Sales Contract

     THIS SALES  CONTRACT  (the  "Contract")  is made and entered into as of the
27th day of October,  1999, by and between World Business  Investors  Group (the
"Buyer"), an entity of legal status organized and existing to engage in commerce
under  the  laws  of  the  country  of  Peru,  and  Daedalus  Building  Systems,
Incorporated (the "Seller"), a corporation organized and existing under the laws
of  Delaware,  United  States of  America.  This  Contract  shall be  designated
Contract Number 46-045-99.

     WHEREAS, the Seller offered to sell and the Buyer has agreed to buy certain
structural units,  components,  finishings,  and other items related to Daedalus
Building Systems(TM).

     NOW THEREFORE,  in consideration  of the mutual covenants  contained herein
and subject to the terms and conditions  described  herein,  the Parties to this
Contract agree as follows:

1.   Definitions.  For the purpose of this Contract,  the following  terms shall
     have the following  meanings,  unless  otherwise  defined;  all other terms
     shall have the usual and customary meaning ascribed to them.

     a.  "Dollars" or "$" shall mean the currency of the United States of
     America.

     b.  "Incoterms  1990"  means  the  definition  for the  referenced  term as
         adopted by the  International  Chamber of  Commerce in Paris in 1990 or
         subsequent adoptions.

     c.  "Components"  shall mean such items as panels of the Daedalus  Building
         Systems(TM)  and related  fasteners that are required for assembly of a
         structural  unit,  which does not  include  tools  required to complete
         assembly.

     d.  "Finishings"  shall mean those  materials  used to finish the  interior
         surfaces of the structures and other items, such as sinks, showers, and
         toilets.

2.   Unit Pricing.  Unit pricing, as specified in Annex "B," attached hereto and
     made a part hereof, shall be fixed for the term of the Contract. Pricing is
     valid for all units ordered and shipped within the effective  period of the
     Contract.  Prices may be  adjusted if  delivery  extends  beyond the period
     specified in Paragraph 6.


3.   Purchase.  The minimum amount of purchase provided under the Contract Value
     will be 22,000,000  square feet (2,043,800  square meters) of panels of the
     Daedalus Building Systems (Metal), pursuant to Annex A.


4.   Contract  Value.  The Contract  Value shall be in dollars and is based upon
     the sales price as specified in Annex "A" which shall form an integral part
     of this contract.  The minimum contract value is one hundred twenty million
     and 00/100  Dollars  ($120,000,000.00)  and  represents  the  purchase of a
     minimum of 22,000,000  square feet  (2,043,800  square meters) of panels of
     the  Daedalus  Building  Systems  (Metal),  pursuant to Annex A, over three
     years, commencing at the date of this contract.

     a.   Freight.  Freight  will be  arranged  by the  seller  and added to the
          account  of, and paid by, the buyer.  Freight is not  considered  as a
          part of the contract value.


<PAGE>


     b.   Insurance. Estimated insurance will be paid by the Seller and added to
          the account of, and paid by, the buyer. Insurance is not considered as
          a part of the contract value.

     c.  Additional   Costs.  All  additional  costs  for  freight,   insurance,
         forwarding fees, and any other expenses that are pre-advised,  incurred
         by the seller and added to the  account of the buyer,  or billed by the
         seller,  are due and payable by the buyer  within 30 days of payment or
         billing by the seller. Additional Costs are not considered as a part of
         the contract value.

5.   Individual  Purchase  Orders.  Execution of the  Contract  shall be through
     issuance and use of Individual  Purchase Orders,  each Individual  Purchase
     Order issued for a minimum of ________ of panels, pursuant to Annex A.


6.   Effective  Date. This Contract will enter into full force and effect on the
     date written above.


7.   Duration. The duration of this Contract will be from the effective date and
     extend 36 months from the issuance of the first  Individual  Purchase Order
     under the Contract.


8.   Termination  Date. The Contract shall  terminate and be of no further force
     and effect on the earlier of: (i) the Contract Value being paid in full; or
     (ii)  pursuant  to the  provision  of  Paragraph  12  below;  or  (iii)  in
     accordance with the provided Duration.


