Good afternoon to you all. Since the SYD press release on Friday and our subsequent follow-up report, we have been monitoring this thread for your comments and questions. We recorded all the comments and sent the ones which best summarized the subjects in question to SYD this morning. President Owen Jones had an opportunity to review those comments and then provided us with feedback in a conference call Tuesday afternoon. Pursuant to our bulletin yesterday, please find enclosed the following report. For your convenience, the topics of discussion have been broken down into sub-headings as follows:
1] Hot Notions - clarifications and further detail;
2] Dr. Bean - current status and initiatives;
3] IBM/Lotus - update current status;
4] Concerns regarding AGM - strategic shift in marketing;
5] Latest Microsoft article - relevance and comments; and
6] Agora Internet Relations Corp. - role in shareholder/database communications
1] HOT NOTIONS
a) General
HN is a product that allows users to chat in context to a web page. This is accomplished by being able to drop a chat-box and linking it to a web page. The key to HN is navigation. HN knows who is connected and provides navigation tools to allow users to find each other and travel the web together. Net Notions, on the other hand, allows a user to leave a message that future users can see after being told to go to a particular address.
Sideware Systems is quite aware that more and more chat systems are being developed but none of these offer the ability to chat in context. Hot Notions was developed and is now being introduced for the purposes of accelerating visibility of Sideware products. The underlying premise is that industry personnel, end users and the investment community, including shareholders, will be able to use the product and experience it's power. The underlying goal is that such a grass roots initiative will lead to increased product sales, increased industry exposure and an increasing share price.
In reviewing the Internet comments provided by Agora, Owen Jones stated the following summary by Geoff (Krone) was very accurate:
" It's said that the service provided at the Hot Notions website will be FREE, and it also says that there is a "complimentary download" which appears to have the same name as the website itself. The download is evidently some kind of Hot Notions client, which, when connected TO THE HOT NOTIONS WEBSITE, would allow the user to do all the cool things that Net Notions can do (and maybe a little more?) The cool thing appears to be that, even though they are giving away Hot Notions, they are not giving away Net Notions. So, any network administrator who tries out Hot Notions will come away with a vivid impression of what Net Notions could do within his/her own system. Great way to boost interest in the Net Notions server and client."
The company also stated the initial strategy behind Hot Notions was to support the Net Notions storefront and possibly generate advertising revenues, as a result of the anticipated traffic. In addition to these two revenue streams, it has now become apparent that a third stream is now a reality. Specifically, over the last few days, Sideware Systems has been receiving requests from corporations to incorporate HN into their web sites. This would be accomplished by purchasing the server and granting use of Hot Notions under specific license. An example of such an application is an auto manufacturer that arranges on-line customer tours of it's web site at a specified time.
With respect to " a detailed assessment on the implication of Hot Notions both positive and negative (not being) posted", the company advised that such an assessment is
pre-mature and can not be made until the product has been released and in use for a short time.
b) Marketing and Visibility
The company advises there are two (2) key elements to increasing visibility of any small company and their products. The first is strategic partnering. The company is satisfied with their accomplishments to date in this regard. The second is product positioning. It is this latter initiative the Storefront and Hot Notions were created to support. The company firmly believes that product positioning will provide the necessary support to progress it's current strategic partnering arrangements.
2] DR. BEAN
The company advises that Dr. Bean is a strategic and specific product that will only be completed once IBM has signed a definitive deal. Owen Jones advises the Alpha version of Dr. Bean was well accepted by IBM and that initiatives are now being taken to determine whether an agreement and requisite financing can be reached in order to complete the final version. For obvious reasons, the specifics of such an initiative can not be discussed at any length.
Suffice it to say, this initiative is very active but the company will not dedicate anymore of it's limited resources to the project until an agreement is signed. The company has identified the fact that it's Storefront and Hot Notions initiatives hold great potential and that progress in each is in the control of Sideware. As such, all resources are being dedicated to these initiatives.
