MIRM....Monday December 6, 7:59 am Eastern Time
Company Press Release
SOURCE: Miracom Corporation
Parts.com to Serve as Parts Exchange For One of
Nation's Largest Ford and Toyota Dealerships
Pipeline of Additional Dealerships and Alliances Continues to Expand
Parts.com Receives Over 2 Million Monthly Hits, Despite No Advertising
Company Outlines Strategy for Parts.com Business Model
SANFORD, Fla., Dec. 6 /PRNewswire/ -- Miracom Corporation (OTC Bulletin Board: MIRM - news), a developer and
owner of business-to-business e-commerce services and the holding company for Parts.com(TM), a business-to-business
e-commerce parts exchange, today announced the signing of a Platinum Distribution Agreement with Sacramento,
California-based Folsom Lake Enterprises for Ford, Toyota, Chrysler, Jeep, Kia and Hummer parts for Parts.com's Western
Regional Territory. Each Platinum Supplier will have the first opportunity to pick, pack, ship or deliver all parts which originate
from their territory and vehicle line responsibility. The agreement includes exclusive rights for the distribution of automotive parts
for those vehicle lines in a 13 state region spanning from Hawaii to New Mexico. Under the terms of the two-year agreement,
Miracom will receive an annual payment of $95,000 in addition to a transaction fee for parts sold via the Parts.com exchange.
Folsom Lake Enterprises is one of the largest Ford and Toyota dealerships in the country. The dealership, one of the most
profitable in the nation, sold over $15 million in just Ford and Toyota parts in 1998 with 1999 figures expected to be
substantially higher than 1998.
''Over the past 45 days, we have met with some of the most prestigious dealer groups in the country,'' said Shawn Lucas,
Chairman and Co-CEO of Miracom Corporation. ''The dozens of pending territory/vehicle line agreements under review will
be announced singly or in groups as they are finalized. Our Parts.com site has attracted the elite of parts sales and distribution in
the industry, and with their support, we are planning to emerge as the dominant force in parts sales on the Internet,'' concluded
Mr. Lucas.
''Parts.com could be one of the most exciting business opportunities in the automotive industry in the last decade,'' said Chuck
Peterson, President and CEO of Folsom Lake Enterprises. ''Parts.com has a superior business model that has effectively
addressed the complex business-to-business operations required to supply this huge market. It may revolutionize e-commerce
automotive parts and accessory sales and distribution worldwide. I am extremely excited to be in on the ground floor and look
forward to utilizing Parts.com to grow our company's sales and profits.''
''I am certain we could not have found a better supplier to represent our interests in the West than Chuck Peterson of Folsom
Lake Enterprises,'' said Jeffrey Odato, Vice President National Sales, Parts.com. ''He has an outstanding reputation for
growing one of the finest automotive organizations in the West. Chuck is a smart business man and is extremely astute about the
future of e-commerce. He shares our vision for the growth of Parts.com and the major impact we hope to make on the auto
parts industry. We look forward to working with his company as we initiate the fulfillment of our expectation to rapidly ramp-up
sales at Parts.com.''
Parts.com Receives Over 2 Million Hits Per Month
The Company also reported today that its Parts.com site has begun to generate more than 2 million hits per month despite no
advertising for the site. The Company expects the site's traffic to increase substantially as it begins to implement an aggressive
marketing and advertising campaign, currently scheduled to commence in the first quarter of 2000.
Company Outlines Parts.com Business Model
On January 24, 1999, Parts.com will be launched at the National Automobile Dealerships Association (NADA), the largest
automobile dealership association in the world, in Orlando, Florida. The site will offer nearly 2 million searchable automotive
parts and accessories. The Company's plans call for an expanded catalog of almost 5 million searchable parts by the end of
2000.