9.   Payment Terms. Payment of the Contract Value hereunder shall be made as set
     forth below:

     a.   Medium Term  Financing.  The Seller will assist the Buyer in obtaining
          Medium Term  Financing.  However,  it is understood  and agreed by the
          Parties that no assurances of success in obtaining  such Financing are
          made or  offered  by the  Seller.  Payment  of 85% of the value of the
          Individual  Purchase  Orders,  under Medium Term  Financing,  shall be
          financed  under the  Guarantee  Program  of the  Export-Import  of the
          United States ("Ex-Im Bank") through a lending bank  acceptable to the
          Parties ("Lending Bank").  The term of the Medium Term Financing shall
          be five years.

          The  Buyer  shall be  responsible  for  obtaining  the  remaining  15%
          non-Ex-Im Bank financing  portion of the Individual  Purchase  Orders.
          The 15%  non-Ex-Im  Bank  financing  portion shall be the down payment
          portions of the  Individual  Purchase  Orders not covered by the Ex-Im
          Bank Medium Term Financing. The down payments shall be paid coincident
          with issuance of the Individual Purchase Orders.

     b.   Payment.  Payment  of 85% of the  Contract  Value  under  Medium  Term
          Financing is as follows. This 85% payment shall be divided into: (i) a
          70% letter of credit; and (ii) a 15% advance payment:

          i.   Seventy  percent  (70%) of the value of the  Individual  Purchase
               Orders  is to be paid  under a  confirmed  Irrevocable  Letter of
               Credit   subject  to  the  Uniform   Customs  and   Practice  for
               Documentary  Credits,  Publication  500, as published and updated
               from time to time by the International  Chamber of Commerce.  The
               Letter of Credit shall be  confirmed  by a financial  institution
               acceptable  to the  Seller.  The  amount of the  Letter of Credit



                                                                     Page 2 of 9


<PAGE>

               shall be  equal  to  seventy  percent  (70%) of the  value of the
               Individual  Purchase  Orders  and  shall be  available  for three
               hundred  sixty (360)  days.  Any Letter of Credit and amounts due
               thereunder are payable in U.S dollars.  The Beneficiary under all
               Letters   of  Credit   shall  be   Daedalus   Building   Systems,
               Incorporated,   8653  Richmond  Highway,   Alexandria,   Virginia
               22309-4206, USA.

               A.   The Letter of Credit shall be advised to the Beneficiary and
                    confirmed by a commercial bank acceptable to the Seller.
               B.   The Letter of Credit shall be negotiated by the  Beneficiary
                    through the confirming bank.
               C.   All fees with respect to the services rendered by the paying
                    and confirming bank in advising,  confirming and negotiating
                    the Letter of Credit and the documents  thereunder  shall be
                    for the account of the Seller.
               D.   Partial drawing is to be permitted.
               E.   Documents to be presented for payment: I. Commercial Invoice
                    II.  Certificate of Origin
                    III. On Board Bill of Lading
                    IV.  Sight Draft Drawn on the Buyer

          ii.  All amounts paid under the Letter of Credit in respect of Section
               9. a.(i) above will be financed by the Lending Bank as follows:

               A.   All  amounts  paid  under  the  Letter  of  Credit  shall be
                    evidenced by a promissory  note payable to the Lending Bank,
                    in form and substance acceptable to the Lending Bank, issued
                    by  the  Buyer.  Such  promissory  note  shall  provide  for
                    principal repayment over a period of five years.

