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Newsletter
March 16, 1999 Volume II, Issue 14 Email : info@otcjournal.com
To OTC Journal Subscribers: From time to time we have been providing you with small bits of information about our parent Company, 1st Net Technologies (OTC BB: FNTT). Our newsletter is owned by OTC Journal Management, Inc. We were acquired and became a wholly subsidiary of 1st Net in December of 1998. Over the last 30 days there have been some very exciting developments at 1st Net which we would like to share with you now. If you are considering investing in the stock, bear in mind that our views towards our parent company are extremely biased. This newsletter should not be construed as a solicitation to invest. However, there are numerous small Internet companies that have achieved very high market valuations over the last several months. If 1st Net becomes included in that group, we would be doing our members a disservice if we didn't make them aware of all the exciting new arenas of Internet related business that the company is now involved in. After reading this edition, you be the judge. Also, we believe it is very important for you to read the disclaimer at the end. If you are the type of investor that looks for ground floor opportunities in Internet Technology related stocks, 1st Net Technologies, Inc (OTC BB:FNTT) is a company you should consider for the speculative end of your portfolio. This is an Internet stock that has not yet been discovered by Wall Street, but is developing the types of technologies that Wall Street falls in love with when deployed. This is a long report, but it really spells out all the different avenues of Internet Related commerce being pursued by 1st Net, so it is worth your time to read the entire edition. In summary 1st Net has a very unique business concept that will generate multiple revenue streams. Some of their technology has huge upside potential. With their Internet marketing Joint Venture agreements they have tremendous potential to create substantial earnings and balance sheet enhancements over the coming months and years. Because 1st Net is in the Internet Investor relation business you can be assured there will be an ongoing flow of information on our parent company finding its way to the investing public. Please sign up for our mailing list in the hyper links section at the end of this edition. One event worth mentioning: On January 19th, Perry & Co, the publisher of the Internet Stock Review, chose 1st Net as one of the "Top 20 Internet Plays To Keep an Eye on 1999". We were mentioned along with names like Borders Group (NYSE: BGP), and CDNow (NASDAQ: CDNW). We did not solicit this opinion, nor did we compensate Perry & Co. in any way.
From its inception in early 1998, 1st Net Technologies, Inc. has blossomed into a full service Internet marketing and E-Commerce products & services company that has spent the last year and a half building a solid business foundation and infrastructure, as well as, acquiring the key technologies to accelerate growth and profitability. 1st Net Technologies, Inc.develops and markets proprietary Internet based products for commercial application. 1st Net continues to specialize in innovative services for publicly traded companies and high net worth investors and is now poised to extend the community concept far beyond the financial industry.
If these few points about 1st Net have sparked your interest, below is a complete and comprehensive description of all the areas 1st Net's business.
At its inception, 1st Net's core business revolved around creating an Internet presence for publicly traded companies. We have done web site development for over 30 different publicly traded companies in the last year alone. In fact, this service was so well received, that unlike most Internet Technology companies, 1st Net actually made a profit in the first nine months of 1998. The acquisition of OTC Journal Management in December, which owns this newsletter, further expanded 1st Net's role in the Internet financial services arena for publicly traded companies. Using its core business as a springboard, 1st Net was then positioned for expansion into other new and exciting frontiers of commerce on the Internet. Some of the products, services and technologies have $100 million potential, and we will describe them now. In order to enhance the Internet services offered to our client companies in our core business, on January 14th, 1st Net announced a new strategic alliance with InterVu (NASDAQ: ITVU). InterVu provides multimedia audio and video streaming over the Internet, and is best known for such media events as the live Internet broadcast of the first open heart surgery, launching of the space shuttle, and the live broadcast of the Clinton grand jury testimony. The company is 10% owned by NBC. On Thursday, January 28th, 1st Net, using technology provided by InterVu, broadcast the first live, streamed audio/video media broadcast of its kind. This unique broadcast can be replayed at 1st Net's home page, and there is a hyper link at the end of this newsletter for viewing. This technology will be offered as a tool to 1st Net's client base for Internet Exposure, and should generate revenue flow in the near future. One application for InterVu's technology, which is currently being launched, is the service of providing "Virtual roadshows and IPO roadshows" for public companies. 1st Net is modeling the service after WWW.NETROADSHOW.COM, which was recently bought out by Broadcast.com, Inc (NASDAQ: BCST) for $50 million. Although the service is similar, 1st Net believes that the InterVu technology is superior.
