Newsletter

April 15, 2003

Volume VI, Issue 35

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

To OTC Journal Members:

The Internet- We're Past the End of the Beginning

Since the stock market bubble burst in March of 2000, a painful cleansing has taken place for businesses associated with the Internet. Many of us involved with the Internet recognized we had arrived at the "end of the beginning" in 2001.

Wall Street believed the Internet was the Holy Grail of commercialization in the latter half of the 1990's, and threw billions of dollars at any 28 year old technology guru with an idea.

By the end of 2002 the market had all but completed the process of forcing the extinction of internet business models which failed under the corporate performance microscope. High burn rates ate through cash rapidly, and sources of additional capital vaporized along with the kind of Bear Market which only comes along twice a century.

The cleansing process seemed to have run to completion by the end of 2002. Some Internet behemoths stayed the course, watched the competition die, and eventually demonstrated to the skeptics that their business models were viable. Other survivors "morphed" into more viable businesses, and went on to prosper.

Here are two examples of high profile internet companies who survived the end of the beginning, and are positioned for more growth as use of the Internet grows in coming decades. Amazon (NASDAQ: AMZN), the largest retailer on the Internet, stayed the course with its original business model. They had a great holiday season, and even turned cash flow positive in the 4th quarter. Shareholders with the courage to buy at the bottom were richly rewarded in the past nine months as demonstrated by the chart.

Yahoo (NASDAQ: YHOO), on the other hand, is an internet behemoth that morphed its business model. Nearly all sales came from advertising through the end of 2001. A new management team morphed the company away from the advertising model into subscription based revenues.

In the 4th quarter of 2002 shareholders were treated to $47 million in profits on $282 million in sales, up from $53 million in losses on $192 million in sales the previous year. Shareholders with the courage to buy at the bottom in 2002 have also been rewarded with substantial appreciation as is evident from the chart.

The edition is not intended to be a recommendation to purchase either one of these stocks. Skeptics say valuations are stretched. The point- StockGroup Information Systems is a micro version of these two internet stocks, with Yahoo! as the best metaphor. StockGroup has completed a metamorphosis of its business and subsequent quarterly performance will mirror the turnaround at Yahoo!.

In fact, StockGroup is starting to get some recognition for the turnaround. This past Monday's edition of the Financial Post (Canada's version of the Wall Street Journal), featured StockGroup in an article entitled "When Plan A doesn't work, find a Plan B; Selling information: Pursuit of dreams led to profitable business models".

Today StockGroup announced the receipt of its first contract from the Associated Press relationship disclosed at the end of January. Read and decide for yourself- is StockGroup a mini Yahoo?

StockGroup (OTC BB: SWEB) Announces First Contract From Associated Press Relationship

Near the end of January, StockGroup announced it had been selected by the venerable news organization the Associated Press to become is stock market related information services digital partner.

The Associated Press planned to introduce of new suite of information products through is AP Digital division. The Associated Press is the largest news organization in the world, boasting 15,000 customers with content read by one billion people daily.

The stock surged to the highest level seen in nearly a year on investor anticipation of what this could mean for the future of StockGroup. Two and one-half months later, StockGroup and the Associated Press announced the first contract to come out of this newly formed relationship. The announcement came today. If this is the first of many, the future is bright for shareholders. As evidence builds of growing contract flow, the stock is likely to respond. Based on conversations with management and assuming no cataclysmic market events, we would expect the stock to trade into the mid $.30's and possibly challenge $.40 over the next month.

Here is the complete text of the news release for your review:

Press Release Source: Stockgroup Information Systems Inc.

Stockgroup and AP Digital to Provide Financial Tools, Data and News to Netster.com, One of the Fastest Growing Search Engines on the Web

Tuesday April 15, 3:00 pm ET

NEW YORK, April 15, 2003 (PRIMEZONE) -- Stockgroup Information Systems Inc. (OTC BB:SWEB.OB - News) (Vancouver:SWB.V - News) a leading financial media and technology company, and AP Digital, a division of The Associated Press that provides news and information to interactive markets, announced today that they have signed a licensing agreement with Netster.com.

As a result of the agreement Netster.com, one of the fastest growing search engines on the Web, will use AP Financial Tools, a suite of news, market data and financial applications powered by Stockgroup's Financial Content Software System and provided by AP Digital. Netster.com is now able to offer its audience these turnkey solutions that present and manage quotes, charts, user portfolios, technical analysis, watch lists and more, through its portal site http://www.netster.com.

