect Of Delaying Or Preventing A Change Of Control Of Our Company

     As a result, these management and director equity holders will have significant influence in matters requiring stockholder approval, including the election and removal of directors, the approval of significant corporate transactions, such as any merger, consolidation or sale of all or substantially all of the Company’s assets, and the control of the management and affairs of the Company. Accordingly, such concentration of ownership may have the effect of delaying, deferring or preventing a change in control of our Company, impeding a merger, consolidation, takeover or other business combination involving the Company or discouraging a potential acquirer from attempting to obtain control of the Company.

We May Not Be Able To Effectively Protect Our Intellectual Property Rights, Which Could Harm Our Business By Making It Easier For Our Competitors To Duplicate Our Services

     We regard certain aspects of our products, processes, services and technology as proprietary. We have taken steps to protect them with patents, copyrights, trademarks, restrictions on disclosure and other methods. Despite these precautions, we cannot be certain that third parties will not infringe or misappropriate our proprietary rights or that third parties will not independently develop similar products, services and technology. Any infringement, misappropriation or independent development could cause us to cease operations.

     We have filed patent applications with respect to our wireless technology and for certain aspects of our chips, but these may not be issued to us, and if issued, may not protect our intellectual property from competition which could seek to design around or invalidate these patents. Our failure to adequately protect our proprietary rights in our products, services and technology could harm our business by making it easier for our competitors to duplicate our services.

     We own several Internet domain names, including, among others, www.mobileprocorp.com, www.nationwide.net and www.neoreach.com. The regulation of domain names in the United States and in foreign countries may change. Regulatory bodies could establish additional top-level domains or modify the requirements for holding domain names, any or all of which may dilute the strength of our name. We may not acquire or maintain our domain name or additional common names in all of the countries in which our marketplace may be accessed, or for any or all of the top-level domains that may be introduced. The relationship between regulations governing domain names and laws protecting proprietary rights is unclear. Therefore, we may not be able to prevent third parties from acquiring domain names that infringe or otherwise decrease the value of our trademarks and other proprietary rights.

     We may have to resort to litigation to enforce our intellectual property rights, protect our trade secrets, determine the validity and scope of the proprietary rights of others, or defend ourselves from claims of infringement, invalidity or unenforceability. Litigation may be expensive and divert resources even if we win. This could adversely affect our business, financial condition and operating results such that it could cause us to reduce or cease operations.

Other Parties May Assert That Our Technology Infringes On Their Intellectual Property Rights, Which Could Divert Management Time And Resources And Possibly Force Our Company To Redesign Our Technology

     Technology-based industries, such as ours, are characterized by an increasing number of patents and frequent litigation based on allegations of patent infringement. From time to time, third parties may assert patent, copyright and other intellectual property rights to technologies that are important to us. While there currently are no outstanding infringement claims pending by or against us, we cannot assure you that third parties will not assert infringement claims against us in the future, that assertions by such parties will not result in costly litigation, or that they will not prevail in any such litigation. In addition, we cannot assure you that we will be able to license any valid and infringed patents from third parties on commercially reasonable terms or, alternatively, be able to redesign products on a cost-effective basis to avoid infringement. Any infringement claim or other litigation against or by us could have a material adverse effect on us and could cause us to reduce or cease operations.

If We Are Unable To Successfully Develop The Technology Necessary For Our Products And Processes, We Will Not Be Able To Bring Our Products To Market And May Be Forced To Reduce Operations

     Our ability to commercialize our products is dependent on the advancement of our existing technology. In order to obtain and maintain market share we will continually be required to make advances in technology. We cannot assure you that our research and development efforts will result in the development of such technology on a timely basis or at all. Any failures in such research and development efforts could result in significant delays in product development and cause us to

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reduce or cease operations. We cannot assure you that we will not encounter unanticipated technological obstacles which either delay or prevent us from completing the development of our products and processes.

We May Not Be Able To Keep Up With Rapid Technological Changes, Which Could Render Our Products And Processes Obsolete

     The wireless communications industry is characterized by rapid technological change, changes in customer requirements and preferences, frequent introduction of products and services embodying new technologies and the emergence of new industry standards and practices that could render our existing technology and systems obsolete. Our future success will depend on our ability to enhance and improve the responsiveness, functionality, accessibility and features of our products. We expect that our marketplace will require extensive technological upgrades and enhancements to accommodate many of the new products and services that we anticipate will be added to our marketplace. We cannot assure you that we will be able to expand and upgrade our technology and systems, or successfully integrate new technologies or systems we develop in the future, to accommodate such increases in a timely manner.

We May Not Successfully Execute or Integrate Our Acquisitions

     Our new business model is dependent upon growth through acquisition of other internet service providers. We have completed three acquisitions during this calendar year and have signed two letters of intent to acquire additional businesses. We expect to continue making acquisitions that will enable us to build our internet services business. Acquisitions involve numerous risks, including the following:

Acquisitions may also cause us to:

     Mergers and acquisitions of high-technology companies are inherently risky, and no assurance can be given that our previous or future acquisitions will be successful and will not materially adversely affect our business, operating results or financial condition. Failure to manage and successfully integrate acquisitions we make could harm our business and operating results in a material way.

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We May Not Effectively Manage The Growth Necessary To Execute Our Business Plan, Which Could Adversely Affect The Quality Of Our Operations And Our Costs

     In order to achieve the critical mass of business activity necessary to successfully execute our business plan, we must significantly increase the number of strategic partners and customers that use our technology. This growth will place significant strain on our personnel, systems and resources. We also expect that we will continue to hire employees, including technical, management-level employees, and sales staff for the foreseeable future. This growth will require us to improve management, technical, information and accounting systems, controls and procedures. We may not be able to maintain the quality of our operations, control our costs, continue complying with all applicable regulations and expand our internal management, technical information and accounting systems in order to support our desired growth. We cannot be sure that we will manage our growth effectively, and our failure to do so could cause us to reduce or cease operations.

Our Business Depends On The Growth And Maintenance Of The Internet Infrastructure

     Our success will depend on the continued growth and maintenance of the internet infrastructure. This includes maintenance of a reliable network backbone with the necessary speed, data capacity and security for providing reliable internet services. Internet infrastructure may be unable to support the demands placed on it if the number of internet users continues to increase, or if existing or future internet users access the internet more often or increase their bandwidth requirements. In addition, viruses, worms and similar programs may harm the performance of the internet. The internet has experienced a variety of outages and other delays as a result of damage to portions of its infrastructure, and it could face outages and delays in the future. These outages and delays could reduce the level of internet usage as well as our ability to provide our solutions. Additionally, for many of our customers we rely upon SBC Communications, the underlying ILEC, to assist in provisioning T-1 and dial-up lines. In the event SBC Communications was unable or unwilling to provide service, our ability to service existing customers or add new customers could be impaired.

Risks Related To This Offering

New Shareholders Will Experience Significant Dilution From Our Sale Of Shares Under The Equity Line Of Credit And The Sale Of Convertible Debentures

     The sale of shares pursuant to the conversion of debentures and pursuant to the Equity Line of Credit Agreement will have a dilutive impact on our stockholders. As a result, our net income per share could decrease in future periods, and the market price of our common stock could decline. In addition, the lower our stock price is the more shares of common stock we will have to issue under the Equity Line of Credit Agreement to draw down the full amount. If our stock price is lower, then our new stockholders would experience greater dilution. For example, if we assume that we will issue the remaining 49,595,977 shares of common stock under the Equity Line of Credit Agreement at an assumed offering price of $0.2275 (91% of a recent closing bid price of $0.25) then new shareholders would experience dilution of $0.208 per share.

The Investor Under The Line Of Credit Will Pay Less Than The Then-Prevailing Market Price Of Our Common Stock

     The common stock to be issued under the Equity Line of Credit Agreement will be issued at a 9% discount to the lowest closing bid price on the Over-the-Counter Bulletin Board or other principal market on which our common stock is traded for the five consecutive trading days after the notice date. These discounted sales could cause the price of our common stock to decline.

The Selling Stockholder Intends To Sell Its Shares Of Common Stock In The Market, Which Sales May Cause Our Stock Price To Decline

     The selling stockholder intends to sell in the public market the shares of common stock being registered in this offering. That means that up to 49,595,977 shares of common stock, the number of shares that have been registered in this offering and remain unsold, may be sold. The number of shares being registered in this offering represents approximately 17.6% of the total number of shares of common stock outstanding upon their issuance. Such sales may cause our stock price to decline.

