This a memo to update shareholders on developments
at BCB which have been ongoing but which have not
generated announcements. As you can see, there has
been a lot of activity.
BCB VOICE SYSTEMS INC.
RECENT EVENTS
Subsequent to March 31, 1999, the end of BCB's second quarter, there have been a number of developments within the following areas: commercialization of products and resulting sales, continuing migration to a software-only platform, large project opportunities through BCB's current alliances and partnerships, and new strategic alliances/ partnerships. The following is a schedule of these developments to give shareholders a sense of what's been accomplished since the end of Q2 as well as what to expect going forward. Indications of revenue impact cannot be disclosed here in accordance with ASE regulations.
1. BCB's courtroom digital recording system, CourtFLOW, has been completed as a commercial product.
2 The need for BCB to incorporate proprietary hardware in its products has been eliminated, with the exception of a telephone interface card. With this exception, BCB's products now consist of software, only, and are compatible with existing Soundblaster type cards. BCB expects that later this year it will no longer need to include its own telephone interface card in its products with the development of cards to perform this function by third party manufacturers. At that time, BCB's products will all consist of software only, with the greater profit margins and broader distribution capability this entails.
3. Unisys, on behalf of itself and BCB as its Team Partner has continued to negotiate with the steering committee of a large integrated justice project in North America, based on the selection by this committee of BCB's CourtFLOW. At present, the Unisys/BCB Team has completed inspection of four sites for installation of CourtFLOW , and has submitted a Statement of Work for these four sites. Signing of an Interim Agreement to cover installation of the BCB systems in each of these four sites is expected shortly. Signing of a Final Agreement for large remainder of courtrooms in this project is expected to be effected by October 1, 1999.
4. BCB has been advised it will receive a contract for installation of its CourtFLOW system in three courtrooms in North Dakota.
5. BCB has been advised it will receive a contract for installation of its MURF system in the Danish legislative assembly.
6. The team of BCB and Data General (Canada) has been awarded its first hospital contract, this being for a hospital in Cranbrook, B.C., for installation of BCB's VoiceFLOW system. Also, BCB is working directly with DG's Corporate General Management of US and Worldwide Solutions to create a telemarketing campaign to DG's substantial hospital customer base in the US.
7. BCB has completed installation of its VoiceFLOW system in the Mt. Carmel Hospital in Pittsburg, Kansas and has established this customer and this installation as an excellent reference and reference site. This system includes the first integration of BCB VoiceFLOW system with the leading healthcare applications of CareFlow/Net and illustrates how easily VoiceFLOW, PlayAll and other non-proprietary BCB products can interface to any of the leading healthcare software packages.
8. BCB also has sold its VoiceFLOW system directly to hospitals in Cloud County, Nebraska and in Rolla, Missouri.
9. Dynamic Voice, a private company based in Kansas City, Kansas has terminated a strategic relationship with one of BCB's competitors, Digital Voice, Inc., to integrate the programmable handheld microphones and wireless audio input devices of Dynamic Voice with BCB's technology. BCB has agreed to license Dynamic Voice to sell BCB software under Dynamic's own brand through its direct sales force.
10. BCB's US distributor, CLM Sales, Inc., has successfully assumed distribution of BCB's products to 13 former direct BCB dealers and in its expansion, mainly westward, has added another seven new dealers to its distribution force for BCB products.
11. CLM Sales, Inc., through its dealers, has sold three BCB VoiceFLOW systems to the legal market and has just received a fourth order for a 32 port system in the legal market.
12. On June 8th, BCB announced an agreement with Oceania, Inc. of Redwood City, California, under which Oceania has selected BCB's VoiceFLOW as the dictation workflow component of Oceania's Wave Clinical Information Systems. Oceania holds one of the most valued contracts in healthcare solutions. Wave has been selected as the standard for use by corporate Kaiser Permanente, the nation's largest HMO. Furthermore, the Notes component of Wave has been selected as the standard clinical knowledge base for clinical notes generation in the US Department of Defense Healthcare Initiative. This agreement puts BCB in the midst of the US healthcare industry.
13. Exercise by Jones, Gable & Company Limited of its broker's option on 73,759 BCB shares at $1.50 per share and conversion by a corporate investor of $200,000 principal amount of 12% BCB notes due May 31, 2000 into 100,000 BCB shares at the conversion price of $2.00.
14. The May issue of Canadian Healthcare Technology includes a feature article on BCB highlighting the migration from traditional dictation/ transcription methods to BCB's technology within the medical sector. Copies of this article can be obtained from Investor Relations at 1-877-699-9166.
15. 28 dealers have sent 33 individuals to BCB's recent technical training courses. Twenty two of these individuals have passed a rigorous test following these courses. In addition Unisys and Dynamic Voice have sent a total of five technicians to these courses, all of whom passed.
16. A total of 39 dealer representatives have attended BCB product familiarization courses in Los Angeles and Columbus, Ohio and 15 are scheduled to attend an upcoming one in Boston.
17. BCB has been advised through its US legal advisory that the pending 20F application for OTC BB approval has been acknowledged by the SEC and is expected to receive approval during the month of June. Shareholders with positions of 5% or over have been asked by the SEC to file accordingly.
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