3] STATUS OF IBM/LOTUS DEALS
To date, discussions with IBM/LOTUS have been on two fronts. The first is Dr. Bean, which was discussed above. The second is Net Notions. The latest moves by Lotus have served to revitalize Net Notions in terms of integration. Specifically, the Lotus decision to integrate DB2 to Domino, as well as, their new focus on using an NT operating system, were both positive moves for Sideware in that both make Net Notions more useful and viable within the Domino product line. IBM/Lotus have been struggling to find the right mix and this latest shift, announced only last week, seems to be the one they are going to go with.
Until recently, attempting to use Lotus Notes as the database made it very difficult for Sideware and Lotus to convince clients that Net Notions was a unique product. As such, the company believes this was a major reason for an agreement not being signed with Lotus as of yet. Specifically, the Lotus Notes database engine was originally meant for managing documents in a network, while Domino extended the sharing of documents over the Internet.
Today, the DB2 database engine represents a superior database engine for Net Notions due to the fact it supports all NN functions and future features, thus increasing the viability and utility of NN as a Domino product. Some examples of these include voice, sound and audio/visual features. The end result is that NN can now be integrated much easier, as well as, increasing it's ability to mine information. This latter advantage adds the ability to provide many value-added services inherent in better mining i.e. the ability to query the database for more specific information.
Conclusion: In light of these developments, Sideware is dedicating it's resources to the Net Notions and Hot Notions initiatives and maintaining to work closely with IBM. Many of you have asked why the company is not shopping it's technology amongst other industry participants, to which the company responds that current developments have translated into Sideware products impacting and giving value to Lotus initiatives, as well as, IBM Internet initiatives. Until these initiatives and this relationship is exhausted, the company does not see the benefit of putting them at risk. The company will concentrate first on releasing Hot Notions at Internet World, including demonstrating the product to IBM/Lotus and, secondly, it's advertising and storefront campaigns commencing April 1.
4] CONCERNS REGARDING AGM.
There was concern expressed with respect to the fact Sideware did not announce at the AGM, it's decision to change marketing strategies. Owen Jones commented that he made the following statement at the AGM:
"We will be shifting our focus and that event will be a major one that is pre-mature to discuss in detail at this time".
Mr. Jones acknowledged this statement was ambiguous and probably went relatively unnoticed, in light of the fact those present were understandably more interested in discussing issues such as the status of the Lotus arrangement. Having said that, Mr. Jones' statement was clear that nothing more could be said about Hot Notions at the time.
5] LATEST MICROSOFT ARTICLE
For those of you unfamiliar with the article in question, we provide the headline and the opening paragraphs for your reference.
Microsoft Bags Instant Messaging Company
(02/23/98; 2:27 p.m. EST)
By Barbara Darrow, Computer Reseller News
Microsoft continued its messaging buying spree with
the acquisition of Flash Communications.
Flash, based in Boston, makes instant messaging
technology, that enables workgroup members to
instantly contact each other over the computer.
Typically instant messages pop up in an onscreen
Window.
Such software applications, often called buddy lists,
are one of the leading indicators of what the computer
interface of the future will be, said Jerry Michalski,
managing editor of Release 1.0, a New York-based
industry newsletter.
Sideware advises this is another buddy list chat product that substantiates the fact that real-time chat is useful. However, this is not a context chat system with the ability to navigate, therefore, it is not a competitive product. Such chat products serve to create discussions in a void and do not function like Net Notions, which is a workgroup-intranet product with the ability to leave contextual messages for others. Hot Notions is even more superior due to it's navigational abilities.
6] AGORA INTERNET RELATIONS CORP.
We have seen much discussion on the Internet with respect to the role Agora will play at Sideware. Unequivocally, Sideware has made it very clear that Agora's primary responsibility is to re-establish an effective communication link between the company and it's shareholders.