               B.   Equal  payments of principal,  with  concurrent  payments of
                    interest thereon,  at an interest rate of ______ percent (%)
                    per annum (to be established by the Lending Bank),  shall be
                    payable no less frequently than  semiannually  commencing no
                    later than one  hundred  eighty  (180) days from the date of
                    the On Board  Bill of Lading,  evidencing  the  shipment  of
                    goods covered by the Contract Value.

          iii. The promissory note, as described in Paragraph  8(b)(ii)(A) shall
               be  delivered  by the  Buyer  to the  Seller  at the  time of the
               Buyer's  presentation of an Individual Purchase Order as provided
               in Paragraph 11.b hereof.  Such promissory note is to be executed
               but is not to be dated with respect to either the execution  date
               or the first  repayment  date.  Upon the  issuance of an On Board
               Bill of Lading,  the Seller and/or Lending Bank will complete the
               promissory  note by  inserting  the date of the On Board  Bill of
               Lading as the  execution  date and one hundred  eighty (180) days
               from  the On  Board  Bill of  Lading  date as the  date of  first
               repayment.  The buyer will sign any and all documents required to
               effect the  foregoing  and will  designate  the seller and/or the
               lending bank the necessary  authority to complete and deliver the
               note.

          iv.  Advance Payment. Payment of fifteen percent (15%) of the value of
               the Individual  Purchase  Orders will be made by the Buyer to the
               Seller,  in  cash  and in a  form  satisfactory  to  the  Seller,
               evidencing  an  advance  payment  on the  Contract.  The  advance
               payment  shall be due and  payable  at the time of closing of the
               Medium Term Financing.


                                                                    Page 3 of 9

<PAGE>


10.  Terms of Sale.  The sale of the  Units  shall  be on  Incoterms  1990,  FOB
     Ontario, Canada.

     a.   The  Buyer  will   arrange  for  and  prepay,   as  may  be  required,
          transportation,  insurance, and freight forwarding charges, which will
          be added to the  account  of, and paid by, the buyer,  as  provided in
          Paragraph 4. The Buyer shall be responsible for obtaining insurance in
          such amounts and types as required by the Lending Bank.

     b.   The  Seller  will  assist  the  Buyer  in  providing   all   available
          documentation  necessary  to clear the goods  from  customs as soon as
          possible.

11.  Procedures.  In  addition  to the  operational  and  logistical  procedures
     described  in other  sections of this  Contract,  the Parties also agree as
     follows:

     a.  The Buyer agrees to obtain any and all necessary  import permits and to
         provide a copy of such permits to the Seller  immediately  upon receipt
         of such Permits by the Buyer.

     b.  The Buyer agrees to submit an Individual  Purchase  Order to the Seller
         to initiate  each order under the  Contract.  The  Individual  Purchase
         Order is required to be in the form of Annex C, attached hereto.

     c.  The Buyer agrees to timely  consummate  and enter into force all Medium
         Term Financing for the first Individual Purchase Order, as provided for
         in Paragraph  9.a,  above,  no later than one hundred twenty (120) days
         from the Effective Date.  Failure by the Buyer to fully  consummate the
         Medium  Term  Financing  and pay the advance  payment as  provided  for
         herein,  including the execution and entry into force of all applicable
         documentation,  shall cause this Contract to terminate  immediately and
         become null and void without notice to either the Buyer or Seller as of
         the expiry date of such time period. Such termination will be deemed to
         be a breach of  contract  and will not  afford  either the Buyer or the
         Seller any claim for any damages whatsoever.

     d.  The Buyer agrees to submit an Individual  Purchase  Order for a minimum
         of _______ unfinished,  basic structural units, pursuant to Annex A, or
         structural equivalents, and agrees to accept partial shipments.

     e.  The first container  shipped in accordance with the initial  Individual
         Purchase  Order of the Contract will contain  articles  designated  for
         "inspection and acceptance" in accordance  with  specifications  agreed
         upon by the Parties.  Further  shipments  under the initial  Individual
         Purchase  Order  will  commence  upon   completion  of  inspection  and
         acceptance  of  assembled  structures,  which  both  parties  agree  to
         assemble as soon and as rapidly as possible.

     f.  Subject to the terms hereof and the  availability  of an ocean  vessel,
         the Seller agrees to ship a completed  order within three hundred sixty
         (360)  days of receipt  and  acceptance  by the Seller of a  Individual
         Purchase Order.

