Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion. -- Ignore unavailable to you. Want to Upgrade?

To: Arouk who wrote (9929)	9/20/1999 1:08:00 PM
From: Coral4pH_dot_com	Respond to of 150070

For 1 1/2 years, they have beta-tested their internet travel technologies for multiple military bases. They were operating all off-duty travel processing. They have invested a huge amount into this launch as they want to rise up as the leader in the internet travel industry and are constantly looking at their long-term goals. Here is some DD about ETVL's history: * COMPANY HISTORY * EXA International, Inc. (EXA) was founded in 1994 for the purpose of selling remote location, full service travel agencies by incorporating newreservation system technology to offset income reductions contemplated by the airlines reducing the commissions paid to travel agents. The focus of the franchise was to allow a full service travel agency to operate with the minimum of fixed overhead costs and redirect the emphasis of sales from airline tickets to cruises and tours. The Company paid in excess of $450,000 for the right to beta test its remote location technology and concept using 489 remote location individuals who had purchased a business opportunity from a company based in Honolulu. The 489 individuals were located throughout the country. The beta test took approximately 18 months. Predicated on those results, EXA developed its proprietary software, systems and procedures (intellectual properties). In response to requests from the beta test group, EXA set up two pilot master regions that bid on various military contracts. The Company was successful in three bids and opened satellite offices in Rhode Island, Utah and Pensacola, Florida. In addition, the Company assumed the travel agency operations of the naval base in Puerto Rico. Each installation required an investment of approximately $70,000 to install telephone and computer lines, as well as office furnishings. In October, 1998, the airlines changed their commission structure for the third time making military contracts, as originally bid, unprofitable. Unfortunately, the base personnel in charge of renegotiations refused to recognize the reality of the situation. We chose not to accept contract renewals and subsequently closed all operations at the various bases to curtail the continuing losses created by the commission reductions. The Department of Defense has since seen the inequity of the situation and advised the installations to renegotiate all revenue sharing agreements. In December, 1998, John Curran resigned as President and Chief Executive Officer and Stanley Priskie assumed the offices. Mr. Priskie set in motion the closing of the military base offices and closed all travel agency locations in order to focus on the Company's primary business of selling franchises. In the process of downsizing, Mr. Priskie reduced annual overhead by $3 million. In November, 1997, the Company acquired a franchisor of 146 full-service, store-front travel agencies. Management had been a proponent of converting traditional store-front travel agencies to either full-service remote location agencies or travel agencies limited to selling tours and cruises (high ticket-high commission sales), making this acquisition have dual benefits. In addition to the conversion program, the 146 franchisees indicated that their annual gross sales of travel and travel related services were in excess of $200 million, a level adequate to support a company owned wholesale tour operator. The Company faced opposition to the consolidation of the administrative offices which ultimately led to the former owners of the acquired company requesting a recission of EXA's acquisition and filed suit in federal court. During the ensuing year, the 146 franchisees dwindled to 120 and none of the franchisees opted for the conversion privilege. The cost of litigation, before discovery proceedings or trial amounted to $50,000 with an estimated minimum of $100,000 to successfully pursue the defense. During this period, airline commission were once again reduced and the airlines were targeting the consumer directly through the Internet, making traditional, store-front travel agencies, like those acquired, unprofitable. Of course the sensible course of action was for the Company to agree to the recission and a settlement was reached by the parties in August, 1999. Management has gone back to the drawing board to reconstruct the franchisesystem using Internet based technology and to complete the development of its travel club to drive business to the Company and enhance the franchise system. The introductory annual membership is $29.95 and provides members with discount coupons worth hundreds of dollars from Alamo Rent A Car, Premier Cruise Lines, and Bentley's Luggage to name a few. As each member purchases travel (and related services) for them- selves, family members and friends, they receive a 30% credit of the point of sale commission which they can use on future travel. The credit can only be used at participating agencies or through the Company's new web site due to be completed by September 15, 1999. Upon completion, the new web site will be hyper-linked an unrelated web site that contains travel specials on cruises and tours for high value, low cost vacation packages, and is continually updated. The web site is not designed to attract sales from the general public and can only be accessed by a franchisee or travel club member. The full impact of travel club revenues will be measurable in the year 2000. It has been Management's goal to plan for the long-range success of the Company. The Company has invested over $12 million, since 1994, in the development of its long-range goals. Management is optimistic that its newly designed Internet access programs will provide profitable operation beginning in the year 2000.