Newsletter

You can unsubscribe from this list at any time by Clicking Here and HITTING SEND. You can also unsubscribe by going to http://listserv.otcjournal.com and entering your email address there while selecting unsubscribe.

m
OTC Journal
August 11, 1999	Volume II, Issue 35

Email : info@otcjournal.com
URL : http://www.otcjournal.com

To OTC Journal Members:

Yesterday's news release on 1st Net's (OTC BB: FNTT) financial performance was just a precursor of new and exciting things to come. Today we have a very exciting press release to share with our members. As always, we remind you that 1st Net is our parent company, and therefore you must view any coverage we provide on 1st Net as self-serving and a potential conflict of interest.

First Commercial Contract for the Crayon Crawler

Today, August 11th, 1st Net announced that its subsidiary company, The Children's Technology Group (CTG) has been awarded its first commercial contract for the deployment of the Crayon Crawler.

The stock market has been very receptive to developments concerning the Crayon Crawler. For those members that have not been following the development of this product, we recommend that you visit the web site and download a beta version for your kids to try. Go to www.crayoncrawler.com.

The Crayon Crawler is a secure Internet browser designed exclusively for children. This high tech browser includes the world's first talking chat room utilizing animated talking characters that actually read you your e-mail. The browser is designed for use in the 5-11 age group and is essential tool for both parents and schools concerned about children's access to the many inappropriate web sites online today.

When we released the first Beta Version back on March 17th, shares of 1st Net rapidly soared to $10.50 (162% above yesterday's closing price), and a local San Diego Television Station aired a feature story on the product. If you wish to view a video clip of that coverage, simply click here.

The Children's Technology Group (CTG) was formed as a separate corporation to market the Crayon Crawler. CTG has the exclusive right to market the Crayon Crawler, and must pay 1st Net licensing and royalty fees. 1st Net is the majority shareholder of CTG.

Today's announcement concerned the signing of a contract with Net Safety USA. Net Safety is introducing a "DeskTop Cop PC". This reasonably priced computer is specially designed and configured for children.

NetSafety expects to distribute 300,000 PCs loaded with child oriented software and filtering, along with a private labeled version of the Crayon Crawler children's web browser by December 31, 2000.

What This Means To 1st Net (OTC BB: FNTT)

It specifies in the press release that NetSafety will pay CTG $10 per computer for the first 100,000 computers. This equates to $1 million in high margin business which is expected to flow over the next six months.

CTG will also collect monthly fees for each registered user of the Crayon Crawler, which could equate to a substantial revenue stream over the coming years.

NetSafety estimates that the total value of this contract could range anywhere from $2 million to $5 million for CTG. Those revenues will flow directly to 1st Net in the form of fees and consolidate to 1st Net's financial statement as the majority shareholder of CTG.

These sales will be high margin as most of the development costs for the Crayon Crawler have already been absorbed by 1st Net.

In a separate but related agreement, CTG and NetSafety will be manufacturing 250,000 CD-ROM privately labeled browser and software packages for retail distribution, which will lead to additional profits for CTG.

The effect on shares of 1st Net as a result of the first commercial contract for the Crayon Crawler may be dampened by the recent blood bath in the Internet Sector. When the beta test version of the Crayon Crawler was announced, shares of 1st Net rocketed to a high of $10.50, only to eventually find a base of $4 along with the retrenchment in the entire sector.

However, bear in mind that many of the well known Internet Companies that are losing money are still trading at Billion Dollar plus market capitalizations. 1st Net, with 6.5 million shares issued and outstanding, is only trading at a $26 million valuation, leaving plenty of room for upside even with today's reduced valuations.

If substantive and profitable contracts continue to come in like today's with NetSafety, it is only a matter of time before 1st Net comes out of obscurity and finds its way to Wall Street.

Links to Free Downloads

Disclaimer

The OTCjournal.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. This newsletter is owned by SSP Management, Inc, a wholly owned subsidiary of 1st Net Technologies, Inc ("1st Net"). 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. To that degree, this newsletter should not be regarded to be an independent publication. The OTCjournal.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. We also strongly recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at http://www.sec.gov/consumer/cyberfr.htm. 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.