INTQ report.
Research Investment Group Announces Investment Opinion on Intelliquis
International Inc.
PEMBROKE PINES, Fla., Jul 14, 1999 (BUSINESS WIRE via COMTEX) --
Research Investment Group Initiates Coverage on Intelliquis
International Inc. (OTC BB:INTQ) With a Three-Month
Target Price of US$9.00
Intelliquis International Inc. (OTC BB:INTQ) 352 West 12300 South,
Draper, Utah 84020, Phone: 801/990-2600, Fax: 801/990-2612, website:
intelliquis.com.
"Intellifix 2000" is the Best Product Available for Tracking Down and
Eliminating Y2K Problems in Computer Hardware and Software!!!
America OnLine has Begun Marketing IntelliFIX 2000 to its 17.3 Million
Users With Banner Ads on AOL's Home Page.
A profitable Operating Company, INTQ is Significantly Undervalued!!
COMPANY PROFILE
Intelliquis International, Inc. (OTC BB:INTQ) is best-known for its
IntelliFIX 2000 program, a software product designed to combat year
2000 (Y2K) conflicts on personal computers by automatically
identifying, diagnosing and repairing PC hardware, software, operating
systems and data files.
Currently, INTQ has about a 35% share of this market. Interestingly,
its major competitors, Norton 2000 & Toolbox 2000 (collectively, 50% of
the market), cannot repair Y2K problems in software applications, data
files, or non-Windows operating systems such as DOS, UNIX, Novell or
OS/2.
Recently, INTQ entered into two major sales / marketing agreements for
its IntelliFIX 2000 technology.
Last month, INTQ announced a distribution agreement with Millennium 2K
Solutions Inc. (M2K) to provide M2K with 1,000,000 M3 ISA cards; the
M2K agreement is estimated to generate US$14 million gross and US$3.5
million net (10 cents per share) to Intelliquis this year.
On July 1st, INTQ announced that it had entered into a sales /
marketing agreement with America OnLine (AOL). AOL will feature the
IntelliFIX 2000 software in banner ads on AOL's home page for direct
sale to its 17.3 million registered subscribers. America OnLine has
already purchased 50,000 units of IntelliFIX 2000, and INTQ estimates
that they will net about US$9 on each unit sold through AOL.
This deal has huge implications for INTQ. AOL currently has 17.3
million users, and you can be sure that AOL wants each and every one of
these folks to be Y2K compliant, so that AOL's revenue stream continues
uninterrupted. If just 10% of AOL subscribers purchase IntelliFIX 2000,
that's 1.73 million copies of the software, and net earnings to INTQ of
nearly US$15.6 million (45 cents per share).
THIS COMPANY IS MUCH, MUCH MORE THAN A Y2K SOFTWARE FIRM !! The
quality, utility and value of INTQ's complete range of software
products has not gone unnoticed by the industry's major players.
Witness the recently-announced decision to bundle INTQ's Website
Traffic Builder with Microsoft Office 2000 in a promotion at more than
850 Staples superstores nationwide. INTQ has also established major
retail sales / marketing agreements with OfficeMax, CompUSA and EggHead
Software.
While INTQ's management intends to make some serious money out of
selling IntelliFIX 2000 this year, the company is looking to grow
beyond Y2K with some very significant acquisitions. One deal that is
very close to being signed involves web broadcasting technology that
would allow consumers to select and download full video and sound from
a vast library of offerings. The potential is huge - INTQ believes that
this deal could generate US$40 million in sales during the coming year.
A joint venture deal is also reportedly being negotiated with TVMedia,
the largest home shopping network and direct sales company in the
world. The deal would involve using INTQ's web broadcasting technology
to offer on-demand infomercials on the web, and selling these products
to consumers around the world through a new e-commerce site that INTQ
would own 50% of. INTQ believes that theTVMedia e-commerce deal could
potentially generate US$100 to US$140 million in sales for its accounts
in the first year of operations!
