OT: OTCNN - Shades of FNTT?
OTCNN Aims At Becoming The `CNBC of the OTC Bulletin Board' News Market
Today's launch finally gives investors access to unbiased and objective reporting on OTC BB listed securities
HOUSTON--(BUSINESS WIRE)--May 10, 2000-- OTC News Network, Inc. - a Houston InterWeb (OTC BB: HITD) company, announced today the launch of the new online service at www.otcnn.com. OTC News Network is the first daily online news media focusing exclusively on providing unbiased and reliable news on companies listed on the Over-The-Counter Bulletin Board (OTC BB). Even though many professional investors view the OTC BB as "the Nasdaq of the future", they have had a hard time finding any news stories on their favorite investments.
"There are several other online services that are providing information on OTC BB companies, and some of them occasionally post news stories. Unfortunately, most of these sites offer little more than paid content. What looks like a news story at first sight, often turns out to be a paid promotion or advertorial. OTC News Network is similar to sites like CNBC.com (NYSE: GE), CNN.com (NYSE: TWX) or TheStreet.com (Nasdaq: TSCM) in that it doesn't accept paid editorial content. Just news and objective reporting," says Lee Magness, spokesperson for the OTC News Network.
OTC News Network believes that there is a great demand for its service. In just a little over a year, the Over-The-Counter Bulletin Board (OTC BB) market has transformed its image from that of a wild, unregulated market which was home of countless con-artists and stock scams to a closely regulated market that hosts thousands of legitimate publicly traded companies that are all in full compliance with the SEC's reporting requirements.
"The mainstream media has completely failed to recognize this major change. Despite the incredible success of services such as Ragingbull.com, a CMGI company (Nasdaq: CMGI) that has become the leading chat source for OTC BB investors, established media such as CNBC, Bloomberg, CNN or even CNET (Nasdaq: CNET), Red Herring or Money magazine, rarely even mention OTC BB companies. By being first-to-market we aim to capture the always growing, news-hungry OTC BB investor marketplace," continues Magness.
OTC News Network's business model is unique as well. Instead of relying on advertising revenues or paid content, OTC News Network works together with companies that provide professional services to OTC BB listed companies.
OTC News Network reporters interact with dozens of CEO's of OTC BB listed companies every week. In the process, they are able to find out detailed information on those companies' needs. If the company has experienced problems getting the word out, and would be in need for public relations (PR) services, OTC News Network can pass on this pre-qualified, hot lead to a partnering PR-firm. If they reach an agreement, OTC News Network will receive a referral fee. Likewise, OTC News Network can refer OTC BB listed companies to investor relations, graphic design, web design, software development legal and financial services companies.
"Just like there is a strong underlying need for a reliable news service among the investors, there is a huge need for promotional services among the OTC BB companies. Some investor relations firms actually charge up to several million dollars per year for their services. Even with minimal referral fees, OTC News Network projects its referral revenues could possibly reach $12-$15 million in its first year of operation," estimates Magness.
About the OTC Bulletin Board
The OTC Bulletin Board(R) (OTC BB) is a regulated quotation service that displays real-time quotes, last-sale prices, and volume information in over-the-counter (OTC) equity securities. An OTC equity security generally is any equity that is not listed or traded on Nasdaq(R) or a national securities exchange. OTC BB securities include national, regional, and foreign equity issues, warrants, units, American Depositary Receipts (ADRs), and Direct Participation Programs (DPPs). On January 4, 1999, the SEC approved the OTC BB Eligibility Rule. Securities not quoted on the OTC BB as of that date are being required to report their current financial information to the SEC, banking, or insurance regulators in order to meet eligibility requirements. Non-reporting companies whose securities were already quoted on the OTCBB have been granted a grace period to comply with the new requirements. Those companies were phased in beginning in July 1999 and by June 2000, current financial information about all domestic companies that are quoted on the OTCBB will be publicly available. For more information on OTC BB, visit www.otcbb.com.
About Houston InterWeb
Houston InterWeb (www.hiwd.net) specializes in Web site and software development, hosting and data warehousing. Houston InterWeb focuses primarily on assisting start-up Internet companies that need management knowledge and technological expertise. Houston InterWeb's primary holdings include a 100% ownership in SiteBlazer, Inc., 100% of Political Team and 20% of OTC News Network.
SiteBlazer(TM) (www.siteblazer.com) is a Houston InterWeb-designed tool that provides a high-quality, affordable solution for Web site design, maintenance, and hosting. By using SiteBlazer technology, anyone can create a professional Web site in just 15-30 minutes, and later update it without any programming knowledge. As an added value, when the sites are created, description and keywords (meta tags) are automatically embedded to attract search engines. SiteBlazer has licensees in Beijing, China, Mexico City and Monterrey, Mexico, Panama City, Panama and the United States.
Political Team (www.politicalteam.com) is a one-stop shop that can fulfill nearly any electronic campaigning need. It can assist politicians, candidates and organizations with everything from data broadcasting, faxing, email distribution, Cyber-Pitch(TM) cards, traditional graphics and advertising to political Web sites, e-polling, high-speed Web sites, online fundraising and a political Web portal at www.politicalnet.com.
Safe-Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein that are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including but not limited to certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission. This information is not a recommendation to buy or sell securities of Houston InterWeb Design (the Company). Merger Communications (Merger) is a media relations firm employed by the Company. Merger and the Company believe that all information in this release has been obtained from sources considered reliable, but cannot guarantee that the statements presented herein are accurate or complete. Merger, its officers, directors and employees own 66,800 shares of the Company's common stock. According to the long-term agreement between Merger and the Company, Merger's compensation for its financial media relations services includes 40,000 shares of the Company's common stock and five-year warrants for an additional 60,000 shares execrable at $4.00/share and 60,000 shares at a price determined at a later date. Merger typically has a long position in the securities of the companies in which it distributes information, and Merger may be buying or selling securities in the course of its regular business. For more information on Merger's services, visit mergerusa.com.
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Contact:
Merger Communications, Houston
Investor inquiries: Mark Siebert, 713/572-2560 Ext. 116
msiebert@mergerusa.com
or
Media inquiries: Theresa Rasmussen, 713/572-2560 Ext. 105
trasmussen@mergerusa.com
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