To All - I'm back from the "home office" in Calgary. It was a great experience for me and I've
come away with a feeling of confidence that 1999 will be an exceptional year.
Assuming that the contractor can get the work done in time, JAWS will be moving into new
office space in early February - I had a tour of the new site and it looks great. They are
bursting at the seams in their current space, so it's none too soon.
For those of you who weren't at the shareholder's meeting, I'm going to reprint the CEO's
message to the shareholders. I will not comment on any rumours of impending contracts - the
Current Negotiations section outlines most of what JAWS is working on - some will happen
and some won't.
January 8, 1999
Dear JAWS Technologies Inc. Shareholders,
I would like to thank each and every individual that has believed in our company and
supported us in the markets. Although our current stock price does not reflect the true value
of our company and, in many respects, is one of the most undervalued stocks in the
marketplace, we look forward to a brighter future and a marketplace that will eventually
recognize the strengths and the accomplishments of this company. I would like to revisit our
progress to date with a short historical review. In March of 1998, JAWS Technologies
completed most of its work relative to backing into the NASD shell, known as E-Biz
Solutions and began to identify itself as JAWZ NASD-OTC Bulletin Board. Shortly after that,
JAWS Technologies Inc. exercised its ability to raise approximately $1 million in four
separate placements under a 504 offering. The capital was deployed in a number of areas,
from corporate or capital market development to product development and marketing. The
results of the deployment of the capital is as follows:
· Changed lawyers from Mr. Max Tanner to Mr. Jeff Sultan, which resulted in a significant shift
in investor perspective
· Enlisted Ernst & Young as the corporate auditors, who have performed two separate audits
on the corporation
· Attracted Julia Johnson, Chairman of the Florida State Public Services Commission and
lawyer to our Board of Directors
· Attracted Art Wong, Director of Business Development for Network Associates to our
Board of Directors
· Made application and submission for fully-reporting status
· Completed the long, painstaking process and submission of a patent application for
specific JAWS encryption products, now in patent-pending status
· Attracted two more levels of financing available to the corporation once fully-reporting
status is completed
· Performed three media tours; one in Canada and two in the USA, with tremendous
attention being garnered through publications such as Information Week, Small Business
Computing, ABC News, The Globe and Mail, Calgary Herald, Edmonton Journal, Alberta
Report, The New York Times, TechTravel, Internet Business and the National Post, plus
many more publications are currently reviewing our products for a product review segment
· Numerous radio interviews requesting the company's position on legislation and industry
commentary
· Ran a $5,000,000 Code Breaking Challenge to the hacker world and garnered attention
from around the world from organizations such as the U.S. military, the Canadian military,
foreign corporations and individuals
· Attended approximately eight trade shows, at which we were presenters for two
· Created all the collateral and shrink-wrap packaging for the software products for
distribution through online software stores which three are currently signed and six more are
targeted
· Started our Auditing Professional Practices division that currently performs IT security
audits for corporations and governments wishing to determine system vulnerability and
weaknesses. These professional services are relative to IT Security Policy development, IT
Security System management and IT Security System integration, implementation and
development. This department has successfully completed numerous audits to date and is
negotiating on a multitude of additional audit and implementation services for organizations
ranging from oil and gas concerns, banks, international insurance corporations, technology
firms such as ISPs and organizations extensively involved in e-commerce
· Invited to submit articles to Harvard Business Law Review on the issues of IT Security
· Achieved short-list status for the military of a significant country for the implementation of
our encryption software
· Completed our development of a Public Key Infrastructure (PKI) with current installation and
beta testing with Axion Communications. Upon the completion of the PKI infrastructure, the
JAWS PKI will then be marketed to approximately 7,000 internet service providers in North
America, along with our audit practices
· Signed a significant contract with FutureLink/SysGold which is known as the first computer
utility corporation and has achieved tremendous success with their business model in the
computer utility market segment
· Alliance agreement signed with Ernst & Young International for the deployment of JAWS
products and services to the Ernst & Young client base internationally with ongoing
negotiations and discussions relative to joint venture projects, educational initiatives and
computer forensic work
· Alliance agreement signed with another leading accounting firm for the deployment of
JAWS products and services to their client base internationally with ongoing negotiations
and discussions relative to joint venture projects, educational initiatives and computer
forensic work
Current Negotiations
· Total security offering to a significant bank in Grenada
· Total security implementation and audit for one of the Top Ten international integrated oil
and gas corporations
· Product integration and deployment through a major systems software developer to their 8
million clients
· Products and service offerings to certain state departments
· Educational joint venture with Florida State University whereby JAWS Technologies will be
the educational partner for Florida State University Computer Sciences and Criminology
Department relative to ISEC teaching and training. This also includes discussions relative to
product and security implementation joint ventures with Florida State University. The
programming project is scheduled to start in 1999
· IT Security services and implementation for numerous Florida State Departments
· PKI and VPN installation and integration for an online Internet corporation
· Professional services and auditing proposal for a major Hospital and University in Miami,
Florida
· IT Security Professional services and integration proposal for certain Texas State
Departments
· Product implementation and services through a major Canadian compensation board
· IT Security Systems integration for an East Coast telecom networks corporation
· IT Security implementation and ongoing management for a major Canadian stationery retail
store
· Numerous other initiatives have begun with major corporations such as a leading provider
of computer tape storage devices, utility commissions and the telecom industry
The above successes and initiative undertaken by the company are stated, not to impress
you, but to impress upon you the amount of work completed by the company and its people
in the very short ten months since the official launch of the corporation. I cannot begin to list
all of the smaller marketing and sales initiatives that have been undertaken such as our
strategic alliance with CATA and its 2,000 clients, the initiation of our audit snapshot, the
development of our sales force and VAR channels and the development of specific security
products such as our L5 4096-bit encryption for the 3Com Palm IIIÔ handheld computer and
soon for the Windows CEÔ product line.
I cannot sufficiently express my gratitude to the team that has been able to pull all the pieces
together and create a company such as ours, developing so many opportunities yet
remaining focused on the daily sales initiatives. Each day I am impressed with not only their
drive and passion for this industry, but their skills and knowledge in the Information Security
field. Those individuals deserve recognition and are: Tej Minhas, Mitch Tarr, Garry Leitch,
Cameron Chell, Joey Roa, Julia Johnson, Vera Gmitter, Arthur Wong, Brandin Asuchak,
John Duncan, Maggie Burry, Riaz Mamdani, Raghu Kilambi, Becky Finlayson, Vikki
Robinson, Brian Lynch, Danny Wong, Craig Spanza, Kjell Wooding, Carol Taylor, Phil Taylor
and Jim Morrison.
Given the team's ability to accomplish and achieve what they have done to date, I look
forward to the next twelve months. There is no doubt in my mind that you have invested in
one of the hottest technology segments and in one of the finest new companies in this field.
Again, thank you for your support and as always, your comments are greatly appreciated.
Sincerely,
Robert Kubbernus
CEO/President, JAWS Technologies Inc.
Barrie Einarson
JAWS Investor Relations
1-888-301-5297
bbruin@home.com |