12.  Cancellation and  Termination.  Other than by breach by the Parties hereto,
     except as provided in Section  11.c.  hereof,  either party may cancel this
     Contract after three hundred sixty (360) days from the Effective Date. Such
     intent  to  cancel  must be  conveyed  to the other  Party in  writing,  as
     provided herein, sixty (60) days prior to the date of cancellation.



                                                                    Page 4 of 9

<PAGE>


13.  Penalties. Material breach of this Contract by either Party shall give rise
     to a claim by the damaged Party.  Such claim shall be limited to the actual
     cost of damages and  expenses  associated  with the claim,  but in no event
     shall such claim  exceed ten percent  (10%) of the value of any  Individual
     Purchase  Order  hereunder.  The Seller's  obligation  to repair or replace
     existing housing units or components  thereof shall be the Buyer's sole and
     exclusive remedy under the Contract.

14.  Force  Majeure.  In  the  event  of a  Force  Majeure,  which  affects  the
     performance  of either Party  hereunder,  the Contract shall be temporarily
     suspended and  automatically  extended for the period of suspension.  Force
     Majeure   shall  only  include  war,   natural   catastrophes,   and  other
     occurrences,  including new  legislation,  which forecloses or prevents the
     possibility of further performance under the Contract.  Force Majeure shall
     not include labor disputes, civil commotion or poll congestion.

15.  Disputes.  All disputes  arising in connection  with this contract shall be
     finally  settled under the Rules of  Conciliation  and  Arbitration  of the
     International  Chamber of Commerce by one or more arbitrators  appointed in
     accordance with the Rules.  The Parties hereto agree that all rulings under
     the  Rules  shall  be  binding  and  enforceable  with  no  further  appeal
     whatsoever  and any right of  judicial  action  on any  matter  subject  to
     arbitration  hereunder is hereby  waived.  However,  any judicial court may
     enforce the  resolution of the  arbitrator(s)  and any Party shall have the
     right to sue in court to enforce an arbitration award.  Notwithstanding any
     possible  issue  submitted  for  Arbitration,  in all cases the location of
     arbitration shall be in Northern Virginia. This paragraph shall survive any
     termination of this Contract.

16.  Notices. All notices to each Party under this Contract shall be in writing,
     in the English  language,  and  delivered to the address  designated in the
     signature  block of this Contract.  Notices shall be deemed given when sent
     by registered mail or by telefax  communications,  which are electronically
     acknowledged as received.

17.  Warranty.  All units sold under this Contract are warranted to be free from
     defects in material and  workmanship  and shall conform to applicable  U.S.
     Standards.  The warranty of the Seller does not apply to defects not caused
     by the Seller,  including but not limited to acts of God,  abuse,  improper
     assembly or  installation.  All  notices for claims of defects,  under this
     warranty,  must be made to the Seller in writing within thirty (30) days of
     the discovery of the defect by the Buyer.  The sole  responsibility  of the
     Seller shall be, at its option,  to replace or repair the defective housing
     unit and auxiliary buildings. This warranty shall commence from the date of
     transfer of title to the Buyer and shall last for a period of one (1) year.
     All housing units and auxiliary  buildings and components  thereof shall be
     deemed to be irrevocably  accepted by the Buyer, thirty (30) days after the
     date of installation at the site or sites.  With the exception of title, no
     other  warranties,  expressed  or implied,  whether of  merchantability  or
     fitness for a particular  purpose,  other than those set forth above, shall
     apply to the units or components thereof' sold hereunder, and no alteration
     or modification of the foregoing shall be binding against the Seller unless
     signed by an executive officer of the Seller.

18.  Law.  This contract  shall he governed by and construed in accordance  with
     the laws of the Commonwealth of Virginia, U.S.A.



                                                                    Page 5 of 9

<PAGE>



19.  Assignment. This Contract is assignable by either Party upon receipt by the
     assigning  Party of an acceptance  from the other Party of a written notice
     of assignment from the assigning  Party to the Party being  notified.  Such
     notice of acceptance shall not unreasonably be withheld.


20.  Authority.  Each Party warrants and covenants to the other that it has full
     power,  authority,  and legal  right and has taken all other  legal  action
     necessary  to  authorize  the  execution  of this  Contract and perform the
     undertakings hereunder.


