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Microcap & Penny Stocks : HouseHoldDirect.com (BYIT)-The Next SAMS/Walmart Ecommerce -- Ignore unavailable to you. Want to Upgrade?

To: Wayne Finucan who wrote (2548)	6/25/1999 3:09:00 PM
From: Jeffrey L. Henken	Read Replies (3) \| Respond to of 2994

Notice to all RDIM Shareholders From: John Folger, President - HouseHold Direct.com Over the last few weeks, some of you have posed questions which we feel should be answered in a public manner so as to provide accurate information to all concerned. This message acts as a statement of clarification on these matters, as well as an update on several issues that have not previously been raised. Stock price, market cap and valuation. We believe that the market is waiting to see if the management team can actually execute the business plan as contemplated. Agreements have been concluded with our acquisition candidates and are waiting for several components of due diligence. Some audits are complete, others are in stages of production. These audits and due diligence involve operations in 9 states, which makes the process more time consuming. Acquisition prices involving cash and stock.. The acquisitions will involve a portion of cash and stock. The percentage varies depending on several criteria; generally profit percentage to cash flow, amount and depth of management are part of the considerations. From our perspective, we seek operations that are profitable, and have management in place that can speed up our integration with operations. The stock used is restricted for one year from the time it is delivered. All stock delivery is accomplished over time, so that as the price per share increases, the number of shares, and dilution is reduced (in some cases the stock is delivered over several years). This makes it very difficult to predict the share structure on a fully diluted basis over time, since no on knows how much or when the stock will appreciate based on market assumptions and performance. The Thunderstick acquisition was accomplished with restricted stock only. The reason to own this software engineering and design firm is that as we attract more manufacturer vendors, we expect to supply various software tools making it possible for the manufacturers to load their catalogs updates directly to our site. HHD wishes to own these toolsets, as well as the software and engineering backbone of the international enterprise that we are building. If this is successful, HHD will become a critical component of all vendor e-commerce activity. Thunderstick is uniquely qualified in this data management and design engineering field. You will notice that Lightmix Design is still the company that adds the creative and graphic touch. The toolsets and vendor relationships are, we believe, a significant revenue opportunity for the Company, and represent a significant part of the revenue discussions regarding Thunderstick as a wholly owned subsidiary. Reporting status of the Company. The SB2 filing for reporting is underway, but is waiting for the final audit results. We have been informed that a name or possible symbol change will not effect the schedule, due to grandfathering, which some of you know runs through next year. Obviously we are staying on top of these, and other issues, as they pertain to our potential NASDAQ listing. We are working with qualified advisors at all levels, and fully understand that in order to reach a large secondary offering, we will need "Big 5" accounting and level 1 or 2 underwriters. Reverse stock split . Not under consideration, please stop asking. Market position of HHD in comparison with Costco, Sam?s and BJ?s and others. These are public clubs that we describe on our website. They represent tens of millions of members, and because they are public companies, your own due diligence from 10Q?s and 10K?s can answer your specific questions. From the HHD perspective, they prove the appetite that consumers have for special prices and considerations, and we feel it helps to justify our estimation that the private clubs are only an $8 billion part of a $50 billion industry. Website launch. The launch is expected during the week of July 6 to 10. The delay is not just pictures and graphics, but interfaces that will work with the next level of development. Some of you may recall that on the first site, there was a neat and simple-to-use geographical engine which allowed for same level hierarchical searches, meaning only that you could compare like items side by side instead of having to continually drill up and down during searches. Even though this functionality will not be visible for this launch, it is an integral part of the underlying architecture. This is a very big deal in the engineering arena, and we believe, will be an important part of what differentiates HHD from other sites. You may recall that a press release covered the use of SAP as an enterprise-wide administration and financial control software solution. This implementation involves the integration of issues across the 9 states of our separate prospective operations. Eventually this will have to integrate with our e-commerce launch as a separate profit area; therefore, we must prepare for additional considerations. The launch at this first stage will be small in comparison to what is planned, but we will have the capacity to collect some prospective member information. Initial site member pricing. As we conclude the acquisitions, the existing membership pricing in effect at the current service center operations will continue as we phase in the Internet ability and a new pricing system. We can?t reveal new pricing yet: announcements will follow. Prices will be lower, and include more services as part of a bundled program. Financing and all acquisition closings. We are in discussions with multiple sources of capital at different prices and terms. The acquisitions will occur as all components are properly negotiated. We will continue to develop this project at the most rapid pace possible, and are adding more depth to the management as we proceed. All of this takes time, and we appreciate your patience and support. I got this in my e mail yesterday. Is anyone interested in getting this kind of information in their own e mail on RDIM? All you have to do is get on the mailing list by sending a request here: info@HouseHoldDirect.com Regards, Jeff