1st Net is experiencing rapid growth in the E-Commerce solutions business. This year alone we have signed three major new contracts in this arena, and this is just the beginning. Many companies are creating E-Commerce web sites, but few know how to generate traffic that will transact business. 1st Net has put an Internet Marketing Department in place which specializes in developing unique and creative ways to drive traffic to E-Commerce sites. We also provide E-Commerce transaction technologies. This year, the following contracts have been signed in the E-Commerce arena:
These contracts have all been signed and implemented in the first 60 days of 1999. We can assure you that many additional contracts in the E-Commerce arena will come our way this year. There are numerous companies that want to sell products on the Internet, but very few that actually know how to get it done. 1st Net's business model for arranging these joint ventures is three fold: 1. to get an equity position in the client company to give 1st Net unparalled upside. 2. structure a revenue sharing situation where we take a % of sales generated on the sales of our client companies products or services, and last but not least 3. obtain an upfront cash payment in order to help defray the development costs.
The Company has developed a unique four-step business concept that capitalizes on the driving forces of converging technology, and the importance of delivering key content to target affinity groups. This model represents the next generation in information technology companies. Building niche on-line communities with their proprietary content based routing and delivery systems does this as follows:
The process begins by capturing the desktops of affinity groups with community browsers. These portals to the Internet that contain vital information and applications that are unique and specific to the needs of each affinity group. For example, we are developing a community browser for the diabetics market in conjunction with MediQuik Services Inc. (OTC BB: MDQK). The concept is to route information specific to this affinity group to the desktop utilizing the custom browser to get individuals to switch browsers.
Next, groups use 1st Net browsers as the gateway to the Internet in general, and to the respective communities in particular, which allows the Company to capture the names of members, and thereby build and manage custom databases for each constituency. Example: A custom database of all diabetics in America.
Third, 1st Net routes key content from other content providers to the community browser. This allows the Company to deliver select content without having to develop it directly themselves. For example, all the latest books on diabetes treatment available from www.amazon.com are made available directly on the diabetes community browser (desktop). Or other areas of key content to be routed to the desktop would include: travel, news, reminder service, quote service, ec, etc. If all the content routed to a desktop is affinity group specific it will make surfing the Net more enjoyable.
Finally, by facilitating e-commerce directly through the community browser, the Company utilizes a transaction-based revenue model to develop a revenue stream for all business transacted on-line. 1st Net intends to arrange revenue sharing agreements with content providers that we will route to the desktop. For example, amazon.com will revenue share with us if we sell books from the desktops, travel companies will revenue share, and news feeds will be supported by traditional ad sales. Most importantly, each affinity browser will have content specific revenue sharing agreements. For example, diabetics will have the ability to join a managed care program directly on-line and customers will be able to securely purchase deeply discounted pharmaceuticals directly on-line with 1st Net sharing in the revenues.