Stockgroup's Financial Content Software System includes a suite of more than 30 proprietary financial and software tools and 100 different data sources. Stockgroup developed and configured the AP-branded applications, while AP Digital provides the business news feeds that integrate with Stockgroup's tools. The companies work together to support AP Digital's sales and marketing efforts through joint training, marketing and customer support.

``We chose the AP Financial Tools solution because of its completely integrated platform of financial data, content and software applications that can be added to our existing AP service,'' stated Bill Marcas, CEO of Netster.com. ``Having access to financial information and sophisticated decision-making applications is a primary need of our millions of users and customers.''

``We are pleased with the progression of sales to date of AP Financial Tools, developed as a result of our relationship with Stockgroup,'' said Thomas E. Slaughter, vice president and director of AP Digital. ``This suite of financial applications, market data and AP news provides a flexible, scalable financial data solution with reduced development time and costs for our commercial customers.''

Marcus New, CEO of Stockgroup said, ``Our Financial Content Software System provides growing businesses like Netster.com the scalable, critical financial information their customers demand. This combination of AP and Stockgroup products chosen by Netster.com conforms to the requirements of both traditional and new media firms. Netster.com will be one of many firms using AP Financial Tools to expand their client service and achieve cost reduction goals.''

ABOUT NETSTER.COM

Netster.com is one of the fastest growing search engines on the Web and is now ranked among the top 500 most-visited sites in the world. In addition to providing in-house search results, Netster.com holds strategic partnerships with the top search-technology companies, allowing it to provide users with accurate and content-relevant searches from a base of over three billion Web sites.

While search results remain the focus of the site, becoming a complete-destination portal is a top priority. Providing quality content from providers such as AP and Stockgroup has now become a key element to success for Netster.com and its newly released Smart Browse technology. This downloadable toolbar provides top AP headlines, worldwide weather forecasts, stock quotes, games, e-mail and a number of other content options that are accessible with a click of a button. A free download can be found at: http://www.netster.com/smartbrowse/promo.asp

ABOUT AP DIGITAL

A division of The Associated Press, AP Digital offers news services containing text, photos, audio, graphics and video on a wide variety of topics to the Web and wireless markets.

ABOUT THE ASSOCIATED PRESS

The Associated Press, founded in 1848, is the world's oldest and largest newsgathering organization, providing news content in text, audio, video, graphics and photos to more than 15,000 news outlets with a daily reach of more than 1 billion people worldwide. AP's multimedia services are distributed by satellite and the Internet to more than 120 nations. For more information about AP Digital, visit http://www.apdigitalnews.com. For more information about The Associated Press, please visit http://www.ap.org.

ABOUT STOCKGROUP

Stockgroup Information Systems Inc. is a financial media and technology company. It is a leading provider of private labeled financial content and software solutions to media, corporate and financial services companies. Stockgroup employs proprietary technologies that enable its clients to provide financial data streams and news combined with cutting edge fundamental, technical, productivity and disclosure tools to their customers, shareholders and employees at a fraction of the cost of traditional internal methods. Stockgroup is also a provider of Public Company Disclosure and Awareness Products for publicly traded companies. Its financial Web sites including http://www.stockhouse.com, http://www.stockhouse.ca and http://www.smallcapcenter.com are state-of-the-art online research centers for the investment community. To find out more about Stockgroup (OTC BB:SWEB.OB - News) (Vancouver:SWB.V - News), visit our website at http://www.stockgroup.com.

This release contains ``forward-looking statements'' within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be ``forward-looking statements.'' Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward-looking statements in this action may be identified through the use of words such as ``expects'', ``will,'' ``anticipates,'' ``estimates,'' ``believes,'' or statements indicating certain actions ``may,'' ``could,'' or ``might'' occur.

The TSX Venture has neither approved nor disapproved this news release.

Contact:
          AP Digital
          Craig Konieczko
          Promotions Manager
          (212) 621-7322
          ckonieczko@ap.org

          Netster.com
          Bill Marcas
          CEO
          (865) 584-4403

          Stockgroup Information Systems
          John Bevilaqua
          Corporate Communications
          (800) 650-1211 ext.180
          ir@stockgroup.com

Charts Provided Courtesy Of TradePortal.com

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