Good afternoon to you all. Pursuant to the latest press release issued by Sideware Systems Inc. (SYD), please find enclosed our follow up report. As well, please find enclosed information with respect to Internet World and the inaugural Hot Notions tour.
1] SUNSET DIRECT MARKETING AGREEMENT
GENERAL
SYD marketing efforts announced to date have concentrated on on-line marketing initiatives such as their electronic store front. This latest deal serves to manage DIRECT marketing and sales efforts for Sideware's Net Notions groupware messaging system. Sunset's primary responsibility will be to drive incremental business for Net Notions into the Fortune 2,000, Mid-Market and major educational/governmental organizations. To that end, Sunset will deploy a team of sales representatives who are employed on a permanent basis by Sunset but act as full-time sales representatives for Sideware. This dedicated team will also be supported by outbound telesales representatives.
We are confident in the Sunset system not only based on it's prior successes and associations but due to the fact Sunset Direct is incurring a substantial upfront capital and human resource outlay to market Net Notions. Furthermore, we are encouraged by the fact Net Notions has passed the stringent standards used by Sunset to determine which product lines it will carry in a given year. Unlike traditional retail methods, the Sunset system is very dependant on human resources and, as such, can only represent a limited number of products which represent the greatest probability for success. We refer you to the following quote from yesterday's press release:
"Part of Sunset's impressive product promotion success to date is due to our selectivity in which products we agree to promote," comments Jeff Turner, Vice President, Corporate Sales for Sunset Direct, Inc. "We're impressed with the usefulness of Net Notions and excited about the sales potential it holds. In fact, we're planning on utilizing the product internally."
SUNSET DATABASE
Sunset Direct matches IT products with volume buyers. Sunset's database of contacts includes 250,000 IT professionals responsible for influencing computer purchase decisions. Sunset's base of Fortune 2,000 end user IT contacts make or influence $7 billion worth of IT purchasing decisions. Sunset has relationships with volume buyers from the following companies, among others: Du Pont, American Airlines, Boeing, Lockheed, Norwest, Hertz, Ford, FedEx, Caterpillar, McDonalds, Ernst & Young, AT&T, John Deere, Baxter, Avis, BellSouth, Citibank, Merck, Mobil, Marriott, NYNEX, MetLife, Westin, Sprint, VISA, State Farm Insurance, Pacific, Bell, Rayovac, Pizza hut, Texico, Pepsico.
To add some merit to these names, Sunset accounts are directly responsible for a cumulative 21, 544,339 PC's, 472,033 servers, 494,210 printers and 2,241,116 notebook computers. Planned purchases during the upcoming 12-month period include nearly
$4 billion in software applications.
SUNSET CLIENTS
The following is a list of clients, among others, which have had their products represented by Sunset Direct:
IBM - Apple Computer, Inc.DIGITAL INTEL
INGRAM ALLIANCE COMPUTER ASSOCOCIATES
OKIDATA 3COM
EPSON TEXAS INSTRUMENTS
OSITECH LOTUS
SYMANTEC CANON
HYUNDAI - Display Products
PROJECTIONS
There is no doubt the current agreement with Sunset Direct represents a serious commitment of resources, both human and capital, on behalf of both companies. As such, in coming to terms on this agreement both sides had to be satisfied this relationship would be an equitable one. Specifically, Sunset Direct had to be satisfied that Net Notions was a product for which they could create healthy demand, that would be profitable and that would be supported by a stable company. On the other hand, Sideware Systems had to be satisfied that Net Notions would be properly represented for the first time to such large corporations and the return on investment would merit investment from their limited resource pool. Suffice to say, signing of this agreement is an indication of both parties satisfaction and both expect revenues between $2,000,000 to $4,000,000 in the first year of the program. Both companies expect sales momentum to increase as the program extends and the initial "ramp-up" time of this program diminishes.
Furthermore, it is anticipated that Net Notions will be only the first product line of many future additions. Owen Jones, President of Sideware, said: "This is another milestone and building block for the company. This agreement allows us to expand our distribution channel directly to IT professionals and opens the door through which to push additional products."
For further information regarding Sunset Direct, you can visit their web site at:
www.sunsetdirect.com
2] INTERNET WORLD
The company reports that feedback from I-World was extremely positive and to the point the company feels justified in increasing it's Hot Notions budget. The consensus was that Hot Notions is superior to any current chat system and that it represented the only truly original product at I-World that would be Internet enhancing.
With respect to revenue generating opportunities, a number of companies expressed an interest to advertise on Hot Notions, including one very large on-line service. The company expects to receive a complete list of specific advertisers by the end of this week, for commencement as early as May 1.
Secondly, Sideware has received great interest from several sources already willing to license the product. Specifically, ISP's and Universities. With respect to the ISP's, Sideware believes they are very close to being able to provide the product, with the exception of the largest provider which currently enrolls 2 million users. In the case of the latter, there is no issue as to architecture and design of the product, only capacity as current Hot Notions servers are not yet able to service 2 million users. The company has advised this is a simple issue of scalability and, in fact, further supports their IBM/Lotus discussions due to the possible increase in server transactions. With respect to the Universities, the institutions have advised that long distance learning using the Internet is a definite initiative and the current Hot Notions product is strong enough to support such initiatives.
Finally, the company wishes to advise that another business opportunity has risen with Hot Notions. Specifically, the possibility now exists for distribution of the product in Europe, Asia and Australia. International distribution is now a distinct possibility based on two factors. First, the company is currently testing language interpretation software in the Hot Notions server. If the testing is successful, Hot Notions will be the first product to ever allow real time cross discussions over the Internet in different languages. For example, a user in Asia using the Japanese language could converse with a user in Canada using English language. Secondly, distributors have already expressed a definite interest in entering into agreements for Europe, Asia and Australia.
3] INAUGURAL GUIDED TOUR
Owen Jones wishes to advise that he will be meeting with all SYD development and technical personnel through this week, in order to iron out current wrinkles in the product. Those meetings and the subsequent work will take him and the company right through to the end of this week. As such, Mr. Jones wishes to advise the inaugural on-line tour will "definitely" take place next week. In the meantime, both Mr. Jones and Sideware would like to thank all of you for using the product and for so diligently reporting any problems you encountered. Sideware recognizes and acknowledges that development has been able to move ahead at a fast pace as a result of your input. Furthermore, the efforts by many of you to contact companies on your own initiative and raise awareness of Hot Notions is acknowledged and appreciated.
We trust the above to be satisfactory and look forward to your questions and comments.
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. |