Most organizations with an existing client, customer, or membership base have an ongoing need to improve communications with their respective groups or members. By using the 1st Net community browsers these groups can now deliver the most diverse, innovative and competitive communications solutions in the world. The community browser turns the desktop into a true network appliance integrating voice, data, video and other computer or telephony content directly at a single point of communication. The Company's proprietary next generation technologies like Mariah IP Telephony and Whisper Radio Frequency Wireless Voice and Data technology & Starburst IP application expand the bandwidth, as well as transform the uses and functionality of the desktop as we know it today. By applying the community concept, 1st Net will leverage the existing client, customer, and membership base or marketing skills of affinity groups to extend the reach from the same communication services that they may presently be using, and then participate in the revenue streams generated from such activities. This allows the community to expand its markets and to improve its communications inside and outside their respective enterprises. These organizations can now participate in the Internet revolution as well as assume a leadership role in how these new technologies are implemented in their industries or for social communications. 1st Net intends to provide direct dial up capability right on the browser by partnering with a National ISP and then will utilize a transaction-based revenue sharing model to build a steady income stream from all on-line transactions Communications are consolidating. In other words, telephone companies will not be telephone companies, Internet service providers will not be Internet service providers, and entertainment companies will not use existing delivery systems exclusively. A new industry, CBD (Content Based Delivery) is being born out of the economic need to be competitive and to provide an all-inclusive blended service package. In the eyes of the consumer, why buy services from multiple service providers when it is conveniently available from a single provider at a more competitive price? Content is King - In today's information age the problem is not the lack of information, rather it is information overload. The creation of virtual communities or affinity groups, as discussed below, means 1st Net will deliver the right information (content) to the right audience (community) at the right time (when they want it) for the right price (more cost effective than ever before). The best and easiest way to understand this concept is to compare to America Online (AOL). Why are they so successful? Because they OWN THEIR USERS DESKTOPS! As well as they have a CLOSED COMMUNITY! and Finally they are client/server driven. This means they can gather information on the users as well as solicit the sales of products and services based on information they have on the users. Why are they growing at such a fast pace? Two reasons. They are very user friendly, you can book your travel online and be novice. No searching through search engines and trying to figure out what service to use. You can buy flowers with a point and a click. No search engines! The also give the AOL CD Rom away by the millions. We have and AOL account and we still get 1 or 2 CD Roms per month. Our community browsers are modeled after this formula. Let people buy travel right from the desktop with no searching. Have community based features. Provide closed chat rooms, message boards, contents specific to the affinity group. Joint venture with large affinity groups so they will cover the cost of circulating free cd rooms to their constituency. Participate in a revenue sharing model to generate profits.
The Crayon Crawler is a Collaborative Computing browser designed specifically for children and is the first in our series of community browsers. This secure Internet browser is designed exclusively for children and features the worlds 1st talking chat room, utilizing animated talking characters that can actually read messages and e-mail to children while blocking vulgarity. Designed for the 5-11 age group, this is an essential tool for both parents and schools that are concerned about children's access to inappropriate material on-line. The Crayon Crawler was designed to protect children in today's computing environment; providing a conduit for education, entertainment and exploration of the information age without parents worrying about what their children might experience without their supervision. The community browser concept to capture desktops is the first step. The next step is the management and marketing of products and services to these affinity group databases. Many web sites have captured a database, but few have efficient follow up communications abilities. 1st Net developed a product to automate the ease of communicating with e-mail databases for the express purpose of enhancing communications and marketing for our client companies. Last summer we developed a product we call 1stNetMail for our own use. It was born out of need for which we could find no commercially available product at a reasonable price. This product is so effective that we decided on a commercial launch to the general public very soon.
While most organizations have web sites, they often lack the underlying sophisticated database systems to capture the names of visitors and then sort them by select criteria for ongoing relationship marketing and cross selling efforts. 1stNetMail was developed specifically to fill this need. 1stNetMail is a full featured web-based e-mailing and database management system that represents the best of breed functionality of any mailing list systems available today. Adding 1stNetMail to a web site allows visitors to easily join a company's e-mailing list. The list can be stored on 1st Nets secure database server or at the clients location. Through the 1stNetMail administrator web site, a company can easily send personalized announcements about their company and its products and services to list members. One can also instantly view web interface statistics with a click of the mouse. To support every business's goal to keep in close contact with visitors, 1stNetMails Form Maker lets you setup a custom questionnaire that visitors can fill out to join a mailing list. This database of members is securely stored on a server. One can then use the web based administration tool to send personalized e-mail to all of your database members, or one can sort by certain criteria. 1stNetMail allows you to build a custom database into your web site and then manage online communications with members like never before. The commercial introduction of 1stNetMail is literally scheduled within days. 1st Net expects that this product will generate significant revenue in the coming months.
