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Technology Stocks : JCGR-WWW.JCGEAR.COM

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To: Mariah Smyth who wrote (39)10/9/1999 5:39:00 PM
From: REW   of 44
 
MUST READ -- A very important post from Raging Bull.

Information regarding JC Gear.Com and Iceptur

My name is Dan Porter. I am the president of InnoVal Systems Solutions, Inc. In view of the
fact that my company, InnoVal, (and some of our business partners) were named in regard to
some incorrect information, I am posting this message of clarification.

The Iceptur filtering technology was developed by InnoVal. We sold full rights to the software
and underlying technology to Advanced Family Safe Technologies, Inc., a privately-held
Florida corporation. See innoval.com and iceptur.com.

AFST, in turn, has extended "most favored" pricing to JC Gear.Com. Since there is virtually
no price granularity below the published MSRP for filtering technology, JC Gear has
significant profit potential. For JC Gear.Com to have acquired Iceptur outright might very well
have been a significant mistake. A product such as this requires significant code
maintenance, database management, technical support, and content licensing.

Additionally, JC Gear has selected to outsource private-brand ISP services. In doing so they
have not only avoided a significant outlay of funds but have leapfrogged much of the
competition with points-of-presence (over 7000 local telephone numbers in over1000 cities
and towns throughout the United States), advanced technology (D3 burstable connectivity to
the Internet backbone) superior performance (over 99% V90 56K connections) and
opportunity (the ability to market DSL service).

Much of what we see today in the ISP market is consolidation with particular emphasis on
acquisition of regional ISPs and geographic nodes. Because large ISPs have infrastructure
in-place and, often, excess capacity, this is a good strategy. It will produce economies of
scale and increased market share. But because this strategy is highly competitive, and thus
acquisition prices are high on a per subscriber basis, the payoff is long. It is difficult for a
startup to aggressively enter this market without exceeding an unlimited budget. JC Gear, on
the other hand, has positioned itself (by combining the market appeal of filtering software
with a high performance network) in a large "community of interest" market niche.

Given an appropriate measure of marketing, careful husbanding of resources, and
management to detail, JC Gear.Com could do very well. They have excellent product,
excellent marketplace positioning, and the potential for short-term profitability.

You should understand that the opinions expressed herein are my personal opinions. They
are not necessarily the opinions of InnoVal. You should also understand that my company,
InnoVal, is a vendor and a customer. I have no other connection to JC Gear.Com except as
a vendor and customer. I have posted this message to correct some misinformation that
appeared in this forum and in no way am I making any recommendations.

Respectfully submitted,

Dan Porter, President
InnoVal Systems Solutions, Inc.
innoval.com
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