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The Significant Downward Pressure On The Price Of Our Stock Caused By The Sale Of Material Amounts Of Common Stock Under The Accompanying Registration Statement Could Encourage Short Sales By Third Parties, Which Could Contribute To The Further Decline Of Our Stock Price

     The significant downward pressure on our stock price caused by the sale of stock registered in this offering could encourage short sales by third parties. Such short sales could place further downward pressure on our stock price.

We May Not Be Able To Draw Down Under The Equity Line Of Credit If The Investor Holds More Than 9.9% Of Our Common Stock

     In the event Cornell Capital holds more than 9.9% of the then-outstanding common stock of our company, we will be unable to draw down on the Equity Line of Credit Agreement. Currently, Cornell Capital has beneficial ownership of 0% of our common stock and we would be unable to draw down on the Equity Line of Credit Agreement unless Cornell Capital’s beneficial ownership is below 10%. If we are unable to draw down on the Equity Line of Credit Agreement, are unable to obtain additional external funding or generate revenue from the sale of our products, we could be forced to curtail or cease our operations.

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FORWARD-LOOKING STATEMENTS

     Information included or incorporated by reference in this prospectus may contain forward-looking statements. This information may involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words “may,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend” or “project” or the negative of these words or other variations on these words or comparable terminology.

     This prospectus contains forward-looking statements, including statements regarding, among other things, (a) our projected sales and profitability, (b) our growth strategies, (c) anticipated trends in our industry, (d) our future financing plans and (e) our anticipated needs for working capital. These statements may be found under “Management’s Discussion and Analysis or Plan of Operations” and “Business,” as well as in this prospectus generally. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors, including, without limitation, the risks outlined under “Risk Factors” and matters described in this prospectus generally. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this prospectus will in fact occur.

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SELLING STOCKHOLDER

     The following table presents information regarding the selling stockholder. Pursuant to the Equity Line of Credit Agreement, Cornell Capital has agreed to purchase up to $10.0 million of our common stock. Of the original $10.0 million available, Cornell Capital has already purchased shares of our common stock totaling $6,985,000 under the Equity Line of Credit Agreement, thereby leaving $3,015,000 available. The selling stockholder is not a broker-dealers or affiliate of a broker-dealer and the selling stockholder has not held a position or office, or had any other material relationship, with us, except as follows:

     The table follows:

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DILUTION

     Since this offering is being made solely by the selling stockholder and none of the proceeds will be paid to us, our net tangible book value will be unaffected by this offering. Our net tangible book value, however, will be impacted by the common stock to be issued under the Equity Line of Credit Agreement.

     Our net tangible book value as of December 31, 2003 was ($1,319,534) or ($0.0085) per share of common stock. Net tangible book value is determined by dividing our tangible book value (total tangible assets less total liabilities) by the number of outstanding shares of our common stock.

     For example, if we assume that we issued the remaining 49,595,977 shares of common stock under the Equity Line of Credit Agreement at an assumed offering price of $0.2275 per share (91% of a recent closing bid price of $0.25), less $85,000 of offering expenses, our net tangible book value as of December 31, 2003 would have been $9,540,058 or $0.034 per share. This represents an immediate increase in net tangible book value to existing shareholders of $0.042 per share and an immediate dilution to new shareholders of $0.208 per share, or 83.2%. The following table illustrates the per share dilution:

     The offering price of our common stock under the Equity Line of Credit Agreement is based on 91% of the lowest closing bid price on the Over-the-Counter Bulletin Board or other principal market on which our common stock is traded for the five consecutive trading days after the notice date. In order to give prospective investors an idea of the dilution per share they may experience, we have prepared the following table showing the dilution per share at various assumed offering prices. Mobilepro has registered 200,000,000 shares of common stock under the Equity Line of Credit Agreement and for the issuance of shares of common stock upon exercise of convertible debentures, of which 49,595,977 remain available for issuance. Accordingly, Mobilepro may need to amend its Articles of Incorporation to increase our authorized common stock and register additional shares of common stock in order to fully utilize the $3,015,000 remaining available under the Equity Line of Credit Agreement. The following table shows the dilution to new investors of the different prices set forth below:

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CAPITALIZATION

     The following table sets forth the total capitalization of Mobilepro as of December 31, 2003.

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EQUITY LINE OF CREDIT

     Summary. On February 6, 2003, we entered into an Equity Line of Credit Agreement with Cornell Capital Partners, L.P. Pursuant to the Equity Line of Credit Agreement, we may, at our discretion, periodically sell to Cornell Capital shares of common stock for a total purchase price of up to $10.0 million. As of May 12, 2004, Cornell Capital has sold 150,404,023 shares pursuant to the Equity Line of Credit Agreement and the exercise of convertible debentures. For each share of common stock purchased under the Equity Line of Credit Agreement, Cornell Capital will pay 91% of the lowest closing bid price on the Over-the-Counter Bulletin Board or other principal market on which our common stock is traded for the five consecutive trading days after the notice date. As of May 12, 2004, we have received advances under the Equity Line of Credit Agreement in the total amount of $6,985,000. Accordingly, we currently have $3,015,000 available under the Equity Line of Credit Agreement. Cornell Capital is a private limited partnership whose business operations are conducted through its general partner, Yorkville Advisors, LLC. Further, Cornell Capital Partners, L.P. will retain 3% of each advance under the Equity Line of Credit Agreement. We previously issued 764,706 shares of our common stock to Cornell Capital as a commitment fee pursuant to a prior Equity Line of Credit Agreement, dated May 31, 2002 that was subsequently terminated. The effectiveness of the sale of the shares under the Equity Line of Credit Agreement is conditioned upon us registering the shares of common stock with the Securities and Exchange Commission. The costs associated with this registration will be borne by us. In addition, we have engaged Westrock Advisors, Inc., an unaffiliated registered broker-dealer, to act as our exclusive placement agent in connection with the Equity Line of Credit Agreement and we have issued 19,608 shares of our common stock to Westrock Advisors, Inc. pursuant to such arrangement.

     Equity Line of Credit Agreement Explained. Pursuant to the Equity Line of Credit Agreement, we may periodically sell shares of common stock to Cornell Capital to raise capital to fund our working capital needs. The periodic sale of shares is known as an advance. We may request an advance every five trading days. A closing will be held seven trading days after such written notice at which time we will deliver shares of common stock and Cornell Capital will pay the advance amount.

     We may request advances under the Equity Line of Credit Agreement once the underlying shares are registered with the Securities and Exchange Commission. Thereafter, we may continue to request advances until Cornell Capital has advanced $10.0 million or until February 14, 2005, whichever occurs first. We are limited to a maximum of $450,000 in any 30-day period. In no event will the number of shares issuable to Cornell Capital pursuant to an advance exceed 9.9% of the then-outstanding common stock of our company. We are entitled to receive advances under the Equity Line of Credit Agreement provided that: (i) the accompanying registration statement has previously become effective and remain effective on the date of delivery by us of an advance notice; (ii) we have obtained all permits and qualifications required by any applicable state law with respect to the offer and sale of shares of our common stock under the Equity Line of Credit Agreement; (iii) no fundamental changes to the information set forth in accompanying registration statement exist which would require us to file a post-effective amendment to the accompanying registration statement; and (iv) the trading of our common stock is not suspended by the Securities and Exchange Commission or the principal trading exchange or market for our common stock.

     We cannot predict the actual number of shares of common stock that will be issued pursuant to the Equity Line of Credit Agreement, in part, because the purchase price of the shares will fluctuate based on prevailing market conditions and we have not determined the total amount of advances we intend to draw. Nonetheless, we can estimate the number of shares of our common stock that will be issued using certain assumptions. Assuming we drew down the entire $3,015,000 remaining available under the Equity Line of Credit Agreement in a single advance (which is not permitted under the terms of the Equity Line of Credit Agreement) and the purchase price was equal to $0.25 per share ($0.2275 less the 9% discount provided to Cornell Capital), then we would issue 13,252,747 shares of our common stock to Cornell Capital. These shares would represent approximately 5.4% of our outstanding common stock upon issuance. Mobilepro has registered 200,000,000 shares of common stock for the sale under the Equity Line of Credit Agreement and convertible debentures. As of May 12, 2004, 49,595,977 shares remain available for issuance. On March 12, 2003, we amended our Certificate of Incorporation to increase our authorized share of common stock to 600,000,000 shares. As of May 12, 2004, Mobilepro has 232,914,196 shares of common stock issued and outstanding.

