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Microcap & Penny Stocks : TSIG.com TIGI (formerly TSIG)

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To: Fred Thornell who wrote (43064)	10/11/2000 9:15:24 AM
From: REW	Read Replies (2) of 44908

RELIANT - Revenues & margins updated Gross 2000 sales revenue estimates have grown from approx $90 million to approx $100 million. The margins should be increasing as revenues grow. Being acquired has provided solutions. Funding and the combined strength should bring these expenses in line: "Our potential for profitability and growth is limited by our dependence on outside capital. Our primary needs for capital have been for media, inventory and credit card processing. We have had to pay an interest rate of 3% per week for funds to purchase media. We have had to pay a premium of approximately an additional 40% on the manufacturing costs of many of the products that we sell. The credit card processing fees that we pay are approximately one and one-half percent above the industry average. For example, in the first quarter of this year we would have had a net profit of approximately an additional $1 million if we had sufficient internal capital and the financial strength to not be dependent on costly outside capital." "TSIG has secured a commitment for up to $125,000,000 of equity financing. Our POR with TSIG provides for up to $10,000,000 in funding. The amount that we receive upon closing is adequate to cover our present needs for media and inventory financing. It is the belief of the Board of Directors that as a part of this business combination, we will also have access to substantially lower credit card rates. These savings will in turn accrue to the benefit of the combined companies." IN-BOUND TELEMARKETING - page 81 Bringing this under Affinity in the TSIG.com facility as planned has an estimated savings of up to $4-5 million/yr in expenses at current sales volumes projections. Up to 20% of initial purchasers make an additional purchase. Affinity's goal should and will be to advance that percentage. Affinity is and will be successfully driving customers to GeneralSearch and MyCard Co. ORDER FULFILLMENT - page 82 Funding capability to increase inventories and volume product purchasing bring greater control creating product purchasing discounts along with S&H expense reductions which increases margins. RESULT and PROJECTION: Reliant is marginally profitable at the present. The minimal projection for 2001 is for revenues of $150 million (up from 2000 revenues of approx $100 million). The expense reductions created by being acquired are realized. approx 4-5% The expense reductions created by the strength of adequate funding are realized. approx 4-5% Margins as a result of the above could move from just above breakeven to approx 8% creating profits of approx $10+ million for 2001. What happens if the revenues are greater as could be anticipated and/or further benefits of the synergy of acquisition are realized? Just some thoughts from what is known and anticipated minimal projections. Bob

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