Parts.com Model Calls For 165 Platinum Suppliers
Parts.com utilizes a multi-level business model concurrent with its e-commerce web site to reward suppliers throughout the
network chain. At the first level, the model calls for dividing the United States into five regional territories. Each protected
territory will have a single designated ''Platinum Supplier.'' In the event the Platinum Supplier cannot fulfill an order or a portion
of an order as a result of not having the part available; or cannot fulfill the order within the customers time parameters, then the
order will then be referred to our ''Gold Supplier'' network. In any event, and in all instances, the Platinum Supplier enjoys
profit participation from the sale which is deferred to the Gold Supplier. There will only be 165 total Platinum Suppliers in the
Parts.com network serving the world's automotive parts and accessory needs.
Parts.com Model Calls For 210 Gold Suppliers
The Parts.com ''Gold Supplier Network'' is made up of a much broader base of suppliers who reside within the same regional
territories as the Platinum Suppliers and will support the same product lines. The Gold Supplier will act as a fail-safe or
secondary fulfillment source in the event the Platinum Supplier does not have a requested part or more importantly, cannot meet
the urgent ''same day'' time parameters which could be placed on the order by the customer. ''This is where the Parts.com
model excels in superiority of design and function,'' continued Mr. Odato.
The future and ultimate goal of the Parts.com will be to deliver parts to customers with critical time frames such as repair shops
in as little as two hours. In order to realize these time sensitive goals, the Company plans to establish 210 Gold Suppliers per
vehicle line throughout the United States. The 210 DMA'S (Dominant Market Areas) will emulate the top 210 broadcast
television markets in the country and will maximize delivery efficiencies on same day product and oversize product requests.
Because the business-to-business side of the Parts.com promises to be significant, the Gold Supplier Network will be a vital
and logistically important link in the overall model. The Gold Supplier earns a portion of the gross profit of the sale; however,
provisions are made for Platinum Suppliers to share a percentage of the Parts.com's transaction fees even when parts are
referred to other Suppliers.
Silver Supplier Network
Rounding off the Platinum and Gold Supplier tiers will be the ''Silver Supplier Network.'' The Silver Network Associates will
fortify the Parts.com supplier network by providing the foundation of the Company's plans to establish the world's largest
on-line parts locator network (PLN). Silver Network Associates will be traditional dealers or any entity which supplies and
inventories automotive parts and accessories. Silver will be the final level to which a request will default to in instances where
the Platinum or Gold Suppliers cannot deliver on a product request. Silver Network Associates (as well as Platinum and Gold
dealers) will be eligible to place parts and accessories on-line for auction and on-line trading without restriction to quantities or
frequency.
OCTANE System to Fuel Parts.com
The engine behind the Parts.com network is the Company's back-end component called ''OCTANE'' or Order Control
Tracking and Networking Environment. This full service application is a self-contained, secure, web enabled back-end solution.
OCTANE addresses all the suppliers' control and fulfillment needs, including order processing, picking, packing and shipping
logistics, inventory management, Customer Service Representatives (CSR) management tools, Return Management
Authorization (RMA), Request for Quote (RFQ) and Request for Proposal (RFP).
About Miracom Corporation
Miracom Corporation is a developer and owner of business-to-business e-commerce services and the holding company for
Parts.com and ReallyKnow.com(TM). Based in Sanford, Florida, Miracom Corporation owns and operates the Parts.com
(www.Parts.com), an e-commerce business-to-business parts exchange, and ReallyKnow.com (www.ReallyKnow.com), a
Web-enabled real-time data gathering system which is revolutionizing the research field. Other products developed and owned
by Miracom include: Epolicy(TM), a Web-enabled, back-end software; and QuickQuote 2000(TM), the front-end
complement to Epolicy(TM).
This news release includes statements that may constitute forward-looking statements pursuant to the safe-harbor provisions of
the Private Securities Litigation Reform Act of 1995. Although Miracom Corporation believes the expectations reflected in
such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be
met. Factors that could cause actual results to differ materially from Miracom's expectations include the operational
performance of Parts.com, the Company's success in entering into strategic alliances, Parts.com's and ReallyKnow.com's
operational and financial performance, industry conditions, demand for its products as well as other risks.
SOURCE: Miracom Corporation
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