     You should be aware that there is an inverse relationship between our stock price and the number of shares to be issued under the Equity Line of Credit Agreement. That is, as our stock price declines, we would be required to issue a greater number of shares under the Equity Line of Credit Agreement for a given advance. This inverse relationship is demonstrated by the following table, which shows the number of shares to be issued under the Equity Line of Credit

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Agreement at a recent price of $0.25 per share and discounts to the recent price. This table does not take into account any shares of our common stock that would be issued upon conversion of options, warrants, promissory notes and debentures.

     The proceeds used under the Equity Line of Credit Agreement will be used for general corporate purposes, for an expansion of the product offering and for development of sales and marketing channels. We cannot predict the total amount of proceeds to be raised in this transaction, in part, because we have not determined the total amount of the advances we intend to draw. However, we expect to incur expenses of approximately $85,000 consisting primarily of professional fees incurred in connection with this registration.

     In connection with the Equity Line of Credit Agreement, we previously issued 764,706 shares of our common stock to Cornell Capital as a commitment fee and Cornell Capital is entitled to retain 3% of each advance under the Equity Line of Credit Agreement. In addition, we have issued 19,608 shares of our common stock to Westrock Advisors, Inc., an unaffiliated broker-dealer, as a placement agent fee in connection with the Equity Line of Credit Agreement.

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PLAN OF DISTRIBUTION

     The selling stockholder has advised us that the sale or distribution of our common stock owned by the selling stockholder may be effected directly to purchasers by the selling stockholder or by pledgees, transferees or other successors in interest, as principals or through one or more underwriters, brokers, dealers or agents from time to time in one or more transactions (which may involve crosses or block transactions) (i) on the over-the-counter market or in any other market on which the price of our shares of common stock are quoted or (ii) in transactions otherwise than on the over-the-counter market or in any other market on which the price of our shares of common stock are quoted. Any of such transactions may be effected at market prices prevailing at the time of sale, at prices related to such prevailing market prices, at varying prices determined at the time of sale or at negotiated or fixed prices, in each case as determined by the selling stockholder or by agreement between the selling stockholder and underwriters, brokers, dealers or agents, or purchasers. If the selling stockholder effects such transactions by selling their shares of our common stock to or through underwriters, brokers, dealers or agents, such underwriters, brokers, dealers or agents may receive compensation in the form of discounts, concessions or commissions from the selling stockholder or commissions from purchasers of common stock for whom they may act as agent (which discounts, concessions or commissions as to particular underwriters, brokers, dealers or agents may be in excess of those customary in the types of transactions involved). The selling stockholder and any brokers, dealers or agents that participate in the distribution of the common stock may be deemed to be underwriters, and any profit on the sale of common stock by them and any discounts, concessions or commissions received by any such underwriters, brokers, dealers or agents may be deemed to be underwriting discounts and commissions under the Securities Act.

     If any shares of common stock being registered for resale in the accompanying registration statement are transferred from the named selling stockholder listed in this Prospectus and such transferees wish to rely on this Prospectus to resell these shares, then a post-effective amendment to the accompanying registration statement would need to be filed with the Securities and Exchange Commission naming these individuals as selling shareholders and providing the information required by Item 507 of Regulation S-B.

     Cornell Capital is an “underwriter” within the meaning of the Securities Act of 1933 in connection with the sale of common stock under the Equity Line of Credit Agreement. Cornell Capital will pay us 91% of the average of the two lowest bid price for our common stock reported by Bloomberg LP with respect to the five trading days after we give notice to Cornell that we wish to receive an advance. The 9% discount on the purchase of the common stock to be received by Cornell Capital will be an underwriting discount. In addition, Cornell Capital will retain 3.0% of the gross proceeds raised in the Equity Line of Credit Agreement, which constitutes underwriter compensation. In connection with the Equity Line of Credit Agreement, we previously issued 764,706 shares of our common stock to Cornell Capital as a commitment fee, which constitutes underwriter compensation. We have issued 19,608 shares of our common stock to Westrock Advisors, Inc., an unaffiliated registered broker-dealer, as a placement agent fee in connection with the Equity Line of Credit Agreement. As of May 12, 2004, Cornell Capital has sold 150,404,023 shares of our common stock.

     The Equity Line of Credit Agreement provides that we may not request an advance with respect to the Equity Line of Credit Agreement at any time that Cornell Capital has beneficial ownership of 9.9% or more of our outstanding common stock nor may we request and advance that would cause Cornell Capital to own more than 9.9% of our outstanding common stock. Currently, Cornell Capital has beneficial ownership of 0.7% of our common stock.

     Cornell Capital was formed in February 2000 as a Delaware limited partnership. Cornell Capital is a private equity fund whose principal business function is to provide equity and debt financing to publicly traded companies through vehicle including but not limited to equity lines of credit and convertible debentures. Cornell Capital does not have any material relationships with the officers of directors of Mobilepro.

     Under the securities laws of certain states, the shares of common stock may be sold in such states only through registered or licensed brokers or dealers. In addition, in certain states the shares of common stock may not be sold unless the shares have been registered or qualified for sale in such state or an exemption from registration or qualification is available and is complied with.

     Our common stock is deemed to be “penny stock” as that term is defined in Rule 3a51-1 promulgated under the Securities Exchange Act of 1934. Penny stocks are stock: (i) with a price of less than $5.00 per share; (ii) that are not traded on a “recognized” national exchange; (iii) whose prices are not quoted on the Nasdaq automated quotation system (Nasdaq listed stock must still have a price of not less than $5.00 per share); or (iv) in issuers with net tangible assets less than $2.0

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million (if the issuer has been in continuous operation for at least three years) or $5.0 million (if in continuous operation for less than three years), or with average revenues of less than $6.0 million for the last three years.

     Broker/dealers dealing in penny stocks are required to provide potential investors with a document disclosing the risks of penny stocks. Moreover, broker/dealers are required to determine whether an investment in a penny stock is a suitable investment for a prospective investor. These requirements may reduce the potential market for our common stock by reducing the number of potential investors. This may make it more difficult for investors in our common stock to sell shares to third parties or to otherwise dispose of them. This could cause our stock price to decline.

     We will pay all the expenses incident to the registration, offering and sale of the shares of common stock to the public hereunder other than commissions, fees and discounts of underwriters, brokers, dealers and agents. We have agreed to indemnify the selling stockholder and its controlling persons against certain liabilities, including liabilities under the Securities Act. We estimate that the expenses of the offering to be borne by us will be approximately $85,000 as well as 7.0% of the gross proceeds received under the Equity Line of Credit Agreement that will be retained by Cornell Capital. We intend to pay these expenses from the proceeds we anticipate receiving under the Equity Line of Credit Agreement. We will not receive any proceeds from the sale of any of the shares of common stock by the selling stockholder. We will, however, receive proceeds from the sale of common stock under the Equity Line of Credit Agreement.

     The selling stockholder should be aware that the anti-manipulation provisions of Regulation M under the Exchange Act will apply to purchases and sales of shares of common stock by the selling stockholder, and that there are restrictions on market-making activities by persons engaged in the distribution of the shares. Under Regulation M, the selling shareholders or their agents may not bid for, purchase, or attempt to induce any person to bid for or purchase, shares of our common stock of Mobilepro while such selling shareholders are distributing shares covered by this prospectus. Accordingly, except as noted below, the selling shareholders are not permitted to cover short sales by purchasing shares while the distribution is taking place. Cornell Capital can cover any short positions only with shares received from us under the Equity Line of Credit Agreement. The selling stockholder is advised that if a particular offer of common stock is to be made on terms constituting a material change from the information set forth above with respect to the Plan of Distribution, then to the extent required, a post-effective amendment to the accompanying registration statement must be filed with the Securities and Exchange Commission.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

     The following information should be read in conjunction with the consolidated financial statements of Mobilepro and the notes thereto appearing elsewhere in this filing. Statements in this Management’s Discussion and Analysis or Plan of Operation and elsewhere in this prospectus that are not statements of historical or current fact constitute “forward-looking statements.”

