SYD UPDATE - For the benefit of MIQ shareholders, we are posting the latest SYD update, which includes commentary on the role of Mr. James Speros at SYD USA.
Regards,
Agora Internet Relations Corp.
SYD CORPORATE UPDATE - AUGUST 5, 1998
Good afternoon to all Sideware Systems ("SYD") shareholders. The following corporate update is one of two (1 of 2) to be released by the company over the next few days. This update will deal with various SYD initiatives and their progress to date, while the second update will discuss company financials in the context of SYD quarterly financials. This latter report will be released commensurate to the release of quarterly financials and will come directly from SYD president, Owen Jones.
INTRODUCTION
Sideware Systems has made tremendous strides forward since the last corporate update. Through the release of several announcements over the last three weeks, the company has demonstrated its ability to achieve a strong relationship with IBM. Similarly, the company's most recent announcements regarding the establishment of US operations, as well as, a President and CEO of US operations, should be taken as strong evidence that Sideware Systems is now ready and able to expand business operations quite rapidly.
Based on this fundamental progress, the company is very comfortable in conservatively forecasting revenues of $10,000,000, on a regional level, over the next 18 months. This type of forecast represents a divergence from previous SYD updates in which the company was unwilling to make any forecasts. However, the company now believes that all the necessary parts are now in place for making such an announcement.
As usual, the following report has been broken down into sub-headings for the convenience of Sideware shareholders.
MOST RECENT IBM ANNOUNCEMENTS
Recently, SYD has made two important announcements with respect to its strengthening IBM relationship. These announcements were as follows:
1] Sideware announced Dr. Bean, a new e-Business software tool that enables customers to deliver live, personalized customer service over the Internet. In developing Dr. Bean, Sideware used IBM's newest edition of VisualAge for Java.
From a technical point of view, using this latest version of IBM VisualAge will give SYD the ability to develop Dr. Bean to a point of being enterprise capable.
From a marketing point of view, it signifies that IBM is now prepared to visibly market SYD products in conjunction with their products. For direct evidence of this, please go to the following:
software.ibm.com
At this site, IBM announces their new version of VisualAge for Java and has directly listed announcements from only 7 business partners, which includes Sideware Systems.
From a strategic point of view, Sideware continues to move closer towards achieving its goal of a strategic partnership with IBM.
2] Sideware announced its authorization as an IBM Business Partner Reseller. In addition to its entitlement to sell IBM PC hardware products, Sideware is now eligible to access IBM's established global Value Added Reseller (VAR) channels.
Up until this announcement, SYD had been selling IBM hardware on a trial basis. Based on volumes achieved and IBM satisfaction with Sideware ability to support such sales, SYD was able to become an authorized reseller.
This announcement is indicative of the commitment each company has made to this relationship. Currently, IBM continues to offer and SYD continues to train and certify its engineers on IBM products.
CONCLUSION
Sideware's objective is to sign a strategic agreement with IBM to jointly develop e-commerce solutions (services), as well as, sell SYD products through global IBM VAR channels. To this end, the company anticipates the creation of its first e-commerce solution by fall, utilizing both IBM e-commerce products and Sideware products. This development, in conjunction with their IBM BESTeam partnership, will be used as the basis to expand its marketing from Vancouver B.C. to Washington D.C., early in the new year.
In order to achieve coast to coast marketing, the company must first demonstrate an ability to sell and service solutions on such a large scale. To this end, the company is confident in its abilities but will require financing in order to create the infrastructure necessary to support such an operation.
UNITED STATES OPERATIONS
On July 28, Sideware announced it had set up a wholly owned U.S. subsidiary, Sideware Corporation, to manage all U.S. operations with headquarters in the Washington D.C. area. Owen Jones best expressed the significance of this when he stated:
"Given our BESTeam Partner status providing e-Commerce and e-Business solutions, our U.S. expansion advances our relationship with IBM."
It became apparent to SYD that significant growth of its core business and IBM partnership would require establishment of operations in a location more highly conducive to the e-commerce industry. The Greater Washington Region is a major centre for Internet and technology companies, with over 2,200 hi-tech companies operating in Northern Virginia's Fairfax County. The area is becoming the largest technology corridor in the world with companies like AOL, IBM, SAIC and MCI all being represented with regional headquarters.
On August 5, 1998, Sideware announced it had appointed James L. Speros President and Chief Operating Officer for its U.S. Operations. Mr. Speros brings a highly successful business history to Sideware, with much of that success stemming from operations in and around Washington D.C. Mr. Speros is well known for his success in professional sports, which is impressive when you consider he has won a National Championship in College Football, a Super Bowl and a Grey Cup. What is truly impressive is the fact he won these championships as a player, coach and owner respectively, thus demonstrating an ability to achieve great success on every plain within the typical organizational structure.
However, in addition to professional sports accomplishments, Mr. Speros also has many non-sports accomplishments to his credit. Though most of this information is available in the press release of August 5, it is prudent to point out his most recent success as President of Mirandor Explorations, a junior mining company trading on the Montreal Stock Exchange. Despite a severe recession in 1997, which saw many junior mining companies declare bankruptcy or survive at a 95% reduction in share price, Mr. Speros was able to negotiate a $17,000,000 joint venture with North America's 5th largest gold producing company - Kinross Gold Corporation.
Sideware Systems is very pleased and confident in their appointment of Mr. Speros to head US operations. Already, Mr. Speros has been instrumental in the facilitation of several high level meetings in the United States. As part of his initial responsibilities, Mr. Speros will maintain the company's relationship with IBM, further the companies current relationship with SAIC and attract new customers in the region.