WHY YOU SHOULD CONSIDER ADDING INTQ TO YOUR PORTFOLIO!! INTQ is
growth-oriented company, and offers investors much, much more than a
Y2K play. In the near future, INTQ plans to move into web broadcasting
and direct marketing / e-commerce, with two major deals likely to be
announced in the near future. In support of their aggressive
acquisition and growth plans, Intelliquis has arranged a US$40 million
financing1/4package with Bankers Trust; a US$10 million equity
financing is set to close this month.
We like the fact that INTQ's IntelliFIX 2000 software package already
has a 35% market share - and consumers are only just beginning to
realize that it is the only product on the market that can completely
fix Y2K problems in software, hardware, operating systems and data
files. We believe that Y2K is going to be where the action is going to
be this summer and fall, and, with the best product available, plus
exposure to AOL's 17.3 million subscribers, INTQ should perform very
well this year.
With the recently-announced AOL deal, Research Investment Group
believes that INTQ could achieve revenues of US$50 to US$60 million
this year, and report net earnings of 55 cents per share. At a 15x to
20x multiple, that would suggest a potential equity market valuation of
between US$8.25 and US$11 per share, far above INTQ's current trading
range.
For investors seeking good growth at below-market valuations INTQ is
rated an excellent investment for high risk portfolios...
For more information, please contact: Ken Jensen - INTQ Investor
Relations at801/990-2600
DISCLAIMER Research Investment Group is not a Registered Investment
Advisor or a Broker / Dealer. Research Investment Group has
independently prepared this report, drawing upon a range of public news
and information sources. Subsequently, Research Investment Group has
entered into agreements with reputable, independent, third party
distribution services to disseminate this report by e-mail to the
international investment community. This electronic communication
reflects opinions from Intelliquis International, Inc. (the "Company").
Readers are advised that this publication is issued solely for
information purposes and is not to be construed as an offer to sell or
the solicitation of an offer to buy. The opinions and analysis included
herein are based on sources believed to be reliable and in good faith
but no representation or warranty, expressed or implied, is made as to
their accuracy, completeness or correctness. This information is not
intended to be used as the sole basis of any investment decisions, nor
should it be construed as advice designed to meet the investment needs
of any particular investor. The foregoing discussion contains
forward-looking statements that are based on current expectations and
differences can be expected. Theinformation contained herein has been
provided by the Company to Research Investment Group for information
purposes only; in addition, the information contained in this report is
not intended to be a complete discussion of information regarding some
of the current and/or intended business activities of the Company.
Readers are urged to consult with independent financial advisors with
respect to an investment in the shares mentioned herein. Investors
should review a complete information package on the Company, which
should include, but not be limited to, the Company's annual report,
quarterly report, press releases, as well as all regulatory filings.
All information contained in this report should be independently
verified with the Company mentioned herein. Any opinions expressed in
this report are statements of judgment as of the date of publication
and are subject to change without further notice, and may not
necessarily be reprinted in future publications or elsewhere. Neither
Research Investment Group nor its officers, directors, partners or
employees /consultants accept no liability whatsoever for any direct or
consequential loss arising from any use of this report or its contents.
In order to be in full compliance with the Securities Act of 1933,
Section 17(b), Research Investment Group advises the readers of this
electronic document that it has received a fee of 30,000 free-trading
common shares of the Company as compensation for its efforts in
researching, writing, presenting and disseminating the information
contained herein. Prior to Research Investment Group disseminating this
information, the Company reviewed and approved the contents hereof.
Research Investment Group, its officers, directors, partners and
employees / consultants may profit in the event the shares of the
Company increase in value. These positions may be liquidated from time
to time even after Research Investment Group, its officers, directors,
partners and employees / consultants have made positive comments on the
Company. THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE
DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN
SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK. We
encourage U.S. readers to review the investing information available
with the Securities and Exchange Commission ("SEC") at
sec.gov and/or the National Association of Securities
Dealers ("NASD") at nasdr.com Intelliquis is a
fully-reporting company with the SEC. Readers can review all public
filings (including financial information) at the SEC's EDGAR page
freeedgar.com.
Copyright (C) 1999 Business Wire. All rights reserved.
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CONTACT: Research Investment Group, Salt Lake City
Jonathan Ames, 801/509-6170
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