21.  Amendment.  Amendments to this Contract must be in writing and signed by an
     executive  officer  of the  Seller  and the  Buyer.  No  other  actions  or
     approvals shall constitute amendments to this Contract.


22.  Conflicts.  This  Contract,  including the Annex attached  hereto,  and all
     amendments  hereto,  may be executed in both  English and _______  language
     versions.  In the event of  conflict  between  the  versions,  the  English
     version  shall  control.  In the event of conflict  between this  Contract,
     including the Annexes attached  hereto,  and any working  drawings,  plans,
     product descriptions,  publications or other representations,  the Contract
     and Annex will control.

23.  Entire Contract.  This document  represents the entire Contract between the
     Parties.  The Parties agree to enter into all other  contracts,  conform to
     all local laws and  requirements,  and  perform  other  actions,  which are
     necessary to fulfill their obligations under this Contract.

       IN WITNESS  THEREOF,  the Parties hereto have caused this Agreement to be
duly executed as of the date first written above.

For the Seller: /s/                        For the Buyer: /s/
                   ------------------                         ------------------


The Daedalus Project, Incorporated         World Business Investors Group
Edward A. McCulloch                        Ing. Edgar Espinoza Chacon
President                                  Presidente del Directorio
8653 Richmond Highway                      Alamanda 199 Surco
Alexandria, Virginia  22309 USA            Lima, Peru





                                                                    Page 6 of 9

<PAGE>





                                     ANNEX A

            General Specifications--Daedalus Building Systems (Metal)

1.   Daedalus  Building Systems (Metal).  The Daedalus  Building Systems (Metal)
     consists of panels,  consisting of structural  units assembled from panels,
     which are fabricated from recycled composites.

2.   Basic structural  unit. The basic structural unit of the Daedalus  Building
     Systems (Metal) is an unfinished structure, consisting of metal panels with
     polyurethane.

3.   Structural  Panel. The standard  structural panel of the Daedalus  Building
     Systems  (Metal) is a composite panel that is  approximately  1.25 X 1.25 X
     .10 meters, weighing approximately 10 kilograms.

4.   Structural  equivalent.  A structural  equivalent of the "basic  structural
     unit" is any structure that:

     a.   is combination or  configuration  of structures that would utilize the
          same, or greater  number of full size panels of the Daedalus  Building
          Systems (Metal), i.e., 60 panels

     b.   sixty or more  full  size  panels  of the  Daedalus  Building  Systems
          (Metal)








                                                                    Page 7 of 9

<PAGE>



                                     ANNEX B

                                     Pricing















                                                                    Page 8 of 9


<PAGE>




                                     Annex C

                            Individual Purchase Order

       Name

                                                Individual Purchase Order No.:
       Address                                  Date:
       Country
       Telephone:  011-                         Facsimile:  011-

================================================================================
To:  The Daedalus Project, Inc.
     8653 Richmond Highway                     Contract Reference:  00000000
     Alexandria, Virginia  22309 USA           Daedalus Reference: Pro forma No.
     Point of Contact:

--------------------------------------------------------------------------------
   Item    Quantity    Model No.       Description       Unit Price    Extension
--------------------------------------------------------------------------------








--------------------------------------------------------------------------------
TOTAL

--------------------------------------------------------------------------------
 0                                                     0
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
Total FOB Ontario, Canada : Export packed in 40 ft. container:      $
Export processing, packaging, prepaid inland/ocean freight
to ____________ & forwarder's handling charges ex-works:            $
Freight and insurance                                               $
Estimated total costs:                                              $
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
    Estimated gross weight:         Estimated cube:  2,560 cubic feet/73
                                    cubic meters


--------------------------------------------------------------------------------
Banking Information
First Virginia Bank
International Department
6400 Arlington Blvd.
Falls Church, Virginia  22046  USA
Fax:  703-241-3464
ABA#:
Account #:
The Daedalus Project, Inc.





                                                                     Page 9 of 9