CONCLUSION
Sideware Systems has now established operations in one of the world's leading business corridors for Internet companies. The region in and around Washington DC generates $100 Billion worth of annual expenditure in IT [information technology] expenditures from area businesses and government. Other benefits include availability of the highest level IT professionals in the world, access to a wider source of funding from area investors and government and close proximity to the some of the world's biggest technology companies.
Secondly, the company has managed to appoint a highly successful and influential member of the powerful Washington D.C. and surrounding business community. As an example of Mr. Speros potential, investors need only refer to the press release announcing his appointment in which two United States Congressman contributed supporting statements. In addition to his ability to establish new partners and customers, Mr. Speros also has the network to attract senior finance companies as well.
After a long transition in which the company had to re-invent itself to fit the coming age of
E-commerce, SYD has now established a significant relationship with IBM, established operations in the United States and is now poised to go to market with its products and services.
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION (SAIC)
SAIC is a strategic integrator of technology and boasts the US Federal Government as on of its largest client. SAIC describes itself as:
"A diversified high-technology research and engineering company based in San Diego, Science Applications International Corporation (SAIC) offers a broad range of expertise in technology development and analysis, computer system development and integration, technical support services, and computer hardware and software products. SAIC scientists and engineers work to solve complex technical problems in the areas of Energy & Environment, Health Care, Information Technology, Internet, Maritime, National Security, Space, Telecommunications, and Transportation & Logistics."
As an indication of its business magnitude, SAIC has over 33,000 employees with offices in over 150 cities worldwide. Revenues for its last fiscal year were US $3.1 Billion. For more information on SAIC, please go to the following address:
saic.com
Sideware Systems has been involved in negotiations with SAIC for a long period of time and is now at an advanced stage. The company hopes to receive approval to be able to integrate its products at the Federal Government level in the near future. SAIC commenced and has administered the application process from the outset. In his capacity as head of US operations, Mr. Speros will be assisting in securing SAIC government purchases and integration.
SUNSET DIRECT
Sunset Direct has been instrumental in placing Sideware products before the IT industry and preparing the market for SYD's new 32-bit client. As of the writing of this report, financials were not yet available but should be made available in the upcoming financial corporate update. Though Sunset has generated revenues for Sideware Systems, the company is more pleased with the customer feedback from Sunset Direct, which emphasized the importance of a 32-bit client in order to service enterprise level corporations. Refer to the Net Notions segment below for more specifics.
Sunset Direct is currently reporting a slowdown in sales as a result of summer holidays and expects activity to increase once again in September.
NET NOTIONS
Sideware is currently internally Beta testing the new Net Notions 32-bit client. The company anticipates the 32-bit client will be available on the TechWest IR site in mid-August. The company is pleased with the progress of the new client and emphasizes its advantages.
Firstly, the new client brings NN technologically up to date, thus, allowing higher integration capability with IBM and Microsoft products. Specifically, it now allows NT users within workgroups to connect. This will have a tremendous effect on workgroups, which previously could not use NN due to a mix of Windows 95 and NT users. As a clear example of the clients new market potential, nearly 33% of Sideware staff were not able to use Net Notions prior to the 32-bit version. Sunset Direct has also advised of pent up demand for the new 32-bit client and looks forward to presenting it in the fall.
The company also emphasizes the feature enhancements made possible by the new client, especially in the notes. Users will notice the notes will be faster and will hold more features. The new client will also eliminate many of the problems associated with shear volume, which hindered the previous version.
DR. BEAN
The company reports that development is on schedule with respect to Dr. Bean. Sideware reports that Dr. Bean will be ready in September and will be demonstrated at the Sideware storefront before being unveiled at Internet World in October.
Though the product will be available for integration in October, the company reports it will not integrate beyond the storefront until it has received KPMG and IBM certification. KPMG is a global accounting firm which has established a certification system and is necessary before recommending any mission critical solutions to its clients. As a global leader in the Information Systems practice, KPMG conducts risk audits for clients adapting mission critical solutions. The certification system has now received acceptance as a global standard and is an important step in the process of marketing Dr. Bean on a global level. The company has not indicated the receipt of such certification will present any problems.
MARKETING AND PROMOTION
As a result of the significant developments to date and anticipated progress in the future, the company advises of its plans to become more active in the promotion and marketing of Sideware Systems as an investment. Currently, the company is exploring different options in an effort to formulate and finalize a strategy.
NATIONAL RESEARCH COUNCIL (NRC)
SYD has advised the NRC, a Canadian Federal Government initiative, has granted the company official funding and that official notification is expected shortly.
This concludes the first of two corporate updates on behalf of Sideware Systems. Agora Internet Relations Corp anticipates the second update to be released very shortly and commensurate to the release of Sideware Systems quarterly financials
Regards,
Agora Internet Relations Corp.
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DISCLOSURE STATEMENT
AGORA INTERNET RELATIONS CORP. receives a monthly monetary fee from Sideware Systems Inc. for the purposes of communicating with Internet shareholders - both current and prospective - to increase awareness of and interest in Sideware Systems Inc. AGORA INTERNET RELATIONS CORP activities are aimed purely at keeping their clients' shareholders and prospective shareholders informed about their company. These activities consist of providing investors with previously disclosed factual information concerning the company, comments from company principals, copies of material that has been filed with regulatory authorities, comments prepared by registered brokers or investment dealers and material published in newspapers, magazines or journals.
AGORA INTERNET RELATIONS CORP does not participate in the maintenance of an orderly market in their client's securities, nor is required, or receives an incentive for, the maintenance or achievement of a price or trading volume for their client's securities at a certain level, for a specified period of time or by a certain date. AGORA INTERNET RELATIONS CORP. may, at any time, own shares in the company.
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