In partnership with INTERVU (traded on NASDAQ: IVTU), 1st Net Technologies has recently launched the world's first financial Internet channel designed exclusively for the financial industry. The channel delivers streamed audio and video content from both domestic and international sources utilizing INTERVUs 'AUDIENCE' Management System. AUDIENCE is the equivalent of TV Guide for the Internet channels with hyperlinks to programs and a built in ticketing system to ensure one can access the particular event. For the first time ever, viewers of these unique webcasts are tracked and registered by the particular event sponsor for subsequent communication and marketing online. Unlike traditional webcasts the 1st Net Financial Channel utilizes easy ticketing for streamed multimedia events. This advanced ticketing system keeps track of costs and limits the unnecessary purchase of extra streams while allowing the event sponsor to collect the names and e-mail addresses of the attendees. This will become a premier source for investor-related information on-line by integrating the entire gamut of multimedia, including video and audio content delivered right to a desktop. The specialized content on this channel will be developed for serious investors and those committed to staying current with the latest news and information round-the-clock about the financial industry. Combining enabling technology from INTERVU with 1st Nets specialized financial content, the 1st Net Financial Channel will allow a global audience to have access to custom financial information and resources that have never been available to them before, including live audio and video webcasts, as well as archived resources.
The 1st Net Web Card is a revolutionary new marketing tool for the next millennium. This innovative technology delivers CD-ROM capability, in the shape and size of a business card that is capable of storing up to 32 megabytes of information. Information can include a multimedia presentation combining audio and video capability including hyperlinks, a security device or almost any other application. 1st Net is bringing this unique technology to market and will be bundling the 1st Net Web Card with the company's corporate due diligence services and with the 1st Net Financial Channel offerings. 1st Net is currently taking orders for this product, and the response has been overwhelming.
Spirit32 Development Corp. is the research and development subsidiary of 1st Net Technologies. Spirit 32 engages in the design, development and operation of data and communications networks as well as developing content applications and propriety software programs for those networks. These applications include telecomputing, PC based IP telephony, and integration of major telephone switch technologys as well as community based data information and transaction delivery applications. The company has developed an integrated system using its content-based routing and content-based delivery, which can enhance virtually any delivery system. Spirit32 operates a 10-megabit connection to the Internet in Denver, Colorado. Spirit32 has eight full time employees and has access to over 100 remote and local part time employees. The Spirit32 Development Corp. team has expertise in both data and telephone network engineering and operation. The team also has expertise in software development and design in Internet and Intranet applications, on-line databases, information systems, and telephony application including voice over IP. Spirit32 specializes in telecomputing, based on the Companys content based routing and content based delivery applications. Following are a list of the Companys products and technologies in development: 1. The Mindwalker Series Client/server based specialty browsers for affinity groups delivering highly specific content such as the Crayon Crawler browser described earlier. 2. Wisper Radio Frequency Wireless Voice and Data technology that can deliver up to T3 capabilities without any of the hard wiring, and at a fraction of the cost of conventional systems. Spirit 32 is currently developing and testing a technology based on low radio frequency broadcast. The system can deliver up to T3 throughput without hard wiring such as having to install routers. This results in a substantial cost savings over typical installations and eliminates the associated costs. This technology does not require dedicated professionals on the user side to maintain the connection, which also dramatically reduces administrative and support costs. The innovative system can be used as:
Currently Spirit32 has two of these systems in production with promising results. The current focus of the project is to improve the range of these systems, which at present is four miles from the backbone termination. Through the use of antenna arrays the project team believes it can improve the range to reach in excess of 20 miles. 3. Mariah IP Telephony systems replace traditional PBX systems and redefines the role of Internet Service Providers (ISPs) as well as the cost of long distance calls and connectivity. Mariah is a PC based telephony switch, which can be configured as a debit platform, PBX, ISP server or any other telephony or Internet applications. It differentiates itself from other IP Telephony products because it is built on proprietary open-ended architecture. The Mariah Network is based on a single central routing and authentication base, which is universally compatible. This allows any third party IP telephony product or major telephony switch to join the network and allows for calls to be terminated at any providers POP or if necessary be switched to a public phone network. The Mariah Switch is designed to supplement current ISP servers and for the development of IP Telephony networks, private and public. Each switch is designed for replacement of traditional corporate PBX, which allows all calls to be routed through the Internet. Mariah eliminates all inter-office long distance charges, and generates revenues in excess capacity. Key features include:
4. The Prism Project The company is currently working on writing an interface for major telecom switches which will enable these switches to interface with IP telephony switches without the need for hardware based routers. The purpose of this product line is to reduce the costs to major telecommunication companies in implementing voice over IP services. 5. The Spirit32 Development Kit The Company is developing a Software Development Kit, which will enable third party developers to access the myriad of services available in the Community space. This should enable third party developers to write new applications for the community. 6. Starburst A unique desktop IP application that integrates phone, computer and video at a single workstation. The company is currently working on a PC based telecomputing server capable of dialup connections, PSTN switching, voice IP, and transaction-based content broadcast in a single box. These switches enable customized services for content providers through integrated & distributed custom clients to produce commercially viable content and communications solutions.