Revenue and Expenses

     We had no revenue for the nine months ended December 31, 2003 or for the nine months ended December 31, 2002.

     For the nine months ended December 31, 2003 total operating expenses were $1,210,809. This compares with $2.171 million for the nine-month period ended December 31, 2002. Our primary expense for the nine-month period ended December 31, 2003 was for professional fees and compensation expenses of $965,306. This compares to $2.028 million for the nine-month period ended December 31, 2002. Of this amount, common stock issuances valuing $76,444 and $690,606 for the nine months ended December 31, 2003 and 2002, respectively, in lieu of cash were issued in connection with consulting fees and expenses for services rendered.

     We had no revenue for the years ended March 31, 2003 and 2002. The Company had other income, including income from the forgiveness of debt of $248,717 for the year ended March 31, 2002.

     Our general and administrative expenses were $2,479,166 for the year ended March 31, 2003 and $3,147,119 for the year ended March 31, 2002. The areas where we expended the most funds for each year were for payroll, professional fees, consulting fees, and marketing expenses.

Operating and Net Losses

     Our operating losses for the nine months ended December 31, 2003 were $1,210,809 compared to $2,170,553 for the nine months ended December 31, 2002. These losses were incurred primarily as a result of the aforementioned incurred expenses. Our net losses for after taxes for the nine months ended December 31, 2003 were $1,431,341 compared with $2,220,189 for the nine months ended December 31, 2002.

     Operating losses were $2,479,166 and $3,147,119 for the years ended March 31, 2003 and 2002, respectively. Our net losses after taxes were $9,771,389 for the year ended March 31, 2003 and $2,898,402 for the year ended March 31, 2002. Because of these large losses and the fact that we did not have adequate capital in order to continue to operate, we were pursuing alternative business opportunities in 2002 and 2003.

     As of December 31, 2003 the Company has accumulated $15,110,325 in operating losses that may, on a limited basis, be offset against future taxable income. There are limitations on the amount of net operating loss carryforwards that can be used due to the change in the control of the management of the Company. No tax benefit has been reported in the financial statements, because as of December 31, 2003, we believe there is a 50% or greater chance the carryforwards will expire unused. Accordingly, the potential tax benefits of the loss carryforwards is offset by a valuation allowance of the same amount.

Liquidity And Capital Resources

     General

     As of December 31, 2003, we had a total Stockholders’ Deficit of $1.32 million compared to $2.11 million as of March 31, 2003. As of December 31, 2003, the Company had cash and cash equivalents of $742,861 offset by current liabilities of $1,836,706. In connection with their audit for our fiscal year ending March 31, 2003 our independent auditors issued an audit opinion that raised substantial doubt as to our ability to continue as a going concern.

     During the nine month period ending December 31, 2003, we met our capital needs through the sale of stock pursuant to an Equity Line of Credit Agreement dated February 6, 2003 with Cornell capital. During the fiscal year ended March 31, 2003, we met capital needs through the sale of a convertible debenture in the principal amount of $250,000 to Cornell Capital and sales of Common Stock to Cornell pursuant to the Equity Line of Credit Agreement.

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     For the next 12 months we intend to meet our capital needs through revenue generated from our Internet Services division and the sale of common stock pursuant to the Equity Line of Credit Agreement. Our ability to raise capital through the Equity Line of Credit Agreement is subject to numerous factors and conditions beyond our control and we may not be able to raise funds in that manner. In addition, we have only recently acquired and begun to operate the businesses comprising the Internet Services division; as a result, there is substantial uncertainty as to whether or not the Internet Services division will be a net source of cash.

     If our revenue from operations and funds raised from the Equity Line of Credit Agreement are not sufficient to implement our business plan, we will be required to raise money from other sources. Other sources of funds may not be available or may be on available only on terms that are unfavorable to us. If we are unable to raise sufficient funds, the implementation of our Plan of Operation will be delayed and we might need to cease operations.

Plan of Operation

     We are pursuing both acquisitions and strategic alliances to leverage our wireless technology and intellectual property assets. Our objectives are to create high margin revenues and shareholder value, expand our reach in the global market for integrated wireless and wireline solutions and position the Company to play a more visible role in providing next generation communications products, services and technologies.

     We are making progress in developing new accretive acquisitions and alliances which we believe will help us meet our growth objectives. On January 20, 2004, we acquired DFW Internet Services, Inc., a Texas based internet services provider. DFW Internet Services, Inc. generated $745,594 in 2003 revenue and a profit of $17,997.

     On March 1, 2004, we acquired Internet Express, an Internet services provider based in Beaumont, Texas. Internet Express generated $1,018,666 in 2003 revenue and a profit of $17,367.

     On April 21, 2004, we acquired August.net Services, LLC, a Texas based internet service provider, which is expected to add more than $1.5 million in revenue and be accretive to our 2004 earnings.

     We have recently announced in press releases dated March 22, 2004, April 15, 2004, May 3, 2004 and May 10, 2004, that we plan to acquire the internet services business of ShreveNet, Crescent Communications, Ticon.net and Clover Computer Corporation, respectively. The completion of these transactions is subject to the signing of definitive agreements and customary closing conditions.

     To directly capitalize on our core wireless technology assets, we are pursuing a two-pronged plan. First, we are seeking alliance partners to leverage our five patents that cover existing wireless antenna intellectual property. Second, we are moving forward as quickly as possible with a planned Zigbee chip development which we will seek to commercialize on a cost-effective basis. We believe Zigbee represents the next generation of standards-based, reliable, ultra low power, scaleable and secure communications specifically designed to support a wide range of new applications in the areas of home automation, monitoring and remote control systems, data telemetry, toys and selected wireless security applications. We are a member of the Zigbee alliance that represents industry players seeking to develop standards and applications for the new Zigbee technology. We are negotiating a relationship with RF Microelectronics Laboratory of the Information and Communications University of the Republic of Korea to cooperate in selected wireless research projects. We plan to work with the RF Microelectronics Laboratory to support the development of the planned Zigbee chip.

     In order to implement our business plan, we will need to raise at least $10,000,000 in order to fund:

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     In addition, we may need additional funds if we use a greater percentage of cash rather than stock in connection with future acquisitions.

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DESCRIPTION OF BUSINESS

The Company

     We are a wireless technology and broadband internet services company. We are focused on developing innovative wireless technologies, acquiring and growing profitable broadband internet service providers and creating strategic alliances with companies in complementary product lines and industries. Our wireless technology development efforts are conducted by our wholly-owned subsidiary NeoReach, Inc. We provide broadband internet services through our subsidiary DFW Internet Services, Inc. and its internet services divisions.

     Our subsidiary, NeoReach is currently developing a semiconductor chip for use in home networking and selected industrial monitoring applications based on the ZigBee standard. ZigBee is an IEEE standard (802.15.4) developed for certain low power, short range devices. Mobilepro and Neoreach are both members of the ZigBee Alliance, an industry group formed to facilitate the development of the ZigBee standard. NeoReach recently filed a patent application covering certain aspects of the chip’s design. However, the ZigBee Standard itself is public domain and therefore not patentable.

     Prior to December 2003, NeoReach was focused on developing wireless modem solutions to support third generation wireless communications systems based on the worldwide wideband — code division multiple access, “W-CDMA,” standard. Third generation technology features integrated voice and data, access to high-speed Internet and intranet applications, interactive e-mail, data exchange, global roaming and full motion video transmission—all delivered to a mobile device such as a cellular phone, personal data assistant, “PDA,” or laptop. Because of the substantial financial and other resources required to develop these modem solutions and bring them to market, NeoReach has, for the time being, deferred its development efforts in order to focus on development of the ZigBee chip. However, if our financial resources increase, we may choose to restart development efforts in this area.

     To directly capitalize on our core wireless technology assets, we are pursuing a two-pronged plan. First, we are seeking alliance partners to leverage our five patents that cover existing wireless antenna intellectual property. Second, we are moving forward as quickly as possible with a planned Zigbee chip development which we will seek to commercialize on a cost-effective basis. Zigbee represents the next generation of standards-based, reliable, ultra low power, scaleable and secure communications specifically designed to support a wide range of new applications in the areas of home automation, monitoring and remote control systems, data telemetry, toys and selected wireless security applications. We are a member of the Zigbee alliance that represents industry players seeking to develop standards and applications for the new Zigbee technology. We are negotiating a relationship with RF Microelectronics Laboratory of the Information and Communications University of the Republic of Korea to cooperate in selected wireless research projects. We plan to work with the RF Microelectronics Laboratory to support the development of the planned Zigbee chip.