In accomplishing this task, Agora will be responsible for the flow of information both to and from shareholders. With respect to information flowing from the company, Agora will be responsible for ensuring that information with respect to company activities is disseminated as soon as it is eligible for public discussion. As you all know, Sideware is currently involved in many activities that can not be discussed openly at this time. Nonetheless, Agora is being kept fully informed of each initiative and their progress for the purpose of determining the point at which information is eligible for dissemination.
It is also important at this time to discuss the scope of information disseminated to shareholders. Specifically, Agora and Sideware are both in agreement that shareholders must be updated on all initiatives, regardless of the outcome. Agora was very clear, in it's initial discussions with Sideware, that it had to serve a function beyond that of a buffer between shareholders and the company. Agora is of the philosophy that shareholders must be provided with all company information, both positive and negative, in order to be able to make informed investment decisions. We believe that, in the long run, despite the implications of negative news, a company will maintain a much more stable investor base when shareholders are confident they will be kept fully apprised of company events and in a contemporaneous manner. Sideware management fully agrees with this philosophy.
With respect to information flowing from the investment community, Agora will be responsible for ensuring the company is kept apprised of shareholder sentiment, questions and concerns. In these preliminary stages of our relationship with Sideware, this task is simple from the point of identifying issues but challenging in terms of their volume. Agora has already released one special report discussing Hot Notions and it's implications, which served to touch on some other outstanding issues. This second report deals more broadly with outstanding issues of primary concern to investors. We anticipate a third report to be released next week, which will update investors with respect to remaining outstanding concerns i.e. status of Beta testing Sideware products at larger corporations.
At that point, we feel that investors will have been adequately updated with respect to the current status of all Sideware initiatives. The task will then turn to maintaining investor knowledge Sideware initiatives in a timely manner. In order to avoid the long gaps of silence which plagued the company previously, Agora will deliver an update of company affairs on average of once every two weeks, no matter how big or small those changes might be. In addition, Agora will continue to produce follow-up reports to any press releases issued by Sideware.
Finally, Agora will establish an e-mail address which investors will use for the purposes of asking specific questions. Both Agora and Sideware realize and acknowledge that updates may lead to further questions from investors, to the extent the company is able to answer them. We anticipate making such an e-mail address available after our next report. Having said that, Sideware has made it very clear that it will not answer questions pertaining to the current share price, projected share price, advice with respect to purchase and sale of Sideware stock, matters not available for public discussion and issues relating to wild speculation or conspiracies. The company has concluded and Agora is in agreement that company resources in the past were wasted on matters that were both frivolous and beyond the company's control and that future resources must be used to enhance shareholder knowledge with pertinent information.
We also wish to advise that Agora is not a promoter in the true sense of the word. That is, Agora responsibility does not include any activity that directly relates to the price or volume of Sideware stock. For further clarification, kindly refer to the disclosure statement included at the end of each report. With respect to issues regarding insider information both Agora and Sideware wish to advise that Agora is privy to such information and, as all persons privy to insider information, are bound by contract and law to not act upon such information.
We thank you for taking the time to review our report and look forward to your feedback, as well as, further meaningful discussions.
Regards,
Agora Internet Relations Corp.
DISCLOSURE STATEMENT
AGORA INTERNET RELATIONS CORP. receives a monthly monetary fee from Sideware Systems Inc. for the purposes of communicating with Internet shareholders - both current and prospective - to increase awareness of and interest in Sideware Systems Inc. AGORA INTERNET RELATIONS CORP activities are aimed purely at keeping their clients' shareholders and prospective shareholders informed about their company. These activities consist of providing investors with previously disclosed factual information concerning the company, comments from company principals, copies of material that has been filed with regulatory authorities, comments prepared by registered brokers or investment dealers and material published in newspapers, magazines or journals.
AGORA INTERNET RELATIONS CORP does not participate in the maintenance of an orderly market in their client's securities, nor is required, or receives an incentive for, the maintenance or achievement of a price or trading volume for their client's securities at a certain level, for a specified period of time or by a certain date. AGORA INTERNET RELATIONS CORP. may, at any time, own shares in the company. |