Now that we covered the 1st Net Business Model, here is some information pertinent to our status as a public company.
If you like investing in young companies with great growth prospects in hot industries, 1st Net fits the bill perfectly. One year ago the company consisted of just a few web designers and a small management team. Today, 1st Net has expanded to over 40 full time employees, offices in San Diego, Denver, and Las Vegas, and access to hundreds of design engineers that work on an as-needed basis. To be on 1st Net's mailing list for upcoming, exciting Internet Related Events, click here and register. Bear in mind that we are referring to our own parent company, so you should consider our comments to be self serving and biased. However, 1st Net Technologies (OTC BB: FNTT) has not paid any fee to OTC Journal Management for the dissemination of this information. The President responds to all posts on www.ragingbull.com and www.techstocks.com (see links below). Please download the audience management tool for upcoming Internet multi media presentations. Important Links For This Issue Links to Downloads 1st
Net and InterVu Audience Manager Software Company History and Milestones February 1998 Alex Ramia brought
on board as V. P. of Network and Systems Operations from AT&T
Disclaimer for 1st Net The foregoing statement(s) may include numerous forward-looking statements concerning the company's business and future prospects and other similar statements that do not concern matters of historical fact. The federal securities laws provide a limited ''safe harbor'' for certain forward-looking statements. Forward-looking statements in this posting relating to product development, business prospects and development of a commercial market for technological advances are based on the company's current expectations. The company's current expectations are subject to all of the uncertainties and risks customarily associated with new business ventures including, but not limited to, market conditions, successful product development and acceptance, competition and overall economic conditions, as well as the risk of adverse regulatory actions. The company's actual results may differ materially from current expectations. Readers are cautioned not to put undue reliance on forward-looking statements. The company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or for any other reason.
Disclaimer The OTC Journal.com Newsletter is an independent electronic publication committed to providing our readers with factual information on selected publicly traded companies. All companies are chosen on the basis of certain financial analysis and other pertinent criteria with a view toward maximizing the upside potential for investors while minimizing the downside risk, whenever possible. All statements and expressions are the sole opinions of the editors and are subject to change without notice. This profile is neither an offer nor solicitation to buy or sell any securities mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein. The editor, members of the editor's family, and/or entities with which they are affiliated, may own stock in and have other financial dealings with the companies who appear in the publication. The OTC Journal.com critiques may contain forward looking statements relating to the expected capabilities of the companies mentioned herein. THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK. THE INFORMATION FOUND IN THIS PROFILE IS PROTECTED BY THE COPYRIGHT LAWS OF THE UNITED STATES AND MAY NOT BE COPIED, OR REPRODUCED IN ANY WAY WITHOUT THE EXPRESSED, WRITTEN CONSENT OF THE EDITORS OF OTCJOURNAL.com. We encourage our readers to invest carefully and read the investor information available at the web sites of the Securities and Exchange Commission ("SEC") at http://www.sec.gov and/or the National Association of Securities Dealers ("NASD") at http://www.nasd.com. Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site. |
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