     Through our wholly owned subsidiary, DFW Internet Services, Inc., a Texas corporation we acquired in January 2004, we provide broadband and dial up internet access, web-hosting services, and related internet services to business and residential customers in over 30 states. We are making progress in identifying new accretive acquisitions and alliances which we believe will help us meet our growth objectives.

     On January 20, 2004, we acquired DFW Internet Services, Inc., a Texas based internet services provider. DFW Internet Services generated $745,594 in 2003 revenue and a profit of $17,997.

     On March 1, 2004, we acquired Internet Express, Inc., an Internet services provider based in Beaumont, Texas. Internet Express generated $1,018,666 in 2003 revenue and a profit of $17,367.

     On April 21, 2004, we acquired August.net Services, LLC, a Texas based internet service provider, which is expected to add more than $1.5 million in revenue and be accretive to our 2004 earnings.

     We have recently announced in press releases dated March 22, 2004, April 15, 2004, May 3, 2004 and May 10, 2004, that we plan to acquire the internet services business of ShreveNet, Crescent Communications, Ticon.net and Clover Computer Corporation, respectively. The completion of these transactions is subject to the signing of definitive agreements and customary closing conditions.

     We have also formed strategic alliances with companies which have products and/or services which are complementary to our products and services. For instance, on February 4, 2004, we announced a strategic alliance with

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NetWolves Corporation, a Tampa, Florida based network services provider, whereby we would resell NetWolves’ products and services including managed services and we would provision bandwith, with particular emphasis on the government and defense market sectors. On January 26, 2004, we announced a strategic alliance with Global Defense Corporation to focus directly on developing new business and revenue opportunities within the global defense and homeland security market sectors.

     In December 2003, we announced the formation of a senior level Advisory Board to assist us in developing new business opportunities, identifying potential alliance partners and providing counsel on new industry developments and market trends and their potential implications for the Company.

     In addition, we are currently looking to license our patents to one or more companies through NeoReach. Through our subsidiary Neoreach, we own a portfolio of five patents relating to smart antenna technology. Smart antenna technology has the potential to significantly improve the range, capacity and reliability of wireless antennas in both cellular applications and fixed wireless applications.

Competition

     We compete for subscription revenues with multiple companies providing internet services, such as AOL, the Microsoft Network, EarthLink and AT&T Worldnet, discount ISPs such as NetZero and smaller regional ISPs. We also compete with companies that provide internet access via narrowband and broadband technologies, such as Internet access providers, cable companies and telephone companies. Like us, other companies offer some of the same internet connectivity services to their customers. We also compete more broadly for subscription revenues and members’ time with cable, information, entertainment and media companies. We compete for advertising and commerce revenues with a wide range of companies, including those that focus on the Internet, such as online services, internet access companies, web-based portals and individual web sites providing content, commerce, community and similar features, as well as media companies, such as those with newspaper or magazine publications, radio stations and broadcast stations or networks.

     We face competition in developing technologies, and risks from potential new developments in distribution technologies and equipment in internet access. In particular, we face competition from developments in the following types of internet access distribution technologies or equipment: broadband distribution technologies used in cable Internet access services; advanced personal computer-based access services offered through DSL technologies offered by local telecommunications companies; other advanced digital services offered by wireless companies; television-based interactive services; personal digital assistants or handheld computers; and enhanced mobile phones. We must keep pace with these developments and also ensure that we either have comparable and compatible technology or access to distribution technologies developed or owned by third parties.

Research And Development

     We announced on April 7, 2004, that we had filed a patent application with the United States Patent and Trademark Office for a wireless technology invention created by the company. The application covers 32 claims in multiple frequencies around multiple wireless standards including ZigBee, Wi-Fi and Bluetooth.

     Our patent application describes a technology that increases integration on a semiconductor chip for wireless communications. The new design is anticipated to allow for lower cost and more compact and efficient wireless communications and in our belief, reflects the trend toward fully integrated systems-on-a-chip.

     We believe that this application signifies a positive step for our company. If the patent claims we are applying for are issued by the United States Patent and Trademark Office, we believe we would improve our technology position in the wireless market enabling us to expand our wireless technology division.

Intellectual Property

     As of May 12, 2004, we had filed a total of six patent applications with the U.S. Patent and Trademark Office (PTO) in the area of “Smart Antenna” technology and one patent application in the area of RF Transceivers. As of May 12, 2004 we have been granted approval of five patents in the area of “Smart Antenna” technology and four patent applications are still pending approval. The five approved patents are as follows:

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     “Improvement of PN Code Chip Time Tracking with Smart Antenna,” a patent application filed on February 6, 2002 is pending — awaiting first Office Action from United States Patent and Trademark Office.

     “Low Noise Amplifier for Wireless Communications,” a patent application filed on April 7, 2004 is pending — awaiting first Office Action from the United States Patent and Trademark Office.

     In addition, we also have two other patent applications pending which are referred to as “Wireless Communication System and Method of Providing Wireless Communication Service” with specific descriptions to include “Device and Method for Changing the Orientation and Configuration of a Display of an Electronic Device” and “Electronic Device Having Multiple Service Functionality”. Both of these pending patent applications relate to the business of the Company before the merger with NeoReach.

Governmental Approvals

     We do not believe that there is a need for any specific government approval for any of our modem solutions since these do not include any radio transmitter and do not radiate any radio frequency signals. Our radio frequency integrated circuit product will be sold to OEM customers who will integrate the product into their own products that may be required to adhere to certain Federal Communications Commission section requirements because it does in fact contain a radio transmitter. We believe that the OEM customers will obtain any required licensing as applicable in any particular country. Additionally, we obtained a license to be a competitive local exchange carrier in Texas as part our acquisition of Internet Express, Inc.

Employees

     As of May 12, 2004, we employ 16 full-time employees and 3 consultants. We have no collective bargaining agreements with our employees.

Property

     Our principal executive offices are located in approximately 1,000 square feet of office space at 6701 Democracy Blvd. Suite 300 Bethesda, MD 20817. The term of the lease is month-to-month. In addition, we currently lease approximately 2,837, 3,115 and 1,566 square feet of office space in Hurst, Texas, Carrollton, Texas and Beaumont, Texas, respectively. These leases expire on September 1, 2004, July 31, 2004 and May 1, 2006, respectively.

DEVELOPMENT OF BUSINESS

Corporate History

     Mobilepro was incorporated on July 14, 2000 and was focused on the integration and marketing of complete mobile information solutions that satisfy the needs of mobile professionals.

     The company with which Mobilepro merged in June of 2001 was first organized in June 1988 as Bud Corp. Bud Corp. changed its name to Tecon, Inc. in July 1992, then to Buyit.com, Inc. in May 1999 and finally to CraftClick.com, Inc. on January 4, 2000. CraftClick’s business strategy and focus was to become the premier destination for buyers and sellers of

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arts and crafts products and supplies through the use of Internet websites. Due to the lack of adequate funding and the lack of generating enough Internet traffic to achieve profitability, CraftClick began to cease business operations in October 2000. CraftClick subsequently disposed of substantially all of its assets in February 2001 when secured creditors foreclosed on outstanding loans made to CraftClick.

     In April 2001, CraftClick reorganized pursuant to a Plan of Merger wherein its domicile was changed from Utah to Delaware, and the common stock was subject to a reverse split on the basis of 1 new share for every 100 shares outstanding. On June 6, 2001, CraftClick and Mobilepro entered into an Agreement and Plan of Merger dated June 1, 2001. Under the CraftClick Merger Agreement, Mobilepro merged with and into CraftClick, with CraftClick being the surviving corporation. On July 9, 2001, the name of the surviving corporation was changed to Mobilepro Corp.

     On November 19, 2001, Mobilepro implemented a 200 for 1 reverse stock split of its common stock. There were no fractional shares issued. Concurrent with the reverse stock split, Mobilepro issued 3,000,000 new shares of common stock to Dungavel, Inc., pursuant to an Investor Rights Agreement, which Mobilepro entered into with Dungavel on June 1, 2001 as part of the merger with CraftClick.

     On February 19, 2002, Mobilepro entered into a Stock Purchase Agreement with Mr. Daniel Lozinsky and Dungavel, Inc., and another Stock Purchase Agreement with Mr. Daniel Lozinsky, Ms. Joann Smith and Mr. Scott Smith. Dungavel, Inc., Ms. Joann Smith and Mr. Scott Smith were all significant stockholders of Mobilepro at the time. Pursuant to these two stock purchase agreements, Mr. Lozinsky acquired an aggregate of 2,057,733 shares of Mobilepro common stock, representing approximately 64.7% of Mobilepro’s voting securities at that time. On February 28, 2002, Mr. Scott Smith resigned as the President, CEO and Chairman of Mobilepro, and Mr. Lozinsky became the President and CEO of Mobilepro. On May 10, 2002, Mr. Arne Dunhem became Mobilepro’s President, CEO and Chairman and Mr. Lozinsky became our Senior Vice President.

     On March 21, 2002, Mobilepro entered into an Agreement and Plan of Merger with NeoReach, Inc., a private Delaware company, pursuant to which a newly-formed, wholly-owned subsidiary of Mobilepro merged into NeoReach in a tax-free transaction. The merger was consummated on April 23, 2002. As a result of the merger, NeoReach is now a wholly-owned subsidiary of Mobilepro. On April 23, 2002, the Company issued 12,352,129 shares of its common stock in a one-for-one tax-free stock exchange to the holders of NeoReach’s common stock pursuant to the Agreement. This was a cash-less transaction and there were no payments or finder’s fees involved. The Board of Directors determined the consideration to be a fair compensation to the NeoReach shareholders. The issuance of the shares were valued at a fair value of $ 6,546,628, based on the last trading price of $0.53 and assuming there was actual active trading of our stock at that time. The valuation of NeoReach in the merger agreement was based on several factors, as described in the table below excluding intangible assets and goodwill, including that over thirty-three man-years of development efforts had been devoted to achieving the prototype third generation modem boards for the base station applications, that a management team and engineering team were in place, that office and laboratory facilities were in place, that six patents had been filed or were already approved, and that contacts and relationships had already been established with potential customers both in the United States and Korea. The value of intangible assets and goodwill, such as contacts, relationships and potential customers, has not been included in the table below since it is difficult to estimate a real value, although it could be very significant, on these items. The transaction was concluded following arms-length negotiations. The Company believes the issuance of the stock to be exempt from registration under Section 4(2) of the Securities Act. The related parties from both the Company and NeoReach were Messrs. Daniel Lozinsky, Arne Dunhem, Scott Smith and Ken Min. Mr. Daniel Lozinsky who was a controlling stockholder of Mobilepro also owned approximately 32.5% of NeoReach.

     Approximate valuation of NeoReach, Inc. (Excluding Intangible Assets and Goodwill)

     On January 20, 2004, we acquired DFW Internet Services, Inc. (d/b/a Nationwide Internet) an Internet services provider based in Hurst, Texas. Nationwide Internet provides broadband and dialup Internet access for individuals and

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businesses in 30 states as well as hosting and collection services. We issued 18,761,726 shares of our common stock with a value of approximately $500,000 for all of the outstanding shares of Nationwide Internet. As a result of the acquisition, we acquired certain plant, equipment or other physical property that Nationwide used in its business and which we intend to continue to use.

     On March 1, 2004, we acquired Internet Express, Inc. (d/b/a EXP Internet Services), an Internet service provider based in southeast Texas. We paid $650,000 of consideration, consisting of $350,000 in cash and $300,000 in promissory notes issued to the shareholders of Internet Express. As a result of the acquisition, we acquired certain plant, equipment or other physical property that Internet Express used in its business and we intend to continue such use.

     On April 21, 2004, we acquired August.net Services, LLC, a Texas based internet service provider. We paid $1,730,000 of consideration, consisting of $1,200,000 in cash and $530,000 in promissory notes issued to the members of August.net. As a result of the acquisition, we acquired certain plant, equipment or other physical property that August.net used in its business and we intend to continue such use.

     We have signed letter of intents with ShreveNet, Inc., a Shreveport Louisiana based provider of internet services, Crescent Communications, Inc., a Houston Texas based provider of internet services, Ticon.net, a Janesville, Wisconsin based provider of internet services and Clover Computer Corporation, an Ohio based provider of internet services. All four of these transactions are subject to the negotiation and execution of definitive agreements and customary closing conditions. There can be no assurances that these transactions will close.

Business Strategy Evolution

     CraftClick was formed to be the premier arts and crafts destination on the Internet. CraftClick intended to build an online arts and crafts community that offered amateur and professional craftspeople worldwide a wealth of arts and crafts related content. Due to the lack of adequate funding and the lack of generating enough Internet traffic to achieve profitability, CraftClick began to cease business operations in October 2000. CraftClick subsequently disposed of substantially all of its assets in February 2001 when secured creditors foreclosed on outstanding loans made to CraftClick. In July of 2001, Mobilepro merged into CraftClick.

     Mobilepro was formed in 2000 as a provider of wireless business solutions for the mobile business professional workforce. We intended to develop complete mobile information solutions that include products and services such as wireless handheld devices and Web based enterprise applications. As a solutions provider, we intended to bundle the service and the hardware device into a single offering. None of the products or services were fully developed and were not available for sale. The strategy was for Mobilepro to develop the overall designs of both the hardware and the software of the devices but to outsource the actual manufacturing and the detailed software development to existing device providers. We intended to distribute the devices with the bundled software through various distribution channels including direct sales and alliance partners with co-marketing and referrals. The Web based services were to be developed jointly with strategic development partners and maintained and operated jointly with ISP and Web-hosting partners.

     We had no sales for the year ended March 31, 2002 and did not have adequate capital funding in order to continue as a going-concern in the wireless business solutions segment. As such, we discontinued those operations in March 2002.

     Upon completion of our merger with NeoReach in April 2002, the business strategy, direction and focus of the former NeoReach became the dominant operating focus of the new Mobilepro. From April 2002 through December 2003, we focused on developing wireless modem technology for third generation wireless communications systems based worldwide wideband — code division multiple access, “W-CDMA,” standard. Third generation technology features integrated voice and data, access to high-speed Internet and intranet applications, interactive e-mail, data exchange, global roaming and full motion video transmission—all delivered to a mobile device such as a cellular phone, personal data assistant, “PDA,” or laptop. We intended to develop a base station modem including a multi-channel semiconductor integrated circuit chip and then a handset modem chip. These devices were to be based on our proprietary third proprietary third generation radio frequency technology. As part of the development efforts we established strategic relationships with RF Microelectronics Laboratory of the Information and Communications University of the Republic of Korea and Prime Circuits, Inc. of Maryland.

     Because of the extensive resources necessary to develop the wireless modems, we decided in January 2004 to suspend development of the modems and instead focus on the development of the ZigBee chip described above. In the future, if resources are available and a market opportunity exists, we may decide to revive development of the wireless modem technology.

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Also, in December 2003, we decided to pursue a strategy of acquiring profitable broadband internet service providers. These acquisitions are intended to provide revenue to us and, to the extent they remain profitable, provide cash to fund development of the ZigBee chip and other projects.

     At the time of its acquisition by Mobilepro, NeoReach had several pending patent applications in the area of smart antenna technology. Those patents issued in 2002; however, we did not have the resources to commercialize the underlying technology. As we have decided to focus our efforts on developing the ZigBee chip and related wireless technologies and growing our Internet Services division, we have adopted a strategy of seeking to license these patents to third parties.

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MANAGEMENT

     Our directors and executive officers and their ages as of May 12, 2004 are as follows:

     The following is a brief description of the background of our directors and executive officers.

Background Information

     Jay O. Wright. Jay O. Wright has served as our President and Chief Executive Officer since December 2003. From October 2001 to December 2003, Mr. Wright served as President of Bayberry Capital, Inc., a Maryland based financial consulting firm. During that time, he also served from August 2002 and May 2003 as Chief Financial Officer for Technical and Management Services Corporation where he negotiated the sale of that company to Engineered Support Systems, Inc. Between December 1999 and September 2001 Mr. Wright served as Chief Financial Officer of Speedcom Wireless Corporation, a wireless software technology company, where he helped take that company public via a “reverse merger” and subsequently obtain a Nasdaq SmallCap listing. From January 1999 to November 1999, Mr. Wright served as Senior Vice President of FinanceMatrix.com, a Hamilton, Bermuda based company focused on developing a proprietary financial software architecture to provide tax-efficient financing to sub-investment grade companies. Between May 1997 and January 1999 Mr. Wright served as an investment banker with Merrill Lynch. Prior to that he was a mergers and acquisitions attorney with Skadden, Arps, Slate, Meagher and Flom, LLP in New York and Foley & Lardner in Chicago. Mr. Wright received his Bachelor’s degree in Business from Georgetown University (summa cum laude) and a JD degree from the University of Chicago Law School.

     Kurt Gordon. Kurt Gordon has served as our Chief Financial Officer since March 2004. Between November 2003 and February 2004, he served as a consultant to us. He has over 14 years of experience in finance and operations with special focus on growing entrepreneurial environments. Between April 2000 and September 2003, Mr. Gordon was Chief Financial officer of TARGUS Information Corporation, which pioneered the development of real time intelligence providing businesses access to information about businesses and consumers who contact them by telephone, Internet and wireless devices. Gordon was a key contributor during the largest revenue and employee growth phase of that company’s history. Between March 1997 and April 2000, Mr. Gordon served in several capacities including Director of Finance for KSI Services Incorporated, a real estate acquisition and development corporation. Earlier in his career, Mr. Gordon served as a public accountant and consultant in the Entrepreneurial Services group of Ernst & Young.

     Daniel Lozinsky. Mr. Daniel Lozinsky has served as Director of Mobilepro since February 2002. His term as director expires on the date that his successor is elected and qualified. Mr. Lozinsky has 18 years of management and software development experience with small and large multinational corporations. Since November 2002, Mr. Lozinsky has been advising and investing in technology companies located in the greater Washington DC area. From May 2002 to November 2002, Mr. Lozinsky served as Senior Vice President of Mobilepro. From February 2002 to May to 2002, Mr. Lozinsky served as our Chairman, President and Chief Executive Officer. From October 2001 to February 2002, Mr. Lozinsky worked as an independent strategic financial and management advisor. From March 2001 and October 2001 Mr. Lozinsky served as President and CEO of VCmed Inc. a scientific medical start-up company that was attempting to bring to the market cancer research technology developed at MIT and Harvard. From February 1999 to February 2001, Mr. Lozinsky served as a business advisor to public relations firms for international business. From April 1995 and January 1999, Mr. Lozinsky was a senior software engineer for AOL Host Systems Internet department, that allowed AOL to meet its growing Internet demands during the highest AOL’s growth period between 1996 and 1999, when the company grew from 4 million to 21 million users. He worked for AOL’s MIS (BISY) department for April 1995 and June 1996. Prior to that Mr. Lozinsky served in various engineering roles for Eastman Kodak, PaineWebber, and Merrill Lynch. Mr. Lozinsky holds MS/CS from Stevens Institute of Technology in Hoboken NJ, January 1989. He also holds BS/CS from Polytechnic Institute of NY, January 1984.

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Executive Compensation

     Summary Compensation Table. The following table sets forth the annual and long-term compensation for services in all capacities for the fiscal years ended March 31, 2003, 2002 and 2001, paid to our most highly compensated executive officers.

Summary Compensation Table

     Mr. Jay O. Wright joined us in December 2003 as Chief Executive Officer. Mr. Wright is paid a base salary of $180,000 per year and is eligible to receive a bonus equal to 1% of the revenues for the most recent 12 month period of each acquisition made by the Company during his employment period. Mr. Wright also received warrants to purchase 15,182,500 shares of our common stock at an exercise price of $0.018 per share, of which 7,982,500 are fully vested. Mr. Wright also received $20,000 in connection with the warrant.

     Mr. Kurt Gordon joined us in February 2004 as Chief Financial Officer. Mr. Gordon is paid a base salary of $156,000 per year and is eligible to receive a bonus equal to 1% of the revenues for the most recent 12 month period of each acquisition made by the Company during his employment period. Mr. Gordon also received a warrant to purchase up to 6,500,000 shares of our common stock at an exercise price of $0.018 per share, of which 3,062,500 are fully vested.

     Mr. Dunhem left us in November 2003. Mr. Dunhem received his base salary through the date of his separation from the Company.

Aggregated Option Exercises In Last Fiscal Year And Fiscal

     The following table sets forth certain information concerning the number and value of securities underlying exercisable and unexercisable stock options as of the fiscal year ended March 31, 2003 by our executive officers listed in the Summary Compensation Table above.

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Compensation Of Directors

     We have no standard arrangement pursuant to which our Directors are compensated for services provided as a Director.

Employment Agreements

     Mr. Jay O. Wright joined us in December 2003 as Chief Executive Officer. Mr. Wright is paid a base salary of $180,000 per year and is eligible to receive a bonus equal to 1% of the revenues for the most recent 12 month period of each acquisition made by the Company during his employment period. Mr. Wright also received a warrant to purchase 15,182,500 shares of our common stock at an exercise price of $0.018 per share, of which 7,982,500 are fully vested. Mr. Wright is subject to a lock-up agreement, which prohibits Mr. Wright from selling shares until November 15, 2004, and limits his sale of shares thereafter to no more than 1 million shares per quarter. If Mr. Wright terminates his employment for Good Reason (as is defined in his employment agreement) or without Cause (as is defined in his employment agreement), Mr. Wright is entitled to receive a lump-sum cash payment equal to nine months salary.

     Mr. Kurt Gordon joined us in February 2004 as Chief Financial Officer. Mr. Gordon is paid a base salary of $156,000 per year until such time as the Company has a “revenue run rate” of greater than $6 million at which time his base salary will become $180,000 per year. Mr. Gordon is also eligible to receive a bonus equal to 1% of the revenues for the most recent 12 month period of each acquisition made by the Company during his employment period. Mr. Gordon also received a warrant to purchase up to 6,500,000 shares of common stock at an exercise price of $0.018 per share, of which 3,062,500 are fully vested. Mr. Gordon is subject to a lock-up agreement, which prohibits Mr. Gordon from selling shares until November 15, 2004, and limits his sale of shares thereafter to no more than 1 million shares per quarter. If Mr. Gordon terminates his agreement for Good Reason (as is defined in his employment agreement) or without Cause (as is defined in his employment agreement), Mr. Gordon is entitled to receive a lump-sum cash payment equal to six months salary.

2001 Equity Performance Plan

     On November 1, 2001, the Board of Directors approved the Mobilepro Corp. 2001 Equity Performance Plan under which employees, officers, directors and consultants are eligible to receive grants of stock options. Mobilepro has reserved a total of 6,000,000 shares of common stock under the 2001 Equity Performance Plan. It is presently administered by the Board of Directors. Subject to the provisions of the 2001 Equity Performance Plan, the Board of Directors has full and final authority to select the individuals to whom options will be granted, to grant the options and to determine the terms and conditions and the number of shares issued pursuant thereto.

Indemnification

     As permitted by the provisions of the General Corporation Law of the State of Delaware, Mobilepro has the power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that the person is or was a director, officer, employee or agent of the corporation if such officer or director acted in good faith and in a manner reasonably believed to be in or not opposed to the best interest of Mobilepro. Any such person may be indemnified against expenses, including attorneys’ fees, judgments, fines and settlements to the extent they have been on the merits or otherwise in defense of any action, suit or proceeding. Further, Mobilepro does not maintain liability insurance on behalf of its officers, directors, employees and agents. Insofar as indemnification for liabilities arising under the Securities Act of 1933 (the “Act”) may be permitted to directors, officers and controlling persons of the small business issuer pursuant to the foregoing provisions, or otherwise, the small business issuer has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable.

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LEGAL PROCEEDINGS

     None.

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PRINCIPAL SHAREHOLDERS

Beneficial Owners

     As of May 12, 2004, other than the directors and executive officers identified in the table under “Directors and Executive Officers” section below, no person owned beneficially more than five percent (5%) of our common stock.

Directors And Executive Officers

     The following table shows the amount of our capital stock beneficially owned by our directors, the executive officers named in the Summary Compensation Table above and by all directors and executive officers as a group as of May 12, 2004. Unless otherwise indicated, beneficial ownership is direct and the person indicated has sole voting and investment power. As of May 12, 2004, we had 232,914,196 shares of common stock outstanding.

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CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     On April 23, 2002, Mobilepro acquired all of the outstanding stock of NeoReach in exchange for 12,352,129 shares of its common stock. Mr. Daniel Lozinsky, currently a director of Mobilepro, was the controlling shareholder of Mobilepro at the time and owned approximately 32.5% of the outstanding stock of NeoReach. Arne Dunhem, and Ken Min were officer and shareholders of NeoReach and became officers and shareholders of Mobilepro upon the completion of the transaction.

     In July 2002, we issued a total of 160,000 shares of our common stock for the forgiveness of $39,000 of advances from Mr. Daniel Lozinsky, a director of Mobilepro.

     Two directors and officers of Mobilepro advanced a total of $277,617 to Mobilepro. Daniel Lozinsky, a Director of Mobilepro, advanced to Mobilepro during the period February 9, 2002 through June 20, 2002 a total of $155,617 as follows: $23,262 on February 9, 2002; $25,000 on February 19, 2002; $76,355 on April 25, 2002; $15,000 on May 16, 2002; $4,000 on June 3, 2002; and $12,000 on June 20, 2002, with a repayment by Mobilepro on or before March 1, 2003 at an ordinary market rate, not to exceed 5.00%. On March 15, 2004, the Company and Mr. Lozinsky entered into an agreement pursuant to which the Company paid Mr. Lozinsky $40,000 as payment and settlement in full for all prior advances. Arne Dunhem, the former President and Chief Executive Officer of Mobilepro, advanced to the Company during the period April 19, 2002 through May 6, 2002 a total of $122,000 as follows: $46,000 on April 19, 2002; $40,000 on April 25, 2002; and $36,000 on May 6, 2002, with a repayment by the Company on or before March 1, 2003 at an ordinary market rate, not to exceed 5.00%. As of May 2, 2003, the principal balance of these loans remains at $277,617 plus an interest of approximately $14,000. We have settled all prior advances owed by the Company to Mr. Dunhem through the termination agreement dated November 26, 2003 between us and Mr. Dunhem.

     We believe that each of the above referenced transactions was made on terms no less favorable to us than could have been obtained from an unaffiliated third party. Furthermore, any future transactions or loans between us and our officers, directors, principal stockholders or affiliates, and any forgiveness of such loans, will be on terms no less favorable to us than could be obtained from an unaffiliated third party, and will be approved by a majority of our directors.

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MARKET PRICE OF AND DIVIDENDS ON THE REGISTRANT’S

     Our common stock is quoted on the Over-the-Counter Bulletin Board under the symbol “MOBL.”

     The following table sets forth the average high and low bid prices for the common stock for each calendar quarter since January 1, 2002, as reported by the National Quotation Bureau, and represent interdealer quotations, without retail markup, markdown or commission and may not be reflective of actual transactions. The high and low share prices reflect the effects of the 1-for-100 share reverse stock split, which occurred on May 8, 2001, and the 1-for-200 share reverse stock split, which occurred on November 6, 2001.

     As of May 12, 2004, we believe there were approximately 577 holders of record of our common stock.

     We have not paid dividends in the past on any class of stock and we do not anticipate paying dividends in the foreseeable future.

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DESCRIPTION OF SECURITIES

Common Stock

     On March 12, 2003, Mobilepro amended its Certificate of Incorporation and now is authorized to issue up to 600,000,000 shares of common stock, with a par value of $0.001 per share, of which 232,914,196 shares are issued and outstanding as of May 12, 2004.

     Holders of shares of common stock are entitled to one vote for each share on all matters to be voted on by the shareholders. Holders of common stock have no cumulative voting rights.

     Mobilepro does not currently anticipate paying any dividends on its common stock. In the event of a liquidation, dissolution or winding up of Mobilepro, the holders of shares of common stock are entitled to share pro-rata all assets remaining after payment in full of all liabilities, subject however, to any rights of the shareholders of preferred shares issued and outstanding at the time of such liquidation, dissolution or winding up of Mobilepro (see preferred stock below). Holders of common stock have no preemptive rights to purchase Mobilepro’s common stock. There are no conversion rights or redemption or sinking fund provisions with respect to the common stock.

Preferred Stock

     Mobilepro’s Articles of Incorporation authorize the issuance of 5,000,000 shares of preferred stock, with a par value of $0.001 per share, of which 35,425 shares of Series A preferred stock are issued and outstanding as of May 12, 2004.

     Each share of Series A Preferred Stock is convertible, without additional consideration, into one two-hundredth of a share of common stock. The holders of the Series A Preferred Stock and the holders of our common stock vote together as a single class on all matters presented for the vote of our stockholders. Each holder of Series A Preferred Stock may cast a number of votes equal to the number of shares of common stock issuable upon conversion of his Series A Preferred Stock. In the event of a liquidation of the corporation, the holders of the Series A Preferred Stock are entitled to receive prior to and in preference to any distributions to the holders of our Common Stock an amount equal to the Stated Value (as it is described in our Certificate of Incorporation) as may be adjusted from time to time as provided in this Article Fourth, paragraph B6(f). After such distribution in respect of the Series A Preferred Stock, the remaining assets of the Corporation, if any, will be available for distribution to the holders of our Common Stock.

     We may issue the remaining authorized preferred stock in one or more series having the rights, privileges, and limitations, including voting rights, conversion rights, liquidation preferences, dividend rights and redemption rights, as may, from time to time, be determined by the Board of Directors. Preferred stock may be issued in the future in connection with acquisitions, financings, or other matters, as the Board of Directors deems appropriate. In the event that we determine to issue any shares of preferred stock, a certificate of designation containing the rights, privileges, and limitations of this series of preferred stock will be filed with the Secretary of State of the State of Delaware. The effect of this preferred stock designation power is that our Board of Directors alone, subject to Federal securities laws, applicable blue sky laws, and Delaware law, may be able to authorize the issuance of preferred stock which could have the effect of delaying, deferring, or preventing a change in control of Mobilepro without further action by our stockholders, and may adversely affect the voting and other rights of the holders of our common stock.

Options and Warrants

     As of May 12, 2004, we had 30,057,500 outstanding options and warrants with exercise prices ranging from $0.018 to $0.18.

     Transfer Agent and Registrar. Interwest Transfer Company is the transfer agent and registrar for our common stock. Its address is 1981 East Murray-Holladay Road, P. O. Box 17136, Salt Lake City, Utah 84121.

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EXPERTS

     The financial statements as of December 31, 2003 and 2002 and for each of the years in the period ended March 31, 2003 and 2002 included in this Prospectus have been included in reliance on the report of Bagell, Josephs & Company, L.L.C., independent accountants, given on the authority of said firm as experts in auditing and accounting. Each of the reports contains an explanatory paragraph relating to Mobilepro’s ability to continue as a going concern.

LEGAL MATTERS

     Schiff Hardin LLP, Washington, D.C., will pass upon the validity of the shares of our common stock.

AVAILABLE INFORMATION

     For further information with respect to us and the securities offered hereby, reference is made to the Registration Statement, including the exhibits thereto. Statements herein concerning the contents of any contract or other document are not necessarily complete, and in each instance reference is made to such contract or other statement filed with the Securities and Exchange Commission or included as an exhibit, or otherwise, each such statement, being qualified by and subject to such reference in all respects.

     Reports, registration statements, proxy and information statements, and other information filed by us with the Securities and Exchange Commission can be inspected and copied at the public reference room maintained by the Securities and Exchange Commission at Judiciary Plaza, 450 Fifth Street, N.W., Room 1024, Washington, D.C. 20549. Copies of these materials may be obtained at prescribed rates from the Public Reference Section of the Securities and Exchange Commission at 450 Fifth Street, N.W., Room 1024, Washington, D.C. 20549. The Securities and Exchange Commission maintains a site on the World Wide Web (http://www.sec.gov) that contains reports, registration statements, proxy and information statements and other information. You may obtain information on the Public Reference Room by calling the Securities and Exchange Commission at 1-800-SEC-0330.

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